Learning Journal 2

Performance Measurement

The process of gathering, examining, and/or reporting data on a person's, group's, organization's,
system, or component's performance is known as performance measurement. It is employed to
evaluate the efficacy and efficiency of projects, programmes, and initiatives. It is a methodical way of
gathering, examining, and assessing how "on track" a project or programme is to meet its intended
outcomes, targets, and goals.

In order to determine whether employees are meeting the company's objectives, supervisors and
managers must use performance measurement, a crucial tool in the workplace. Depending on the
workplace, the type of business, and, to some extent, the employee's line of work, several
measurement techniques are used. Finding out more about performance evaluation can benefit you
and the business you work for.

It is a way that managers and supervisors use to gauge staff performance and give them feedback.
Evaluation and feedback are made possible by the information obtained during performance
measurement. This strategy makes it easier for employees to achieve their goals by helping to
communicate expectations and requirements to them.

In order to motivate their staff members, managers may offer constructive criticism during a
performance management review. Employees are more likely to take personal responsibility for
their work performance and acquire the knowledge, skills, resources, and support they need when
they aspire to do their best.

Below are the benefits a company can accrue from measuring performance in its operations:

 It's capable of identifying underperforming individuals and teams. When a performance

assessment procedure is in place, it's much easier to identify underperforming individuals
and teams since their managers can directly compare their performance to the productivity
of others using objective means.

 It promotes employee motivation. If workers are aware that their managers are keeping an
eye on them and evaluating their performance, they may be more motivated to work
harder. Employees might see a distinct and inspiring end result.

 It may help to improve communication. When valid and impartial performance assessment
metrics are in place, there are less chances for misinterpretation on the part of managers
and their direct reports. There is no doubt about what each worker is capable of because a
performance management system may explicitly describe each activity with detailed
instructions that may lead to success.

 It makes it possible to recognise exceptional performers. Because managers consider each

person's significant contributions to the team's total performance, it is frequently difficult to
recognise great performers. By creating individualised performance criteria, it is feasible to
identify and reward the top performers within a group, increasing the likelihood that an
organisation will keep the best workers.
  A recognisable chain of command is established. The roles of each employee and
management within the organisation are made clear via a performance evaluation. When
team members assume a leadership role and feel in control, uncertainty is reduced inside
the group.

Forced ranking, management by objectives, and graphic rating systems are a few techniques used to
gauge employee performance. Monitoring the availability of money handled by the finance
department. monitoring the amount of stock that the materials management department keeps. All
of these are instances of performance measurement, as is keeping track of the quantity of scrap
generated in the production area.

Comparative Analysis

Graphic Rating Scale

A graphic rating scale, often known as a Likert scale, is a performance evaluation technique that
specifies the attributes and behaviours that are ideal for each function before assigning a numerical
grade to each one. With this methodology, each employee is evaluated in relation to a set of
attributes or behaviours that are critical for effective performance. Employers can quantify the
behaviours their employees exhibit thanks to the rating. An employee is evaluated based on a list of
characteristics or actions that are thought to be significant and pertinent for efficient employee
performance and productivity. Employers can quantify the behaviours their employees exhibit
thanks to the rating scale. These actions could include:

1. The quality of work

2. Teamwork
3. A sense of responsibility

Ratings are usually on a scale of 1-5, 1 being Non-existent, 2 being Average, 3 being Good, 4 being
Very Good and 5 being Excellent.

The creation of graphic rating scales takes less effort, and they enable quantitative comparison.
However, it has its limitations:

• Different supervisors will use the same graphic scales in slightly different ways.
• One way to get around the ambiguity inherent in graphic rating scales is to use behaviour-
based scales, in which specific work-related behaviours are assessed.
• More validity comparing workers ratings from a single supervisor than comparing two
workers who were rated by different supervisors.

BARS

A measurement tool called a behaviourally anchored rating scale assigns ratings to trainees or
employees based on their performance and particular behavioural patterns. When assessing
employee performance, a behaviourally anchored rating scale can be a very effective instrument.
Using behaviourally anchored rating scales can help you find the most effective employee
behaviours and enhance workplace culture, regardless of the sort of business you work for.
Therefore, doing the research might benefit both your organisation and your own career.

The technique commonly employs a vertical scale with ratings from five to nine, corresponding to
various performance levels, from extremely poor to excellent. When using it, managers first list all of
the duties that an employee must fulfil before adding certain behaviours to each grade from 5 to 9.
Given that each behaviour listed on the scale is pertinent to a particular function within the firm, the
behaviourally anchored rating scale can assess individual employee behaviour. Because of this, the
manager's behaviour must typically be tailored as closely as possible to each role.

