measuring performance why measures:- what can not be measures - it cannot be managed

Measuring Performance Measuring Performance

Why Measures:-

What can not be measures - it cannot be managed.

Appropriate Performance Appropriate Performance Measures Measures

Measures must ensure customer requirements

Measures provide standard for comparison

Provides score board for people to monitor their own performance levels.

Highlights Quality problems and areas require priority attention.

Cost of poor quality

Justifies use of resources

Provides feed back for driving the improvement efforts

Rules of planning a Rules of planning a Measurement SystemMeasurement System

Rule 1 :- Clearly identify your purpose of measuring

Reporting Measures –

Control Measures – Measures are sources of motivation


Rule 2 :-

Choose an appropriate balance between individual and group measures – Team Measures / Cross functional measures.

Rule 3 :-

Measures all the key elements of performance – PQCDSM .

Measures adequately describes good / bad performance

Leverage points


Rule 4:-

Be sure the measures adequately reflect the customers point of view whether the customer is external / Internal

Rule 5:-

Use care in generating competitive bench marks

Rule 6:-

Give some time to tedious technical adjustments.


Rule 7:-

Develop / Modify the system as participatively as possible.

Rule 8:-

Cost / Benefit analysis applies to data availability

Rule 9:-

If strategies change, measures can change too.

Rule 10:-

Performance improvement is a long term process; Top Management

patience is needed torrarol newly measured results.

Goal SettingGoal Setting

ObjectivesObjectives

►Describe the benefits of goal-settingDescribe the benefits of goal-setting►Explain the difference between goals and Explain the difference between goals and

objectivesobjectives►List the criteria for good goalsList the criteria for good goals►Explain the 4 steps of the goal setting Explain the 4 steps of the goal setting

processprocess►Detail the relationship between goals and Detail the relationship between goals and

performanceperformance►Explain the benefits of mutually-set goalsExplain the benefits of mutually-set goals

Benefits of Goal SettingBenefits of Goal Setting

►Provides a tool for assessmentProvides a tool for assessment Encourages objective appraisalsEncourages objective appraisals

► Improves employee performanceImproves employee performance Sense of accomplishmentSense of accomplishment Increased employee moraleIncreased employee morale

►Provides directionProvides direction

Goals vs. Objectives...Goals vs. Objectives...

►GoalsGoals Organization goals provide frameworkOrganization goals provide framework Provide guidelines for departmentsProvide guidelines for departments

►Set objectives within this frameworkSet objectives within this framework

►Objectives Objectives More specificMore specific ““What by when” statementsWhat by when” statements

OverarchingGoals

(Aspirations)

SuperordinateGoals

(Motives)

PersonalPractices

Performance

Effort

Response to Supervision

Scripts•Follower Behavior•Self-Messages•Corporate Lore

Personal Practices

How Aspirations Become Translated into Performance

Mission

Vision

Values

Departmental Goals

Work-Group Goals

Individual Goals

Monitor

Feedback

Rew

ard

Set

Getting Started...Getting Started...

►Discuss purpose of goal settingDiscuss purpose of goal setting i.e. Company wide changesi.e. Company wide changes

►Explain the processExplain the process Employee & manager establish goalsEmployee & manager establish goals Create mutual goalsCreate mutual goals

►Explain how goals will be usedExplain how goals will be used►Provide examples of goals for employeeProvide examples of goals for employee

SMARTER GoalsSMARTER Goals

►SpecificSpecific►MeasurableMeasurable►AchievableAchievable►RelevantRelevant►TimelyTimely►EffectiveEffective►ReinforcingReinforcing

SpecificSpecific

►Uses specific terms rather than vague, Uses specific terms rather than vague, abstract onesabstract ones InappropriateInappropriate: Employees will be : Employees will be

empoweredempowered AppropriateAppropriate: Employees will be : Employees will be

authorized to make more decisionsauthorized to make more decisions

MeasurableMeasurable

► Includes some method for objectively Includes some method for objectively measuring their achievementmeasuring their achievement InappropriateInappropriate: Consumers will be : Consumers will be

delighteddelighted AppropriateAppropriate: We will receive at least 12 : We will receive at least 12

unsolicited testimonials from our unsolicited testimonials from our consumers expressing positive reactions consumers expressing positive reactions to our servicesto our services

