Performance Management

Measurement of actual performance is not just knowing what happened, but also what is likely to happen. This means that deviations are provided in advance, which helps the management to take corrective action in advance to achieve the objectives. As such, it is desirable to measure the performance when operations are completed. Not only, can also be measured while the activity is in progress, so that the assessment would be possible in time.

Performance measurement can be made from personal observations, as in the case of subordinates to be observed while engaged in work, and a study of the synthesis of various figures, reports, graphs and statements. If the control system is well organized, quick comparison of these figures with the figures of the standard is quite possible. This will reveal variations. Some variants are desirable, as the output of the standard above or below the standard costs. But some other changes are undesirable, such as a variation in the delivery schedule agreed with the client or a variation of the speed limit set for all the drivers.

An important point to consider before introducing a system of control is whether the measurement and comparison are to be done in various phases of the total process, or end. If the purpose of control is to solve the problems, while it is forming, then the observation must be done in various strategic points as work progresses.

Actual performance can easily be compared if the standards are correctly specified and methods are clearly communicated. The manager should focus on those major deviations, which can be seen making the assessment. But he / she should not waste his time and energy on the small deviations. This approach will give the just, quick and satisfactory results. At the same time, simple and effective action also prevents observation uneconomical, waste of time and attention.

While comparing the actual performance and standards, it is wiser to find out the scope, nature and root causes of deviations. A competent manager can not find any difficulty in finding the points of deviation, while the measurement of actual performance correctly .......