MCS Performance Measurement

Performance measurement
DEFINITION
Performance measurement is the process of collecting, analyzing and/or reporting information
regarding the performance of an individual, group, organization, system or component .
Using performance measures on a regular basis helps to inform decisions and means a plan can be
adjusted mid-course or priorities can be reset to take advantage of emerging opportunities. An internal
performance measurement system will drive results and enable an organization to learn from its
successes and failures.
What is a performance measurement framework?

A performance measurement framework identifies the indicators required to monitor and gauge
the performance of a program. Its purpose is to:
 identify measures
 methodology for connection and analysis
 roles and responsibilities
 reporting by using a logic model
A performance measurement framework supports program managers in:
 continuously monitoring and assessing the results of programs as well as the efficiency of
their management
 making informed decisions and taking appropriate, timely action with respect to
programs
 providing effective and relevant departmental reporting on programs
 ensuring that the information gathered will effectively support an evaluation
Performance measurement frameworks are flexible and can be used to measure the effectiveness of a
pilot project, a multi-year program or a strategic planning process and can be applied to a new or
existing initiative.
There is no one method for developing a performance measurement framework.
One place to start is to review the organization’s strategic plan, with a focus on identifying its
outcomes (what it is trying to accomplish.)
If there is no strategic plan, a framework can be developed for an individual project.

How to Measure and Evaluate Employee Performance Data
when measuring human performance, you must use a combination of hard numbers and soft
intuitive insights.
Here are a few ways to measure and evaluate employee performance data:
 Graphic rating scales. A typical graphic scale uses sequential numbers, such as 1 to 5,
or 1 to 10, to rate an employee’s relative performance in specific areas.
 360-degree feedback. This well-named system takes into account the feedback, opinions and
assessments of an employee’s performance from the circle of people in the company with
whom they work.
 Self-Evaluation. Asking an employee to evaluate her own performance can be very effective.
Often, employees may be more critical of their performance than you might be.
 Management by Objectives (MBO). Also known as “management by results,” this is a process
whereby employees and managers form objectives together. They jointly determine individual
objectives, how they align with company goals, and how performance will be measured and
evaluated.
 Checklists. Using a simple “yes-no” checklist is a quick and easy way to identify employees that
have deficiencies in various performance areas.
PROS AND CONS

What Are the Pros of Performance Measurement?
1. It can increase the productivity of individuals and teams.

When there are clear goals available, it becomes easier for individuals and teams to strive toward
them. This is because there are specific standards and guidelines which are used to measure
success.
2. It can identify under-performing individuals and teams.

With a performance measurement process in place, it becomes possible to easily identify under-
performing individuals and teams because their output can be directly compared to the output of
others using the same chart.
3. It can improve communication.

With accurate performance measurement metrics in place, managers/supervisors and their direct
reports have fewer places for miscommunication. Every metric is specifically outlined, with
detailed instructions that can lead people to success, so that there is no confusion as to what each
person should do.
4. It provides the opportunity to recognize top performers.

By establishing individualized metrics, it becomes possible to find and recognize the top
performers on a team. This creates more chances for an organization to keep its best people.
5. It provides a clear chain of command.
In a performance measurement scenario, everyone has their own role to play. They have their
own duties to perform. This eliminates the confusion which can occur sometimes within a team
when some people feel like they should be in charge and assume part of a leadership role. Each
person and team has a defined space.
What Are the Cons of Performance Measurement?
1. It can lead to decreased levels of output.

Top performers may feel that the implementation of a performance measurement standard is
unfair to them. It may also require unskilled or untrained workers to reach metrics that are
unattainable at their current level of training. The end result is de-motivation instead of output
improvements.
2. It can make communication difficult.

Metrics must be defined by certain key terms and processes. A natural reaction that people have
when they encounter something they do not know involves avoidance. This means people will
shut down if they do not understand what it being asked of them, which can cause
communication breakdowns.
3. It can lead to a lack of commitment.

In order for performance measurement to work, everyone on the team must be “all-in” for the
process to work. Any negative commitment to the process will disrupt the metrics for others,
which can then create a trickle-down effect for other teams. In time, this creates conflicts
between individuals and teams because they are essentially competing with one another instead
of working together.
4. It is still judged through subjectivity.

Although there are data points collected that help to make performance management less
subjective, there is still a certain human element that is part of the process. If a manager does not
like someone, they might create a negative evaluation for that person’s performance even if
metrics are being reasonably met. Emotional decisions can also disrupt the data collection
process, which can lead people to reach false conclusions.
5. It requires some level of motivation.

One of the fatal flaws of many performance measurement scenarios is that the assumed
motivation to follow the standards set is that a worker will want to keep their job. At some level,
there will always be some facet of “why should I do this?” for workers. There must be a
personal-level benefit involved for those working to achieve the standards that have been set
forth in order for this to be a successful process.
Case Study
Dishonesty in performance measurement
This might appear to be unusual as a cause of problems in performance measurement. However,

insistence on ranking people, institutions, investment funds, and so on, has created many
problems.
Examples of companies that commit fraud in measuring performance is Motorola Corporation.
Motorola, Inc. was an American multinational telecommunications company based in

Schaumburg, Illinois, United States. Motorola started in Chicago, Illinois, as Galvin
Manufacturing Corporation (at 847 West Harrison Street)[11] in 1928. Motorola designed and
sold wireless network equipment such as cellular transmission base stations and signal
amplifiers. Motorola's home and broadcast network products included set-top boxes, digital
video recorders, and network equipment used to enable video broadcasting, computer telephony,
and high-definition television.
The fraud that occurs at Motorola Corporation is that employees usually force senior officials to
rank their people into quartiles each year with good rankings. Some people take measurements
dishonest and not transparent
Case analysis
Based on this case, there are several things that can cause dishonesty in measuring employee
performance. First, this can happen because of the relationship between employees, be it family,
close friends,etc, abuse of power and lack of honesty so that they do not measure according to
their performance. In addition, because many employees whose performance decreases or there
is no increase, they want to manipulate performance measurements so that they do not get into
trouble. This is what causes performance measurement to be no longer honest, factual and
transparent.
Solution and Advice
According to our group, the advice we can give is that the company should be more strict with
the existing rules, pay more attention and be more thorough when examining performance
measurements. and when you know there is fraud, immediately punish the employee who cheats
so that other employees feel they can be respected and on the other hand they are reluctant to
cheat or violate the rules. besides that, you can also educate employees about what is prohibited
and what should not be done at work.

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Performance measurement

What is a performance measurement framework?

A performance measurement framework supports program managers in:

There is no one method for developing a performance measurement framework.

If there is no strategic plan, a framework can be developed for an individual project.

PROS AND CONS

1. It can increase the productivity of individuals and teams.

2. It can identify under-performing individuals and teams.

3. It can improve communication.

4. It provides the opportunity to recognize top performers.

What Are the Cons of Performance Measurement?

1. It can lead to decreased levels of output.

2. It can make communication difficult.

3. It can lead to a lack of commitment.

4. It is still judged through subjectivity.

5. It requires some level of motivation.

Dishonesty in performance measurement

This might appear to be unusual as a cause of problems in performance measurement. However,

Examples of companies that commit fraud in measuring performance is Motorola Corporation.

Motorola, Inc. was an American multinational telecommunications company based in

Solution and Advice

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