P5：Performance Management and Measurement

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ACCA P5考试: Performance Management and Measurement
1. Performance Management of Human Resources
Performance management attempts to integrate the human resources process with the strategic direction and control of the company by integrating agreed goals and control measures.
Usually performance ratings are done according to:
Inputs and personal qualities;
Results and outcomes;
Behaviour in performance.
Step 1: Goals are set.
Step 2: Performance is measured and compared with targets.
Step 3: Control measures are taken up to correct any shortfall.
Step 4: Goals are adjusted according to experience.
2. Performance Measures (Performance Ratings)
Performance indicators are set that are linked to the goals and objectives of the organisation. Performance measures are often discussed under four categories:
2.1 Personality Traits
Goals are based on desired personality traits such as teamwork or leadership. The problem with these types of measures is that qualified specialists using psychometric methods should perform the judgement of individuals. In practice, unqualified managers normally perform these, using tests that they do not understand.
2.2 Quantified Work Objectives
Quantified targets, such as number of sales calls made, are set for the individuals. The individual's performance is then compared against these. One potential problem is setting the targets. This should be done in advance of the period during which performance is measured; however it is often difficult to decide what is a fair target.
2.3 Behaviourally Anchored Rating Scales (BARS)
BARS measure how the employee behaves generally, using specific behaviours that are identified as being important, rather than using general personality traits. For example, rather than simply saying "the employee deals with customers in a polite and prompt manner," the behavioural anchor will say "the employee answers the phone within two rings". For each behaviour, the employee will be measured on a scale, using the judgement of the appraiser.
2.4 Behavioural Observation Scales (BOS)
Behavioural observation scales attempts to overcome a criticism of BARS, which is that they require judgement.
Instead, BOS attempt to identify what are considered to be critical activities, and then attempts to measure how often an employee performs those activities. Some activities would be considered to be desired activities, such as "gives praise when praise is due", and some are undesired such as "Misses work days".
The performance of the employee is then judged for each of these activities, using a scale of 1 to 5, where 1 is never, 5 is always, etc.