Types of Performance Standard

Standard standards raise the problem of how challenging the standard should be, if the standard is perfect or easy to achieve. There are four types of ordinary.

(1) Ideal standard.
These are based on perfect operating conditions: No waste, no damage, no inefficiency, no idle time and no breakdown. Variants from potential standards are useful for determining areas where close inspection can lead to high savings but likely to have an adverse effect on the concern that the reporter will always be harmful. Employees will often feel that the goals are unattainable and do not work so much.

(2) achieved standard.
These are based on the expectation that standard workloads will be efficiently transferred, properly operated machines or materials used properly, it is assumed that drainage and inefficiency are well placed if they give Useful psychological motivation by giving employees a realistic, yet challenging, goal of efficiency. Approval and collaboration of employees involved in improving the ranking is required.

(3) Current Standard.
It is standard based on current working conditions (current waste, current inefficiency). The disadvantage of current standards is that they do not try to improve on current levels of efficiency.

(4) Basic Standard.
These are unchanged standards for a long period of time and may be obsolete that are used to show changes in long-term efficiency or performance. Basic information applies at least the most useful and at least the most common type of standard in use.

Revision of Standards

In practice, standardized costs are usually revised once a year to allow for new cost-effectiveness, price and salary inflation, and any changes in the expected effectiveness of material use, labor, or machinery. Some arguments that the standard should be reviewed as soon as any change is on the basis of which they were placed. Clearly, for example, if the standard is based on the cost of materials that are no longer available or the use of replaced equipment, it is meaningless to compare actual performance using new materials and equipment of an old standard.

Frequent changes in standards can cause problems.

• They may become ineffective as motivation and performance actions, as it can be perceived that target groups are constantly "moving the target audience".
• The administration can be too time consuming.

The most appropriate approach seems to be a policy of revision of the standards when changes in a lasting and fair long-term nature occur, but not to respond to temporary "blips" in efficiency.


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