One more significant parameter for measurement that has emerged to be of great importance over the years is customer satisfaction. After all, most of the sales in today’s world are not based only on transactions, rather they are long-term. Even the marketing of a consumer good such as a bag, which might take very few moments, still has the capability to earn a long-term customer for the company.
Therefore, not only customer satisfaction is a measurement parameter of today, but also it would remain as crucial in the future. Organizations now formulate ratings with respect to their staff members against each of these parameters and certain factors. After that, it would be necessary for them to consider weights associated to each of these factors.
Revenues and profits are usually given the greatest weight. Still, other factors, depending on the industries and with specific sales roles, might be having greater value than monetary factors. Whatever maybe the weights associated to each of these factors, they are related to some type of performance management system.
How Performance Management helps
- Setting up goals and objectives.
- Keeping a recorded, official measurement process.
- Monitoring achievements, failures with respect to agreed goals and objectives.
- Keeping a written documentation of the criteria agreed mutually by the employee and employer.
Companies should have the notion that the management of performance and reviews of performance are greatly different from company to company. At times, the setting up of goals is included in the same process, while in other circumstances, it is different but reflects in the process.