Performance Analysis

Performance Analysis

The performance analysis is "the process of identifying the organization's performance requirements and comparing them to its objective and capabilities"(Rothwell,2000). The analysis determines the performance gap within an organization. The performance gap is the difference between the desired state and the actual state of an organization which is caused by different factors. The picture below displays the gap.

The performance gap also finds the damage that the performance gap is causing the organization. Performance analysis are important for organization to use because of the damage that can be caused if the if the problem is not found and fixed. There are costs that need to be taken into account: direct costs, opportunity costs, and intangible costs. The final outcome of the performance analysis is "a clear description of existing and desired conditions surrounding performance"(Rothwell, 2000). The performance and the cause analysis are the two steps that work together to find the problems that an organization is facing.

References:

• Rothwell, W., Hohne, C., King,S.(2007). Human Performance Improvement. New York, NY: Routledge.