The first goal of management for company is to make profit and growth. The company performance stands for its outcome managed under the optimum fit with resources. Human resource is the significant asset in the company and also influence on the company performance. It is the key to create the performance good or bad for ¡§ Performance Management¡¨ in which how to elaborate employees¡¦ higher productivity or potential and how to continue to employ is the critical issue. One of the functions of performance management is to implement training workforce or job rotation that based on the performance appraisal besides together with the compensation and merit pay, another is to make win win between the company and its employees that capitalized on the individual career development coordination with company. This study discuss the useful encourage mechanism for performance management with compensation and merit pay by the case study method, interview the employees of the case company and review on the relevant reference documents related the subject of those have been published textbooks and periodical. The key point of the study is to establish an appropriate performance management with pay-for-performance system and replace the present system, and become a high-performance culture company. The conclusions are significant to the management in the following¡G 1.Broken a falsehood fair system of performance management, become a real reasonable, public and fair system, and create a high-performance culture company. 2.To avoid the ratchet effect on budget and standard of Key performance indicators (KPI).It is necessary to check again about economic intelligence, industry situation and inside and outside resources etc in order to make an accurate budget and KPI. 3.Under the linkage mechanism of performance management with the merit-pay system, justice is a critical issue in the process of performance appraisal except fair pay-for-performance. It would drive voluntarily one¡¦s motivate of work and higher performance. 4.Besides the encouraged by money, job enrichment, rotary system and job training may increase employee¡¦s performance. If not so, the employee would be fired. 5.Performance management and merit pay system is two key factors for business organization that linkage with vision, object, strategy, culture and personnel goal would ignite organization power to enrich value-chain management and transform to be competitive superiority. It also becomes a three-win system to individual goal, company growth and stockholders value. And the recommendations are important as follows¡G 1.There is no absolutely good for any system whether it is good or bad, so the company of case study should be self-criticism the applicable system of performance management linkage with merit pay system at any time. 2.The person who is a boss in the department, please don¡¦t let your right to be sleep. You have to do justice to subordinate. 3.The execution is a key successful factor for the practice of performance management linkage with merit pay system. 4.Finally, the application of statistics analysis, the influence of execution, leadership, organization structure and innovation of measurement of encouragement are the directions for further study.

Dagens organisationer verkar i en komplex miljö. För att manövrera en framgångsrik organisation i denna miljö ställs det krav på att chefer ska skapa riktning gentemot de anställda. När anställda upplever svårigheter att förstå vad som förväntas av dem och åt vilket håll organisationen vill gå mot uppstår en problematik. Denna studie ämnar att undersöka hur Key Performance Indicators (KPI) utformas och används, samt vilken funktion det fyller för riktningsskapande inom organisationer. Studien är av kvalitativ form, där det empiriska underlaget insamlas genom semi-strukturerade intervjuer. Det empiriska underlaget utgör grunden till analysen, vilket indikerar att KPI:er är komplext men viktigt inom organisationer. Vidare belyser analysen att KPI:er behöver vara både välutformade och korrekt använda för att de ska kunna ha en positiv påverkan för riktningsskapandet, där kompetens och kommunikation är de mest framträdande faktorerna.

Title: Key Performance Indicators - Refine, adjust or remove Level: Final assignment for bachelor's degree in business administration. Author: Isabelle Nilsson and Maria Bäckström  Supervisor: Niklas Bomark Date: Autumn - 20  Aim: The aim of this study is to seek understanding of how the change process of KPIs works and whether information asymmetry and conflicts of interest can arise in the interaction between managers and group leaders in process. Method: The study is based on a qualitative research design and an interpretive hermeneutic research methodology. The empirics are collected through semi-structured interviews with managers and group leaders in a fintech company. A total of 4 managers and 5 team leaders have contributed to the content of the empirics. Secondary data have been collected from previous scientific research. The analysis is structured according to themes that have been compiled based on our research questions as well as collected data from previous research and empirics. Result & Contribution of the thesis: We have come to the conclusion that the process of changing KPIs goes through four different phases; 1. Problems are identified, 2. Measures are taken, 3. Delegation and 4. Evaluation. In connection with this, we have seen that conflicts of interest and/or information asymmetry can arise between managers and group leaders, which should be taken into account in the change process. The study has also found that conflicts of interest may in themselves cause a need to change KPIs. Suggestion for future research: - A longitudinal study could contribute to a deeper understanding of the changing process, by looking at the phenomenon for a longer time and doing repeated analyzes to detect any deviations or patterns. - The possibilities of the study could be broadened by not only measuring the end goal but also the ongoing process in sales, and for example look at factors such as customer satisfaction, returning customers or customer recommendations and references.

