The Benefits of Performance Measurement

TABLE OF CONTENTS

Why is performance measurement beneficial? 2

Feedback is provided 2

Prevention of bad behaviour 2

Avoiding absenteeism 2

Rehiring productive employees 3

Employee encouragement 3

Lawsuit proofs 3

Discovering the best practice 3

Job allocation 3

Customer satisfaction 3

Strategic planning and goal setting 4

What are the downsides of performance measurement? 4

Over-systemised 4

Creates competition 4

Has a controlling nature 4

Biased employers 5

No concerns for individual differences 5

Costly 5

Discouraging the employees 5

References: 6

Performance measurement has been one of the most popular tools used by the managers in the past few decades. As the name suggests it is a technique to measure and evaluate the employees’ performance and progress. This tool has built critical arguments amongst the researchers for years. But does this tool truly benefit a business or is it also a weakness? Of course, there are many benefits and drawbacks to this concept. The advantages include:

• Providing feedback

• Prevention of bad behaviour

• Avoiding absenteeism

• Rehiring productive and efficient employees

• Encouraging the employees

• Lawsuit proofs

• Discovering the best practice

• Job allocation

• Customer satisfaction

• Strategic planning and goals setting

These points have been explained below.

WHY IS PERFORMANCE MEASUREMENT BENEFICIAL?

FEEDBACK IS PROVIDED

One of the reasons performance management is used is because employees need feedback. This feedback does not necessarily have to be positive; instead it should be a way of appreciating the hard work of an employee and eagerly helping them to improve themselves and the quality of their work in future. In this way, the employees have the o...

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