Reference no: EM132816206

Question - The implementation of a Key Performance Indicator will have repercussions. Organizations must communicate KPIs to members of the operation, or there won't necessarily be an impact of using the KPI. Since these are KEY measures of performance, the operation definitely wants to see improvement. Unfortunately, there are often negative impacts of focusing on particular measurements. It is best to identify likely negative repercussions ahead of KPI implementation in order to account for them in the implementation.

For instance, a manufacturing organization might want to make certain that orders are completed on time. It may choose to measure on-time delivery and regularly communicate the percentage of success with employees. It might even reward employees or teams that are constantly successful. The problem is that this focus on timely delivery can cause people to rush in order to complete jobs on time. This could become a major problem for the operation. Consideration of the Hawthorne Effect may serve to make the managers aware of this negative impact, so that they can adjust for it. In this case, management might also use defect rates as a KPI, which would ensure that employees focus on doing the jobs well and on a timely basis.

KPI would be the Employee satisfaction and perform a Hawthorne Effect analysis on it, looking for the negative impacts of the use of the KPI. In your post, state the KPI, what negative repercussions you foresee occurring.