Track: Business Management

Abstract

Performance management is the next step after an organization’s level of performance is measured. By observing the results of performance measurement, an organization is able to see where it stands regarding its operations and performance. In this paper, a Decision Support Network is introduced for effective procurement performance management and improvement. The procurement process involves many contributing Key Performance Indicators (KPIs) which determine the procurement performance. The focus of this paper is mostly on performance management. Any organization seeks further improvements in its operations. Hence, they proceed with making decisions which they hope might increase their credibility. Yet still the implications of such decisions are to be studied so that the organization can make such decisions with more confidence, by knowing the expected impact in advance. Once the model is built, it could be used for analyzing and foreseeing the result of any kind of decision in the organization. The fundamentals of Bayesian Networks are used to build the Decision Network (DN). This DN is built for procurement performance management in particular and an application of it is demonstrated through the ending of the paper.