Performance rating (work measurement)

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Performance rating is the step in the work measurement in which the analyst observes the worker's performance and records a value representing that performance relative to the analyst's concept of standard performance. [1]

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Performance rating helps people do their jobs better, identifies training and education needs, assigns people to work they can excel in, and maintains fairness in salaries, benefits, promotion, hiring, and firing. Most workers want to know how they are doing on the job. Workers need performance feedback to work effectively. Accessing an employee timely, accurate, constructive feedback is key to effective performance. [2] Motivational strategies such as goal setting depend upon regular performance updates. While there are many sources of error with performance ratings, error can be reduced through rater training and through the use of behaviorally anchored rating scales. In industrial and organizational psychology such scales are used to clearly define the behaviors that constitute poor, average, and superior performance.

There are several methods of performance rating. The simplest and most common method is based on speed or pace. Dexterity and effectiveness are also important considerations when assessing performance. Standard performance is denoted as 100. [3] A performance rating greater than 100 means the worker's performance is more than standard, and less than 100 means the worker's performance is less than standard. It is important to note that standard performance is not necessarily the performance level expected of workers, the term standard can be misleading. For example, a standard performance rating of a worker walking is 4.5 miles/hour. The ratings is used in conjunction with a timing study to level out actual time (observed time) taken by the worker under observation. This leads to a basic minute value (observed time/100*rating). This balances out fast and slow workers to get to a standard/average time. Standard at a 100 is not a percentage, it simply makes the calculations easier. Most companies that set targets using work study methods will set it at a level of around 85, not 100.

Attributions to work performance

Performance rating has become a continuous process by which an employer and employees attempt to understand company goals and how his or her progress toward contributing to them are measured. Performance measurement is an ongoing activity for all managers and their subordinates. [4] A performance measurement uses the following indicators:

Effectiveness of performance rating

The purpose of performance rating is to provide systematic evaluation of the employees’ contribution to the organization. [8] Globally, the combination of indicators and performance management, combined with intensifying work, transforms the work of employees and of the managers. On the managerial level, the will of hierarchy to fulfill performance indicators is dependent on task prioritizing, which is not shared amongst everyone.

Performance Rating intensifies[ clarification needed ] the environment of the organization but provides structure for production. [9] Performance satisfaction[ clarification needed ] is found to be directly related to both affective commitment and intention of employee. If motivated more likely to meet goals.

See also

Related Research Articles

Industrial and organizational psychology Branch of psychology

Industrial and organizational psychology, an applied discipline within psychology, is the science of human behavior in the workplace. Depending on the country or region of the world, I-O psychology is also known as occupational psychology in the United Kingdom, organizational psychology in Australia and New Zealand, and work and organizational (WO) psychology throughout Europe and Brazil. Industrial, work, and organizational (IWO) psychology is the broader, more global term for the science and profession.

Performance management (PM) is the process of ensuring that a set of activities and outputs meets an organization's goals in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, an employee, or the processes in place to manage particular tasks. Performance management standards are generally organized and disseminated by senior leadership at an organization and by task owners, it can include specifying tasks and outcomes of a job, providing timely feedback and coaching, comparing employee's actual performance and behaviors with desired performance and behaviors, instituting rewards, etc. It is necessary to outline the role of each individual in the organization in terms of functions and responsibilities to ensure that performance management is successful.

Performance improvement is measuring the output of a particular business process or procedure, then modifying the process or procedure to increase the output, increase efficiency, or increase the effectiveness of the process or procedure. Performance improvement can be applied to either individual performance, such as an athlete, or organisational performance, such as a racing team or a commercial business.

A performance appraisal, also referred to as a performance review, performance evaluation, (career) development discussion, or employee appraisal, sometimes shortened to "PA", is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. Performance appraisals are a part of career development and consist of regular reviews of employee performance within organizations.

Stress management is a wide spectrum of techniques and psychotherapies aimed at controlling a person's level of stress, especially chronic stress, usually for the purpose of and for the motive of improving everyday functioning. Stress produces numerous physical and mental symptoms which vary according to each individual's situational factors. These can include a decline in physical health, such as headaches, chest pain, fatigue, and sleep problems, as well as depression. The process of stress management is named as one of the keys to a happy and successful life in modern society. Life often delivers numerous demands that can be difficult to handle, but stress management provides a number of ways to manage anxiety and maintain overall well-being.

Team management is the ability of an individual or an organization to administer and coordinate a group of individuals to perform a task. Team management involves teamwork, communication, objective setting and performance appraisals. Moreover, team management is the capability to identify problems and resolve conflicts within a team. There are various methods and leadership styles a team manager can take to increase personnel productivity and build an effective team. In the workplace teams can come in many shapes and sizes who all work together and depend on one another. They communicate and all strive to accomplish a specific goal. Management teams are a type of team that performs duties such as managing and advising other employees and teams that work with them. Whereas work, parallel, and project teams hold the responsibility of direct accomplishment of a goal, management teams are responsible for providing general direction and assistance to those teams.

Management by objectives (MBO), also known as management by planning (MBP), was first popularized by Peter Drucker in his 1954 book The Practice of Management. Management by objectives is the process of defining specific objectives within an organization that management can convey to organization members, then deciding how to achieve each objective in sequence. This process allows managers to take work that needs to be done one step at a time to allow for a calm, yet productive work environment. In this system of management, individual goals are synchronized with the goals of the organization.

Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time. The most common example is the (aggregate) labour productivity measure, one example of which is GDP per worker. There are many different definitions of productivity and the choice among them depends on the purpose of the productivity measurement and/or data availability. The key source of difference between various productivity measures is also usually related to how the outputs and the inputs are aggregated to obtain such a ratio-type measure of productivity.

