PERFORMANCE MEASURE CRITIQUE

Performance Measure Critique

Performance Measure Critique

Introduction

Performance measurement of employees is the integral part of a company in order to develop effectiveness and success of a company. There is an increasing interest of companies to improve employee measurement system through ongoing programs of training and development. In recent years, organization's administration has sought to optimize performance of their resources to create competiveness among employees.

Discussion

Human Resource Measure

Performance Evaluation

The performance evaluation is an activity of human resource management that takes a step to watch the progress of the employee and the manager depending on the environment, context and culture of the organization. This act is an opportunity to emphasize the positives while also addressing the elements that need improvement. Performance evaluation is used to analyze the performance of staff by focusing on maintaining job satisfaction while promoting professional and personal growth.

1.Usefulness and Importance of Performance Evaluation

Performance evaluation is useful and important in the following ways:

It helps the employees to know their responsibilities and performance expectations.

It helps the employees know exactly what criteria and what standards will be appreciated by the organization.

It helps the employees to know their objectives.

It helps the employees to discuss opportunities for progress.

It helps the employees by providing feedback of their performance.

It helps in identifying the needs of the employee training.

It acts as a base for personal decision making such as; increasing salaries, promotions, and disciplinary actions.

2.Evaluation in the light of outcomes of Performance Evaluation

Performance evaluation enables the organization to find out which individuals deserve promotions and which individuals deserve demotion. It enables to find out which employee needs training. It is a form of morale booster for those, whose performance is satisfactory.

Employee Satisfaction Surveys

The satisfaction survey provides key indicators to guide decision making for continuous improvement in the management of Human Resources. To collect reliable information and use it wisely, it is necessary to follow a certain methodology.

1.Usefulness and Importance of Employee Satisfaction Surveys

Customer satisfaction surveys prove to be a very relevant tool to manage its human resources.

It helps to make some important decisions in making strategic choices and decisive development prospects.

It takes a better account of employee expectations and therefore provides more appropriate responses to their needs.

Improve the work environment through better communication between management and employees.

2.Evaluation in the light of outcomes of Employee satisfaction surveys

In the light of outcomes of the measure, the company can evaluate the condition of the work i.e. salary, equipment, stress and hardships faced. It helps to evaluate the balance between work and private life, and relationships with colleagues and superiors.

Financial Measures

Profit and Loss Statements

Profit and Loss statement is actually a financial statement which provides a summary of revenues, costs and expenditures that took place during a certain period of time.

1.Usefulness and Importance of Profit and Loss Statement

The prime reason for the making of profit and loss statement is to find out the amount of income that has been generated during the current accounting tenure.

The statement explains the amount of Cost of Goods for a certain period ...