Performance Measurement: this short article explains Performance Measurement in a practical way. Next to what it is (definition), this article also highlights the practice, most known frameworks, the benefits and tips. Enjoy reading!
Performance Measurement: this short article explains Performance Measurement in a practical way. Next to what it is (definition), this article also highlights the practice, most known frameworks, the benefits and tips. Enjoy reading!
Performance measurement is the practice of collecting, analyzing and reporting information about the performance of an employee, group, organization, system or component. Measuring performance is part of performance management.
Different definitions of performance measurement are given by different academics.
Moullin defines it as the process of evaluating how well organizations are managed and the value they deliver to customers. Neelie argues that performance measurement is the process of quantifying the efficiency and effectiveness of past actions.
There is no consensus on how to measure performance, nor does it have a clear definition. It is therefore up to the organization and management to determine what thsi practice will look like.
The most common frameworks or methods for this are:
The Balanced Scorecard is used by organizations to evaluate and manage the implementation of a strategy. Key Performance Indicators (KPIs) are used to execute the most important performance measures.
Defining exact performance measures or methods is a popular activity for academics. For example, there is a large number of studies dealing with lists of indicators for the railway infrastructure sector.
The use of this practice in business is important, but too often it goes unimplemented.
A consequence of such a measurement may be that an employee has to develop a Personal Improvement Plan (PIP) with an involved manager. This enables the employee to grow and develop, something that is ultimately good for the organization.
Using a performance measurement can provide a variety of benefits, from measuring the effectiveness of a project to contributing to a culture of continuous improvement.
Systematically managing and executing performance management in general and this practice in particular means that plans can be revised midway when there’s an expectation to profit from new opportunities.
Other benefits are:
A performance measurement framework identifies the indicators needed to effectively monitor and measure performance. The use of a performance measurement framework is characterized by:
The method supports management (HRM) in:
The articles linked to the performance measurement tag cover the different ways performance measurement can be done and provide methods, tips and best practices. Missing something on this topic or related topics? Let us know in the comments or send an email
