A common statement in business is that owners and managers can only expect what they inspect. Owners and managers may have no idea how well their business is performing if they fail to review its operations. Performance evaluation analysis is a common management tool for measuring the effectiveness of a company.

Facts

1. Performance evaluation analysis is a review of company objective that determines how well the company met its goals. Owners and managers can review financial indicators, production output and sales volume to measure performance. This is often done by reviewing each department individually and the company as a whole.

Considerations

2. Employee productivity is another area to measure performance. Employees play a direct part in using company resources, producing goods or services and responding to customer questions and complaints. Individual employees who underperform in their role can create a drag on company resources and increase the time it takes to complete objectives.

Features

3. Owners and managers can use benchmarking as part of their performance evaluation analysis. This compares the company's performances to another company or the industry standard. This comparison gives owners and managers a more rounded picture of how the company performs under certain economic conditions.