Performance measurement is a process many companies, organisations, schools use today. Performance measurement refers to the process of determining results and outcomes from certain processes, products and services which allow evaluation and analysis of the goals, standards, past results. Its main role in management is that it allows to make the most out of available resources, improve decision making, improve how administrations operate and to see to see whether output are in line with what was intended or should have been achieved. While performance measurement is a very common and systematic process and has many advantages, it also has some disadvantages.
Performance measurement as said above is a process of measuring performance in the workplace. It shows how well a company is doing, if their process is in control, if they are meeting goals, to find out where improvement is required and if the customers, clients are satisfied with their product. Performance measurement is generally undertaken in five steps. Firstly, identify the desired achievement. Secondly, identify measures you will use to see if you are reaching desired achievement. Thirdly, obtaining trending data on the performance measurement. Fourthly, obtaining the contrasting data and setting up target standard you are looking to reach for the performance measure. Lastly, gathering all the information collected from undergoing performance measurement and reporting on it. Performance measurement can be grouped into one of six categories, these include effectiveness (process which show comapanies whether the work product meets requirement), efficiency (process which show companies whether their output meets the requirement with the minimum usage of resource), quality ...
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...rvisors, feedback and peer assessment, which allow evaluation and reduction of the errors. By training the supervisors, it can give them more awareness of their job and the importance of doing their job correctly, also it increases the accuracy of their measure. The supervisors can ask other managers to give them a feedback on how accurate and tolerant their measures are. This reduces biased views of the process. Also they can allow other employees to appraise their coworkers. This helps reduce biased view greatly as the employees work with each other and has more time to observe and communicate with other coworkers than the supervisor. Furthermore, it increases the motivation of the workers conducting the appraisal themselves, as the criteria for the appraisal applies to them as well. They will try to work harder in order to avoid the mistakes their coworkers made.
Tapinos, E., Dyson, R.G. & Meadows, M. (2005). The impact of performance measurement in strategic planning. International Journal of Productivity and Performance Management, 54(5/6), 370-384.
As per Harvard Mentor Review, measuring performance of companies is important for the following reasons:
Performance management is a process of providing continues success to an organizations and its leadership and teams within that organization. Within many organizations not to many personnel lack the knowledge of performance analysis due to its confusion with performance appraisal. The reason that performance management is executed is because the organization tries to tie in the organizational culture with the performance management practices. By studying performance management it shows how the organizational culture and the performance management practices. Performance management systems is what businesses like to focus on today because of the way it is a continuous, uninterrupted and a sustained progress. The different
‘If you can’t measure it, you can’t management it’, [Dan vesset and Brian, M. 2009]. Performance management is concerned with the measurement of results and with studying progress to achieving objectives base on the results. Managing performance can tell you what you’re doing well in, and also reveal areas where you need to make adjustments. Measuring performance tells you how far you’ve gone achieving your ultimate
The purpose of performance measurement are communication, motivation, control and improvement. The performance drivers should include this few parts, personnel development, employee attitudes, public responsibility, balance between short-range objective and long-term goals and product leadership. And these parts should affect the customers’ satisfaction of our company.
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
Performance management is a management tool used to value, monitor and measure a company’s strategies that ensure the efficiency and effectiveness of its product delivery. This management tool does not focus on the organisation and on its employees as well as stakeholders. It is a continuous process that entails that managers make sure that organisational and employee values are corresponding (Aguinis, 2005,p.1/2-1/5). Performance Management brings about the competencies in the employees, increases self-esteem by giving feedback to employees, there is a low number of lawsuits because it helps understand the company better (eThekwini Municipality, 2008,p.10-11). According to Pride, Hughes and Kapoor (2011, p.288) performance management creates motivation for employees; one theory of motivation is of Expectancy, which stipulates that employees satisfaction is driven by expectations of what an organisation will offer in return.
Performance management is a great tool for both the employee as well as the organization. For the employee, it gives the employee a clear picture of his areas of improvement and helps him improve and grow. From the organization’s perspective, it lets them understand the potential they have in their employees and how to realize them. It helps them to analyze who are worthy of being held onto and whom to let go so that the organization grows. In all, an effective tool, if used in the correct manner by all the parties involved.
The manager communicates with the members of staff individually on a regular basis providing all the necessary information about the employee’s overall performance as it relates to their roles in the workplace. This performance appraisal is beneficial to employees as it allows them to create an outline for their goals with the greatest effort it should not be used to lower the employee’s level of motivation but seek to increase it.
Organization performance is the performance effectiveness and the performance efficiency. The performance effectiveness is the measure of the task or goal accomplishment, it would be to what degree of a goal achieve. Managers who chose the right goals and achieve it can be say performance effectiveness. Besides, the performance efficiency is the measure of the resource cost associated for the goals, it would be how much of the resources are used and how productivity of resources. The more time and resources are saved in achieving goals, the most efficient production supervisor is.
Finally, the timing of appraisals could be rectified by implementing quarterly performance appraisal instead of annual ones. Having managers meet with employees more frequently may enhance individual performance by giving employees the feedback they need to improve. Also, increased appraisal may result in more accurate evaluations because it is easier to recall specific performance indicators after 3 months versus after 12
Performance management is a process that guarantees an organisation and all of its available resources are working collectively and effectively towards achieving the organisation’s mission or goal. Performance management affords an understanding of what drives an individuals, and even organisations, performance at all levels. An understanding of performance management allows for the identification and minimisation of unproductive areas of an organisation, as well as an ability to predict future performance. It is a powerful tool that can be used by managers at all levels of an organisation to help improve a company’s productivity.
...organizational annual pay and grading reviews, Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting. Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development.
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
When implementing a new performance management system in an organization there are both advantages and disadvantages that need to be taken into consideration by the design team. However, one of the best ways to know if a performance management system is effective is by implementing the system within the organization and then continuously monitor and reevaluate if the system is still relevant to the organizational