8.1 Performance measurements

Controlling is the management function of checking that actual performance agrees with plans and standards, and taking action where it does not. It follows a cycle: set standards, measure actual performance, compare it with the standards, and take corrective action. Performance measurement is the gathering of information on what has actually been achieved, so that it can be compared with what was planned. Without measurement, management cannot tell whether the office is working well or badly until problems become serious. In office administration, performance is measured in terms of output, quality, timeliness, cost and the use of resources. Example: an accounting firm's office administrator measures each month the number of client files opened, the average time taken to reply to client letters, stationery spending against budget and staff attendance, and presents the results to the partners.

Characteristics of good performance measures

• Relevant: They measure what matters for the organisation's objectives.
• Measurable and objective: They can be counted or assessed consistently by different people.
• Timely: Results are available soon enough to act on.
• Understandable: Those being measured know what is measured and why.
• Cost-effective: The cost of collecting the information is justified by its usefulness.
• Balanced: They cover quantity, quality, time and cost, so that improving one does not hide a decline in another.

8.1.1 Monitoring and reporting systems

A monitoring and reporting system is the organised way in which an organisation collects data on performance, compares it with plans and passes the results to the people who need to act. Monitoring is the continuous collection and review of the data; reporting is presenting the findings in a regular, usable form. A good system tells managers early when performance is going off course. Tracking progress on work plans was introduced in Chapter 4 under 4.3 Work progress monitoring; here the system is used for control across the whole office. Example: a logistics company's administration section logs every document request in a shared register showing the date received, the officer handling it and the date completed; each Friday the office administrator prints a summary showing requests still open beyond three days and discusses them with the team.

Components of a monitoring and reporting system

• Performance indicators: The measures to be tracked, such as turnaround time, error rate or cost per unit.
• Data collection methods: Registers, logbooks, time sheets, system reports, checklists and surveys.
• Responsibility: Named people who collect, check and report the data.
• Frequency: How often data is collected and reported, such as daily, weekly or monthly.
• Report formats: Standard tables, charts and dashboards that make comparison easy.
• Distribution: The people who receive each report and the action expected of them.
• Follow-up: A procedure to act on the findings.

Types of reports used in control

• Routine reports: Regular reports, such as monthly attendance or expenditure reports.
• Exception reports: Reports that show only results outside acceptable limits, so that managers focus on problems.
• Progress reports: Reports on how far a project or plan has advanced against its schedule.
• Special reports: One-off reports on a particular issue, such as an investigation into lost files.
• Dashboards: Visual summaries of key indicators, often produced by office software or management information systems.

8.1.2 Resource utilisation

Resource utilisation is the extent to which an organisation's resources, such as money, staff time, equipment, materials and space, are used productively for the purposes intended. Cost control is a key part of it: the process of keeping expenditure within the budget and avoiding waste, without reducing the quality of work. Measuring resource utilisation shows whether the office is efficient, that is, whether it achieves its results with the least reasonable use of resources. Example: an engineering firm's office administrator notices that printing costs have risen steadily; analysis shows that many large documents are printed in colour unnecessarily, so she sets printers to black and white by default and requires approval for colour printing.

Measures of resource utilisation

• Budget against actual spending: Comparing what was spent with what was planned for each item.
• Cost per unit of output: For example the cost of stationery per document produced, or the courier cost per delivery.
• Equipment utilisation: The proportion of time equipment, such as photocopiers or vehicles, is in use, compared with the time it is available.
• Staff time utilisation: The proportion of working time spent on productive tasks.
• Space utilisation: How fully office space and meeting rooms are used.
• Wastage: Quantities of spoiled paper, unused stock or expired supplies.

Example calculation: the office spent Ksh 18,000 on courier services in a month for 120 deliveries.

Cost per delivery = Total courier cost ÷ Number of deliveries

Cost per delivery = 18,000 ÷ 120 = Ksh 150

If the budget allowed Ksh 130 per delivery, the office is spending Ksh 20 more than planned on each delivery, which calls for investigation.

