IndexIntroductionDiscussionConclusionReferencesIntroductionKey Performance Indicators (KPIs) are used to measure an organization's point of success against a set of goals and objectives. KPIs evaluate the success of a company or a particular activity in which it often engages as well as being considered as periodic effects of some objectives at the operational level. Customer satisfaction, absence of defects and progress towards strategic objectives are the main areas of the KPI. The choice of KPIs has a very common way which concerns the application of a management framework such as the Balanced Scorecard. Since there are various techniques to evaluate the current condition of the business, it is easy to access the associated key activities according to the selection of performance indicators. Evaluations of key performance indicators often lead to the identification of potential improvements (Jahangirian et al., 2017). The importance of performance indicators is evident as they help in the typical decision-making process of an organization and are equipped to analyze the status quo. The following study highlighted the importance of KPIs along with the techniques required for the application. Furthermore, it also addressed the disadvantages and advantages of performance indicators to understand the value of organizational performance. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Thesis Statement: Key Performance Indicator helps measure and monitor organizational performance based on customer satisfaction, ROI, and employee satisfaction. Discussion Key Performance Indicators (KPIs) ) are classified into various sections based on which company performs and earns profits in the market. Customer satisfaction, cost efficiency, return on investment (ROI), productivity, staff education and training, time and alignment with an organization's goals. In addition to that, according to the perception of Bahari, Susanto, and Gunawan (2021), KPIs are necessary to function and plan the progress of an organization based on ROI, staff training, profit margin, customer satisfaction which leads to gaining competitive advantage in the market. In order to meet the market objectives and business perspective, KPI manages to divert its attention. Key performance indicators are a relevant part of the business and also considered as a flash report on the dashboard. Most larger organizations have multiple KPIs for each business department (Sharifi, 2019). However, despite having multiple KPIs, each report must be linked in a single flash. According to Silva and Borsato (2017) report, American Management Services (AMS) works with clients and to determine that they seek to accomplish tasks in a specific timeline and these are the commonalities found in each KPI. Therefore, American Management Services focused on the time management KPI factor to include in the flash report. According to Wipro report (2021), Wipro helps customers and serving them is the main priority which is the KPI used to leverage the industry and ultimately the employees believe that customer satisfaction is the main criterion to fuel the flash reports. The National Performance Framework (NPF) covers several elements that describe the key performance indicator and its results. The national results describe the characteristics of the type of organizational performance desired as a consequence of collective actions. In terms of a value statement, it informs behaviorof people in daily life and is also part of the commitment to improve individual and collective well-being (Kennerley and Neely, 2020). The NPF also describes approximately 81 national indicators and progress towards results. Therefore, organizations also have their own performance indicator based on predicting progress towards the result. Social cognitive theory describes the influence of individual experiences, actions, and environmental factors that give progressive outcomes to society. According to Bandura's (2015) perception, behavioral factors in an organization within employees also appear as a performance indicator which is measured based on negative and positive behavior. On the other hand, according to Bandura's (2018) perception, social cognitive theory can be determined by four factors: goals, self-efficacy, and outcome expectations. Likewise, it is essential that organizations also set clear goals and objectives to achieve KPIs through adequate performance measurement. Goal theory describes the key factors of motivation towards something one wants to achieve due to which targets and objectives are important. Similarly, to support development and achieve the organizational objective there must initially be an objective to be achieved in the implementation process and measured with different KPIs (Locke and Latham, 2014). The following figure illustrates the basic principles of achieving goal theory for better performance measurement. The five-step models have been classified into 5 sections to realize the idea of ​​performance measurement in the organization. According to Marble (2019), identifying the contract, performance obligation, transaction price, price performance obligation allocation, and revenue recognition are the aligned steps to achieve key performance indicators. Likewise, on the other hand, revenue is itself a performance indicator that shows an organization's success rate and market value at the same time. Performance measurement is a type of process in which valuable information is collected regarding a system, a group or an individual and an organization. analyzed and reported. According to the perception of Badawy et al. (2016), performance-measured information is considered very informative and useful, thanks to which it becomes easier to create valuable reports and share information with stakeholders. Furthermore, this performance measurement is classified into 4 ways: people measurement, customer measurement, process measurement and financial measurement. There are several techniques available to measure performance in an organization to successfully achieve goals and objectives. First, create a mission statement, which plays a vital role in every organization because it is the structure on which companies rely and then it becomes essential to create it if you are looking for an effective performance measurement technique (Van Looy and Shafagatova, 2016 ). It provides an overall business idea to the stakeholders and is also considered as a mission statement that gives clarity to the employees so that they can improve their performance. Secondly, the creation of different levels of goals, which is recognized as the key to developing various levels of goals so that employees tend to believe in the organizational scheme. Establishing different objective levels would prove to be an advantage in understanding a specific role and would help businesses grow (Roubtsova and Michell, 2014). Third, creating a short- and long-term performance plan that, secondVan Looy and Shafagatova's (2016) perception, identifies short-term goals such as cost control that would lead to long-term results and also increase customer satisfaction, particularly in multinationals. Fourth, knowing the critical success factor of CSFs is vital for every employee of an organization, according to the report of Roubtsova and Michell (2014), and plays an essential role in achieving corporate objectives. It empowers the workforce and motivates them to achieve their end goals. According to the Scottish Government's National Performance Framework, to measure performance, there must be a purpose behind it and then objectives that would lead to the strategic objective, national indicators and outcomes (Kennerley and Neely, 2020). Therefore, companies need to focus more on sustainable economic growth opportunities by meeting and measuring exact KPIs. Benefits of using performance indicators while monitoring and measuring organizational performance because it takes a step towards sustainable development. Furthermore, according to Moses' (2021) perception, KPIs help to quickly understand the complex state of an organization and formulate objectives to measure their implementation. KPIs increase the decision-making capabilities of managers and employees by increasing communication efficiency. On the other hand, Gotian (2021), stated that manufacturing sectors pay more attention to delivery reliability in terms of performance and customer satisfaction. However, measuring performance in terms of costs, time, flexibility, employee satisfaction and social performance indicators has a positive and significant impact on an organization's overall performance criteria. The disadvantages of performance indicators were noted several decades ago by Edgar Schein where it was discussed that they suspend multiple functions reflecting different stakeholders. Furthermore, to illustrate the matter Sakapurnama (2015), stated that the objective of businesses is the main resource to judge the final results. According to Moses report (2021), Business Roundtable (BRT) shareholder value statement is the first core duty after which more than 200 CEOs of large companies signed the new BRT in August 2019, after much criticism . According to the perception of Sakapurnama (2015), Indonesia faced great challenges and obstacles in measuring the performance of public sector organizations. Therefore, the lack of knowledge in carrying out performance measurement planning and the absence of reward punishments are considered obstacles to measuring institutional performance in the form of KPIs. Please note: this is just an example. Get a custom paper now from our expert writers. Get a Custom EssayConclusion In the above discussion it has been stated that KPIs play a vital role behind organizational performance which reflects both positive and negative impact. The idea of ​​measuring performance in an organization needs techniques to solve the purpose. Furthermore, social cognitive theory and the national performance framework have illustrated the importance of required individual behavior and experience as they also reflect the performance indicators that are considered in the market to gain a competitive advantage. References Badawy, M., El-Aziz, AAA, Idress, A. M., Hefny, H., & Hossam, S. (2016). A survey on exploring key performance indicators. Future Computing and Informatics Journal, [online] 1(1-2), pp.47-52. Available at: https:www.sciencedirect.comsciencearticlepiiS2314728816300034 [Accessed.