PERFORMANCE MEASUREMENT Performance measurement is the process whereby an organization establishes the parameters within which programs, investments,

and acquisitions are reaching the desired results. The reason for measuring performance Fundamental purpose behind measures is to improve performance. Measures that are not directly connected to improving performance (like measures that are directed at communicating better with public to build trust) are measures that are means to achieving that ultimate purpose. Behn 2003 gives 8 reasons for adapting performance measurements: 1. To Evaluate how well is public agency performing. To evaluate performance, managers need to determine what agency supposed to accomplish. To formulate a clear, coherent mission, strategy, and objectives. Then based on this information choose how you will measure those activities. Evaluation process consists of two variables: organizational performance data and a benchmark that creates framework for analyzing that data. For organizational information focus on outcome of agencys performance, but also including input/ environment/ process/ output- to have a comparative framework for analysis. Its helpful to ask 4 essential question in determining organizational data:

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Outcome should be directly related to public purpose of the organization. Effectiveness Q: did they produce required results (determined by outcomes). Cost-effective: efficiency Q (outcome divided by input). Impact Q: what value organisation provides. Best-practice Q: evaluating internal operations (compare core process performance to most effective and efficient process in the industry).

As in order for organization to evaluate performance its requires standards (benchmark) to compare its actual performance against past performance/ from performance of similar agencies/ industry standard/political expectations. 2. To Control How can managers ensure their subordinates are doing the right thing. Today managers do not control their workforce mechanically However managers still use measures to control, while allowing some space for freedom in the workforce. Business has control bias. Because traditional measurement system sprung from finance function, the system has a control bias. Organisation create measurement systems that specify particular actions they want execute Then they want to measure to see whether the employees have in fact taken those actions. Officials need to measure behavior of individuals then compare this performance with requirements to check who has and has not complied. Often such requirements are described only as guidelines. Do not be fooled. These guidelines are really requirements and those requirement are designed to control. The measurement of compliance with these requirements is the mechanism of control. 3. To Budget Budgets are crude tools in improving performance. Poor performance not always may change after applying budgets cuts as a disciplinary actions. Sometimes budgets increase could be the answer to improving performance. Like purchasing better technology because the current ones are outdated and harm operational processes. So decision highly influenced by circomstance, you need measures to better understand the situation. At the macro level, elected officials deciding which purpose of government actions are primary or secondary. Political priorities drive macro budgetory choices. Once elected officials have established macro political priorities, those responsible for micro decisions may seek to invest their limited allocation of resources in the most costeffective units and activities.

In allocating budgets, managers, in response to macro budget allocations (driven by political objectives), determin alloactions at the micro level by using measures of efficiency of various activities, which programs or organisations are more efficient at achieving the political objectives. Why spend limited funds on programs that do not guarantee exceptional performance? Efficiency is determined by observing performance- output and outcome achieved considering number of people involved in the process (productivity per person) and cost-data (capturing direct cost as well as indirect) 4. To Motivate Giving people significant goals to achieve and then use performance measures- including interim targets- to focus peoples thinking and work, and to provide periodic sense of accomplishment. Performance targets may also encourage creativity in developing better ways to achieve the goal (Behn) Thus measure to motivate improvements may also motivate learning. Almost-real-time output (faster, the better) compared with production targets. Quick response required to provide fast feed-back so workforce could improve and adapt. Also it is able to provide how workforce currently performing. Primary aim behind the measures should be output, managers can not motivate people to affect something over which they have little or no influence. Once an agencys leaders have motivated significant improvements using output targets, they can create some outcomes targets.

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output- focuses on improving internal process. outcome- motivate people to look outside the agency (to seek way to collaborate with individuals & organisations may affect the outcome produced by the agency)

5. To Celebrate Organisations need to commemorate their accomplishments- such ritual tie their people together, give them a sense of their individual and collective relevance. More over, by achieving specific goals, people gain sense of personal accomplishment and selfworth (Locke & Latham 1984). Links from measurement to celebration to improvement is indirect, because it has to work through one of the likesmotivation, learning... Celebration helps to improve performance because it brings attention to the agency, and thus promotes its competence- it attracts resources.

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Dedicated people who want to work for successful agency. Potential collaborators. Learning-sharing between people about their accomplishments and how they achieved it.

Significant performance targets that provide sense of personal and collective accomplishement. Targets could ones used to motivate. In order for celebration to be a success and benefits to be a reality managers need to ensure that celebration creates motivation and thus improvements.

