The Advantages of Performance Standard

General Measures
There are two categories of measures, which are general measures and specific measures. The performance plan should have the following qualities: unbiased, quantifiable, clearly stated, and written. The general measures that are used to measure employee’s performance are as follows:

Quality checks the final product as to how well it was performed and how well it was developed and its working.

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Quantity check as to how much product is produced. Can do a quantity check about how much is produced, how much material is used, etc. When a quality or quantity standard is set, it should be within achievable limits, not beyond that.

Check of time, there should be proper addressing of timeliness and an appropriate action should be initiated, and should warn employees about the same. The standard should be set and time should be framed to complete a task, which has very low errors.

There should be a point about cost-effectiveness. Should check cost-effectiveness, and management must see that employees achieve optimum utilization of resources and cost-effectiveness by various measures.

Specific Measures
After deciding the general measures, specific measures are developed. To develop specific measures, one should develop a system to measure cost-effectiveness, quantity, quality, etc. It should also be decided as to who would appraise and judge the performance of employees and what factors should be looked upon by the judges. Usually, the supervisor is the best judge of performance because he is always on ground zero.

The following questions are very important for setting specific measures:

How should cost-effectiveness, quality, quantity, and time-effectiveness be measured?

Is there any quantitative term that can be tracked or recorded, like numbers or percentages?

How should it be measured or judged if cannot measure performance in numbers or percentages.

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