How can I evaluate and measure performance?

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Before a company can work on performance improvement, it must determine its current level of performance and form a standard of measurement so that future performance can be measured against current levels. In the stereotypical ACME widget factory, if a manager wanted to measure an employee’s performance, all he needed to do was count the number of widgets the employee produced per hour or per day. In the modern business environment, though, it is much more difficult to evaluate and measure performance.

Performance evaluations should be completed with an eye towards the individual job. What is the goal of a specific position? Do you expect an employee to produce a certain amount of goods? Do you expect an employee to bring in a certain amount of business? Do you expect employees to provide certain levels of service to company? You want to find some sort of measurable data with relevance to the purpose of the job.

Once you have found something you can measure, it is important to keep records of the information over time. Don’t come to an employee and say, “You didn’t produce enough last month;” instead, be able to say, “Your production has decreased each month for the past six months. Is there something going on?” Compare data with past results and with that of other comparable employees, and remember to consider any extenuating circumstances that might be affecting the individual or the team.

Another option to consider is hiring a consultant or another outside professional to do some of this work for you. A consultant can come in unbiased and examine individual and company performance to help you discover the strengths and weaknesses of your business.



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