By leading the celebration.

6. To Promote How can public managers convince political superiors, legislators, stakeholders, journalists, and citizens that their agency is doing a good job. (National Academy of Public Administrations center for improving government performance- NAPA 1999) performance measures can be used to: validate success; justifing additional ressources; earn customers, stakeholder, and staff loyalty by showing results; and win recognition inside and outside the organisation. Indirectly promote, competence and value of goverement in general.

To convince citizens their agency is doing good, managers need easily understood measures of those aspects of performance about which many citizens personally care. 7. To Learn Learning is involved with some process, of analysis information provided from evaluating corporate performance (identifying what works and what does not). By analysing that information, corporation able to learn resons behind its poor or good performance. However if there is too many performance measures, managers might not be able to learn anything.

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Because of rapid increase of performance measures there is more confusion or noise than useful data. Managers lack time or simply find it too difficult to try to identify good signals from mass of numbers.

Also there is an issue of black box enigma (data can reveal that organisation is performing well or poorly, but they dont necessarily reveal why). Performance measures can describe what is coming out of black box as well as what is going in, but they do not reveal what is happening inside. How are various inputs interacting to produce the output. What more complex is outcome with black box being all value chain. Benchmarking is a traditional form of performance measurement which facilitates learning by providing assessment of organisational performance and identifying possible solutions for improvements. Benchmarking can facilitate transfer of knowhow from benchmarked organisations. (Kouzmin et al. 1999) Identifying core process in organisation and measuring their performance is basic to benchmarking. Those actions probably provide answer to issue presented in purpose section of the learning. Measurements that are used for learning act as indicators for managers to consider analysis of performance in measurements related areas by revealing irregularities and deviations from expected data results. What to measure aiming at learning (the unexpected- what to aim for?) Learning occurs when organisation meets problems in operations or failures. Then corporations improve by analysing those faults and looking for solutions. In public sector especially, failure usually punished severelytherefore corporations and individuals hide it. 8. To Improve What exactly should who- do differently to improve performance? In order for corporation to measure what it wants to improve it first need to identify what it will improve and develop processes to accomplish that. Also you need to have a feedback loop to assess compliance with plans to achieve improvements and to determine if those processes created forecasted results (improvements). Improvement process also related to learning process in identifying places that are need improvements. Develop understanding of relationships inside the black box that connect changes in operations to changes in output and outcome. Understanding black box processes and their interactions.

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How to influence/ control workforce that creates output. How to influence citizens/ customers that turn that output to outcome (and all related suppliers)

They need to observe how actions they can take will influence operations, environment, workforce and which eventually has an impact on outcome. After that they need to identify actions they can take that will give them improvements they looking for and how organisation will react to those actions ex. How might various leadership activities ripple through the black box.

Principles of performance measurement All significant work activity must be measured.

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Work that is not measured or assessed cannot be managed because there is no objective information to determine its value. Therefore it is assumed that this work is inherently valuable regardless of its outcomes. The best that can be accomplished with this type of activity is to supervise a level of effort. Unmeasured work should be minimized or eliminated. Desired performance outcomes must be established for all measured work. Outcomes provide the basis for establishing accountability for results rather than just requiring a level of effort. Desired outcomes are necessary for work evaluation and meaningful performance appraisal. Defining performance in terms of desired results is how managers and supervisors make their work assignments operational. Performance reporting and variance analyses must be accomplished frequently. Frequent reporting enables timely corrective action. Timely corrective action is needed for effective management control.

If we dont measure

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How do you know where to improve? How do you know where to allocate or re-allocate money and people? How do you know how you compare with others? How do you know whether you are improving or declining? How do you know whether or which programs, methods, or employees are producing results that are cost effective and efficient?

Common problems with measurement systems that limit their usefulness:

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Heavy reliance on summary data that emphasizes averages and discounts outliers. Heavy reliance on historical patterns and reluctance to accept new structural changes (or re-design of processes) that are capable of generating different outcomes, like measuring the time it takes them to do a task. Heavy reliance on gross aggregates that tend to understate or ignore distributional contributions and consequences. Heavy reliance on static, e.g., equilibrium, analysis and slight attention to time-based and growth ones, such as value-added measures.

