9 Aug 2016

What’s performance measurement about and what is auditing?

What’s performancemeasurement about?

Performance measurement



Although we may not realise it, we measure performance in all aspects of our lives

To Performance measurement in a useful way, indicators must be established to answer questions such as:
What is going on around us?
Performance measurement
To Performance measurement in a useful way, indicators must be established to answer questions such as:
What has happened so far?
Performance measurement
To measure performance in a useful way, indicators must be established to answer questions such as:
What might we need to respond to?
Performance measurement
Measurements that give us
information on the outcomes of
our previous actions are called 
reactive indicators
Performance measurement

Measurements of how the
current situation could impact
on future performance are

known as proactive indicators

If you were the manager of a
stationery supply company…
…what reactive indicators
Performance measurementwould help you to evaluate your
current sales

performance?
If you were the manager of a
stationery supply company…

…what proactive indicators

could you measure in order to
provide 
information on the future?
Performance measurement
How do you measure health
and safety performance?
Performance measurement

Reactive measurement focuses
on collecting information on the
outputs of your health and
safety management system
Performance measurement

Reactive measurement focuses
on collecting information on the
outputs of your health and
safety management system
Performance measurement
Performance measurement

Reactive measurement focuses
on collecting information on the
outputs of your health and
safety management system
Reactive measurement focuses
on collecting information on the
outputs of your health and
safety management system
You can use this reactive data
to calculate your injury
incidence rate (the number of
reportable injuries per 100,000
employees):
Number of reportable injuries in a given time period (one year)*100,00
Average number of employees during
 that time period
Performance measurement



You can use this reactive data to calculate your injury 

incidence rate (the number of reportable injuries per 100,000 employees):
 You can use this reactive data to calculate your injury
incidence rate (the number of reportable injuries per 100,000 employees):

You can use this reactive data to calculate your injury incidence rate (the number of reportable injuries per 100,000 employees):
Performance measurement
Once calculated, you’ll be able to compare your injury incidence rate with other rates in your industry to measure your performanc
Once calculated, you’ll be able to compare your injury incidence rate with other rates in your industry to measure your performance
Fatal injury incidence rates of employees for some industries:


Proactive measurement provides information on how health and safety is being managed before undesired events occur
You’ll need to look at the inputs that contribute to health and safety management:
quality of the work environment and equipment
Performance measurement
You’ll need to look at the inputs that contribute to health and safety management:
quality of the workenvironment and equipment
effectiveness of systems and procedures
You’ll need to look at the inputs that contribute to health and safety management:
quality of the work environment and equipment
effectiveness of systems and procedures
behaviour and ability of people
For example, if you intend to carry out an inspection once a week, you can proactively measure how many you actually perform
A good proactive indicator should be:
objective
easy to measure
cost effective to gather
relevant to the group whose 
performance you’re  
measuring
What are some indicators that could be used to proactively measure health and safety?Remember: there’s no ‘one size fits all’ when it comes to proactive indicators – find out what works best for your organisation
A range of people will be interested in this information, both internally and externally:

senior managementline managers
 employees
safety/employeerepresentatives
shareholders
Performance measurement

A range of people will be interested in this information, both internally and externally:
enforcement bodies
insurance company
clients
the public
shareholders
What is auditing?
Auditing aims to find evidence of whether the current management system complies with the organisation’s policies and objectives 

An internal audit is performed by staff within the organisation in order to evaluate the effectiveness of the current system
An external audit is undertaken by a third party to provide an independent view, usually for interests of other stakeholders
Audits typically use three types of evidence:
documentation

Audits typically use three types of evidence:
documentation
interview
Performance measurement


Audits typically use three
types of evidence:
documentation
interviews
observation
As a manager, you (along
with senior management)
may be involved in producing
an action plan to deal with
audit findings
Getting it right:

Reactive indicators measure your outputs; easily gathered, but have limitations
Proactive indicators measure your inputs; powerful, as they can provide warnings
Audits provide a check on 
whether your systems
are effective



Key learning points:
What’s performance measurement about?
How do you measure health and safety performance?What is auditing?

READ THIS ALL QUESTION IN INTERVEIW LABEL 





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