Multiple Performance Measurement Standards

In the article, Safavi (2006, p. 290) asks: “Is the goal to establish relative rank or absolute levels of performance?” Safavi also states that the basic dilemma in selecting a measurement system is whether “to judge performance from the outside or to improve performance from the inside” (p. 287).

Discuss the following from the perspective of a provider:

• Assuming the measurement system is intended to judge the performance from outside, evaluate the use of a standard based on relative rank and absolute levels of performance. Which one would you use? Why or why not?
• Assuming the measurement system is intended to judge the performance from inside, evaluate the use of a standard based on relative rank and absolute levels of performance. Which one would you use? Why or why not?
• How will different circumstances impact performance measurement when it is based on relative rank and absolute levels? Support with examples.

Justify your responses using examples.