Performance Measurement
Linda Tate
MGT/437
April 21, 2014
Michael Koma

Performance Measurement Performance measurement is an essential part of the company; it provides a stage for managers and supervisors, as well as, the performance of its employees. It helps them determine whether or not employees are meeting the company’s expectations. Performance measurement methods differ according to the work surroundings, such as, the company, and the occupation of the employee. It can determine an employee’s employment status, and his or her compensation, as well as, their opportunity for advancement. Because of this performance management should consist of methods that use fair and correct assessments of the employee’s performance. To help employer’s measure employee’s performance, they must establish performance standards, which define what employees need to meet or exceed the company’s expectations (Ruth Mayhew, 2014). This paper will compare and contrast three performance measurements for the working environment of the company, and then the importance of performance measurements within a project. Graphic Rating Scales This is the first performance measurement; it is perfect for production work environments, like fast food restaurants. A list of job duties and performance standards is listed on a scale rating from 1 to 5, which rates the employee’s performance. This method requires preparation and can be completed quickly; this is superb for managers who supervise large departments. Management by Objectives This is the second performance measurement; it is used to measure the performance of employees with managerial or supervisory positions. MBO’s identifies employee goals; the employee and the manager make a list of resources needed to meet the employee’s goals. Next the MBO’s consists of a timeline the employee needs to complete each goal. The employee and the manager meet periodically to discuss the employees progress, the employee’s performance is measured by the goals he or she has accomplished. Forced Ranking This is the third performance measurement; it measures the achievements of each employee against those of their coworkers, and not by comparing the employee’s current performance against his or her past performance (Ruth Mayhew, 2014). This measurement forces ranking and creates a very competitive workforce. Performance Measurements for a Project Performance measurements should be created for each project, based on the goals, scope, and objectives of the stakeholders. Three measures of performance that can be used in any project are speed, volume, and accuracy. These measurements have some differences and some similarities, and will always be compared and contrasted. All three of these measurements are effective for assessing the successful outcome of the project. The first measurement is: Speed Speed can be used to estimate the success of the project; it illustrates the rate of evolution of the production process or the final product produced during the project. It is different from time, which measures the general project schedule. Speed represents the pace at which the final product operates, and it can be measured in miles per hour, for instance, if the project is to build a skateboard. Time would refer to the general schedule for building the skateboard, and speed measures the level of performance of the finished product. Accuracy The second performance measurement is accuracy, the product that the project produces must be of fine quality to be able to measure up to the company’s repute, as well as, meet the client’s expectancies. For instance at a photo printing shop, the printer’s accuracy is measured in the size of defects to the total pictures printed. This measurement is an important measure of performance; it symbolizes how well the product the project produced works. The project team can produce a product on time and budget, however, if it is not accurate it will not meet the performance constraint (voices yahoo, 2007). Volume The third performance measurement is volume, which is measured by the total number quality product that is dispensed to the client. For instance, a photo printing shop is expected to produce a volume of 125 photos in three hours, the printer could break down slowing production. The manager could decide to go into overtime to make sure that the numbers of photos are delivered, and the measure of speed would not be expected, but the volume measure would be successfully met. The three performance measures speed, accuracy, and volume are important signs of a projects performance. They show just how successful the project is, thus, making them similar, irrespective of time and budget. They allow benchmarks to be set, which stands for the performance level that project managers depend on for the project team to produce. These three measurements are measurable, specific, and assignable, they are exact indicators that can be estimated and anyone can be accountable and responsible for their success. These three measurements may be similar; however, they are very different. The difference is in the type of measurement, quantifiable measures are speed and volume, speed is portrayed by rate, like beats per minute, or miles per hour. Volume can be measured by a bulk number like, number of hits, or gallons. Accuracy is a qualitative measure, which is hard to express as a number, like planning a party, accuracy is based on the party unfolds according to plan. Accuracy is closely related to the character or quality of a completed process or product. Conclusion Performance measurement is an essential part of the company; it provides a stage for managers and supervisors, as well as the performance of its employees. Performance measurement methods differ according to the work surroundings, such as, the type of company, and the occupation of the employee. Performance measurements should be created for each project, based on the goals, scope, and objectives of the stakeholders. All six of the performance measurement mentioned can be very useful to the success of the company, and the projects it conducts. The last three measurements speed, accuracy, and volume can assess how the project team meets the project scope, goals, and objectives successfully.

References
Mayhew, R. (unknown). The Three Types of Methods Used to Measure Performance. Retrieved from http://smallbusiness.chron.com/three-types-methods-used-measure-performance23612.html
Voices Yahoo.Com. (September 26, 2007). How Can a Team Determine Whether Project Goals and Objectives Are Being Met? Retrieved from http://voices.yahoo.com/perfprmance-measurement-project-management-551975.html