Measurement of performance dose not only mean what has happened, but it also mean what is going to be happen. It means predicting the things in advance, this helps the management to take the corrective action in advance to achieve the goals of the organization. As soon as the operation are completed it is preferable to measure performance. Even this can be measured while the activity is in progress, so that appraisal are available to you on time.
Through personal observation we can measure performance, as in case of subordinates,which is observed when they are engaged in work and by studying different summaries of figures, report, charts and statements. A well organized control system, these figure can be compared quickly with standard figures. This will release certain variation, some variation are desirable and some are undesirable.
Before introducing the control system you have to consider one important point i.e, whether measurement and comparison should be done at the end or at various stage in whole process. If the purpose behind control is to trouble shoot, then observation should be done at various stages.
Standards should be properly determined and methods should be clearly communicated, so that the actual performance can be easily performed. The manager should focus on the key variation which are noticed while making the appraisal. But the mangers should not waste time on minor deviation. And this will help the manager to get the correct and positive result.
When we compare the actual and standard performance, it is advisable figure out the level, nature and basic causes for variations. While measuring the actual performance a manager does not find any difficulty in placing the deviation point.