Performance management is mutually a planned and an incorporated approach to convey thriving results in business by recuperating the presentation and budding the potential of group and person Arm Strong and Barron ,
The purpose of measuring performance management is not to know how your business has performed but to facilitate it to execute in an improved way. The ultimate aim of executing a performance measurement system is to develop the performance of your organization. If you can get hold of your performance measurement right, [Bob Frost].
These are some of the metrics through which we can find out the effectiveness of performance management.
Productivity- This is one metric based on the premeditated goal for the occasion stage which chooses the numerator and denominator for the production per unit (productivity).
For eg- If a goal is launch of a new product or if we want to quantify the Return On Investment (ROI), or find out which financial records to focus on (with limited sales resources)or calculate sales output or if a new-fangled business surpasses your sales and marketing costs, then you know that you’re on the pathway to accomplishment and the company’s performance has been excellent e.g.,. Actual productivity = Actual output Resources actually consumed. Productivity is an indicator of performance management. If the consumption of the products increases it means the organisation has outperformed. It benefits the labour, staff and measures the performance of the process system management.
A series of studies conducted by the American Pulpwood Association showed empirically that there is a straight association between what a person does (behavior) and the accomplishment of the business’s plan which aspire to boost the productivity of employees.