Performance

measurement
PLAN
DEFINITION

PERFORMANCE MEASUREMENT TECHNIQUES

IMPORTANT STEPS FOR EFFECTIVE PERFORMANCE MEASURES

TOOLS FOR PERFORMANCE MEASUREMENT

REASONS FOR PERFORMANCE MEASUREMENT

ADVANTAGES AND DISADVANTAGES OF PERFORMANCE

MEASUREMENT
 Définition
Performance measurement is the process of collecting, analyzing and/or reporting information
regarding the performance of an individual, group, organization, system or component.
-Moullin defines the term with a forward looking organisational focus the process of evaluating how
well organisations are managed and the value they deliver for customers and other stakeholders.
-Neely et al. use a more operational retrospective focus the process of quantifying the efficiency and
effectiveness of past actions.
-In 2007 the Office of the Chief Information Officer in the USA defined it using a more evaluative
focus Performance measurement estimates the parameters under which programs, investments, and
acquisitions are reaching the
targeted results.
Performance measurement techniques

1. Create a mission statement :

A mission statement plays an essential role in every organization. It is the framework upon which the
organizations lean on, and this is why it becomes critical to create one if you are looking for an effective
performance measure technique.

2. Create both a short-term and a long-term performance plan :

if you are looking for an effective performance measure technique, then create both a short-term and a
long-term performance plan. Short-term objectives like cost control will result in long-term outcomes, for
instance, a boost in customer satisfaction. The performance measurement tools can be a success if you
consider all the measures of financial performance like liquidity, profitability, activity,

3. Create different levels of objectives:

The key is to develop different levels of objectives so that every employee knows the role he has to lay in
the scheme of the organization’s things. Setting various objective levels will prove a boon in understanding
how a specific role will fit in the bigger picture and how it will help the business reach its goals and
objectives.
Important steps for effective performance
measures
● involve people in leadership positions in the process.
When they become part of a measurement process, it
becomes easy to convey the facts and information to
people working under them

● Make sure that everyone is championing the process

because half-hearted attempts will not take it very far.

● .Include talks about performance measures in meetings

so that every stakeholder is aware of its importance.

● Align the budgeting process to the business strategy.

● Communicate the key measures to everyone in the

organization so that every member can achieve the
desired goals.
The SMART performance measurement framework
Tools for Performance Measurement

360 degree feedback: Balanced Scorecard

01 With 360 degree feedback
performance appraisals, managers
receive anonymous feedback from
02 This approach combines quantifiable
information, such as sales quotas and
budgetary requirements, with performance
individuals with whom they interact standards particular to the position.
frequently in the course of daily
operations.

Management by Objective Self Evaluation

with this method, managers meet with

03 04
self-evaluation tools allow the employee
Direct reports and, together, come up
to rate himself against the same or
with short- and long-term goals for the
similar
year that are in line with the
criteria used by his supervisor. Often this
company’s Key objectives and
involves qualitative and quantitative
business mission.
criteria.
Reasons for Performance Measurement

No matter the size your business, you need to evaluate whether your
processes are effective to guarantee its future success. Creating a performance
measurement definition will help you do this. Examine each step of your key
business activities and the results they generate to determine if you operate at
the highest possible levels of efficiency and effectiveness.

Establish specific performance measures, or metrics, tied to the main steps of

each activity, such as profitability, employee productivity or customer
satisfaction, recommends Business Gateway. To define performance measures
for your customer service, for example, your metrics might include the time it
takes to answer each incoming call, how much time is spent talking to each
customer, and what percentage of calls are resolved satisfactorily.
Advantages and disadvantages of performance measurement

The advantages of using performance measures are as follows:

-The performance measures are considered advantageous as it can improve and boost individuals’ and groups’
productivity and the organization. It creates clear goals with the help of specific standards to measure success, and
the workforce now finds it easier to move forward and achieve them .

-The performance measures are considered advantageous as it helps to recognize the individuals who have proved
their worth by becoming top performers. Individualized metrics identify these individuals so that the organization
can know about their best talent and take steps to retain them at any cost .

-The performance measures are considered advantageous as it can easily identify both the individuals and the
teams that are not performing at required levels by comparing the outputs of one against another using the same
chart .

-The performance measures are considered advantageous as it improves and increases the level of communication.
Accurate measurement metrics have proved a blessing in most cases as they are outlined with specific instructions
that help to avoid any confusion in communication .
The disadvantages of using performance measures are as follows :

-Performance measurement methods are not easy to understand, as metrics will

have to be defined via key processes and terms. People who do not understand the
concept will avoid it, which can lead to communication breakdowns.

-The performance measures are considered disadvantageous as factors like

change, learning, and innovation are not given their due importance.

-he features of a performance measurement system are considered

disadvantageous because of the failure to measure all the factors that will create
value.

-The performance measures are considered disadvantageous as it does not take

into account asset creation and growth.
THANK
REALIZED:

Hiba Hajji zahar