[edit] Performance Measurement topics Most of us have heard some version of the standard performance measurement cliches: what gets measured gets done, if you dont measure results, you cant tell success from failure and thus you cant claim or reward success or avoid unintentionally rewarding failure, if you cant recognize success, you cant learn from it; if you cant recognize failure, you cant correct it, if you cant measure it, you can neither manage it nor improve it," but what eludes many of us is the easy path to identifying truly strategic measurements without falling back on things that are easier to measure such as input, project or operational process measurements. Performance Measurement is addressed in detail in Step Five of the Nine Steps to Success methodology. In this step, Performance Measures are developed for each of the Strategic Objectives. Leading and lagging measures are identified, expected targets and thresholds are established, and baseline and benchmarking data is developed. The focus on Strategic Objectives, which should articulate exactly what the organization is trying to accomplish, is the key to identifying truly strategic measurements. Strategic performance measures monitor the implementation and effectiveness of an organization's strategies, determine the gap between actual and targeted performance and determine organization effectiveness and operational efficiency. Good Performance Measures:

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Provide a way to see if our strategy is working Focus employees' attention on what matters most to success Allow measurement of accomplishments, not just of the work that is performed Provide a common language for communication Are explicitly defined in terms of owner, unit of measure, collection frequency, data quality, expected value(targets), and thresholds Are valid, to ensure measurement of the right things Are verifiable, to ensure data collection accuracy

[edit] Practice Several performance measurement systems are in use today, and each has its own group of supporters. For example, the Balanced Scorecard (Kaplan and Norton, 1993, 1996, 2001), Performance Prism (Neely, 2002), and the Cambridge Performance Measurement Process (Neely, 1996) are designed for business-wide implementation; and the approaches of the TPM Process (Jones and Schilling, 2000), 7-step TPM Process (Zigon, 1999), and Total Measurement Development Method (TMDM) (Tarkenton Productivity Group, 2000) are specific for team-based structures. With continued research efforts and the test of time, the best-of-breed theories that help organizations structure and implement its performance measurement system should emerge. Although the Balanced Scorecard has become very popular, there is no single version of the model that has been universally accepted. The diversity and unique requirements of different enterprises suggest that no one-size-fitsall approach will ever do the job. Gamble, Strickland and Thompson (2007, p. 31) list ten financial objectives and nine strategic objectives involved with a balanced scorecard. Problems in Performance Appraisals: discourages teamwork evaluators are inconsistent or use different criterion and standards only valuable for very good or poor employees encourages employees to achieve short term goals managers has complete power over the employees too subjective produces emotional anguish

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Solutions

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Make collaboration a criteria on which employees will be evaluated Provide training for managers; have the HR department look for patterns on appraisals that suggest bias or over or under evaluation Rate selectively(introduce different or various criteria and disclose better performance and coach for worst performer without disclosing the weakness of the candidate) or increase in frequency of performance evaluation. Include long term and short term goals in appraisal process Introduce M.B.O.(Management By Objectives) Make criteria specific and test selectively{Evaluate specific behaviors or results} Focus on behaviors; do not criticize employees; conduct appraisal on time.

PERFORMANCE MEASURE / INDICATORS A performance indicator or key performance indicator (KPI) is a measure of performance.[1] Such measures are commonly used to help an organization define and evaluate how successful it is, typically in terms of making

progress towards its long-term organizational goals[2]. KPIs can be specified by answering the question, "What is really important to different stakeholders?" KPIs may be monitored using Business Intelligence techniques to assess the present state of the business and to assist in prescribing a course of action. The act of monitoring KPIs in real-time is known as business activity monitoring (BAM). KPIs are frequently used to "value" difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. KPIs are typically tied to an organization's strategy using concepts or techniques such as the Balanced Scorecard. The KPIs differ depending on the nature of the organization and the organization's strategy. They help to evaluate the progress of an organization towards its vision and long-term goals, especially toward difficult to quantify knowledge-based goals. A KPI is a key part of a measurable objective, which is made up of a direction, KPI, benchmark, target, and time frame. For example: "Increase Average Revenue per Customer from 10 to 15 by EOY 2008." In this case, 'Average Revenue Per Customer' is the KPI. KPIs should not be confused with a Critical Success Factor. For the example above, a critical success factor would be something that needs to be in place to achieve that objective; for example, an attractive new product. Contents [hide]

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1 2 3 4 5 6 7 8 9

Some Important Aspects Identifying Indicators of Organization Marketing KPIs KPIs for Manufacturing KPIs for Supply Chain Management Categorization of indicators Problems See also References

