Performance Measurement
– How to Ensure it works Effectively.
“If you can’t measure it,- how do you know how well it is being done or even if it’s being done at all?”
Once a manager and his subordinate have refined and verified the appropriate key accountabilities, performance indicators and established priorities, the next step is to determine measures.
Measurement is something which requires imaginative thinking and thoughtful discussion between team leader and team member to identify measures which are fair and relevant in the particular environment, business circumstances and individual situation. Those measures which seem most attractive at first sight may constitute ‘overkill’ and much simpler monitoring may suffice. The criteria are simplicity, acceptability, sensitivity.
In many sound management system, an important indicator seems to be a quantitative measure on the degree to which planned results are being achieved. For example, a budget is a plan for spending money over a period of time. Achievement against budget is an indicator, but a better measure is the outcome of the budget expense i.e. improvement in market position , customer satisfaction or improvement in product quality etc.
By establishing such measures on the accountabilities of each job, the incumbent and the supervisor can systematically, and objectively, review actual achievements against expected results.
Specific Goals and Objectives for the business cycle must be set with each Appraisee, based on corporate, department and section business plans. Each goal (target) will include the target date, the measurement method and its relative weight/importance.
Characteristic of Measurement
All measures must be developed to show some form of quantifiable performance
- What are the concrete signs of outstanding performance in this key results area?
- What are the concrete things that would cause dissatisfaction with respect to achievement?
- What are the key competencies / behaviours that make for outstanding performance in the job?
Measures should be:
- Objective
- Simple
- Relevant
- Understandable
Typical measures that will lead to good objectives are:-
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