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Key Performance Indicators (KPIs) in a Business: A Critical Review of the Literature and Justificati

Task 1

Task 1

The following themes will be investigated in the study:

  • KPIs vs Metrics in the Recruitment Process
  • KPIs are the most critical measures for a variety of reasons
  • Performance-based measures tied to overall corporate goals should be investigated
  • Demonstrating how key performance indicators (KPIs) may be simplified to a single number for simplicity of communication

Research questions

  1. What are some of the benefits of Key Performance Indicators (KPIs) used to assess a business's performance?
  2. What are the disadvantages of Key Performance Indicators in the business of recruitment?
  3. How does a business go about using Key Performance Indicators?

There are three activities which make up Task 2 as follows:-

Activity A: Literature Review

You will produce a written critical review of key literature based on the themes of your business research (identified as part of Task 1) to inform and support your business research project.

Activity B: Fully supported rationale for your chosen research method and design

You will produce a written narrative explaining and fully justifying your research method and design.  To do this you will evaluate business research methods analysing the appropriateness of their use for your chosen business research topic, fully justifying the rationale for your chosen method(s) specified in your outline proposal for Task 1.    

Activity C: Supporting Appendices for your Ethics Approval ProForma

As appendices to a UREC ProForma you are expected to attach a range of supporting documentation. For this activity you are specifically required to submit:-

  • Project Plan/Gantt Chart- A diagrammatic representation of the key activities, milestones and timings for your project
  • Contingency Plan– A plan identifying potential problems/risks at each key stage of the project and contingency plan for overcoming these

Project Research Proposal


In the recent events by the DALES recruitment agency, I was contacted and informed to undertake a project on the issues regarding the KPI in the agency. The newly appointed director has decided the best agency is to include the KPI method in their recruitment process while some directors felt others. This report will give an insight on the way forward.

Rationale and background

The key performance indicator is one of the essential measures for assessing the success of an organisation's operations and activities (KPI). Individual projects, products, divisions, or strategies can all have their own KPIs that can be used to assess the company's overall performance. Organisations use KPIs to evaluate their plans to those of their competitors and previous or comparable initiatives (Holliday, 2021).

In the workplace, "what gets measured gets done," as the saying goes. Key performance indicators (KPIs) are the metrics of choice for any business or organisation; professionals use them to design strategies, monitor performance and set targets. They improve decision-making by emphasising goals and providing a framework for interpreting facts, bringing them to the forefront. Key performance indicators (KPIs) are several tools available to organisations to help them get on the right track.

Sometimes success is described as progress toward strategic goals, while other times, it is simply the repeating, periodic achievement of a particular operational target. Consequently, choosing the proper KPIs is based on having a clear understanding of what is vital to the firm (Wenda, 2020). The significance of a KPI changes depending on the department measuring performance; for example, finance's KPIs are different from sales' KPIs.

Research Questions

The selection of performance indicators is connected to various techniques of analysing the present state of the business and its vital activities since it is required to know what is significant. Because many of these assessments end in finding potential modifications, they are frequently associated with "performance enhancement" programs (Holliday, 2021). The balanced scorecard is a prominent management tool for determining key performance indicators (KPIs).

The importance of these performance indicators in the typical decision-making process is obvious, for instance, in the management of organisations. A decision-maker must be able to effectively appraise the current situation to accurately foresee the results of prospective future actions while balancing several choices. If they base their analysis on faulty or insufficient facts, the projections will be untrustworthy, and the decision they make may have unintended consequences (James, 2013). As a result, proper performance indicator application is crucial in order to avoid and reduce the risk of making such inaccuracies.

Themes from the literature

Recruiting operations should be connected with the company's overall strategy and objectives, and key performance indicators (KPIs) should be utilised to track progress. Use recruiting metrics that are measurable, attainable, and relevant to the objectives of your firm (SMART). It is critical that you select KPIs that show how you are saving money, hiring the finest people, and boosting efficiency by treating recruiting expenditures as a business investment.


  1. To analyse some of the benefits of using KPI's in recruitment agencies.
  2. To examine the disadvantages of KPI's in the different fields of business.
  3. To show the practical ways a business can utilise KPIs to achieve its goals and ensure efficiency and efficacy.

Research methods

It is critical to understand the research procedures employed in the study. An explanation of the methodologies used in this investigation, as well as the reasoning behind their selection. This will comprise how to choose research participants and how to collect and evaluate data at each step. Analyses were carried out utilising both qualitative and quantitative methods. As a qualitative researcher, I will discuss the validity and reliability of a study's findings and how these requirements were met in the current investigation.

The data for the study was mostly gathered through on-site interviews and observations. Secondary data sources included items submitted by participants that were relevant to the study. The interviews conducted with the Interview Guide as a guide were the major mode of data collection. Consequently, participants were given the freedom to express themselves in any way they felt most comfortable. The analysis process will convey both inferential and descriptive statistics that will be followed by hypotheses testing.

As a supplement technique, we will use a case study strategy to address the research issues efficiently and appropriately. The case study approach provides a complete review of the subject at hand by utilising many types of evidence, including interviews with those involved, first-hand observation, and investigation of documents and artefacts. We will use a case study to further explain and describe rather than predict because the variable being studied is not easily identifiable or is buried in the phenomenon being studied. When the boundaries between a phenomenon and its real-world environment are unclear, a case study can be utilised to experimentally analyse the phenomenon.


KPIs are used by organisations to monitor a variety of elements of their operations. They help determine what works and where there is a possibility for improvement and cost savings. Depending on the firm's unique demands, several measures as key performance indicators. Regular assessments of process performance in organisations are critical for management and regulation, and content marketing. Use clearly defined metrics as part of your regular review of activities and outcomes.

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