10 Further reading

[edit] Some Important Aspects Key performance indicators (KPIs) are measures by which the performances of organizations, business units, and their division, departments and employees are periodically assessed. In a corporate environment where the Balanced Scorecard (BSC) methodology is to review and track performance, the KPIs are defined as part of a hierarchical decision-making process. This process is briefly outlined below. 1. The strategy map of the organization is first formulated, and involves the definition of business, managerial and operational strategies in each of the four perspectives of the Balanced Scorecard, with due regard to the vertical and horizontal inter-dependencies between them. The four perspectives are Financial, Customer, Internal Processes and Learning & Growth. 2. Objectives are defined under each strategy. These objectives should be SMART goals - Specific, Measurable, Achievable, Realistic and Time-limited. 3. KPIs are determined under each objective. a. KPIs should be acceptable, understood, meaningful and measurable. They should not be defined in such a way that their fulfillment would be hampered by factors seen as non-controllable by the organizations or individuals responsible. Such KPIs would tend not to be accepted.

b. Sometimes, actual values of KPIs that are required for comparison with target values during periodic performance review in the BSC process cannot be made, since there is no method or process in place to measure and collect the actual figures. In such a case, the use of these KPIs should be started after such a process is designed and deployed. All efforts should be made to put a process in place quickly. c. KPIs should be meaningful in that the fulfillment of their targets actively contributes to organizational improvement. For instance, the measure Training man-days under the objective Provide adequate employee training under the Learning and Growth perspective is not very meaningful since the fulfillment of the target in man-days alone does not indicate the usefulness of training. Hence, in addition, a suitable objective called Maximize Training Effectiveness, and a measurable KPI may be defined under this new objective. This new KPI might, for instance, be called Percentage of training programs put to practical use within three months after training. d. Typically, there will be some variability in measures defined for each strategic business unit (SBU) of a company. The diversity of the KPIs will be due to differences in the product/service segments, business environments, markets, technologies, regional disparities, etc. in the business units. At the same time, however, the definers of KPIs must identify those that would be common irrespective of the nature, scope and location of the diverse businesses, and ensure that such KPIs are defined for all the SBUs. 4. The necessary inter-dependencies between strategies defined in the strategy map means that strategies of the lower-level perspectives of the Balanced Scorecard framework are aligned with those of the higher-level perspectives. For example, the strategies of the customer perspective are aligned with those of the financial perspective, hence achievement of the objectives of the customer perspective are important in itself, but also as a sort of necessary condition for the achievement of objectives of the financial perspectives. Thus the lower objectives need to be aligned with the higher ones. 5. From the above, it follows that there should be similar alignment of the measures (KPIs) selected for each objective with the measures of the higher objectives, and this fact must be kept firmly in mind while defining them. 6. Numerical targets are set for each KPI. These may be in terms of: a. A single value b. An upper limit c. A lower limit d. A range of values e. A percentage of a specific quantity/value f. A scheduled date by which a given task is to be completed, etc. [edit] Identifying Indicators of Organization Performance indicators differ from business drivers & aims (or goals). A school might consider the failure rate of its students as a Key Performance Indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from return customers as a potential KPI. But it is necessary for an organization to at least identify its KPIs. The key environments for identifying KPIs are:

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Having a pre-defined business process (BP). Requirements for the business processes. Having a quantitative/qualitative measurement of the results and comparison with set goals. Investigating variances and tweaking processes or resources to achieve short-term goals.

A KPI can follow the SMART criteria. This means the measure has a Specific purpose for the business, it is Measurable to really get a value of the KPI, the defined norms have to be Achievable, the KPI has to be Relevant to measure (and thereby to manage) and it must be Time phased, which means the value or outcomes are shown for a predefined and relevant period. [edit] Marketing KPIs Some examples are: 1. 2. 3. 4. 5. 6. 7. 8. New customers acquired Demographic analysis of individuals (potential customers) applying to become customers, and the levels of approval, rejections, and pending numbers. Status of existing customers Customer attrition Turnover (ie, Revenue) generated by segments of the customer population. Outstanding balances held by segments of customers and terms of payment. Collection of bad debts within customer relationships. Profitability of customers by demographic segments and segmentation of customers by profitability.

