1. Measuring performance and managing performance
Explain how employee performance is measured and managed (SM) M3
Explain how the results from measuring and managing performance inform employee development

4. Why measure performance?
It helps a business to find out how hard employees are working.
How can businesses measure performance?

5. Performance indicators (M3)
Organisation
Performance indicators
Methods of review
Restaurant
No of meals produced
No of customers served
Spend per customer
Amount of waste produced
Mystery shopper results
Daily target setting with weekly review by restaurant manager
Action plans drawn up weekly for shortfalls
Annual appraisal of individual staff performance
Mystery shopper analysed monthly
School/college
Bank
Charity shop
Estate agent

6. In pairs..... Identify three roles at Waitrose
Identify the main roles and responsibilities of the role
Identify the performance indicators for each role
Identify how employee performance is managed and reviewed at Waitrose.
You have 5 minutes

7. (P5) There are 2 methods of measuring performance:
Quantitative – linked to numbers and statistics
Qualitative – based on opinions and judgements.
Worker performance measurements will be different depending on the type of industry. In banking and other office based environments, measurements are often linked with the employer’s appraisal system.
Reviews can take place every 3, 6 or 12 months.

8. Other ways of measuring performance
Goal theory – when the employer works with the employee to set goals that they feel are important. These goals are clear and challenging that gives employees incentive and motivation to work productively. This often involves rewards.
Smart targets – SPECIFIC, MEASURABLE, ACHIEVABLE, REALISTIC AND TIME BOUND.

9. Benchmarking – measuring how well your employee is performing against others. Sometimes a benchmark standard is set by the best organisation in industry or by the government.

10. (P5) Managing performance
This involves monitoring the targets and goals employees have been given to see how they are progressing and what the final result is. There are number of ways:
Probation: when a new employee is tested for certain amount of time where their progress is closely monitored. Why?
Appraisal: targets set by the employer and employee which are reviewed formally every 3/6/12 months. Examples?

11. (P5) Improving employee performance
Mentoring – someone in the workplace who supports and encourages another employee to help them achieve the best performance possible.
Monitoring – formal monitoring, whereby managers check or watch an employee. Informal monitoring, whereby managers make more discrete judgements about how an employee is fitting into the workplace.
Buddying – where an employee is supported by another more experienced employee.

12. (P5&M3) Employee development
Employee development helps employees to keep developing and become better at their jobs, thus improving their performance.
Consider the examples. Can you identify ways of further developing your employees?
Employee 1: Ellie has been employed for 3 months. During your formal probation review meeting you have identified that Ellie have failed to meet her sales targets.
Employee 2: Tom is one of your most experienced employees who has been working in your store for over five years. He is your number one salesperson with prove track record of excellent customer service.