Establishing Performance Standards There are
two primary reasons why it is essential to have in place realistic performance
standards for each position in your organization. First, the performance
standards provide management with a fair, accurate, and objective method for
evaluating each member of the staff. Secondly, the standards are helpful to the
employees in that, it affords them the opportunity to always know "how" they are
doing and, if necessary, to take corrective action if the standards are not
being met.
Properly established and monitored, performance standards provide an accurate
assessment of the employee's capability and developmental needs, while helping
to avert performance problems before they become severe.
The following outlines the process utilized for establishing performance
standards.
I. Collect and evaluate the historical performance data for the firm, each
department, and for each individual position.

II. Gather and evaluate historical performance data on each individual that is
currently employed by the firm.

III. Compare firm, departmental, and individual performance data with industry
norms.

IV. Based on comparisons, establish performance standards for each position in
the organization while adjusting for specific anomalies.

V. Establish mechanisms for communicating the performance standards during the
hiring process, as well as on the job.

VI. Implement an on-going process for collecting, monitoring, evaluating, and
utilizing performance data for each position in the organization.
Contact us for more information on how this can work
for you and your firm.