Many of these customer KPIs are developed and managed with customer relationship management (CRM) software. Faster availability of data is a competitive issue for most organizations. For example, businesses which have higher operational/credit risk (involving for example credit cards or wealth management) may want weekly or even daily availability of KPI analysis, facilitated by appropriate IT systems and tools. [edit] KPIs for Manufacturing Overall equipment effectiveness, or OEE, is a set of broadly accepted non-financial metrics which reflect manufacturing success.

Cycle Time

Cycle time is the total time from the beginning to the end of your process, as defined by you and your customer. Cycle time includes process time, during which a unit is acted upon to bring it closer to an output, and delay time, during which a unit of work is spent waiting to take the next action. Cycle Time Ratio

CTR = StandardCycleTime / RealCycleTime Utilization Rejection rate

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[edit] KPIs for Supply Chain Management Businesses can utilize KPIs to establish and monitor progress toward a variety of goals, including lean manufacturing objectives, MBE (Minority Business Enterprise) and diversity spending, environmental "green" initiatives, cost avoidance (CA) programs and low-cost country sourcing (LCCS) targets. Any business, regardless of size, can better manage supplier performance with the help of KPIs robust capabilities, which include:

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Automated entry and approval functions On-demand, real-time scorecard measures Single data repository to eliminate inefficiencies and maintain consistency

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Advanced workflow approval process to ensure consistent procedures Flexible data-input modes and real-time graphical performance displays Customized cost savings documentation (CSD) Simplified setup procedures to eliminate dependence upon IT resources.

Main SCM KPIs will detail the following processes:

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sales forecasts inventory procurement and suppliers warehousing transportation reverse logistics

Suppliers can implement KPIs to gain an advantage over the competition. Suppliers have instant access to a userfriendly portal for submitting standardized cost savings templates. Suppliers and their customers exchange vital supply chain performance data while gaining visibility to the exact status of cost improvement projects and cost savings documentation (CSD). [edit] Categorization of indicators Key Performance Indicators define a set of values used to measure against. These raw sets of values fed to systems to summarize information against are called indicators. Indicators identifiable as possible candidates for KPIs can be summarized into the following sub-categories:

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Quantitative indicators which can be presented as a number. Practical indicators that interface with existing company processes. Directional indicators specifying whether an organization is getting better or not. Actionable indicators are sufficiently in an organization's control to effect change. Financial indicators used in performance measurement and when looking at an operating index

Key Performance Indicators in practical terms and strategy development means are objectives to be targeted that will add the value to the business most (most = KEY INDICATORS OF SUCCESS). [edit] Problems In practice, overseeing Key Performance Indicators can prove expensive or difficult for organizations. Some such as staff morale may be impossible to quantify. Another serious issue in practice is that once a KPI is created, it becomes difficult to adjust to changing needs as historical comparisons will be lost. Conversely a dubious KPI is often created because history does exist. Furthermore if a KPI is based only on in-house practices it may be difficult for an organization to compare with similar organizations yet often, business with a similar background are used as a benchmark for KPIs. Analyst must be aware that a KPI may be a rough guide rather than a precise benchmark.

Definition of Performance Measurement By Shane Hall, eHow Contributor I want to do this!Performance measurement is how organizations, public and private, measure the quality of their activities and services. An influential 1982 book, "In Search of Excellence," sparked interest in measuring performance. Since then, business, government and other organizations have sought to measure the extent to

which they meet organizational goals. Performance measurement may sound simple, but is often a complicated process that requires deep strategic thinking and assessment. Identification 1. Performance measurement is the process by which businesses, governments and other organizations establish criteria for determining the quality of their activities, based on organizational goals. It involves creating a simple, but effective, system for determining whether organizations meet objectives. An example is the safety inspection program of the U.S. Department of Agriculture, which uses reduction in foodborne illness from meat products. Examples from business include increases in earnings and profits, reductions in production costs and amount of time required to process customer orders. All of these examples can be quantitatively measured. Effective performance measurement requires quantitative evidence to determine organizational progress toward achieving its goals. History 2. "In Search of Excellence," written by Tom Peters and Bob Waterman, used performance measures to identify the characteristics of successful companies. The book sold millions of copies and ushered in the era of management fads. Many business leaders and scholars read the book and began to think more deeply about issues of organizational performance. Today, performance measurement (also called performance management) is a specialty within the fields of business, management and public administration. Features 3. Developing a system of performance measures begins with defining strategic objectives. For a corporation, the most important objective is turning a profit. For government agencies and other organizations, key objectives may be more difficult to define. Next an organization defines a set of strategic metrics, such as increasing sales and reducing production costs. The organization then sets performance targets, such as increasing sales by 30 percent and cutting production costs by 10 percent. After setting targets, the organization can begin measuring actual performances. By comparing actual performance against the targets, organizations can identify areas of needed improvement. Considerations 4. A variety of factors make performance measurement a complicated process. Sometimes knowing what to measure is unclear. This is especially true of public sector organizations, where managers may complain that they are being held accountable for goals that they cannot fully control. For example, some public school systems object to having their performance measured by student results on standardized tests, pointing out that factors external to schools, such as family environment, can affect test performance. Warning 5. The complexity of organizations and business models further complicates performance measurement. In addition, the intangibility of some measures, especially non-financial ones, is a complicating factor, as these measures may be subject to manipulation. This makes performance measurement in the public sector especially difficult.

