Performance measurement tools have been used by many organizations or companies these days as one of their strategies in achieving success. Specifically, this tool is useful for detailed evaluation of the production process of one company, provide extensive guidance for the decision making process, and assess the performance of the company departments and individual employees. In general, measurement tools are created to give the company an easier access to a feedback system regarding its consistency in achieving their goals, and to provide them with options on how they can improve their current process. Basically, it gives companies a preview of how they are currently performing and where they might be heading. Another benefit of having a performance system is being able to better motivate the employees to do better with their jobs. However, such tool also has its consequences and the company should also be ready for it.
Managers can easily monitor how their employees are doing by having a performance measurement tool. And one way for them to make their work performance consistent is by having a reward system. With this employees will really work harder with the hopes of attaining the reward. There have been many records and surveys that testified to the positive impacts of performance measurement tools to the employee work performance. In the US Municipalities, 9.6% of the respondents found the tool substantial, and 33.3% find it moderate. Moreover, these results are supported by the same survey conducted in other US counties, which gathered 31.5% of the respondents agreed to the accurate effectiveness of the performance measurement tool. In terms of its impact on employee motivation, 32-68% of the respondents agreed to its effectiveness. All these records only suggest that there are many organizational aspects that the performance measurement tool can improve. Below are some of the major points to consider to ensure that a company has a good performance measurement system are:
• The results should be kept clear and brief.
• A company has polished both its internal and external communication • Employees and other stakeholders should know about the performance measurement tool. • The manager should be able to establish a proper implementation of the performance measurement tool. • Whatever results gained from performance measurement should be reflected with the employees’ salary, incentives, and recognition.
Organizations have many ways of reflecting the results of the performance measurement results by giving them either monetary rewards, or additional off days. It is also ethical for an employee to receive a feedback directly from his or her supervisor, whether it is a positive or negative feedback. One of the most popularly used performance measurement tool is the dashboard. The most important information about the company can be found in the dashboard, such as the target and performance data reports, which can be printed out through a spreadsheet on a regular basis. This makes it easier for managers to access whatever information they need, instead of constantly waiting for someone else to give it to them. Information such as performance of the employees, organizational productivity, custom orders, and order fulfillment are some of the necessary information for managers.
From this accessible information, the managers can readily make decisions for the company or with regards to any issue. Dashboards used to be highly static, meaning it is only capable of providing one preview of a data at a time. However, due to the technological advancements, dashboards are growing to be more interactive. Now, it is already possible for the users to upload their own data on the dashboard (Carr, 2008). Motorola first invented the six-sigma in 1980s, with the goal of providing better quality for the processes in various businesses, which many hug and small businesses are already using. This program is very useful in ensuring customer value and reliability. It was initially developed for quality control of businesses, but later on, companies are starting to use it to improve their communication system, thus resulting to more improved processes in companies. The major result of this is still higher quality of outputs.
Apparently, the six-sigma program was developed for the sole purpose of enhancing the business processes, such as the variation reduction and financial reporting. Because of the goals, the result of the six-sigma program is well-improved customer satisfaction of most businesses. The technology behind this program is DMAIC methodology or defines, measure, analyze, improve, and control. Define stage is where the problem is identified, and then it is quantified during the measure stage. The causes of the problem are then identified during the analyze stage. Improving stage is when the problems are fixed. Finally, the control phase is putting everything in place assuring that the problem will not happen again (Six-sigma program, 2004).
Perhaps, almost any type of organization has already experienced having a project fail. Any project failure can cost an organization a lot of millions. Common reasons for a failed project are cancellation and failure to complete it at the given timeline. Moreover, failure to specify project details will also lead to its failure, as well as lack of communication and project management. Finally, the major factor that leads to project failure is the lack of project measurement. It is one aspect of the project that actually sports any issue on the project and address them before the proper project kick off and implementation. These are some of the project development and implementation based on the EDA PM system: • Performance measurement should be used to determine possible hindrances to a project.
• Project must be according to the priorities of the project. • A strong project management system should be well established. • It should be noted that implementation of the PM system can take a lot of time, effort, and at some point, money. Thus, a company should have the most competent staff to work on it, with the close monitoring and support of the top management. • Performance measurement can also be used to easily recognize achievements from thee project. • The duties and responsibilities should be clearly set for the entire phase from project planning to implementation • Performance measurement will clearly identify the needs of the project.
• Consistency should be observed in terms of the project development and implementation with the company objectives and expected deliverables. In this method, the collect, analyze, interpret and report process in the project measurement should be identified. • Business processes should include the project performance measurement in order for them to systematically collect, analyze, interpret, and report whatever is derived from the project development. • Performance measurement should be objective, just, quantifiable, and results oriented, while including substantial qualitative information (Shayne, 2004).
Performance measurement can have different functions: customer satisfaction, business development, employee motivation, and business process enhancement. It has been widely used as a tool to motivate employees to do better in their jobs, with the promise of incentives or rewards. Having a pool of motivated employees will eventually lead to high quality outputs. Moreover, performance measurement will allow a company to operate according to their goals, and have a way to analyze how the output of their current processes will go. It will also give the company a chance to improve certain areas, which they think are more useful in achieving their goals. Performance measurement is also a reliable tool for managers for their decision-making processes, because of its objectivity.
Carr, N. (2008). The Data Dashboard. American School Board Journal, 195(12), 42. Retrieved August 2, 2010, from Master FILE Premier database. Mausolff, C., & Spence, J. (2008). Performance Measurement and Program Effectiveness: A Structural Equation Modeling Approach. International Journal of Public Administration, 31(6), 595-615. doi:10.1080/01900690701640929. Shayne, B. (2004). Performance-Measurement. Retrieved August 2, 2010, from http://www.performance-measurement.net
SIX-SIGMA PROGRAM. (2004). In Encyclopedia of Health Care Management, Sage. Retrieved August 2, 2010, from
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