Characteristics of a Good Performance Measurement System Essay examples

Performance management systems benefit stakeholders at every level if they are implemented successfully. Performance management systems align employee performance with the strategic direction set by the organization. St. Jessica’s Urban Medical Center’s leadership must perform specific actions, prior to implementing the new performance management system, to ensure it is a success. The organization's leadership must disseminate the information throughout the company, create a process that ensures employees can dispute ratings, train raters to evaluate employees and gain buy-in from early adopters (Aguinis, 2013). A newly implemented performance management system will fail if the proper steps are not taken in the beginning.

Darius, performance metrics is a way for the company to measure the employee productivity. Companies such as Verizon’s do measure the employee by the number of sales the employee get from signing people up for new services. However, not only are they looking for their employees to provide customer with new contact but also what them to sell the products as well. They can look and see in the system who is making the most in sales and who is not doing so good in selling. Training opportunity can be mention to the employee to help him or her to get up to speed with the other employees that are doing good. Managers providing their employee with feedback and also goals that they have for the month will give the employee an idea of how they doing.

The performance management system helps the company in identifying the employees who are not able to perform as per the expectations. Warnings can be given to these employees for improving their performance. Even after that they are not able to improve their performance; these employees can be terminated on the basis of performance. The organization keeps documentation about the performance of an employee. The company documents the performance in HR 's file. Employees in Organization are motivated and they value the structure of the company, its development and plan for growth. A motivated employee performs using full potential, which is good for both the organization and employee.

The Performance Measurement is a way to either measure or give a understandable value to what has been done compared to what was supposed to be done. It applies to all aspects in the working environment, such as procedures, critical activities and processes. In other words, first you set pre-defined goals and give away tasks and responsibilities to other workers, then at the deadline you can compare the achieved results to what the original goal was at the beginning. It is also useful to evaluate not only the final result, but even all the actions taken to get that particular results and the way the actions have been taken as well.

One stage in the management of performance system is when managers evaluate employees’ performances and provide them with feedbacks. One of the purposes of this stage is to identify employees’ strengths and weaknesses. As a result, managers should be able to identify performance and training gaps.

Measuring performance means when a business will measure the quality of the activities that are passing and the quality of the services provided to the customers by employees. It involves creating a simple, but effective, system for determining whether organizations meet objectives. It’s also a process of collecting and reporting information regarding the performance of an individual, group or organizations. It can

Management must ensure control over each objective by maintaining and ensuring that performance does not veer away from standard. “Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary” (Web Books Publishing, 2010, para. 17). Performance measurement can be done in several different ways. There may be the use of financial statements, performance appraisals, customer satisfaction reports, or sales and production results. Two control techniques also

Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align

This factor entails recognizing employees for jobs well done. The use of performance measurement software enables the employers to keep track of the performers of the employees to acknowledge their success and appreciate it. Employee rewards and recognition helps boost the morale of the employees hence improving their satisfaction (HealthcareSource, 2013)

Kaplan and Norton stated, “if you cannot measure it, you cannot manage it” (Kalan, R. S., Norton, D.P., 1996). By developing metrics the staff and management can asses progress. If goals are not met the approach can be modified or abounded for a new process.

A performance management system should consist of planning, monitoring, reviewing and evaluating (Hrcouncil.ca, 2015). During the planning phase management should identify, clarify and agree upon expectations of the employee. Also, in this phase management needs to determine how results will be measured, agree on the monitoring process and document the plan for performance management. Furthermore, this step is imperative for management to identify and ensure the performance objectives are explicitly stated to the employee. In the development of this phase management would

Performance management is one of the most important activities of HR. It is not enough to simply go through the business as usual and much disliked annual exercise of assessing performance and driving rewards based on a performance assessment. The information system will be drive and modifies goals as needed, assesses performance against goals, and provides instant feedback which will give them an indication of their strength and weaknesses thus focusing on skill development and motivate employees to stay with the organisation. However this may lead to Substitution of individual judgments and Challenge the nature of an organisation and the role of management

Throughout history, PMS clearly have a considerable contribution to evaluate the success of organisations. According to Neely et al. (2002), performance measurement is "the process of quantifying the efficiency and effectiveness of past actions". Moullin (2003) indicates that "PM is evaluating how well organisations are managed and the value they deliver for customers and other stakeholders". The modern accounting framework can be traced back to the Middle Ages and since that time appraisal of performance has primarily been ground on financial criteria (Bruns, 1998).

Performance measuring is vital part which assessing value of employee and management. Performance can be measure through employee’s overall impact cost efficiency and effectives. (Anon., 2017)

Managers should ensure that selected performance measurement system fits the unique requirements and business strategy of the firm. In general, primary economic activity of the company and its performance focus should dictate the selection of performance measurement model.