Performance measurement is vital in all organizations because the organizations need to verify the validity of the selection methods; they also need to do performance measurement in order to improve productivity of the organization. As much as this may seem an important and key aspect of management, still it has a lot more difficulties associated with it. Some of the main factors that may make performance measurement to be more challenging are the measurement problems that make it impossible the supervisors (those in charge of the performance measurement) to tell the juniors or subordinates that they are below the average standards.
How should the organization deal with such situations? In order for organizations to do performance measurement well, then they should carefully study the job, systematically and scientifically, in order to determine the nature and characteristics of the job, knowledge, skills and experience required for the successful performance of the job.
They should collect all the vital information related to the job. They should then look at the specific individual tasks that comprise the job and qualifications necessary to do the job. This is called job analysis that involves determining the content of the job in terms of what the worker is expected to do, methods and techniques used, and lastly, the conditions and skills required for the job. Under performance rating values such as creativity, initiative, dependability, knowledge etc assigned to the job and the rating is presented on a scale like this and questions are asked.
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Here the performance of the job is rated as per the objectives set at the begging of the period i.e. sales targets set as 15% and then the sale representative gets 15%, he will get a positive sales performance order and vice versa.
For this method of appraisal to be effective there must be a clear understanding between the employer and the employee at the point of setting the objectives. The authority and recourses necessary to achieve the objectives must be delegated to the managers.
- Lnick F. John and WillinLee Ziegler, sales promotion and modern Merchandising, McGraw Hill.
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