Measuring Performance
How employee performance is measured and managed in relation to Tesco?
It’s extremely important for Tesco to measure employee performance as this is a way of the business to track their employees. Furthermore, it helps to increase
motivation throughout the entire workforce as people are set targets and goals which they will work hard to achieve. Measurin g employee performance helps
increase productivity of the business as employees work harder to meet performance goals and this helps Tesco remain competitive in the business environment.
★ Performance indicators: - In ★ Goal theory: - Tesco may ★ SMART targets: - In order to ★ Benchmarking: - Tesco can
Tesco, there are many perf ormance set goals for their employees improv e their employ ees output and benchmark themselv es internally or
indicators. For example, sales f igures. If w hich will help them to perf ormance, Tesco should set SMART externally . If Tesco want to improv e a
sales f igures are high, this is an indication targets. This is a target which is particular aspect of their organisation,
measure performance. Locke
that perf ormance is being carried out to a Specif ic (targeting a specif ic area f or serv ice or indiv idual, they may f ind
stated that employees w ere
high standard and is being managed well. improv ement, f or example sales), someone else who is good at the
Prev ious y ears f igures may also be looked motivated by clear goals and Measurable (suggesting an indicator of activ ity and use them as a benchmark
at and comparisons may be made. Tesco appropriate feedback. Locke progress, such as increasing to raise standards and improv e
can then look at what areas of employ ee w ent on to say that w orking cleanliness rating by 5%), Achiev able perf ormance. It can also be used
perf ormance hav e improv ed and what tow ard a goal provided a major (looking at how the target will be industry wide – where Tesco measure
areas hav e declined so that these areas source of motivation to actually achiev ed), Realistic (stating what its perf ormance against its competitors
can be improv ed on. Customer f eedback results can realistically be achiev ed) such as Sainsbury ’s. For example,
reach the goal - w hich, in turn,
and employ ee f eedback can also be and Time-constrained (how long it will comparing sales f igures and staf f
improved performance. If an
gathered and this would giv e Tesco a good take to achiev e the target). For retention f igures. Benchmarking is an
picture as to whether or not their human
employee of Tesco is w orking example, as a way of measuring ef f ective way for Tesco to measure
resource team is working ef f ectively and tow ards a goal and really perf ormance Tesco may set their their current perf ormance and make
ef f iciently. Depending on the dif f erent ty pe w ants to impress their employ ees a target of improv ing plans to improv e their perf ormance in
of job in Tesco, there will be dif f erent manager and fellow colleagues customer satisf action by 5% in a time the f uture. An example of
perf ormance indicators. For example, an by achieving that goal, they w ill zone of six weeks or increasing prof its benchmarking against ASDA would be
employ ee on tills perf ormance may be of 2% at the end of the y ear. These price checking. Customers are giv en
improve their output and this is
indicated by how many people are in their targets push Tesco employ ees to work the price of the Tesco item and the
linked w ith performance
queue or their customer f eedback store. harder and in turn, perf ormance is price of the ASDA item and if the ASDA
Whereas, a managers perf ormance may
improving. Tesco can then measured and improv ed. item is cheaper, Tesco will take away
be indicated by the rev enue their store measure how this employee’s the dif f erent f rom their customers
generates. performance improved. subtotal.
How employee performance is measured and managed in relation to Tesco?
It’s extremely important for Tesco to measure employee performance as this is a way of the business to track their employees. Furthermore, it helps to increase
motivation throughout the entire workforce as people are set targets and goals which they will work hard to achieve. Measurin g employee performance helps
increase productivity of the business as employees work harder to meet performance goals and this helps Tesco remain competitive in the business environment.
★ Performance indicators: - In ★ Goal theory: - Tesco may ★ SMART targets: - In order to ★ Benchmarking: - Tesco can
Tesco, there are many perf ormance set goals for their employees improv e their employ ees output and benchmark themselv es internally or
indicators. For example, sales f igures. If w hich will help them to perf ormance, Tesco should set SMART externally . If Tesco want to improv e a
sales f igures are high, this is an indication targets. This is a target which is particular aspect of their organisation,
measure performance. Locke
that perf ormance is being carried out to a Specif ic (targeting a specif ic area f or serv ice or indiv idual, they may f ind
stated that employees w ere
high standard and is being managed well. improv ement, f or example sales), someone else who is good at the
Prev ious y ears f igures may also be looked motivated by clear goals and Measurable (suggesting an indicator of activ ity and use them as a benchmark
at and comparisons may be made. Tesco appropriate feedback. Locke progress, such as increasing to raise standards and improv e
can then look at what areas of employ ee w ent on to say that w orking cleanliness rating by 5%), Achiev able perf ormance. It can also be used
perf ormance hav e improv ed and what tow ard a goal provided a major (looking at how the target will be industry wide – where Tesco measure
areas hav e declined so that these areas source of motivation to actually achiev ed), Realistic (stating what its perf ormance against its competitors
can be improv ed on. Customer f eedback results can realistically be achiev ed) such as Sainsbury ’s. For example,
reach the goal - w hich, in turn,
and employ ee f eedback can also be and Time-constrained (how long it will comparing sales f igures and staf f
improved performance. If an
gathered and this would giv e Tesco a good take to achiev e the target). For retention f igures. Benchmarking is an
picture as to whether or not their human
employee of Tesco is w orking example, as a way of measuring ef f ective way for Tesco to measure
resource team is working ef f ectively and tow ards a goal and really perf ormance Tesco may set their their current perf ormance and make
ef f iciently. Depending on the dif f erent ty pe w ants to impress their employ ees a target of improv ing plans to improv e their perf ormance in
of job in Tesco, there will be dif f erent manager and fellow colleagues customer satisf action by 5% in a time the f uture. An example of
perf ormance indicators. For example, an by achieving that goal, they w ill zone of six weeks or increasing prof its benchmarking against ASDA would be
employ ee on tills perf ormance may be of 2% at the end of the y ear. These price checking. Customers are giv en
improve their output and this is
indicated by how many people are in their targets push Tesco employ ees to work the price of the Tesco item and the
linked w ith performance
queue or their customer f eedback store. harder and in turn, perf ormance is price of the ASDA item and if the ASDA
Whereas, a managers perf ormance may
improving. Tesco can then measured and improv ed. item is cheaper, Tesco will take away
be indicated by the rev enue their store measure how this employee’s the dif f erent f rom their customers
generates. performance improved. subtotal.