PERFORMANCE STANDARDS While the list of Major Job Duties tells the employee what is to be done, performance standards provide the employee with specific performance expectations for each major duty. They are the observable behaviors and actions which explain how the job is to be done, plus the results that are expected for satisfactory job performance. They tell the employee what a good job looks like. The purpose of performance standards is to communicate expectations. Some supervisors prefer to make them as specific as possible, and some prefer to use them as talking points with the specificity defined in the discussion. Keep in mind that good performance typically involves

more than technical expertise. You also expect certain behaviors (e.g. friendliness, helpfulness, courteousness, punctuality, etc.) It is often these behaviors that determine whether performance is acceptable. Performance standards are:

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Based on the position, not the individual Observable, specific indicators of success Meaningful, reasonable and attainable Describe "fully satisfactory" performance once trained Expressed in terms of Quantity, Quality, Timeliness, Cost, Safety, or Outcomes

In determining performance standards, consider the following:

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What does a good job look like? How many or how much is needed? How long should it take? When are the results needed? How accurate or how good is acceptable? Are there budget considerations? Are there safety considerations? Are there legislative or regulatory requirements that require strict adherence? Are there behaviors that are expected in your department to promote teamwork, leadership, creativity, customer service? What results would be considered satisfactory? What condition will exist when the duty is well performed? What is the difference between good and poor performance

Example of Performance Standards for PA Positions Develops project objectives, budgets, work plans and implementation strategies o consistent with departmental goals o communicates clearly to all levels o falls within budget guidelines o can reasonably be accomplished in specified time frame o follows up and resolves problems in timely manner to keep project on track. Analyzes, synthesizes and communicates financial information and data in complex account structures; uses data to develop budget and financial plans. o uses appropriate sources of information o uses the most recent data o meets specified deadlines o conclusions and recommendations are justified by the data o federal, state and university guidelines are followed Designs/develops and negotiates contracts with clients and vendors o contracts are clear, complete and reflect the needs of the unit o negotiation skills are such that the best value is achieved for the institution o solutions are effective and mutually acceptable o good client and vendor relationships are maintained o contracts are consistent with all federal, state and university policies and procedures Develops policies and/or interprets and implements all federal, state, local and university policies, procedure and regulations o policies are clearly written and include all necessary components o all pre-approval steps have been followed to include necessary in-put from concerned parties o sufficient research is conducted to provide accurate background knowledge necessary to the process of development and/or interpretation o communication regarding policies is done in a timely manner to all affected groups and in an unambiguous, customer friendly manner Performs management duties with accountability and authority for the strategic direction of the department o planning, budget, staffing, resource allocation, policy development, staff supervision, etc.:  the unit is in compliance with governmental and university policies and procedures

staff morale remains high complaints about personnel, leadership and work of department are minimal organizational goals are achieved in timely manner Assists students with academic problems and/or advises students regarding degree requirements o works with students in a customer oriented manner o gives accurate information o keeps updated on requirement changes and keeps students informed o knows and utilizes resources to resolve problems

  

Example of Performance Standards for Administrative Secretary: Oversees clerical support functions: o work priorities are clearly established and followed o manages the performance of the support staff by providing a motivational environment, correcting poor performance and acknowledging good performance Composes correspondence: o composition is professional, grammatically correct, clear and logical and reflects the tone and philosophy of the department o correspondence is timely and has a customer friendly orientation Develops and maintains complex files and databases: o files and databases are accurate and updated on a regular basis o trains others in use and interpretation of databases o assures back-up in maintaining files and databases Makes travel arrangements and completes travel documents: o all arrangements are made in a timely manner o assures that all travel stays within the travel budget with exceptions cleared by the Chair o monitors to assure accuracy in documents o responsible for determining all extenuating circumstances and resolving problems

