To properly manage an organization, you need to know a lot of statistical indicators. Instead of thousands of meaningless words, emotional persuasion and persuasion, the manager can look at the numbers that objectively reflect the state of affairs and the work of the staff. Efficiency is, first of all, a statistical indicator. In this article, we will talk about how to correctly and quickly measure it.
The main components of this indicator allow you to determine the effectiveness of the process at any organizational level. They can be used not only to assess the work of the company and its departments, but also of individual employees. The KPI (Key-Pi-ay) system will allow you to evaluate the effectiveness with high accuracy. This will also save time on decision making and setting follow-up tasks. KPI also allows you to improve and build a competent remuneration system.
KPI is translated from English as "key performance indicators". ForWhen compiling such a system of indicators, a number of requirements must be met. First, each indicator should be clearly and understandably described, and not overlap with other indicators. Secondly, any standard or indicator must be achievable in the planned period of time; in other words, no need to try on
itself the role of Icarus, it is necessary to soberly assess the real situation. Thirdly, the indicator must be meaningful and reflect a specific organizational unit or process. Fourthly, the indicator should lie within the framework of those people who are subject to its evaluation. Fifthly, indicators can reflect the activities of the entire company, that is, they can be general or private and reflect the work of individual divisions. In the latter case, they reflect the purpose of these units in order to accurately measure performance. This simple list of requirements will help you avoid most common mistakes and increase your organization's bottom line.
The effectiveness of the staff, first of all, is influenced by their desire to be involved in the fulfillment of the assigned tasks. Employee involvement can be achieved either through competent non-material motivation, or through monetary incentives. Therefore, we will briefly describe how to apply the KPI system to wage formation. At the very beginning, you need to create a hierarchy of levels that work on
certain project. For example, in the first place when creating a product or service, there may be a CEO, in the second - management,and on the third - ordinary workers. Then you need to define the calculation of indicators. As a rule, it is made by dividing the profit of the organization by the number of costs. It is also necessary to draw up a system of assessments and bonuses, depending on how the final project is completed. So, for example, 30% of the work performed can be assessed as a "low score" in which there is no bonus accrual. If the work is completed by 120%, then, accordingly, it receives a high score. Depending on the assessment, bonuses are awarded to each employee above the established levels.
Don't forget that efficiency is a statistical indicator, so you need to study the economic, statistical and mathematical literature.
