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Please provide an example of "Compare Performance to Standards."

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Comparing performance to standards is a way of objectively evaluating the performance of an employee or a process.  When you do this, you have objective standards that can be measured and you compare what has actually happened to the standards that are expected.

This is a better way of evaluating things than going "by your gut."  For example, let's say you are a manager and you feel like every time you look at one of your employees he is not really seeming to work hard.  That is a gut feeling.  If you act on it, you might demote him or reprimand him or even fire him.  But it would be better to compare his performance to an objective standard.  Look at the amount of work he has gotten done.  Has he gotten everything done on time and to a high quality?  This would be an objective standard and you would be able to compare his actual performance to that standard.

This would allow you to judge this employee more accurately than you would if you go on your gut feeling about him.

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Please provide an example of "Compare Performance to Standard."

This is a step in the process of strategic management.  In this step, management is trying to determine if the performance of a production process or a step in that process is at the level that is needed.

A possible example of this could come from the fast food industry.  McDonald's knows how many hamburgers a crew of a given size, using standard equipment, should be able to turn out when working a lunch rush period.  This is an objective standard.  What a manager at a McDonald's could do would be to look at how many hamburgers each of her crews turns out during lunch rush.  She could compare this to the standard to determine whether each of her crews is working was efficiently as it should be.

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