Struggle together with the ability to put efforts with the organizational policies in order to accomplish particular goals is refer as a performance. Following are the provide base for evaluating performance of employees.
Ability: The fundamental skills contained by a person that are needed to provide particular performance increase the level of performance.
Motivation: Actions in HRM associated with assisting workers exert high energy level and to obtain performance in required direction.
Opportunity: Context under which performance is done they can be real or vice versa.
Determinants of Job Performance
Following are the three fundamental determinants of job performance.
- Willingness to Perform
The level of performance will be high and will be up to the standards if employee is performing duties & responsibilities in the organization with willingness.
- Capacity to Perform
If the fundamental abilities, qualifications and skills needed doing particular duties are possessed by the workers the level of performance will be in accordance with the set standards and vice versa.
- Opportunity to Perform
Favorable opportunities & circumstances to do the challenging duties which are more conducive towards accomplishment of organization’s mission and goal can be reasons to have more effective performance from workers.
Sample Core Performance Indicators
Organization’s effectiveness is measured by these indicators. Researchers view basic management tasks as innovation, control & efficiency.
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Control means attracting resources, dominating the external environment and using political processes. Innovation entails building skills to detect new processes & products and designing adaptable cultures & structures.
Efficiency includes building modern plants for quick fast distribution, low cost production and high productivity.
- The External Resource Approach: Control
A business organization’s ability to manage and control the external environment is measured by managers by using external resource approach. Indicators contain profitability, the quality of a business organization’s products, stock price and return on investment.
A significant component is the ability of management to perceive and react to environmental change. Stakeholders value an entrepreneurial spirit and aggressiveness.
- The Internal System Approach: Innovation
Organizational effectiveness is measured by managers by using internal systems approach. Culture & structure should foster quick response to market changes and flexibility.
Innovation is fostered by flexibility. Innovation is evaluated by production, the time required for decision making and the coordinating activities.
- The Technical Approach: Efficiency
Efficiency is evaluated by using technical approach. Effectiveness is evaluated by efficiency and productivity.
Productivity gains contain cost reduction or increased production. At all stages of production, productivity can be measured.
Service organizations could evaluate the ratio of goods sold to goods returned or sales per employee. In productivity & efficiency, employee motivation is an important factor.
- Measuring Effectiveness: Organizational Goals
Organizational effectiveness is measured by both operative & official goals. The formal mission of an organization is the official goals.
Operative goals are particular short term and long term goals that direct tasks. To measure effectiveness, managers use operative goals.
Market share and costs are examined by managers to measure control. Decision making time is reviewed while measuring innovation.
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Benchmarking is used by managers to evaluate efficiency by comparing the business organization to competitors.
A business organization may be ineffective in one area while effective in another one. Official goals must be consistent with the operative goals.
Why is Performance Measured?
Performance is measured due to the following reasons.
- Enhances productivity & motivation
- Detects problems
- Assists in validation studies
- Provides basis for making decisions
- Helps measures change efforts
- Helps ensure legal compliance
- Differentiates employees in job-related are as
Performance Management
A process that importantly influences organizational success by having workers & mangers work together to determine expectations, review consequences and reward performance.
