Measuring Employee Performance - Coursework Example

Measuring employee performance University Student Id Course Date Measuring employee performance Introduction Employee performance is determined by set of actions, behaviors, practices, and outcomes that are important in contributing towards achieving the set goals. Many organizations have realized the benefits of employees in the process of achieving the set goals. As a result, the performance of the employees is keenly monitored to detect any change in performance. The primary aim of the human resources management is to make sure that performance of the employee is improved hence is constantly measured (Houldsworth and Jirasinghe, 2006). Measuring of the performance of the employee assists in taking the necessary measures for improving the performance of the employees. The effectiveness of the employee performance can be realized through constantly measuring the performance to detect any changes in advance. Measuring the performance of the employees enables the organization to assess the overall performance of the organization, as the employees are important in determining the organizational performance (Colquitt, Scott, and LePine, 2007). The organizations that have managed to improve the performance of the employees are likely to experience growth in the market. The essay will be exploring the employee performance measurement, the various ways of measuring the performance of the employees, importance of measuring employee performance. Measuring employee performance The employee performance can be measured in three categories that include unsatisfactory that is usually below the set standards, and in most cases, some form of punishments are imposed. The second category is satisfactory that is accepted, and neither punishment nor reward can be invoked. The third category is the outstanding where the employee is rewarded for good performance. Motivating employees has been considered as an important aspect of improving the performance of the employees (King and Grace, 2010). Many organizations have been looking for the possible way of improving the performance of employees, where engaging the employees has proved to be beneficial. The human resources manager tries to improve the performance after measuring the level of performance of the employees to assess the areas that might need improvements. Some theories have been used in determining the performance of employees as the primary aim of measuring the performance of the employees is to ensure improvement in their productivity. Among the theories is the motivation theory where the performance of the employees who are motivated is likely to be improved when the employees are motivated. Many organizations after measuring the performance of the employees the primary strategy that they use in the process of improving the employee performance is the motivation strategy (Rich, Lepine and Crawford, 2010). They try to motivate the employees with the aim of making sure that they are committed to achieving the set objectives. Besides, the employees are engaged as a way of improving their job satisfaction where the employees are given the chance of giving their opinion concerning how productivity can be improved. Some metrics have been used in the process of measuring employee performance that can include non-financial and financial. The financial metrics consist of evaluating the return on investment and earnings of the company resulting from the employee performance. The primary assumption is that the employee performance is responsible for determining the productivity of the organization. The non-financial metrics are used in the evaluation of efficiency, customer satisfaction, productivity, product quality, employee satisfaction and market share (Houldsworth and Jirasinghe, 2006). The efficiency in operations and customer satisfactions are responsible for determining the customer satisfaction, productivity, markets share, and product quality. The employee satisfaction is determined by various factors that are discussed in the motivation theory that can include employee training where organizations work towards ensuring the employees have the necessary skills. Besides, leadership theory has tried to explain the performance of employees in organizations. For instance, according to the theory, transformational leadership has been considered important in the process of making sure that the employees are satisfied to improve performance. Transformational leaders engage the employees in enabling them to have the chance to give their opinions concerning how their performance can be improved (Karatepe, et al. 2006). Besides, the organizations using transformational leadership style are likely to involve the employees in assessing the ways that the organization can employ in the process of improving their performance after measuring and realizing a decline in the productivity of the employees. Methods of measuring employee performance 1. Comparing employee performance with organizational objectives The organizational objectives can be used in measuring the performance of the employees, as the performance should be aligned with the set organizational objectives. In order to make use of the method of the management by objectives should always be more accurate. Also, the performance is required to be measured in some ways that can show how the output of the employees contributes towards the achievement of the company goals. However, for this method to function appropriately, workers should be provided with clear and personal goals of productivity which they should work towards achieving them (Houldsworth and Jirasinghe, 2006). Besides, they must be given both tools and information which they require so as to meet those goals. Besides, in case the company goal improves the customer retention by 25% within a period of one year, then the organization is required to decide on the method of training as well as the incentives to use which would facilitate the achievement of that goal. 2. Measuring performance quantitatively The performance can be measured using quantitative measures to assess the level of employee productivity. The method of measuring performance quantitatively entails measuring the productivity level regarding the number of parts or even products which an employee produces for a particular period. In most cases, this method works appropriately for the business enterprises which are small since it is simple and also time-saving when measuring the performance of the business (King and Grace, 2010). Moreover, the aspect of productivity can also be calculated by using the productivity software or even by using a spreadsheet, whereby the number of products that is produced by each employee is usually revealed. Later on, the number of products, later on, is always averaged to determine the productivity gains or even the productivity losses. However, the output of the productivity can be measured concerning the volume of the products which are created, or through the product financial value. 3. 