Idag redovisar många företag nyckeltal i deras årsredovisning för att tillgodose årsredovisningslagens krav på rättvisande bild. I Sverige tillhör 97 procent av dessa företag småföretag, som inte är undantaget för kravet när de är aktiebolag. Därför syftar denna studie att undersöka skapandet och användandet av nyckeltal i småföretag för att ta reda på vilka nyckeltal de använder, hur och varför de använder dem nyckeltalen, och deras tankar om detta verktyg. En kvalitativ metod med deduktiv tillvägagångssätt har använts i denna studie. Empirin samlades från ägarna av fem småföretag som befinner sig i Västra Götaland i Sverige genom en semi-strukturerad intervju. Företagen som har undersökts är aktiebolag med max 49 anställda. Olika källor har använts för att få mer information om företagen och årsredovisning. Resultatet visar att småföretagare använder nyckeltal. De använder nyckeltal som redan finns i deras årsredovisning. Trots kunskapsbristen om detta verktyg bland småföretagare, finns det företag som har skapat egna nyckeltal, dvs. direkta nyckeltal, och använder dem regelbundet i verksamheten. Det visar också att inte alla småföretag använder nyckeltal som underlag för mål och strategier eller för att implementera en strategi. Det är för att de kan generera en strategi även utan att använda detta verktyg men ändå lyckas med målet. Som de säger, finns det andra framgångsfaktorer. Kunskap spelar inte så stor roll hos småföretagare då det finns redovisningskonsulter som hjälper dem med att ha koll på deras ekonomi och därmed få kontroll på finansiella situationer. För att göra resultatet generaliserbart, kan man göra en utökad studie med fler företag och intervjuer, eller att komplettera denna studie med en kvantitativ metod. Det kan också vara en fördel att intervjua småföretag med deras redovisningsbyrå för att få båda perspektiv om ämnet då inte alla småföretagare har kunskaper om ämnet. Uppsatsen är skriven på svenska. / To comply with the requirement of the accounting on fair reporting, many companies today are including financial key ratios and/or key performance indicators on their annual reports. In Sweden, 97 percent of these businesses are small companies. These companies as long as they are incorporated are not an exemption. Therefore, this research paper aims to explore the creation and use of financial key ratios and/or key performance indicators in small incorporated companies to find out what financial key ratios and/or performance indicators they are using, how and why they are using them, and what they think of this tool. In this study, a qualitative method with a deductive approach has been used. The empiricism was gathered from the owners of five small companies located in Västra Götaland of Sweden through a semi-structured interview. All participating companies are incorporated with maximum of 49 workers. Other resources have also been used to get more information about the companies and their financial reports. The result shows that all participating companies are using financial key ratios and/or key performance indicators. They are using financial key ratios and/or key performance indicators that they have in their financial reports. Despite the lack of knowledge about this tool among small business owners, some companies have created their own key performance indicators and use them on a regular basis. It even shows that not all small companies are using financial key ratios and/or key performance indicators as a fundament for goals and strategies or to implement a strategy. This is because; small businesses can generate a strategy even without using this tool and still succeed with their goals. As they said, there are other factors that they consider have contributed to their success. In terms of knowledge, it really doesn’t matter that much because there are accounting firms that are helping business owners in managing their economy and gaining control on their financial situations. For the result to be generalized, it is recommended to make an extended study of more companies and interviews, or complete this study with a quantitative method. It may also be an advantage to interview small companies with their accounting firms to get both perspectives on the subject since not all small business owners have knowledge about the subject. This research paper is written in Swedish.

