ESTABLISHING

PERFORMANCE STANDARDS
Chapter 19

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
 Steps for Establishing Standards and
Standard Procedures for Employee
Performance

1. Organize the enterprise.

2. Prepare job descriptions.
3. Schedule employees.

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
 Job Analysis
Interviews and observations are designed to
provide information about the following:
• Job objectives
• Specific tasks required to achieve objectives
• Performance standards
• Knowledge and skills necessary
• Education and experience required

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
 Job Descriptions
Answer three questions
• What is to be done?
• When is it done?
• Where is it done?
Contain three parts
1. Heading that states the job title and the
department in which the job is located
2. Summary of the duties of the job (typically in
paragraph form)
3. List of the specific duties assigned to the job
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
 Calculating Standard Work
Hours
1. Determine the number of employees
needed to serve a specified number of
covers in a certain time period.
Example: 8 servers for 500 covers in a
three-hour lunch period
2. Standard work hours = Number of
servers × Number of hours
8 servers × 3 hours = 24 work hours

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
 Calculating Standard Cost

Number of standard work hours × Hourly

wage = Standard cost
Example: 24 hours × $4.00 per hour =
$96 standard cost

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved