The Development of Measurement Tools

8/9/2019 The Development of Measurement Tools

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The Development of Measurement Tools

Many concepts in business are easy to measure

For example, wages and worker benefit payments,

Its stated in currency amounts like Rupee or Dollars etc and accurate

records are kept. On the other hand to measure concepts as

motivation, sales effectiveness or market potential. They must be

operationally defined by developing a special measurement procedure.

This process involves four steps;

1.Concept Development2.Concept specifications3.Selection of indicators4.Formation of Indexes

1. Concept Development:-

To develop the concept or image of any company or corporation. Think

about

y Reputation among others / various groups.y Involvement with other business groups.y Nature of the involvement.


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2. Concept Specification:-

The second task is to break down the original image into its various

components.

For example the concept of Corporate Image of Shan Foods might be

divided into four parts;

i. The corporate citizen:-How well Shan Food is thought of as a contributor to the

communities in which it has establishments.

ii. Ecological Responsibilities:-How well they dispose of its waste products and protect the

environment.

iii. The employer:-How well Company is regarded as a place in which to work.

iv. The Supplier OfCustomer Needs:-How well their products and services are viewed by customers.

In place of these intuitive approaches, statistical techniques can be

used to determine if these concepts and products are constructs are

part of the image. One such study using customer analysis concluded.

There are six major dimensions of the company image, product

reputation, employer role, customer treatment, corporate leadership,

defense contribution and concern for individuals.


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3. Indicator Selection:-

Once the dimensions have been set, the indicators to measure each

concept must be developed. Since there is seldom a perfect or absolutemeasure. Several possibilities should be considered. Indicators can be

questions, statistical measure or others scoring devices with Shan

Foods measurement of corporate Citizenship could be achieved by

asking a cross section of the public a single question such as

Which of the following best describes the reputation of Shan Food as a

corporate citizen in our community?

(Please check one only)

y The company is leader in these activities.y The company is a strong supporter but not leader in these

activities.

y The company is an average supporter of these activities.y

The company is below an average supporter of these activities.

This question is a single scale index of the companys corporate

citizenship. Single scale indexes are criticized as less reliable then

multiple-factor indexes. One item may not capture the unity of

dimensions that could be included in a term. It is not unusual to find

people thinking of one dimension or another, for example charity

support or political activity. Its more desirable to specify the number of

dimensions to be included in corporate citizenship and then combine

them into a summary index. Assuming index involves constructing

scales to measure each aspect of corporate citizenship


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e-g. Now would you rate the company as a

i. Support of civic fund drives.Very good - Good - Average - Below Avg - Poor

ii. Support of higher education.Very good - Good - Average - Below Avg - Poor

iii. Support of good local government.V

erygood - Good - Average - Below Avg - Poor

iv. Support of civic development projects.

Very good - Good - Average - Below Avg - Poor

5.Formation of Indexes:-

When there are several dimensions of a concept or different measure

for each dimension. It may be desirable to combine them into a single

index. Its reasonable to believe that each individual indicator has only

a probability relation to what we really want to know. Any single

indicator may not be a fair representation of what is being measured.

Use of more than one indicator lords stability to the scores and

improves their validity.

A simple way to improve is to assign scale values to the response and

then combine the scores by combining the four scale items, a single

index is created. Assigning a value to each response, ranging from 1 for


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a poor evaluations to a very good one. Then average scores give a more

reliable measure of the company. Corporate citizenship mage thus does

a single question.

Additional sets of scales can be devised to measure how the company is

viewed on ecological responsibilities and employer image and as a

supporter of consumer needs. These sets of scales could be combined

into summary scores. Finally the summary measures for the four

dimensions of the company image might be again combined and even

weighted to arrive on overall scores that could be called the corporate

image index. This index and its various sub scores might be compared

to indexes of other companies that have been similarly measured.


