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Performance is a measure of the results achieved. Performance efficiency is the ratio between effort expended and results achieved. The difference between current performance and the theoretical performance limit is the performance improvement zone. Another way to think of performance improvement is to see it as improvement in four potential areas:
Analytical AARs are formal documents intended to serve as aids to performance evaluation and improvement, by registering situation–response interactions, analyzing critical procedures, determining their effectiveness and efficiency, and proposing adjustments and recommendations.
Performance improvement plans, common at large companies, are a way to formally tell workers they need to improve, and being put on a PIP is commonly understood as a step toward termination.
These events are usually used to create the after action review/improvement plan. Hotwash is a term picked up in recent years by the Emergency Preparedness Community, likely as a result of Homeland Security and other government agencies' involvement in disaster planning.
Performance indicators differ from business drivers and aims (or goals). A school might consider the failure rate of its students as a key performance indicator which might help the school understand its position in the educational community, whereas a business might consider the percentage of income from returning customers as a potential KPI.
The plan–do–check–act cycle is an example of a continual improvement process. The PDCA (plan, do, check, act) or (plan, do, check, adjust) cycle supports continuous improvement and kaizen. It provides a process for improvement which can be used since the early design (planning) stage of any process, system, product or service.