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KPI AND ITS BENEFITS FOR THE CORPORATION

kpi

A good corporation must have set up a detailed and complete job description that elaborates comprehensively every duty and responsibility of its staff and makes clear their contribution in every department. For some of you, KPI or Key Performance Indicators might not be an unfamiliar term. It is a standard for an organization or corporation to observe the achievement of results and objectives. When a corporation establishes its vision and mission and outlines its targets and objectives, a measurement tool that reflects work achievement progress is needed. This measurement tool is what called Key Performance Indicators.

Here are some positive benefits of implementing employee performance management through KPI system :

  1. It will be easier to measure or evaluate employees’ performance and to reduce the element of subjectivity because employees’ work performance is measured more objectively.
  2. Employees become more understanding of what the management expectsfrom him. It can be a motivation for them to work more optimally to achieve the set targets.
  3. The work results are becoming more measurable and can be used as a reference to give rewards to employees who show superior performance.Conversely, employees may be given penalty or punishment for their poor performance.
  4. KPI provides a reference for a company to achieve its objectives because there is a clear directive both for each employee and for the company itself.

Judging from the benefits gained from implementing KPI, it is advisable that you implement KPI in your company. If you already implement it, that’s excellent! If not, or if you need an application that you can use as a performance monitoring medium, we have a solution to meet your needs.

Source : www.getilo.com


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