Explain the method of establishing performance standards
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Performance Standards
Employee performance measurements can determine an employee's compensation, employment status or opportunities for advancement. For these reasons, performance management programs must consist of methods that enable fair and accurate assessments of employee performance. To assist with measuring employee performance, employers first establish performance standards. Performance standards define what it takes for employees to meet or exceed the company's performance expectations.
Graphic Rating Scales
Graphic rating scales are ideal for production-oriented work environments, as well as for other workplaces that move at a fast pace, such as those found in the food and beverage industry. A rating scale consists of a list of job duties, performance standards and a scale usually from 1 to 5 for rating employee performance. This method for measuring employee performance requires preparation just like other methods; however, it can be completed relatively quickly, which is a plus for supervisors who manage large departments or competing assignments in an environment that leaves little time for workforce management duties.
Management by Objectives
Management by objectives, or MBOs, are useful for measuring the performance of employees in supervisory or managerial positions. MBOs start with identifying employee goals, and from that point the employee and her manager list the resources necessary to achieve those goals. The next section of MBOs consists of the timelines for achieving each goal. Throughout the evaluation period, the employee and her manager meet periodically -- quarterly is best -- to discuss the employee's progress and to reset goals for which the employee needs additional time or resources to complete. The employee's performance is measured by how many of her goals she accomplished within the designated time frame.
Forced Ranking
Forced ranking earned a bad name from the time this method became popular during the reign of GE's former CEO, Jack Welch. Welch advocated supervisors and managers ranking employees into three groups. The top performers comprise roughly 20 percent of the workforce, average performers 70 percent and the lowest-performing employees make up about 10 percent of the workforce. Forced ranking measures employees' achievements against those of their peers, instead of comparing the employee's current evaluation period against the employee's own past performance. For this reason, forced ranking lends itself to creating a very competitive work environment.
Employee performance measurements can determine an employee's compensation, employment status or opportunities for advancement. For these reasons, performance management programs must consist of methods that enable fair and accurate assessments of employee performance. To assist with measuring employee performance, employers first establish performance standards. Performance standards define what it takes for employees to meet or exceed the company's performance expectations.
Graphic Rating Scales
Graphic rating scales are ideal for production-oriented work environments, as well as for other workplaces that move at a fast pace, such as those found in the food and beverage industry. A rating scale consists of a list of job duties, performance standards and a scale usually from 1 to 5 for rating employee performance. This method for measuring employee performance requires preparation just like other methods; however, it can be completed relatively quickly, which is a plus for supervisors who manage large departments or competing assignments in an environment that leaves little time for workforce management duties.
Management by Objectives
Management by objectives, or MBOs, are useful for measuring the performance of employees in supervisory or managerial positions. MBOs start with identifying employee goals, and from that point the employee and her manager list the resources necessary to achieve those goals. The next section of MBOs consists of the timelines for achieving each goal. Throughout the evaluation period, the employee and her manager meet periodically -- quarterly is best -- to discuss the employee's progress and to reset goals for which the employee needs additional time or resources to complete. The employee's performance is measured by how many of her goals she accomplished within the designated time frame.
Forced Ranking
Forced ranking earned a bad name from the time this method became popular during the reign of GE's former CEO, Jack Welch. Welch advocated supervisors and managers ranking employees into three groups. The top performers comprise roughly 20 percent of the workforce, average performers 70 percent and the lowest-performing employees make up about 10 percent of the workforce. Forced ranking measures employees' achievements against those of their peers, instead of comparing the employee's current evaluation period against the employee's own past performance. For this reason, forced ranking lends itself to creating a very competitive work environment.
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