Operations managemeon: Issues of performance management

What the issues or challenges of the performance measures in sustainable supply chain management?

The major issues in the performance measures can be the following:

Unavailable information:

As per Porter (1980), there can be a lot of times when the measures do not have the appropriate from of information available which can help to ascertain the actual effectiveness of the measure.

Constraint in resources for data collection:

There are cases where there are not a lot of resources that have been allotted to the performance measurement tools and hence this can be a hindrance for them.

Inaccurate or Incomplete information:

The information collection has to be done in such a manner that whatever data is collected it is accurate and complete as inaccurate and incomplete data can be termed as the same as not having any information at all as such a scenario provides results that can be very different from the actual scenario.

Comparability

As per Porter (1980), the performance measures should be such that they can be compared to one another and this can actually allow the organization to understand where they stand rather than being stand alone results that do not make any sense.

Measurement error:

The measurement of these measures should be free from errors and should not have any errors in them as such a thing can have difficult consequences.

Lack of trust on the measure:

According to Stock and Lambert (2001), the measures may not facilitate trust in the employees or the customers of the organization and this can have results like inaccurate and incomplete information. This has to be avoided and should not happen to any measure that the organization selects.

Conflicting goals and measures:

As per Vries (2001), the measure that has been selected by the organization may not be compatible with the goals of the organization. This can result in the measure pointing the organization in a direction which is not in line with the goals of the organization.

Strategic-level measures may not be real time applicable:

The measures that have been initiated by the organization may be strategic in nature rather than being operational, this can be a hindrance as the measures may have a separate result in place and this could be one that is not applicable in the actual real world scenario.

Not easy to understand:

According to Kotter (1996), the measures can be such that are too complicated and cannot be understood by the people in the organization. This can result in the measures being as ineffective as when they are not being put into place.

Might not be collected economically:

The measures may be costing the organization too many in economic terms to collect information about and this too is a hindrance in the effective implementation and usage of the performance measures.

Others:

Some other challenges with the performance measures can be that there are a lot more measures or there are not enough measures in place, another can be that the measures do not allow the organization to be pro active and lastly the measures can be such that take up a lot of time and resources of the organization and thus should not be implemented.

Thus these are some of the challenges that performance measures face.

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