AchievableAchievable

► Is challenging but realisticIs challenging but realistic InappropriateInappropriate: All consumers will be : All consumers will be

seen by a counselor within 2 days of seen by a counselor within 2 days of intakeintake

AppropriateAppropriate: Seventy-five percent of : Seventy-five percent of consumers will be seen by a counselor consumers will be seen by a counselor within 2 months of intakewithin 2 months of intake

RelevantRelevant

►Follows the business strategy of the Follows the business strategy of the organization and unitorganization and unit OrganizationOrganization goalgoal: Increase competitive : Increase competitive

placements by 30 percentplacements by 30 percent InappropriateInappropriate: Increase competitive : Increase competitive

placements by 5 percentplacements by 5 percent AppropriateAppropriate: Increase competitive : Increase competitive

placements by 30 percentplacements by 30 percent

TimelyTimely

►Specifies a time period (short-, Specifies a time period (short-, medium-, or long-term)medium-, or long-term) InappropriateInappropriate: Reduce the size of the : Reduce the size of the

waiting list by 10% waiting list by 10% AppropriateAppropriate: Reduce the size of the : Reduce the size of the

waiting list by 10% during the first two waiting list by 10% during the first two quartersquarters

EffectiveEffective

►Focuses on critical factors and avoids Focuses on critical factors and avoids trivial onestrivial ones InappropriateInappropriate: Use fewer paperclips: Use fewer paperclips AppropriateAppropriate: Fully implement agency : Fully implement agency

policy on consumer choice by the end of policy on consumer choice by the end of the yearthe year

ReinforcingReinforcing

►Subsequent goals in a list reinforce Subsequent goals in a list reinforce previous goals, and do not contradict themprevious goals, and do not contradict them First goal on a listFirst goal on a list: Reduce the amount of : Reduce the amount of

paperwork in the departmentpaperwork in the department Inappropriate second goalInappropriate second goal: The paperwork : The paperwork

reduction committee will distribute copies of its reduction committee will distribute copies of its final report to all employees.final report to all employees.

Appropriate second goalAppropriate second goal: The paperwork : The paperwork reduction committee will post a one-page reduction committee will post a one-page summary of its final report on the notice board, summary of its final report on the notice board, and put the full text on the company intranet.and put the full text on the company intranet.

ActivityActivity

Generating Goals...Generating Goals...

► Meet to discuss goalsMeet to discuss goals Let employee go firstLet employee go first Provide positive Provide positive

reinforcement for goalsreinforcement for goals

► Establish a combined Establish a combined set of goalsset of goals Increases success of Increases success of

obtaining goalsobtaining goals

Monitoring the Process...Monitoring the Process...

►Joint agreementJoint agreement Measuring & monitoring progressMeasuring & monitoring progress

►e.g., “review placements every 2 weeks and compare e.g., “review placements every 2 weeks and compare to target placement figures”to target placement figures”

►Assess progress toward reaching goalAssess progress toward reaching goal Make any necessary adjustmentsMake any necessary adjustments

Goal Setting...Goal Setting...

► Create the needCreate the need► Introduce the processIntroduce the process► Generate goalsGenerate goals► Measure & monitorMeasure & monitor

The effort will pay off!!!The effort will pay off!!!

Dangers of Goal-SettingDangers of Goal-Setting

►Goals can be counterproductive, Goals can be counterproductive, demoralizing, and can engender demoralizing, and can engender hostility if they are nothostility if they are not SpecificSpecific RealisticRealistic Mutually determinedMutually determined

Source: Dangot-Simpkin, G. (1993, April). The dangers of goal-setting. Supervisory Management, p. 3.

Performance

Goal DifficultyEasy

Moderate

Difficult

Low

High

The relationship between goal difficulty and performance is curvilinear

Employee and Managerial Employee and Managerial Input in Goal SettingInput in Goal Setting

Employee Input?

No Yes

No No goalsSelf-setgoalsManager

Input?Yes

Assignedgoals

Interactivegoals

measuring performance why measures:- what can not be measures - it cannot be managed

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