Exaplain How Employee Performance Is Measured and Managed

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P5: Explain how employee performance is measured and managed. Motivating employees and encouraging involvement can both increase the amount of work that employees are doing, as well as its quality. Whilst motivation is key to getting employees to work as hard as they possibly can, a business can only find out how hard employees are working if they measure their performance. Businesses have different ways that they measure employee performance, for example in production it’s about how many products are made, in a supermarket it’s how many are sold. In some industries it is more difficult to measure performance and productivity than in others. Sometimes it is qualitative data that is important rather than quantitative data. Goal theory is the practice of setting goals for employees to achieve. The best set of goals are achieved when the employer and employee work together to set goals that they both feel are important. Clear and challenging goals can give employees incentive and motivation to work more productively and achieve the performance that is required. This also helps the organisation to meet its overall goal. It is important that the employee wants to achieve the goals and that they see the rewards for doing so to give them the incentive to do so again in the near future. Performance is also measured and managed by using the SMART objective. For example, if Tesco were to give their employees the task to try and improve the sales of a certain product, they could use this method to do so. A SMART objective would be; Employees must use different ways of advertisement or other methods of sales to boost the sales of our in-house made bread by January. S – Specific M – Measureable A – Achievable R – Realistic T – Time One way for an organisation to measure how well it is performing is to measure itself against others. This can be done with

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