Performance Measurement vs Performance Management

This presentation discusses the difference between performance measurement and performance management. It explores the characteristics of KPIs and their effectiveness. It also provides examples of KPIs for employees of Cincinnati Zoo.

BUSINESS ANALYTICS
TASK 13

Performance measurement vs
Performance Management
 Performance management can be defined as a kind of process which is used by
organizations for setting their goals and checking overall progress of achieving these
goals in regular basis. In order to increase overall performance of an organization in
order to achieve their desired goals and objectives.
 Whereas, performance measurement is a kind of process which helps an organization to
monitor important aspects of its systems, programs and processes. Performance
measurement includes operational processes which is used to collect necessary data for
performance measure.

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 Performance management helps in reflecting approach that one entity has towards
performance like strategy definition, strategy execution, performance measurement and
training.
 Performance measurement focuses upon identification, tracking and communication of
performance by using performance indicators.

Key Performance Indicators (KPIs) for the
employees
 Key performance indicator can be defined as a kind of quantifiable measure which is
majorly used for evaluation of success of an organization, employees and many more in
meeting objectives for performance.
 Key performance indicator for employees helps in making sure that they get maximum
out of important investment.

Key Performance Indicators (KPIs) for the employees of
Cincinnati Zoo
Some of the main KPI’s for the employees of Cincinnati Zoo are as follows:
 Customer retention rate of the Zoo is one of the main KPI indicator for the employees
 Number of employees working for the Cincinnati Zoo is another KIP for the
employees.
 Customer satisfaction survey also helps the employees of the Zoo to identify the level
of satisfaction of visitors who visit the zoo.
 Employee retention or turnover rate of the organization is another KIO for employees
of the Zoo.

Characteristics of KPIs
Some of the main characteristics of KPI are as follows:
 KPI should be simple, straightforward and easy to understand as well as measure that
helps in taking effective decisions not raise questions.
 KPI should be relevant and specific to the team members of the organization so that
any kind of cross- sales opportunities can be identified.
 KPI should be aligned with overall goal of an organization and can be easily linked to
strategic goals of an organization
 KPI should be easy enough to be measured so that its effective for bringing
improvement within the organization can be measured.

Effectiveness of KPIs
 KPI’s are effective if they are linked with overall strategy of the organization and helps
business to achieve success.
 An effective KPI helps in answering all the questions easily and also helps in marrow
downing overall focus of the organization.
 An effective KPI also helps an organization in identifying data or resources that are
required by the organization.
 It can also be used for evaluation of existing data in a proper and appropriate manner.

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