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Performance Management Effectiveness

You have just been hired as a productivity analyst for Company AAA, which is a manufacturing company. The company has been doing well financially during an economic downturn. However, senior management feels that improvements are warranted. They have recently noticed an increase in the number of defects. Although they have not received any customer complaints, senior management sees a need to reduce the number of defects.
To determine where the defects are occurring, you have been asked to determine whether performance effectiveness or performance efficiency would be the better measurement tool. Define performance effectiveness

Define performance efficiency,

Which methodology would you recommend? Why?

Solution Preview

To determine where the defects are occurring, performance effectiveness would be the better measurement tool.

Performance effectiveness is a measure of what the employees do, how well they do it, and finding ways of improving their performance. Performance effectiveness can be measured by a review process.
Performance efficiency is the output of a person compared with the planned output. It is ...

Solution Summary

The answer to this problem explains performance effectiveness and performance efficiency. The references related to the answer are also included.