Answer to Question #155890 in Management for Prabhdeep

Question

Discuss the various metrics used for performance management and identify the purpose for which they are being used ?(please answer in 150 to 200 words)

Answer 1

Performance management is critical in making organizations competes favourably with others in the same industry and become successful. As such, different tools and metrics should be designed by the management to make the performance not only easier but also effective. These metrics include the following;

1. The key performance indicators (KPI), which outlines how a company’s performance should be measured against its goals and objectives. The KPI indicate how different units and individuals perform within the organization hence providing a clear picture of the status of the organization.
2. Performance appraisals. These metrics link the goals of an individual to the company’s strategic aims and objectives. It also motivates the employees and the management as well. 
3. 360-degree feedback system. This tool involves creating an environment in which the customers and other stakeholders can interact with the company and its results are used in improving the future production quality. 
4. Objective management. Through this tool, the management defines the objectives and establish the ways through which they are to be achieved. This enables the company’s operation to be on track. 
5. Reward and recognition activities. Reward and recognition are critical approaches to management and improvement of productivity. The management therefore should know that employees get demoralized whenever good performance is not recognized or even rewarded. This metrics is crucial in boosting the employees’ morale and ultimate output.