Objectives & Indicator of Performance

Objectives & Indicator of Performance- Performance management is aimed at the development of individuals who have the required commitment and competencies to work towards the shared and meaningful objectives within an organization. Performance management strives to build a high-performance culture for both individuals as well as teams such that they can take the responsibility of improving the business processes jointly on a continuous basis and simultaneously raise the bar of competence by improving their own skills within the organization.

The major Objectives & Indicator of Performance Management are:

• Enabling employees to achieve superior standards of performance at work.
• Helping the employees identify the required knowledge and skills for performing their job efficiently since this focuses them on performing the correct task in the correct manner.
• Boosting the employees’ performance through constant encouragement and employee empowerment, motivation, and through the implementation of an effective reward mechanism.
• Promoting a healthy dialogue between the employees and the supervisors for clarification of expectations regarding roles and accountabilities, communication of the organizational and functional goals, to provide transparent feedback regularly for the improvement of employee performance and continuous coaching.
• Identification of the barriers that hamper effective performance and resolution of those barriers through regular coaching, monitoring and development intervention.
• To create a basis for strategic planning, successive planning, several administrative decisions, promotions and payments based on performance.
• Promotion of personal growth and advancement in the employee’s career through assistance in acquiring the desired skills and knowledge.

Indicators of Performance

Performance appraisal has become a continuous process in companies by which an employee’s understanding of a company’s goals and his or her progress toward contributing to them are measured. Performance measurement is an ongoing activity for all managers and their subordinates. Performance measurement uses the following indicators of performance. 

• Quantity: A good objective indicator of performance is the number of units produced, processed or sold. However, one must be wary of putting too much stress on quantity as quality might suffer.
• Quality: One may evaluate the quality of work performed in many ways, for instance; quality can be indicated from the percentage of work performed that has to be redone or rejected. Likewise in a sales environment, this can be determined from the percentage of inquiries that have been converted to sales.
• Timeliness: While this is a good parameter to measure performance, it must be used with caution. The average customer’s downtime is a good indicator of timeliness. In manufacturing, on the other hand, this may be determined by the units produced per hour.
• Cost-Effectiveness: This can be used to measure performance only if the employee can exercise some degree of control over the expenditure. A good example would be a customer service representative; whose performance is evaluated by the percentage of calls that he must escalate to more experienced and expensive reps. 
• Absenteeism/Belatedness: an employee’s absence is an obvious indicator of his or her bad performance. This can also impact the performance of other employees adversely.
• Creativity: Although it is difficult to quantify creativity as an indicator of performance, it is a vital component in many white-collar jobs. It is important that supervisors and employees keep an eye on creative work samples and try to quantify the same.
• Adherence to Policy: This should be seen more as a small boundary on the employee’s creativity rather than its complete antithesis. An employee who deviates from the policy has goals that are not well aligned with those of the company.
• Personal Appearance: Most organizations have at least one employee who is not properly dressed for work and needs to be told. Inappropriate dressing and its effect upon the employee’s and others’ performances should be clearly explained and corrective actions should be predefined.
• Gossip and Other Personal Habits: They may not seem performance-related to the employee, but some personal habits, like gossip, can detract from job performance and interfere with the performance of others. The specific behaviors should be defined, and goals should be set for reducing their frequency.

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