Question

What are the three objectives of developing and implementing performance measurement systems?

How can these objectives help tracking operational goals?

Explain and provide examples, please.

Answer 1

There are different objectives to develop and implement the performance measurement system in the organization. The first objective is to effectively measure the performance of the employees in the organization using the performance measurement system. The second objective is to align the performance of the employees as per the organizational vision and as per the benchmark level of the performance set by the system. The third objective is to identify the opportunity to bring performance management and help the organization to take initiatives to improve the performance level of the employees.
These objectives help the management to correlate the employees' performance with the operational goals. For example, a performance management system makes employees to follow the standard operating procedures and guidelines, to deliver the particular level of performance and productivity. If there is less than the desired level of performance by the employees that is set by the performance management system, then operational goals will not be achieved. It will make the manager to work and identify the loopholes. Further, the performance gap as per the measures of the performance measurement system, will make the HR function to implement necessary training & development program so that employees performance level is improved and synchronized with the operational goals. Hence, lack of performance, makes the management to work on bottleneck activities to raise the performance up to the benchmark level. It is only delivered when there is a robust performance measurement system in place.