A vertical scale with ratings from five to nine—corresponding to various performance levels, from
extremely poor to excellent—is frequently used in this technique. Before adding specific behaviours
to each grade from 5 to 9, managers first outline all of the responsibilities that an employee must do.
The behaviourally anchored rating scale can evaluate individual employee behaviour because each
behaviour indicated on the scale is relevant to a certain function inside the company. As a result, the
manager's behaviour must normally be as closely fitted to each function as possible.

Uses of behaviourally anchored rating scales that are most typical include:

• Talent acquisition: Recruiters have a greater chance of choosing the most qualified
individuals if they are clear on the behaviours that they are looking for in applicants for
particular posts.
• Employee development: Managers can provide their staff members particular behavioural
goals by using the behaviourally anchored rating scale.
• Performance management: The most typical application of behaviourally anchored rating
scales is for the evaluation of employee performance using established behavioural patterns.

The following are a few of the most significant benefits of utilising behaviourally anchored rating
scales:

• Objectivity: The fundamental benefit of behaviourally anchored rating scales is that they are
more objective than traditional rating systems since they evaluate employee performance in
comparison to predetermined behavioural examples rather than just a manager's subjective
assessment.
• Easy to use: Highly specific behavioural examples are provided for each rating on a well
implemented behaviourally anchored rating scale, making it simple for managers and staff to
comprehend.
• Management can assess personnel and all jobs in a company using behaviourally anchored
rating scales to assess them according to unique standards.
• Highly Individualised: Employers and employees can more easily identify the precise
standards for success and failure in each position when rating scales are behaviourally
anchored since they only concentrate on the conduct of the employees they are intended to
evaluate.
• Defines performance expectations: When performance is evaluated using a behaviourally
anchored rating scale, it is often simpler for the employee to understand exactly what has to
be done to improve.

Critical Incidents

The critical incident method, also known as the critical incident approach, is a performance
evaluation tool that examines an employee's actions in specific situations, both those where he did
admirably and those where he could have done even better. The critical incident technique employs
a series of steps to gather data. In the critical incident approach, the observer records crucial
workplace incidents, abilities, and human behaviours. The manager of the employee describes the
occurrence in full using the critical incident procedure. In contrast to other systems, which could be
quite objective and only call for ratings out of 10, 5, etc., this one is quite subjective. The
competences and Knowledge, Skills, Abilities, and other Attributes (KSAO) necessary for a task or
group of tasks associated with a job are defined. The observer considers both the soft skills
employed and the cerebral aptitudes needed by the job holder.

When creating a job specification and job description, the Critical Incident Technique is particularly
beneficial. The interviewer will note down the necessary incidents, skills, mental abilities,
knowledge, and other attributes that the job incumbent used while performing the job. The
respondents, who are typically the job incumbents, are asked to share a story about the experiences
they had while performing the job. The critical incident technique is a crucial and useful tool for
writing work descriptions and job specifications. An organization's turnaround time for filling a
vacancy can be shortened by providing a job description and job specification in order to draw in the
best candidates for the position.

MBO

Employees and their managers come up with shared goals and collaborate to achieve them as part
of the management by objectives process. This management technique involves ongoing process
examination and improvement. The goal of this strategy is to produce a useful manual. MBO is a
management technique in which superiors and subordinates agree to cooperate to achieve shared
objectives. In addition to including individual employee goals in the plan, the employees and
supervisors determine and specify these goals as a subset of the organisational goals. The two sets
of goals are then brought into alignment by staff members and their managers, who also decide on
the anticipated outcomes and establish the standards for meeting those objectives.

The supervisors act as the process overseers, while other employees play a vital role in carrying out
the process. Assignment of duties to each employee, evaluation of how closely workers adhere to
established standards, and ongoing process monitoring, and improvement are all tasks of
supervisors.

MBO is a management technique in which superiors and subordinates agree to cooperate to achieve
shared objectives. In addition to including individual employee goals in the plan, the employees and
supervisors determine and specify these goals as a subset of the organisational goals. Then, workers
and their managers align the management model is distinctive and useful because of the distinctive
qualities that make up the overall management by objective approach. The MBO notable features
are listed below.

1. Goal specificity: Goals that are clear and precise will determine how well the process works.
2. Top-down cooperation: MBO makes sure that managers collaborate with their staff
members on all aspects of the process, including planning and decision-making.
3. To promote continual improvement, feedback management by objective employs feedback,
which comprises reviews of the procedure and managers' perspectives.

The MBO process emphasizes achieving goals and has many benefits to an organization. Below are
ways in which your organization can benefit by using the MBO model.

1. MBO encourages employee participation and engagement

2. MBO promotes self-growth
3. MBO process enhances communication
4. MBO acts as a guide to achieving organizational goals