Why do most control of overall performance tend to be financial? Should they be? What else would you suggest?

Question

Why do most control of overall performance tend to be financial? Should they be? What else would you suggest?

Answer 1

Although your question isn't very clear to me, I think you want to know as to why performance is measured in financial terms. Assuming my guess to be correct, I shall proceed further thus.

Let me tell you that this measure is mainly in the industrial, business and corporate areas. The aforesaid areas are in the forefront of the economic sector. They consume and generate money through inputs like overheads, production costs, sales of finished products or services etc. It is only natural that here performance will be pitted against a monetary measure.

However, scientific research institutes, educational institutions, sports training centres do not necessarily measure performance against the financial yardstick. Initially, a lot of Indian satellites plunged into the sea instead of going into space after being launched. If the Indian space scientists had been made to account for all the money lost as a consequence, there would be no ISRO today. Thankfully, that has not been the case and India has taken important strides in space research. If a government school's results in the board exams during a particular year is poor, the school should not be denied financial assistance and closed down. It might have far better results the following year. Same with our sports academies.

But it would be worthwhile to consider financial accountability in a large number of areas where the performers are paid huge sums of money to perform. Considering that this money is contributed by the tax paying citizens, performances should be accountable to an extent. The performance of India's overpaid cricketers are a case in point. Another area is India's PSUs, many of which have been running on losses for years and draining the tax payers' money. If there is scope for a turn around, it should be shut down in the larger interests of the nation.

Soldiers fight for the country and many are awarded gallantry medals. Though this is a very good recognition for their services, a financial incentive can make them even more committed. Money controls nearly everything. So financial incentives or disincentives can really raise or lower performance levels. Thus we can not escape the money factor in measure of performance altogether.