<span class="mw-page-title-main">Performance indicator</span> Measurement that evaluates the success of an organization

A performance indicator or key performance indicator (KPI) is a type of performance measurement. KPIs evaluate the success of an organization or of a particular activity in which it engages. KPIs provides a focus for strategic and operational improvement, create an analytical basis for decision making and help focus attention on what matters most.

Capability Maturity Model Integration (CMMI) is a process level improvement training and appraisal program. Administered by the CMMI Institute, a subsidiary of ISACA, it was developed at Carnegie Mellon University (CMU). It is required by many U.S. Government contracts, especially in software development. CMU claims CMMI can be used to guide process improvement across a project, division, or an entire organization. CMMI defines the following maturity levels for processes: Initial, Managed, Defined, Quantitatively Managed, and Optimizing. Version 2.0 was published in 2018. CMMI is registered in the U.S. Patent and Trademark Office by CMU.

Time and motion study

A time and motion study is a business efficiency technique combining the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth. It is a major part of scientific management (Taylorism). After its first introduction, time study developed in the direction of establishing standard times, while motion study evolved into a technique for improving work methods. The two techniques became integrated and refined into a widely accepted method applicable to the improvement and upgrading of work systems. This integrated approach to work system improvement is known as methods engineering and it is applied today to industrial as well as service organizations, including banks, schools and hospitals.

Competence is the set of demonstrable characteristics and skills that enable and improve the efficiency or performance of a job. The term "competence" first appeared in an article authored by R.W. White in 1959 as a concept for performance motivation. In 1970, Craig C. Lundberg defined the concept in "Planning the Executive Development Program". The term gained traction when in 1973, David McClelland wrote a seminal paper entitled, "Testing for Competence Rather Than for Intelligence". The term was used by McClelland commissioned by the State Department, to extract characteristics common to high-performing agents of embassy, and to help them recruit and develop. It has since been popularized by Richard Boyatzis and many others, such as T.F. Gilbert (1978) who used the concept in relationship to performance improvement. Its use varies widely, which leads to considerable misunderstanding.

Control is a function of management which helps to check errors in order to take corrective actions. This is done to minimize deviation from standards and ensure that the stated goals of the organization are achieved in a desired manner.

Work measurement is the application of techniques which is designed to establish the time for an average worker to carry out a specified manufacturing task at a defined level of performance. It is concerned with the duration of time it takes to complete a work task assigned to a specific job. It means the time taken to complete one unit of work or operation it also that the work should completely complete in a complete basis under certain circumstances which take into account of accountants time

Organizational behavior management (OBM) is a subdiscipline of applied behavior analysis (ABA), which is the application of behavior analytic principles and contingency management techniques to change behavior in organizational settings. Through these principles and assessment of behavior, OBM seeks to analyze and employ antecedent, influencing actions of an individual before the action occurs, and consequence, what happens as a result of someone’s actions, interventions which influence behaviors linked to the mission and key objectives of the organization and its workers. Such interventions have proven effective through research in improving common organizational areas including employee productivity, delivery of feedback, safety, and overall morale of said organization.

Overall Equipment Effectiveness (OEE) is a measure of how well a manufacturing operation is utilized compared to its full potential, during the periods when it is scheduled to run. It identifies the percentage of manufacturing time that is truly productive. An OEE of 100% means that only good parts are produced, at the maximum speed, and without interruption.

Training and development involve improving the effectiveness of organizations and the individuals and teams within them. Training may be viewed as related to immediate changes in organizational effectiveness via organized instruction, while development is related to the progress of longer-term organizational and employee goals. While training and development technically have differing definitions, the two are oftentimes used interchangeably and/or together. Training and development have historically been topics within adult education and applied psychology but have within the last two decades become closely associated with human resources management, talent management, human resources development, instructional design, human factors, and knowledge management.

Job performance assesses whether a person performs a job well. Job performance, studied academically as part of industrial and organizational psychology, also forms a part of human resources management. Performance is an important criterion for organizational outcomes and success. John P. Campbell describes job performance as an individual-level variable, or something a single person does. This differentiates it from more encompassing constructs such as organizational performance or national performance, which are higher-level variables.

Human Resource (HR) metrics are measurements used to determine the value and effectiveness of HR initiatives, typically including such areas as turnover, training, return on human capital, costs of labor, and expenses per employee.

Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.

References

  1. ↑ Groover, Mikell P. Work Systems and Methods, measurement, and Management of Work. Pearson Education International, 2007.
  2. ↑ Society of Industrial and Organizational Psychology Inc. "Performance Management" . Retrieved 2014-02-03.
  3. ↑ Kanawaty, George, ed. Introduction to Work Study. 4th ed. Geneva, Switzerland: International Labor Office, 1992.
  4. ↑ Hakala, David. "16 Ways to Measure Employee Performance". HR Newsletter. Retrieved 2014-03-03.
  5. ↑ n.a. "Performance Management Cycle". opm.gov. Retrieved 2014-03-03.
  6. ↑ n.a. "Performance Management Cycle". opm.gov. Retrieved 2014-03-03.
  7. ↑ n.a. "Performance Management Cycle". opm.gov. Retrieved 2014-03-03.
  8. ↑ Haynes, Dr. Bill. "Effective Performance Appraisal". Ohio State Extension. Retrieved 2014-03-10.
  9. ↑ Kuvass, Bard (3 March 2006). "Performance appraisal satisfaction and employee outcomes: mediating and moderating roles of work motivation". International Journal of Human Resource Management. 17 (3): 542. Retrieved 2014-03-10.
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