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Performance Measurement System Selection

Performance Measurement System Selection

Collecting data and using that data to tell a story about an HR metric’s usefulness to an organization can be powerful in getting organizational buy-in. Data can help you define constructs and make linkages to other performance measures as well. Without using the most relevant data, you may convey the wrong story or only part of it. HR professionals sometimes fall into the trap of using the most convenient data rather than the most relevant because of their eagerness to begin projects or because of internal pressures to provide information quickly. In the end, they run the risk of breaking down their credibility in the long run.

With this in mind, respond to the following, in a 2- to 3-page paper:
Explain the importance of using the most relevant data when choosing a performance-measurement system, instead of the most convenient data.
Discuss the challenges that can occur if the wrong data are used, including the potential negative impact using these data might have on an organization.
Explain how HR professionals might use data to tell a story.
Explain how HR professionals might comfortably and confidently make decisions based on the most relevant data. 

Performance Measurement System Selection

Explain the importance of using the most relevant data when choosing a performance-measurement system, instead of the most convenient data.

Using relevant data rather than convenient data for performance measurement system selection is vital in capturing the large percentage of the insight that is needed to monitor the business. Few (2007) asserted that dashboards fail due to poor data presentation.  Based on this research, the inability to acquire the right data in the development of the performance measurement system might lead to poor results.

According to Likierman (2009), many executives leave the task of performance-measurement to the people who might not be the professionals of performance and are only competent in the language of spreadsheets. As a result, the organization ends up building the performance measurement that is based on comparisons and mass numbers that offer little insight into the company’s performance. This might even result in bad decisions that will hurt the performance of the company. As such, the organizations should focus on obtaining relevant data to create a performance measurement system since it will lead to incorporating the crucial elements in the performance, and this will lead to informed decisions that are likely to enhance the performance of the organization.

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Discuss the challenges that can occur if the wrong data are used, including the potential negative impact using these data might have on an organization.

When the wrong data is used, the performance measurement can be highly dysfunctional. Measurement is the way through which performance is determined. Spitzer (2019) attributes the performance measurement system to the yardstick where other management systems are based since it triggers most of the activities within the organization. Therefore, wrong, manipulated, or distorted data, when used in the performance system, will negatively affect the entire organization. Some of the potential negative effects that occur due to the usage of wrong data might be rewarding the wrong behavior, measuring the wrong aspects, and over measuring (Spitzer, 2019). For example, in Chick-Fil-A, the management can set a reward for chicken selling efficiency based on pieces of chicken sold to the number of pieces thrown away ratio. To attain the chicken selling efficiency, the customers will have to order the chicken before it is cooked, and this will increase the waiting time, hence, pushing customers away from the restaurant. The organizations can only avoid this if they use accurate and relevant data.

Explain how HR professionals might use data to tell a story.

According to Stikeleather (2013), data can be visualized to tell a story through a graphical representation of the statistical information. An excellent data presentation, as presented by Tufte (2018), aims at expressing and communicating complex ideas, efficiency, and precision. When the data is presented appropriately, the target audience gets to understand the story and can gain insight from it. Similarly, HR professionals can tell a story using the data. In the wake of the “big data” era, HR leaders are using data to create HR analytic departments and workforce, and as such, their stories should data-driven (Welbourne, 2015). The data presented by HR professionals to the executives for action should be clear and precise to let the people in the organization understand what it means and how it can be used.

HR professionals should also ensure that the data is presented comparatively.  For example, using comparable metrics such as turnover in the first 90 days of hire can tell a compelling story that will influence the management to act. Welbourne (2015) judges that well-developed stories inspire and drive action, and as such, they will be more effective if they are data-driven. The HR professionals can tell the story better if they visualize their stories using tools such as bar and pie charts, comparable numbers, statistical significance ad data analysis.

Explain how HR professionals might comfortably and confidently make decisions based on the most relevant data.

When HR professionals use relevant data, they are likely to make decisions comfortably and confidently. Welbourne (2015) notes that relevant data is required to make sure crucial aspects are incorporated in the decision making, hence, increasing the probability of taking action. With the relevant data, the HR professionals will feel comfortable and confident when making decisions since they are sure they are not gambling since their decisions are based on the critical insights obtained from the organization.

References

Few, S. (2007). Why Most Dashboards Fail. Perceptual Edge, 1-2. Retrieved from https://www.perceptualedge.com/articles/misc/WhyMostDashboardsFail.pdf

Likierman, A. (2009). The Five Traps of Performance Measurement. Harvard Business Review. Retrieved from https://hbr.org/2009/10/the-five-traps-of-performance-measurement

Spitzer, D. R. (2019, January 24). When Measurement Goes Bad. Retrieved from American Management Association: https://www.amanet.org/articles/when-measurement-goes-bad/

Stikeleather, J. (2013). How to Tell a Story with Data. Harvard Business Review. Retrieved from https://hbr.org/2013/04/how-to-tell-a-story-with-data

Tufte, E. (2018, April 4). Tufte’s Principles. Retrieved from https://thedoublethink.com/tuftes-principles-for-visualizing-quantitative-information/

Welbourne, T. M. (2015). Data-Driven Storytelling: The Missing Link in HR Data Analytics. Employment Relations Today, 14(4), 27-33. doi:10.1002/ert.21471

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