Performance is another designation for achievement, achievement, or level of success achieved by individuals or groups. Something can be categorized as performance, if the achievements they do can realize targets and goals that are aligned with the vision and mission written in a company’s strategic planning.
Something can be said as performance, if the achievements achieved by individuals or groups are indeed aligned with the targets and objectives to be achieved. So without a target and goal, the performance of an employee or team will be difficult to measure. From this brief explanation, we can draw the conclusion that a performance benchmark is necessary. Therefore, every company or organization needs to have performance measurements made correctly and appropriately.
Is Performance Measurement Important for Every Company to Have?
Without proper performance measurement, leaders will face difficulties to measure and evaluate individual performance. When the work plan has been implemented by employees, then performance measurement will make it easier for leaders to make modifications or adjustments to their work plans and adjust them to the current actual conditions.
It is important to remember that every performance measurement made by a leader will have an impact that directs, limits and changes the behavior and performance of their employees. Therefore, the leader must realize and understand correctly related to what and how they set a matter to be a valid performance measurement. This is done so that leaders also think about the positive and negative impacts of the performance measurements they set.
After carefully determining performance measures by considering the positive and negative impacts that exist, the leader must use these performance measurements to monitor and evaluate all aspects of performance. Every performance measurement that has been determined and implemented must have a high effectiveness value for the employee being evaluated and for the leader who is evaluating.
The problem is, a common mistake that is often made when setting performance measurements is that leaders make excessive performance measurements. Because the measurements or performance standards set are too excessive, this becomes a burden for all parties involved. They feel very restrained and overly controlled, so they find it difficult to meet applicable performance measures.
Because this impact is quite dangerous, leaders must think effectively and carefully to set performance measurements that are relevant and meaningful for all parties, especially for employees. Logically, it’s better to have a few but effective performance measurements, rather than having a lot of performance measurements that are useless or don’t have any positive impact.
Then, How to Determine the Correct and Appropriate Performance Measurement?
According to the Franchising website, there are four areas that are the focus of creating true and correct performance measurements, namely as follows:
1. What Do You Want to Measure?
The first thing we need to focus on is determining the specific elements that are important to measure. Why? Because each specific element that needs to be measured will vary based on the division within the company. In general, performance measurements will be set around productivity and profitability. In addition, most leaders will set performance measurements by including certain expectations of performance provided by employees. As an example:
– Progress is evaluated by specific achievements related to each individual’s goals and objectives.
– Profitability is evaluated against the budget set for each activity.
– Efficiency is evaluated by the utilization of resources in organizational units.
In this case, each organizational unit has a key factor that can determine their success . Leaders need to identify these factors as performance measurements and look for trigger points which are early indicators of success or failure of these factors.
2. How to compare it?
When leaders understand and know what things they need to evaluate, leaders need to make clear benchmarks in order to measure things critically. When leaders have clear benchmarks, the level of trust given by employees to the assessment they get will be even higher. Obviously they will trust more, because they know that the established benchmarks are truly designed correctly and clearly.
It will also help leaders evaluate employee performance by looking at performance records or documentation in previous periods. The longer a leader reviews the past performance of a particular field, the higher the level of trust and reliability it builds.
3. How Often Should We Measure Employee Performance?
In this case, leaders must be careful not to burden themselves with information that does not need to be responded to. By having the right performance measurement, the leader must know when he must measure employee performance and when he must ignore the information that comes.
4. What Measures Can Be Identified?
Performance measurement will help leaders measure the overall performance of the company’s divisions. Specific measurements will also create effective and corrective evaluation results. Solid performance measurement will help employees to perfect their performance. Not only that, employees will also be more enthusiastic, motivated and productive .