June 8 Follow-Up
The study aims at addressing the use of KPIs in measuring selected aspects of the performance in the organizations. KPIs tend to be a good way of assessing the present position of the organization and also useful in the future planning. Leaders are of great significance in achieving the organizational goals. Leaders need to ensure that they develop the performance measures that can help them to identify factors that impact the performance of workers. The study aims at exploring the role of leaders in measuring and managing performance and also identifying the use of KPIs in construction companies in North Carolina. So as to conduct the study on the role that leaders play in managing performance and identifying KPIs, it is important to know what other researchers say about leadership about key performance indicators. There are several studies and theories in place to help understand the role that the organizational leadership has in measuring performance and the identification of KPIs. Therefore, in this literature review, it will focus on analyzing different studies conducted by researchers that focus on leadership and KPIs so as to help have an in-depth understanding of the area of study. KPIs normally help the organization in defining and measuring progress towards the goals and objectives of the organization. As the KPIs help review the organization progress against its goals, it is important to know the role that leaders play in this aspect. Hence, this literature review will focus on the leadership aspect and also the use of KPIs in the organization.
According to Costa and Formosi, (2004) some companies tend to have many measures most of them linked to support functions instead of the key processes that the companies most need to control. As a result, it tends to make it hard for the company employees to determine the priorities and define the key indicators that should be used for comparison with other companies. KPIs are known as a way of communicating measures that do matter. The inability of organization leadership to use specific KPI measurement areas tends to make the assessment of the performance of the business to be very challenging. Leaders should be able to identify the right areas of the organization that will implement the KPIs as the failure of doing this will result in making it impossible to achieve the various business objectives (Danilovic et al. 2014). The main problem is that leaders are not considering the significance of KPIs in an organization; thus, they are not able to accomplish the business objectives. Identifying the performance indicators is of great significance in an organization. When an organization encounters challenges, it must be able to identify the measures that enable it to respond in an effective manner to the new problems to adapt quickly as possible to changes in the business environment. The leadership role in identifying the key performance indicators has a significant impact on the performance of the organization.
Studying the role of leaders in measuring and managing performance and identifying the use of KPIs in an organization is important to the construction companies. The importance of conducting the study is that when the KPIs are identified properly, they can play a key role in offering information on the performance of the construction companies. According to Sonuga et al., (2002), the lack of knowledge and awareness of the new techniques and tools in the field of construction is resulting in the failure of the company project with respect to time, scope, and the cost management. When a company is not aware of the measures that will result in the performance of the organization, it will result to low productivity or failure of the company.
Leaders need to be able to identify the right KPIs for the success of projects in the construction process. The organizational leaders need to ensure that they design and use the KPIs appropriately. Lack of properly identifying the KPIs will have an indirect impact on the public as they will be projects poorly managed and also the lack of capacity to offer infrastructural and social services. As the companies are not able to deliver services efficiently, the public will not be able to receive better performance incentives.
In conducting this study, it will have a significant impact on the construction companies. The role leaders in an organization have an impact on the success of the organization. When leaders are not aware of their roles, it affects the organization performance. Hence, conducting the study will help provide knowledge regarding the role of leaders in managing and measuring performance and also the use of KPIs (Osseweijer et al. 2014). The study will help to provide companies with the benefits of identifying the key performance indicators and also show the role that the leaders play in helping the organization achieve success. By conducting this study, it will shed light to many organizations to consider the importance of identifying the key performance indicators. Most organizations tend to fail due to lack of having critical information on the measures that will result in the success of the organization and the lack of considering these measures during decision-making (Danks& Allen 2014). However, the implementation of KPIs tends to be the best practices that can ensure the success of an organization’s project.
So as to conduct the study, the appropriate research method to use is the qualitative research method. With the help of interviews as the research instrument, it will be possible for the researcher to collect data from leaders in construction companies and find out how they measure and manage performance and the use of KPIs in the success of the organization. In doing this research, it will have a great contribution to the existing study. The findings of the study will provide knowledge to the management of companies regarding the role of leaders about key performance indicators. The work will contribute to the vast literature on organizational performance through indicating the significance of identifying the key performance indicators. The research will highlight the importance of performance indicators in the success of the organization performance.
Costa, D &Formoso, T (2004). A set of evaluation criteria for the performance measurement systems in the construction industry. Journal of Financial Management of Property and Construction, 9(2)
Danks, S., & Allen, J. (2014). Performance-based rubrics for measuring organizational strategy and the program implementation. Performance Improvement Quarterly, 27(1), 33-49. doi:10.1002/piq.21166
Flipse, M., van der Sanden, C., &Osseweijer, P. (2014). Improving industrial R&D Practices with social and ethical aspects. Technological Forecasting& Social Change, 85185-197. doi:10.1016/j.techfore.2013.08.009
Sonuga F., Aliboh O. &Oloke D., (2002). Particular barriers and issues associated with projects in a developing and emerging economy. International Journal of Project Management, 20, 611- 616
Vasiljevic, D., Trkulja, Z., &Danilovic, M. (2014). Towards an extended set of production line performance indicators. Total Quality Management & Business Excellence, 25(5/6), 618-634. doi:10.1080/14783363.2013.850811