Chapter 4: How do you measure performance?
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The act of measuring and formally managing performance exerts a strong influence on employees so any systems introduced to facilitate this activity must be chosen and implemented with care. This chapter explains how to obtain optimum results. Topics covered include selecting key performance indicators and how to measure them, ensuring measurability and consistency whilst maintaining simplicity. The Performance Measure Record Sheet is described as a means of recording for each measurement all the underpinning mechanisms and assumptions. The second part focusses on setting targets, on different types of targets and how they can be used. The final section touches on measuring individual performance and the evolution of the appraisal system from a once-a-year event focussing on achievement of goals and providing a grade for performance to continuous communication without grading and with greater emphasis on how goals have been achieved as well as whether they have been reached.

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