Work Group Performance Measurement and Feedback

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Abstract
A comprehensive performance measurement system was developed for two departments of a small retail corporation. The measurement system measured key dimensions of performance and integrated multiple measures into a composite index using a ProMES (productivity measurement and evaluation system) methodology. Subsequent to development, the measurement system was used in one of the departments as a monthly feedback system. A significant improvement in overall performance occurred in the department receiving feedback, whereas no improvement was found in a comparison department that did not receive feedback. In addition to the effects of feedback, a process methodology was used to assess users' reactions to the measurement system. Qualitative analysis procedures indicated that their reactions were slightly positive, although many suggestions for improvements were offered. Changes to the measurement system were made as a result of the suggestions.