P5 UNIT 16
How employee performance is measured and managed
Employee performance is measured and managed as employers keep track of what their employees are
doing and how productive they are. It is important that the staff are productive as they are costing the
organization money if they waste time. To measure the staffs productivity, employers could see how
much work they produce on a weekly or monthly basis and appraise them when necessary to keep them
motivated. Employers can manage the productivity of their staff by setting realistic targets for them as
well as reward systems to keep them motivated so the staff strive.
Measuring performance
Measuring the performance of the staff is vital for all organizations to ensure that the company doesn’t
lose out on finances. Also measuring the performance of the staff is vital for finding out which
employees are reaching their potential so they can reward them.
Performance indicators
In different organizations from different industries there are many ways to indicate the performance of
the staff. In retail one way to indicate the performance of the staff is buy tracking how many items the
employees scan per hour. This is useful for supermarkets because they are constantly busy. This is
known as quantitative performance, and it is easier to track because it cam be tracked or counted from
a machine. In a restaurant the performance of the staff can be measured by how fast the staff serve the
customers. This can be difficult to measure when the restaurant is busy. This is known as qualitative
performance because it measures how well the customers have been served and can only be confirmed
with what the customers say.
Goal theory
This is ideal for giving the staff more incentives to get them to work harder and be more productive.
Giving staff challenging goals that they feel is important will make them work harder and increasing
their targets frequently will keep things interesting for them so they don't grow bored because that will
result in slacking. Goals can be set for real estate agents so that they can aim to sell houses above a
certain price by negotiating with the house buyer as well as get a good review after the house has been
sold. This would measure qualitative performance as the estate agent would have had to negotiate
while persuading the buyer that the house is being sold at a good deal. Goals can be set for a
salesperson to sell a certain number of items to their customers in a month. This goal keeps the
employee motivated to sell their products because they are being challenged. This goal would be used
for quantitative performance because it can be measured by counting how many sales the employee has
made.
SMART targets
SMART targets are used to measure how useful an objective really is and whether the target is worth
setting for the staff. SMART targets stand for- Specific, Measurable, Achievable, Realistic, Time-
constrained. A specific target would be something that is clear and easy for the employee to figure out
what is expected of them. A measurable target is something that can be tracked, either with a machine
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How employee performance is measured and managed
Employee performance is measured and managed as employers keep track of what their employees are
doing and how productive they are. It is important that the staff are productive as they are costing the
organization money if they waste time. To measure the staffs productivity, employers could see how
much work they produce on a weekly or monthly basis and appraise them when necessary to keep them
motivated. Employers can manage the productivity of their staff by setting realistic targets for them as
well as reward systems to keep them motivated so the staff strive.
Measuring performance
Measuring the performance of the staff is vital for all organizations to ensure that the company doesn’t
lose out on finances. Also measuring the performance of the staff is vital for finding out which
employees are reaching their potential so they can reward them.
Performance indicators
In different organizations from different industries there are many ways to indicate the performance of
the staff. In retail one way to indicate the performance of the staff is buy tracking how many items the
employees scan per hour. This is useful for supermarkets because they are constantly busy. This is
known as quantitative performance, and it is easier to track because it cam be tracked or counted from
a machine. In a restaurant the performance of the staff can be measured by how fast the staff serve the
customers. This can be difficult to measure when the restaurant is busy. This is known as qualitative
performance because it measures how well the customers have been served and can only be confirmed
with what the customers say.
Goal theory
This is ideal for giving the staff more incentives to get them to work harder and be more productive.
Giving staff challenging goals that they feel is important will make them work harder and increasing
their targets frequently will keep things interesting for them so they don't grow bored because that will
result in slacking. Goals can be set for real estate agents so that they can aim to sell houses above a
certain price by negotiating with the house buyer as well as get a good review after the house has been
sold. This would measure qualitative performance as the estate agent would have had to negotiate
while persuading the buyer that the house is being sold at a good deal. Goals can be set for a
salesperson to sell a certain number of items to their customers in a month. This goal keeps the
employee motivated to sell their products because they are being challenged. This goal would be used
for quantitative performance because it can be measured by counting how many sales the employee has
made.
SMART targets
SMART targets are used to measure how useful an objective really is and whether the target is worth
setting for the staff. SMART targets stand for- Specific, Measurable, Achievable, Realistic, Time-
constrained. A specific target would be something that is clear and easy for the employee to figure out
what is expected of them. A measurable target is something that can be tracked, either with a machine
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