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Shan Food Industries

Companys Basic Information

CEO Name: Shan

Year Establish: 1963

Company Sale: 10,00,000

Key Products: Masala's, Rice, Pickles, Salt, PlainSpices,

Corn Refiner etc

Industry Focus: Manufacturer Foods

Address: 142, Sector-23 Korangi Industrial Area, KHI

Email: [email protected]

Tel: 021 505 3076

Shan Food's Profile:-

Shan Food Industries, from a humble cottage inception in 1981, has

evolved over two decades into a leading spice company of Pakistan, the

largest exporter of Premium Quality Packaged Spices to USA, Canada,

UK, Germany, Holland, Middle East, Japan, Singapore and Australia. The

very name of Shan has become synonymous for high quality, exotic

flavor and exquisite taste in Mix Spices for oriental cuisine, nurtured

and perfected by discerning food connoisseurs. We at Shan have

developed a specialized skill to recreate those oriental flavors and


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tastes of age-old recipes on a modern plant, and packed them in high

quality packaging materials so as to reach our valued customers like

fresh from farms. The chore of tedious cooking has become an art of

home economics when cooked with Shan Spice Mixes. An elaboraterange of Shan Spices, Spice Mixes, Desserts, Pickles and Aged Basmati

Rice is a household name for those who relish the oriental delicacies.

Our modern factory covering an estimated area of 100,000 sq. ft. is

equipped with latest in-house lab facilities, which scrupulously tests

and analyzes each product right from the ingredient stage to finished

form. At Shan, immaculate quality is a passion and buyers' satisfaction

is abiding commitment to our valued customer.

Products and consuming Industries:-

Shan Food produces high quality food ingredients and industrial

products. All these products have leading market position and are being

used in more than 50 different type of industries as essential raw

material from local resources. Major consuming include paper,

corrugation, confectionery, pharmaceuticals, chemicals, banking,

beverages, ice cream, processed foods, tobacco, foundry, syrups and

squashes, poultry and cattle feeds, fish feeds and so many other food

and nonfood industries. The company has expanded and modernized

modified production plants.


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Quality of Products:-

Shan Foods products are manufactured under strict quality control to

match the international standards. They have won the preferredsupplier status among customer by focusing on quality, customer

service and team approach.

Distinctions:-

y Ranked one of the top 26companies listed on (KSE) in 1998 to2004.

y Corporate Excellence certificate from Management Association ofPakistan in 2001 to 2004.

y Ranked one of top 10 organizations for best practices in OSHE byEFP in 2001.

y Best presented accounts award from ICAP and ICMAP in 2002,2003 and 2005.

y Pak EPA awards for participation in smart Program in 2003.y FPCCA export trophy in 2000, 2001, 2002 & 2003.


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The development of measurement tools is very common in the

organization. For example, in order to measure performance of an

employee following procedure is adopted.

Performance & Development Review

1.Persona informationi. Nameii. Designationiii. Salary Gradeiv. Departmentv. Qualificationvi. Number of years in current position

2.Special AchievementsDetail of achievements and accomplishments is mentioned under this

topic.


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3.Performance Dimensions_____________________________________1_2_3_4_5

i. Work OutputVolume of work as compared with required

standards and consistency of output.

ii. Quality Of WorksThoroughness, accuracy and excellence of

work.

iii. Job KnowledgeDemonstrated technical professional expertise,

awareness of latest development in functional

discipline, familiarity with systems, policies and

procedures.

iv. Decision MakingDemonstrated ability to analyze relevant infor-

mation, think of and evaluate alternative and

arrive at timely and workable decisions.


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v. Time ManagementSelf discipline in attendance, punctuality and

timely completion of assignments.

vi. Communication SkillsClarity and precision of verbal and written

communication, readiness to share relevant

information with appropriate person, willing-

ness to listen to others view point.

vii. Human RelationsAbility to get along well with people, colleag-

ues and customers.

The Development of Measurement Tools

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