Role Of Performance Metrics
Role of performance metrics to measure success in food and beverage stores
The key to evaluating the business is by measuring the performance of the employees. This evaluates whether the employees are doing their work properly or not. A performance metrics provide the hard data and yields results that help in measuring the clear quantities to allow development to the food and beverage industry. Performance measurement is required to collect, analyze and report the performance of an individual, group, and organisation. The performance measurement works qualitatively to provide various information about the products, processes, and services that are provided by the company or organisation. Badland et al. (2014) proposed that the performance of measurement must be practiced on a regular basis to check the performance against the standards and quality of the products and services provided by the company. A manager is responsible for the performance metrics. The manager observes controls, supervises the activities of the subordinates, and prepares the reports based on their performance. This helps in managing the various activities to accomplish them effectively. The manager constantly checks the performance of the activities to ensure that activities are performed in a specified manner or if any correction activity is required. On the contrary, if any deviations occur in the work the manager ensures that such deviations are not continued further. Thus, the performance measurement is a process of which is required for continuous improvement.
Role Of Performance Metrics
For example, Woolworths Limited need to increase its current sale profit by fifteen percent thus, they need to first calculate the break-even point. This value tells the organisation about how much sales they need to make to increase the profit by fifteen percent. Wu et al. (2014) mentioned that the prime cost is the sum total of all the expenditure made by the store. Including the cost of the labour and the cost of the goods, they sold. Whatever money is left back excluding the prime cost is the profit of the store. The prime cost of a store is generally sixty percent of the total sales. To increase the profit margin of the store they need to decrease the extra expenditure and manage the activities properly.
The role of the evaluation mechanism influences the manager. The manager uses the broad-based measurement information for the control and feedback. The resultant decision made by the manager makes an impact upon the identification and exploration of the major and strategic capabilities to improve the organisational performance. Georgiev et al. (2014) commented that the managers to take strategic decisions to increase the performance of the organisation subsequently and to implement the decision-facilitating measures. The performance of an organisation arises from the decision-making on the exploring the existing capabilities and the identification and implementation of the new opportunities.
The performance metrics not only measures the performance rate of the employees but also the productivity of the entire organisation at a lowered cost. Necessary feedbacks can be generated through this process, which is helpful for the managers to guide the activities accordingly. Thus, it can be said that the performance metrics process is helpful in understanding, managing and improving the business of an organisation