To manage the organization correctly, you need to know a lot of statistical indicators. Instead of a thousand meaningless words, emotional convictions and persuasions, the head can look at the figures, which objectively reflect the state of affairs and work of the staff. Efficiency is, above all, a statistical indicator. In this article we will discuss how to competently and quickly measure it.
The main components of this indicator allow to determine the effectiveness of the process at any organizational level. They can be used not only to assess the performance of the company and its departments, but also individual employees. The KPI system (kei-pi-ay) will allow to estimate the efficiency with high accuracy . This will also save time on decision-making and the setting of subsequent tasks. KPI also allows you to improve and build a literate wage system.
KPI is translated from English as "key performance indicators". To draw up such a system of indicators, it is necessary to fulfill a number of requirements. First, each indicator should be clearly and clearly described, and not intersect with other indicators. Secondly, any standard or indicator should be achievable in the planned period of time; In other words, do not try on Icarus's role, it is necessary to soberly assess the real situation. Thirdly, the indicator should be comprehended and display a specific organizational unit or process. Fourthly, the indicator should lie within the framework of those people who are subjected to its evaluation. Fifthly, indicators can reflect the activities of the whole company, that is, be common or private and display the work of individual divisions. In the latter case, they reflect the purpose of these units in order to accurately measure the effectiveness. This simple list of requirements will avoid most of the common mistakes and increase the profit of the organization.
The effectiveness of the staff, above all, is affected by his desire to be involved in the performance of the tasks. To achieve the involvement of personnel can be either through competent non-material motivation, or through monetary incentives. Therefore, we will briefly describe how to apply the KPI system to the formation of wages. At the very beginning, you need to create a hierarchy of levels that work on Defined project. For example, in the first place when creating a product or service, there can be a general director, on the second - management, and on the third - ordinary workers. Then it is necessary to determine the calculation of the indicators. As a rule, it is made by dividing the profit of the organization by the amount of costs. It is also necessary to draw up a system of estimates and bonuses, depending on how far the final project is completed. So, for example, 30% of the work performed can be evaluated for a "low ball" in which bonuses are not calculated. If the work is done at 120%, then, accordingly, she gets a high ball. Depending on the evaluation, bonuses are awarded to each employee at the above established levels.
Do not forget that efficiency is a statistical indicator, therefore it is necessary to study economic, statistical and mathematical literature.