Some ways to measure performance include graphic rating scales, management by objectives and forced ranking. Performance management is important in the workplace because it enables managers and supervisors to measure the performance of their employees and determine whether they meet the expectations of the organization.Continue Reading
Graphic rating scales are important in fast-paced work environments such as the beverage and food industries. The rating scale consists of performance standards and job duties, and it rates employees from between 1 and 5. The method requires preparation and is easy to complete.
Management by objectives is the other way of measuring performance. It measures the performance of employees in managerial or supervisory posts. It starts by defining the goals of the employees, and after that, the manager and the employees list the resources required to achieve those goals. The section that follows in this method involves the timelines needed to achieve the goals. During the evaluation period, both the manager and the employees meet to discuss the progress of the employee and to add time to goals that the employee requires additional time to achieve.
Forced ranking may have earned a bad name in the past when Jack Welch, a former chief executive officer, decided that managers and supervisors should rank employees in three groups. Top performers formed 20 percent of the workforce, average performers formed 70 percent while the lowest performers formed 10 percent of the workforce. The method compared an employee's achievements to that of his peers instead of his past performance. For that reason, the method creates competition in the workplace.Learn more about Managing a Business