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Measuring target goals versus actual achievements during an appraisal period.
Whatever appraisal systems used in the process, such systems will not bring about good results unless they follow that equation: Among others, Target Goals versus Actual Achievements.
Performance management is an integral part of the workplace as it provides a platform for supervisors and managers to measure employee performance and determine whether employees are meeting the company's expectations. The method of performance measurement varies according to the work environment, type of business and, to some extent, the employee's occupation.
There are2 widely known ways to measuring the performance of an employee in an organization:
1) Graphic Rating Scales &2) Management by Objectives, the latter being the best measurement tool of employees in supervisory or managerial positions. MBO's start with identifying employee goals, list of resources necessary to achieve those goals.2) the timeline to achieving each goal.
Throughout the evaluation period, the employee and her manager meet periodically -- quarterly is best -- to discuss the employee's progress and to reset goals for which the employee needs additional time or resources to complete. The employee's performance is measured by how many of the preset goals were accomplished within the designated time frame.
Overall Labor Effectiveness (OLE) is a key performance indicator (KPI) that measures the utilization, performance, and quality of the workforce and its impact on productivity.
Similar to Overall Equipment Effectiveness (OEE), OLE measures availability, performance, and quality.
Availability – the percentage of time employees spend making effective contributions
Performance – the amount of product delivered
Quality – the percentage of perfect or saleable product produced
Calculation: Availability = Time operators are working productively / Time scheduledExample:Two employees (workforce) are scheduled to work8 hour (480 minutes) shifts.The normal shift includes a scheduled30 minute break.The employees experiences60 minutes of unscheduled downtime.Scheduled Time =960 min –60 min break =900 MinAvailable Time =900 min Scheduled –120 min Unscheduled Downtime =780 MinAvailability =780 Avail Min /900 Scheduled Min =86.67%
Calculation: Performance = Actual output of the operators / the expected output (or labor standard)
Example:Two employees (workforce) are scheduled to work an8-hour (480 minute) shift with a30-minute scheduled break.Available Time =900 Min Sched –120 Min Unsched Downtime =780 MinutesThe Standard Rate for the part being produced is60 Units/Hour or1 Minute/UnitThe Workforce produces700 Total Units during the shift.Time to Produce Parts =700 Units *1 Minutes/Unit =700 MinutesPerformance =700 Minutes /780 Minutes =89.74%
Calculation: Quality = Saleable parts / Total parts producedExample:Two employees (workforce) produce670 Good Units during a shift.700 Units were started in order to produce the670 Good Units.Quality =670 Good Units /700 Units Started =95.71%
Example:Calculation: OLE = Availability x Performance x QualityExample:A workforce experiences...Availability of87%The Work Center Performance is90%.Work Center Quality is96%.OLE=86.67% Availability x89.74% Performance x95.71% Quality =74.44%
Its simple , you can make excel sheet of (( Daily Tasks )) which shows who is working and who is palying around.
