Performance Evaluation

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Performance Evaluation

Performance Evaluation


When we talk about performance assessment, it is a systematic process and periodic quantitative and qualitative estimation of degree of effectiveness, with which people carry out activities which are their responsibilities developed through their position. The procedure for assessing the human resource is commonly known as performance evaluation, and is usually made ??from formal assessment programs, based on a reasonable amount of information about employees and their job performance.


The purpose of performance Assessment is to guide the performance in order to achieve the best possible compromise of people in their jobs as a means to obtain optimum performance and satisfaction. Most employees try to get feedback on how their activities and people who are responsible for the direction of other employees must evaluate the individual performance to decide what action to take. Informal assessments based on the daily work which are necessary but insufficient.

The advantages of performance assessment

Improving performance through feedback

Helps determine who deserve compensation

It helps to consider who may be promoted or promoted budgets, separated, or transferred

You can identify training needs and development

Used to plan professional development from the standpoint of the employee

The disadvantages of Performance Assessment

Difficulties in gathering information about performance.

Difficulty of performance analysis of the individual.

Standards unclear.

Independent of the actual performance factors are used to qualify (age, race, sex).

Measuring Performance Assessment

The management accountants must be involved in the establishment of the performance measurement and make use of these measures as there is a strong relationship between the development of action plans, approval of the application and the results of performance measures. It is necessary to take into the consideration the financial and non-financial factors that certainly reflect in the production priorities (Khan H., Halabi A., Sartorius K., 2011).

Performance Indicators for the role of Production-Operations




Unit production costs


Inventory turnover

Return on investment

Indirect and total costs of material


Market share

Customer service

Variety of Products

Delivery on time

Customer delivery time

Customer satisfaction


Speed ??of development products

Compliance with specifications (quality of the processes of manufacture)

Time equipment changes

Total production time

Acquisition time / shopping

Performance measures in large manufacturers.

Economic dimension

Competitive dimension

Operational dimension

Average cost of total production


Inventory turnover

Return on investment annual average



Profit Margin

Financial liquidity

Percentage on-time delivery

Variety of Products

Unit cost of product

Perceived quality

Product Delivery

Customer satisfaction

Product Features

After-sales services

Product Life

Manufacturing cycle time

Average inventory in process

Capacity utilization and available resources

Fulfillment of production plans

Compliance with specifications

Average delay of orders

Rejection rate / loss

 Major manufacturing competitive priorities and some measurement criteria.


Examples of measurement criteria / attributes of operation


Unit cost of product

Unit cost of material

Operating expenses and inventory

Use of machines / capacity

Stock rotation

Performance of materials / processes

Productivity of staff direct / indirect


Percentage of defects

Costs of ...
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