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In: Accounting

Discuss some of the problems that are encountered with the use of performance measures. How does...

Discuss some of the problems that are encountered with the use of performance measures. How does an organization overcome them?

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Performance measurement is the process of putting metrics in place that employees need to meet, and then analyzing the actual employee performance against those metrics. While this sort of data can be excellent for determining the efficiency of an employee, problems with performance measurement that a manager needs to consider do exist.

Customer Perspective:

Performance measurement metrics tend to be one-sided and do not give the whole story of the company and client relationship, according to the British Department of Trade and Industry. The employee might be meeting performance numbers as far as your company is concerned, but no measurement for the quality of the service being offered exists. It is only a measurement in quantity. By the time the drop in quality results in a drop in quantity, the relationship with the customer might already be damaged.

Quality Control:

Employees might try to manipulate the system and have the metrics work in their favor and that could cause a problem with quality control, states the Association of Chartered Certified Accountants. If no quality control is in place and performance is based solely on achieving performance measurement metrics, then substitutions can be made to reach the numbers that could be inferior. For example, if an inside sales representative is given a metric of having to make 20 outbound phone calls a day, then he might choose to call his friends and family 20 times a day to reach the goal. Rigid quality control of metrics needs to be put in place to help increase the effectiveness of the process.

How To Overcome Challenges That Lead To Performance Gaps In Your Organization:

Every organization has its own performance issues to contend with. And every employee in that organization requires different skills and information to fill the gaps. However, you must diagnose the cause before enacting meaningful change. You see, performance gaps are just a symptom. It takes careful planning, evaluation, and analysis to solve the productivity problems and get your employees back on track. Here are 7 common challenges that contribute to performance gaps.

1. Employees Aren't Getting The Information They Need:

One of the biggest challenges that employees face is not getting the information they need to do their job effectively. This leads to performance gaps and hinders their overall productivity. There are two key reasons for this information shortage. Firstly, the online training program may not be catering to their specific goals and needs. As such, they aren't getting the targeted knowledge and skills they require. The second reason is lack of employee involvement. The information is there, but they aren't actively participating in the online training experience. As a result, they don't get the information that will help them in the workplace. This is why it's essential to research your audience to identify their needs and to figure out what motivates them.

2. Employees Don't Have Access To The Necessary Online Training Tools:

Even employees who receive all the information they require may still lack the proper online training tools. These are the online training resources that help them on-the-job, such as performance support online training tutorials and video demos. Ideally, these online training resources should be mobile-friendly, so that employees can access them from anywhere in the world. It is the organization's responsibility to provide employees with the online training tools of the trade, such as mobile-friendly microlearning online training materials that they can view on any device. Responsive design eLearning authoring tools can make this process really easy by giving you the ability to create any kind of interactive online training activities that adjust to any screen, helping your corporate learners keep up with their online training even when they are not in the office.

3. The Needs Of The Organization Have Changed:

Your organization is constantly changing. This means that your online training program has to grow and evolve to adapt. Otherwise, your employees are going to be left in the lurch, and performance gaps are sure to follow. As your business needs, goals, and organizational objectives change, be sure to update your online training courses and performance support resources. This is doubly important for company policy and compliance issues. You can't expect your employees to stay up-to-date if your online training program is trailing behind.

4. Employees Aren't Aware Of The Organizational Objectives:

The problem that many organizations face is lack of transparency and employee involvement. Employees should sit on the sidelines while you develop your online training program. Create a learning culture, solicit their feedback, and make certain that they know the benefits of active participation. Make them aware of the organizational goals and objectives so that they know where to focus their efforts. If they know where to set their sights, they are more likely to meet expectations and achieve their true potential.


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