Employee performance is the job related activities expected of a worker and how well those activities were carried out. (Johnsen, 2000)
Measurement involves ascertaining the size, amount, or degree of something by using an instrument or device. (Euske et al., 1993)
Therefore it can be concluded that employee performance measurement is how organizations, public and private, measure the quality of their activities and services. It involves the regular collection of data to assess whether the correct processes are being performed and desired results are being achieved.
The idea of performance
Performance measurement is usually used in corporate settings but can also be used in other environments. The idea is to cause an atmosphere of continuous improvement by setting goals and making plans to achieve success. (Kaplan and Norton, 1992, p.71) The process is to identify performance inadequacies, give feedback about those problems, take action to behave differently and measure the success of changed behaviors. Optimal performance is the main goal. (Powell, 2004)
Determining what you want to measure in your company before embarking on the task of setting performance targets is very important. Focusing on a section or department of your business makes the task more manageable. (Ghalayini et al., 1997) But if it's decided to enlist the entire operation, it's important to ask each department manager to write performance targets for their work group and then combine the indicators to find the most important for your business. Once established, the goals can be explained to the employees, how they will be affected and the role of each of them in meeting the targets.
Performance measurement, a good measurement?
Performance measurement can quantitatively tell us the importance about our products, services, and the processes that produce them. They help us understand, manage, and improve what organizations do. Performance measures let us know how well we are doing, if goals are been met, if customers are satisfied, if processes can be statistically measured and if and where improvements are necessary. (Cutler and Waine, 2005) They provide us with the information necessary to make intelligent decisions about what we do.
Employee performance measurement measures:
Effectiveness- A process indicating the degree to which the process output (work product) conforms to requirements.
Efficiency- A process indicating the degree to which the process produces the required output at minimum cost.
Quality- The degree to which a product or service meets customer requirements, expectations, tastes and preferences.
Timeliness- Measures whether work was done correctly and on time. Rules must be established to define what constitutes timeliness for a given unit of work. These rules are usually based on customer requirements.
Productivity- The value added by the process divided by the value of the labor and capital consumed. (Basically output per...