Below is a short case study that highlights the difference between performance measurements and performance management system:

Title: Improving Customer Satisfaction at a Retail Store

Background: A retail store has been experiencing a decline in customer satisfaction ratings. The store manager has noticed a significant decrease in sales and wants to implement a performance measurement system to address the issue.

Performance Measurements: The manager decides to measure the customer satisfaction rating using a single metric - the Net Promoter Score (NPS). The NPS is a quantitative measure that asks customers to rate the store on a scale of 0 to 10 and then categorizes them as promoters (9-10), passives (7-8), or detractors (0-6). The NPS is then calculated by subtracting the percentage of detractors from the percentage of promoters.

Performance Management System: To address the customer satisfaction issue, the manager decides to implement a performance management system. The system consists of the following components:

1. Goal Setting: The manager sets a goal to increase the NPS score by 10 points within the next three months.
2. Feedback: The manager provides feedback to the employees on their performance based on the NPS score. The employees are informed about their individual scores and are provided with feedback on areas that need improvement.
3. Coaching: The manager conducts coaching sessions with each employee to provide specific feedback and support in areas that require improvement.
4. Rewards and Recognition: The manager offers rewards and recognition to the employees who contribute to achieving the goal of increasing the NPS score by 10 points.

In not less than one hundred words(fifty words for each sentence), answer these questions:

1) What do you think is the possible outcome of the implementation of a performance management system?

2) What would be your own conclusion on the short case study above?