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Performance assessment systems' flaws and dysfunctional effects have been
examined in various academic works, but recently there has been a flurry of
research. Companies use performance management frameworks as a collection of
rules to promote high success rates and gauge the efficiency of their staff or
operational processes (Bowersox, Closs, Cooper, & Bowersox, 2020). Directors and
executive-level managers of the organisation frequently establish these rules. In this
situation, the organisation can evaluate its performance using both functional
performance and customer accommodation.
Functional performance
The capacity of a facility, either as a whole or in individual component to
accommodate the needs of the organization using it as well as the effects of those
actions. This implies that an organisation must have established benchmarks for its
operations according to Bowersox et al (2020). The following crucial elements would
mostly be covered by functional performance:
Quality
Another key consideration while developing functional measurement is quality
(Bowersox et al, 2020). Due to the fact that it enables organisations to assess their
performance within the business, quality plays a crucial role. In other words,
providing high-quality services would enhance the organization's reputation and
increase revenue. For instance, ZA-online must have minimal client complaints,
which would suggest a high level of quality. Customers are typically drawn to quality
because they want to receive a good deal.
Productivity
Productivity is the capacity to produce more with fewer inputs. This is a crucial
performance indicator once more since ineffective business models result in subpar
services, which have a negative impact on the effectiveness of the organisation
(Bowersox et al, 2020). For example while creating this framework, ZA-online
needed cutting-edge technology that would enable the company to rule the world
given how unstable the industry is in this market environment.
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