Företagens tillväxt har resulterat i en ökad mängd data som kräver analys och därmed uppkommer utmaningar för hantering och analys. För att stödja företagens mål har Enterprise Architecture (EA) utvecklats som ett ramverk. Dessutom har begreppet Technical Debt (TD) uppkommit för att bistå i beslutsfattande om hur begränsade resurser ska investeras och identifiera eventuella nackdelar med befintliga designbeslut. För att inkludera både tekniska och affärsrelaterade aspekter har begreppet Enterprise Architecture Debt (EAD) introducerats. Trots att EAD har börjat bli mer välkänt saknas för närvarande fastställda gränsvärden för mätning och hantering av konceptet. Detta gör det svårt för organisationer att erhålla en klar uppfattning om sin skuld och prioritera lämpliga åtgärder. Mot denna bakgrund har syftet med denna uppsats varit att definiera gränsvärden för Enterprise Architecture Debt Measurements (EADM) för att underlätta för organisationer att förstå omfattningen av sin skuld och därigenom kunna prioritera åtgärder på ett bättre sätt. För att uppnå detta har en kvalitativ forskningsansats använts i studien, där data har samlats in genom semistrukturerade intervjuer med EA-experter. Genom att lägga fokus på deltagarnas synpunkter och åsikter syftar studien till att bidra till kunskapen om EAD och dess mätvärden. Resultaten visar på en stark vilja bland EA-experter att anpassa och förbättra mätning och hantering av EA inom organisationer. Förändringsarbete betraktas som nödvändigt för att uppnå effektivitet och relevans inom EA, där kostnadsaspekter spelar en betydande roll vid beslutsfattande. Studien undersöker även möjligheten att fastställa kvaliteten på mätningar inom EA. Respondenterna uttrycker en positiv inställning till standardisering av EAD, samtidigt som de betonar utmaningar med att tillämpa generella mätetal. Studien framhäver vikten av flexibilitet och kontinuerlig anpassning för att utveckla meningsfulla och användbara mätvärden som effektivt kan bedöma kvaliteten inom EAD. Slutsatsen i studien blev att fastställandet av kvaliteten på mätetal är möjligt i de sammanhang där organisationerna visar en vilja att påta sig de kostnader som kan uppstå vid utvecklingen av sådana mätetal och att kvaliteten endast kan fastställas när mätetalen är anpassade efter organisationen. / The growth of companies has resulted in an increased amount of data that requires analysis, posing challenges for its management and analysis. To support the goals of companies, Enterprise Architecture (EA) has been developed as a framework. Furthermore the concept of Technical Debt (TD) has emerged to assist in decision-making regarding the allocation of limited resources and identifying potential drawbacks of existing design decisions. To encompass both technical and business-related aspects, the concept of Enterprise Architecture Debt (EAD) has been introduced. Despite EAD gaining recognition, there are currently no established thresholds for measuring and managing this concept. This poses difficulties for organizations to gain a clear understanding of their debt and prioritize appropriate actions. Against this backdrop, the aim of this thesis has been to define thresholds for Enterprise Architecture Debt Measurements (EADM) to facilitate organizations' understanding of the extent of their debt and enable better prioritization of actions. To achieve this, a qualitative research approach has been employed, with data collected through semi-structured interviews with EA experts. By focusing on participants' perspectives and opinions, the study aims to contribute to the knowledge of EAD and its metrics. The findings indicate a strong willingness among EA experts to adapt and improve the measurement and management of EA within organizations. Change efforts are seen as necessary to achieve efficiency and relevance in EA, with cost considerations playing a significant role in decision-making. The study also explores the possibility of determining the quality of EA measurements. Respondents express a positive attitude towards the standardization of EAD while highlighting challenges in applying generic metrics. The study emphasizes the importance of flexibility and continuous adaptation in developing meaningful and useful metrics that can effectively assess the quality within EAD. The conclusion of the study was that determining the quality of metrics is possible in contexts where organizations show a willingness to bear the costs that may arise in the development of such metrics, and that the quality can only be determined when the metrics are tailored to the organization's needs.

