Companies often use such criteria as job knowledge, quality of output, and ability to meet deadlines in performance appraisals, but these subjective criteria cannot be measured. Worse, employees cannot see the connection of these criteria to organizational objectives. The experiences of companies in Singapore, however, demonstrate how KPIs can be connected to business goals. Further, KPIs can be developed using the S.M.A.R.T. (Specific, Measurable, Achievable, Relevant, Time-Oriented) principle, and employees' KPIs can be evaluated objectively during performance management.
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