Common standards applicable to everyone in a particular group There may be a set of common standards and behaviors that are expected from everyone. For example, all supervisors may be expected to perform similarly around several functions, or everyone in the unit will be held to the same standards around teamwork, customer service, etc. In cases like this, you might want to make a list of the common standards that apply and attach to each individual's performance management plan. EXAMPLES Leadership

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communicates a vision of the future and moves self and others toward it through shared goal setting influences others to accomplish/achieve desired goals guides others through change adapts style to the situation and the person obtains commitment and cooperation from others maintains open communication fosters an environment that encourages innovation, risk taking, ownership , learning and growth in others utilizes skills and abilities of others effectively delegates responsibilities appropriately provides an environment of motivation manages performance of staff

Team Orientation

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works effectively with others actively contributes to the achievement of group and organizational goals accepts shared responsibility and ownership of projects

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maintains open communication among team members utilizes strengths of individuals within group to the benefit of the team

Innovation/ Creativity

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develops and implements ideas, products or solutions to achieve goals seeks and provides unique/different perspectives to opportunities supports risk taking and encourages innovation in others

Customer Service

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projects a customer orientation is customer focused assumes ownership and responsibility for the needs of the customer makes effective decisions, balancing organizational needs and customer needs

Problem Solving/ Decision Making

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analyzes and solves problems within realistic time frames makes timely and effective decisions on the basis of available information involves the appropriate people in defining and resolving a problem supports decision with facts and rationale

Interpersonal Communication

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listens actively to others asks appropriate questions for clarification gives and receives feedback is aware of own and other's communication style and makes adjustments as necessary encourages and is receptive to suggestions and solutions from others recognizes and manages conflict effectively

Flexibility

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effectively adjusts behavior and modifies strategies when confronted with changing, uncertain or unstructured situations adapts to change without loss of effectiveness deals effectively with ambiguity acquires new knowledge/skills to meet changing demands

Performance Management

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makes appropriate hires; trains and coaches toward full performance identifies and communicates major job duties and performance standards facilitates and encourages two-way communication regarding responsibilities, expectations, goals and performance provides ongoing, balanced feedback on performance distinguishes between good and poor performance and acts accordingly

Are the two terms 'competence' and 'competency the same? On the face of it, these two terms sound like synonyms. However, that is a common misinterpretation. Often these two terms are used interchangeably. Very often, managers make erroneous evaluations because of the lack of conceptual understanding of these two terms. So let us study these two terms with an example, say, an accounts manager. Distinction between Competence and Competency

In a typical organization, an accounts manager needs the following skills: knowledge of accounts and various taxation policies, numerical ability, financial acumen, and other such. If we were to presume that any person with the above mentioned skills has the competency to be an accounts manager, then we would be quite wrong. Merely job related skills are not adequate for a person to do his job well. To be a competent accounts manager, the person would need job related skills, and a disposition to be a good accounts manager. In other words, he also needs behavioral aspects to make him capable. For instance, the accounts manager would need to be methodical, organized, and accurate. These behavioral dimensions would enhance his job skills to make him a competent accounts manager. It therefore means that

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Competence would refer to skills that are required to do the job well. Competency refers to special attributes that enable a person to perform his job.

Using Competence and Competency in Employee Assessment Competence is very essential for the purpose of doing the job. However, competence alone is not enough. Competencies are also important to improve performance. These are job related behaviors that enhance individual capability. Competency makes a person unique to his job. In the study of employee assessment, competency analysts should focus not just on the competences, but also on the competencies. While doing competency analysis, the expert must take into account the various behavioral dimensions that clearly demarcate the high performer from the others. Competencies that correspond to superior performance should be isolated for assessment. All other behaviors which mildly affect performance should be ignored to make the task of assessment simpler. For example, in the case of a sales rep, competencies like negotiation skills, and confidence, would qualify as important for the success of a salesman. Competency dimension analysis delves into the socio-psychological profile of personnel behavior. If probed thoroughly, companies can save thousands of dollars that go in wrong hiring decisions