Purpose: The purpose of this study is to identify and develop relevant keyperformance indicators within the warehouse operations in amanufacturing company, and how they can be used for control. Research question: In a manufacturing company, which are the most important KPIs forcontrolling and monitoring the warehouse operations, and how can thoseKPIs be developed?Methodology: This master thesis is based on a case study at a pharmaceutical companynamed Fresenius Kabi. A qualitative approach has been used whereprimary data was collected through 10 structured & semi structuredinterviews and through observations in the warehouses to understand thecurrent state. Secondary data was used in form of academic papers to seewhat previous research had to say about KPIs and operation & processmanagement. Internal documents were also used as a secondary source. Findings: Two key performance indicators have been developed, productivity andcost efficiency. A template has been designed to produce the KPIs. Thisstudy contributes to the understanding of how to develop KPIs that fits amanufacturing company´s warehouse operations and a recommendation onhow you could develop a system for producing the data.

The balanced scorecard (BSC) is an accepted methodology for putting strategy into action. The BSC provides a comprehensive performance measurement for an organization with respect to both financial and non-financial perspectives, including the triple bottom line of planet, people, and profit. Through various implementations to companies, organizations, and sectors, balanced scorecards have been used widely both for strategic purposes, as well as for more tactical focus for auditing current performance. BSC implementation is particularly adequate when integrated with the operational processes of the organization. The integration between the strategic plan and the financial and operational plans proceed via the business process model that covers the operational processes associated with the objectives of the organization in the strategy map. In this way, BSC is a tool for real-time monitoring of performance as well as providing the crucial linkage to the organization’s strategy that enables the proper implementation of the organization’s strategy. Data envelopment analysis (DEA) has been widely applied for measuring the efficiency of a specific decision-making unit (DMU) against a projected point on an efficiency frontier. DEA is therefore particularly suitable for measuring the organizational efficiency based on the BSC indicators, which are defined as Key Performance Indicators (KPIs). In the commercial fisheries sector, sustainable strategy of fisheries organizations can be gained by running the current operations more effectively, and by integrating processes enabling adaptation to change. The efficiency frontier of the DEA model can be used to calculate the efficiency of fisheries operations. The proposed research is undertaken as part of the Canadian Fisheries Research Network (CFRN) to investigate the application of BSC and DEA for defining commercial fisheries performance evaluation variables with respect to the objectives of environmental sustainability, economic viability, and social and cultural stability in compliance with, and in the absence of, performance monitoring alleged in the Fisheries and Oceans, Canada Integrated Fisheries Management Plans (IFMP). The combination of BSC-DEA methodologies is developed in this research as a required performance monitoring system suitable for IFMPs for analyzing the relative efficiency of commercial fisheries case studies across Canada towards incorporating best sustainable practices in the industry.