Cost control measures in the office

• Budgeting: Setting spending limits for each cost item and section.
• Authorisation of expenditure: Requiring approval before purchases above set limits.
• Stock control: Keeping stationery and supplies at the right levels and issuing them against requisitions.
• Competitive purchasing: Obtaining quotations and buying from approved suppliers.
• Preventive maintenance: Servicing equipment regularly to avoid costly breakdowns.
• Use of technology: Electronic documents, email and video meetings to reduce printing, postage and travel.
• Energy saving: Switching off lights and equipment when not in use.
• Regular review: Comparing costs monthly and investigating increases.

8.1.3 Employee performance and productivity

Employee performance is how well an employee carries out the duties and achieves the targets of the job, while productivity is the relationship between the output an employee produces and the input used, usually time. Measuring them shows management which employees and sections are meeting standards, where improvement is needed and whether staffing levels are right. Office work is harder to measure than factory work because much of it is varied and depends on quality, but many office tasks can still be counted and timed. Example: a law firm's office administrator records that a registry clerk opened and indexed 240 new files in a 160-hour month.

Productivity = Output ÷ Input

Productivity = 240 files ÷ 160 hours = 1.5 files per hour

If the standard is 2 files per hour, the clerk is working at 1.5 ÷ 2 × 100 = 75% of the standard, which the supervisor investigates before drawing conclusions.

Factors affecting employee productivity

• Skills and training: Better-trained employees work faster and more accurately.
• Tools and technology: Modern equipment and systems increase output.
• Work methods: Well-designed procedures remove unnecessary steps.
• Working environment: Lighting, noise, temperature and furniture affect concentration.
• Workload and staffing: Too much or too little work reduces efficiency.
• Supervision and leadership: Clear direction and support improve performance.
• Motivation: Willingness to work affects effort and care.
• Health and well-being: Fatigue, stress and illness reduce output.

8.1.3.1 Evaluations

Evaluations are systematic judgements of an employee's performance against agreed standards over a period. In control, they show whether each employee's contribution is on target and provide the information for corrective action, recognition and training. They draw on measured data, such as output and error rates, and on the supervisor's observation of work quality and behaviour. The formal appraisal process is taught in Chapter 6 under 6.7.5 Performance Appraisal; here evaluations are used as a control check during the year. Example: every quarter, the office supervisor of an insurance broker reviews each clerk's processing volume, error rate and complaints received against the standards, and meets those below standard to agree improvements.

Evaluations used for control include:

• Periodic reviews: Monthly or quarterly comparisons of each employee's results with targets.
• Work quality checks: Sampling an employee's work, such as letters or data entries, to measure accuracy.
• Client and colleague feedback: Comments from people the employee serves.
• Attendance and punctuality records: Measures of reliability.
• Self-evaluation: The employee's own assessment of progress, discussed with the supervisor.

8.1.3.2 Motivations

In controlling, motivation is considered because it directly affects performance: when results fall short, low motivation is often one of the causes, and when standards and controls are applied badly they can themselves reduce motivation. How managers motivate staff is taught in Chapter 7 under 7.5 Motivation incentives administration; here the concern is measuring motivation and using control in a way that supports it. Example: an NGO office administrator notices that absence and late reporting among the clerks have risen sharply; a short staff survey reveals frustration over unclear targets, which she addresses by agreeing clear standards with each clerk.

Indicators used to measure motivation include:

• Absence and lateness rates: Rising rates often signal falling motivation.
• Staff turnover: Resignations, especially of good performers.
• Quality of work: Careless errors may reflect low commitment.
• Staff survey results: Employees' reported satisfaction and engagement.
• Initiative and suggestions: The number of ideas and voluntary efforts from staff.

Controls support motivation when standards are agreed with employees, feedback is given fairly and promptly, good results are recognised, and the purpose of control is presented as improvement rather than fault-finding.