Efficiency - a statistical parameter

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for competent management of the organization need to know a lot of statistics.Instead, thousands of meaningless words, emotional belief and persuasion, the manager can look at the figures, which reflect the objective situation and the work of staff.Efficiency - is, above all, a statistical measure.In this article, we'll go on how competently and quickly to measure it.

The main components of this index allow us 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 subsidiaries, and individual workers.System KPI (key-pee-ah) allows high accuracy to evaluate the effectiveness.This will also save time for decision-making and the formulation of subsequent tasks.KPI also allows you to improve and build a competent system of remuneration.

KPI from English translates as "key performance indicators".To compile such a system of indicators is necessary to fulfill a number of requirements.First, each indicator must be clearly described and understood, and not overlap with other indicators.Secondly, any norm or measure should be achievable within the planned period of time;In other words, do not try on the role of Icarus, you need to soberly assess the real situation.Third, the measure must be comprehended and display specific organizational unit or process.Fourth, the figure should be in the framework of those people who are subjected to evaluation.Fifth, the indicators may reflect the activities of the whole company, it has to be shared, or private and display the work of the 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 would avoid the most common errors and increase the profits of the organization.

The efficiency of the staff, primarily influenced by its desire to be involved in this task.You can reach the involvement of staff or through competent intangible motivation, either through monetary incentives.Therefore briefly describe how to use the KPI system to the formation of wages.In the beginning you need to create a hierarchy of levels that are working on a specific project.For example, in the first place to create a product or service may be the CEO, the second - the management, and the third - the rank and file workers.Then you need to determine the calculation of indicators.As a rule, it is made by dividing the profit of the organization in the amount of costs.It is also necessary to make the system of assessment and bonuses depending on how the final draft is made.For example, 30% of the work performed can be evaluated on a "low ball" in which the accrual of bonuses available.If the work is done at 120%, respectively, she gets a high score.Depending on the evaluation of each employee to set higher levels of bonuses.

Do not forget that the effectiveness - a statistical measure, so it is necessary to examine the economic, statistical and mathematical literature.