Bakgrund: Sjukfrånvaro, sjukskrivningar och ohälsa är något som kostar både samhället och företagen mycket pengar. En medarbetares personliga hälsa spelar en stor roll när det kommer till både lönsamhet och produktivitet på arbetsplatsen. Motion leder till att en individ blir bättre på att planera arbetsuppgifter, får bättre koncentration och initiativtagande. Många företag investerar i sin personal i form av friskvård, men den förbättrade prestationen varken redovisas eller mäts på ett specifikt konto i redovisningen.  Syfte: Syftet med uppsatsen är att undersöka om och hur företag använder sig av nyckeltal som mäter den ekonomiska resultateffekten av friskvård och andra hälsofrämjande insatser.  Metod: Vi kommer i det här arbetet använda oss av en kvalitativ metod tillsammans med en deduktiv ansats. Datainsamling sker genom semistrukturerade intervjuer eftersom vi då har möjlighet att anpassa våra frågor och följdfrågor. Totalt har 14 respondenter från 13 olika företag intervjuats.  Slutsats: Studien har visat att företag vanligtvis inte mäter den ekonomiska effektiviteten av friskvård och hälsofrämjande insatser, varken generellt eller med hjälp av bestämda nyckeltal. Flertalet upplever att det saknas ett enkelt tillvägagångssätt och många upplever inte sjukfrånvaron som ett problemområde. Samtidigt visade studien att sjukfrånvaron kan vara missvisande eftersom anställda underpresterar på grund av sjuknärvaro. / Background: Absence due to illness, sick leave and ill health is something that costs both society and companies a lot of money. An employee's personal health plays a big role when it comes to both profitability and productivity in the workplace. Exercise leads to an individual becoming better at planning tasks, gaining better concentration and initiative. Many companies invest in their staff in the form of wellness, but the improved performance is neither reported nor measured in a specific account in the accounting. Purpose: The purpose of the essay is to investigate whether and how companies use key performance indicators that measure the financial performance effect of employee welfare benefits and other health-promoting efforts. Method: In this essay we will mainly use a qualitative method together with a deductive approach. Data collection is conducted through semi-structured interviews, since we then have the opportunity to both adapt our questions and follow-up questions. A total of 14 respondents from 13 different companies were interviewed. Conclusion: The study has shown that companies usually do not measure the financial effectiveness of employee welfare benefits and health promotion efforts, neither generally nor with the help of specific key performance indicators. The majority feel that there is no simple approach and many do not experience sickness absence as a problem. At the same time, the study showed that sickness absence can be misleading because employees underperform due to presenteeism.

This diploma thesis focuses on Managerial Accounting and its tools and techniques. The main part of it would serve to review whether theoretical principles of Managerial Accounting are efficiently implemented and whether Key Performance Indicators are properly set to fulfil their essential functions to measure, motivate and manage achievement of performance goals. It further investigates Responsibility Accounting, Performance Management and how they influence and impact the reward system and the motivation of employees. This thesis would provide a general overview related to modern techniques such as Management Control Systems, which are nowadays popularly used to coordinate development of human resources, their motivation, assessment and other factors influencing performance. The practical part of this thesis includes analysis of the remuneration system in concrete company, namely Philip Morris ČR a.s. The last chapter also summarizes strengths and weaknesses of the current system and suggests improvements to influence performance and employees motivation more positively and how to prosper from the application of Managerial Accounting tools.

The medical device manufacturing industry has a deficiency in determining how to improve supplier performance for the components and systems they purchase. Many complex medical devices require components from superb suppliers. But how does a medical device manufacturer (MDM) impartially assess supplier performance to know which suppliers to continuing with (or even boost purchase volumes) and which suppliers they should exit? This study describes which supplier-specific metrics are most important to medical device manufacturers (MDMs) so they can utilize this supplier performance scorecard backed by real-world inputs. This research will focus on five categories to measure MDM supplier performance (Quality, Price, Delivery, Customer Service, and Partnership) across twenty-three (23) metrics. Because this is a focus of MDM supplier performance, we are not focusing on analysis of device sales to the final customer (e.g., distributors or group purchasing organizations {GPO}). The study will follow a framework including research analysis of supplier performance management in other industries, methods to attain data from MDMs via survey, results and analysis of the data, conclusions, and an easily understandable MDM supplier performance scorecard. In the survey, 135 MDM professionals replied when asked to rate twenty-three (23) supplier performance metrics, across five (5) categories aggregated from nine (9) different industries. The survey yielded a myriad of results including, weighting factors of each of the metrics, and those data results were used to compile an MDM supplier performance scorecard utilizing real-world feedback. The analysis revealed the ratings of importance of the categories as: Quality (43%), Delivery (24%), Customer Service (4%), Partnership (13%), Price (8%) and associated weights for the twenty-three (23) metrics that matter most to an MDM when creating a performance scorecard for their supplier base. Three contributions that this research will add to the body of knowledge: An in-depth review of supplier performance across many different industries (i.e., non-healthcare and healthcare) for contrasting/comparing evidence. A detailed MDM survey and statistical analysis on the topic of supplier performance management. An easily understandable and useable MDM supplier performance scorecard (via MS Excel) for MDM supply chain and/or operations users and/or managers.