Performance standards are the performance thresholds, either decided by top management or decided mutually. Performance standards spell out the performance requirements or the expectations from the employees about what they are expected to achieve. For every critical performance element, organizations establish the thresholds and communicate the same to employees, to enable them to understand what they need to deliver to ensure successful performance. Along with the documented performance standards, it is necessary to design the appropriate scale to measure the performance levels of employees. Anything at or above the threshold is considered most successful. Anything below is considered to be unacceptable.

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