360-degree feedback The 360-degree feedback method of measuring performance usually makes use of the feedback as well as the comments from the co-workers in measuring the productivity of a given organization. However, this method is only applicable to those organizations where employees interact with each other in a great deal (Sadikoglu and Zehir, 2010). This method of measuring the employee`s performance usually requires the productivity of each worker to be evaluated by every individual they interact with on a daily basis, inclusive of those individuals who are below or even above their work level. Importantly, all the evaluators of the employees` productivity should have enough understanding about both the overall role as well as the function of the co-workers. Furthermore, this method is most appropriate for the organizations whereby every worker interacts with everyone else. 4. Measuring sales productivity Organizations can make use of sales produced by the employees in the process of measuring their performance. However, the method of measuring the productivity of the sales can be quite challenging to measure the employees` performance more accurately, since there are various factors which impact the output of the sales person. However, when using this method to determine the performance of the employees, the different aspects of the productivity should be recorded first within a particular period (Markos and Sridevi, 2010). Moreover, some of the aspects of productivity include; the number of sales which are made to the recent customers, the number of sales which are completed within a specified period, and also the number of the new customers gained. Importantly, these numbers should be recorded by every member of the sales team regularly by either using the software tools or by using a spreadsheet. Also, before the evaluation of these numbers, a sales baseline for the productivity levels should be established first. 5. Measure of the service productivity The service productivity of the employees can be a major method of measuring how the employees are performing in an organization. Measuring the performance of employees by using this method can be challenging even though accurate measurements can be obtained (Noe, et al. 2006). However, some of the service businesses usually measure the productivity of employees by counting the number of tasks which are performed at a given period. Also, there are still other businesses which measure the aspect of productivity regarding the speed of service delivery, the customer feedback or even through the self-evaluations of the departments. Benefits of measuring employee performance Maintain Increased Employee Efficiency Measuring and also managing the performance of the employees is usually of great significance since it gives an organization the opportunity to gauge the employees' efficiency appropriately, by identifying those workers who are hard working. Moreover, measuring the performance of employees also determines how the management of an organization can improve its overall productivity in the workplace (Rich, Lepine and Crawford, 2010). In agreement with the white paper of the year 2011 from the New Media Learning, the primary significant reason for measuring the performance of employees as well as managing it is actually to maintain the workers of an organization working at a rate which is productive and also efficient. Moreover, once the employees are evaluated, they are usually encouraged to maintain their good performance. Identifying links that are weak and strong Organizations can make use of the information obtained in the process of measuring employee performance to identify the weaknesses of the employees. The continuous use of the performance evaluations usually creates room for the organizations to track both the productivity and also the efficiency of the workers over a period (Karatepe, et al. 2006). Therefore, through tracking the employees` productivity, organizations are now able to identify both the strengths and also the weaknesses of their workers. Besides, the exceptional employees can be managed through promotions, whereas the underperforming employees can be managed through demotions or even termination. Determining the necessary compensations The performance of the employees can be measured with the aim of determining the compensation that is necessary for the employees depending on their productivity. Measuring the performance of the employees usually plays a significant role in the determination of the appropriate method of compensating the employees in an organization (Rich, Lepine and Crawford, 2010). Therefore, it means that if an employee consistently performs well, that employee usually deserves to be promoted as well as an increase in payment. However, if an employee is underperforming, that employee requires demotion and should not be promoted until he or she improves the performance level. Improving productivity Measuring the employees` performance helps an organization to improve its productivity since the management can identify the weaknesses and strengths of the employees. Moreover, the underperforming employees become aware of their peers who receive pay increases and therefore strive to emulate them (Sadikoglu and Zehir, 2010). On the other hand, employees might take their peers who have been fired as their cautionary tales. Conclusion The employee performance can be measured considering the resources for enhancing outcomes such as quality and productivity of the organization. The factors affecting the employee performance can include decision making, communication, labor management relationships, innovation, and commitment of the employees to achieve the set objectives. Measuring employee performance is considered crucial for the organizations that have been operating in competitive environments. Organizations have realized the role played by the employees in the process of achieving competitive advantages hence monitoring the change in their performance through constantly measuring the performance of employees is crucial. It is through regular measurement of the employee performance that the employees are equipped with the necessary skills and expertise that can help in improving their performance in the organization, besides, the human resource manager can be aware of the areas that need to be improved to improve the employee productivity. For instance, many organizations have been working towards improving the employee satisfaction with the aim of improving the performance of the employees. References Colquitt, J. A., Scott, B. A., & LePine, J. A. (2007). 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Job engagement: Antecedents and effects on job performance. Academy of management journal, 53(3), 617-635. Sadikoglu, E., & Zehir, C. (2010). Investigating the effects of innovation and employee performance on the relationship between total quality management practices and firm performance: An empirical study of Turkish firms. International Journal of Production Economics, 127(1), 13-26. Read More