Meaning and Definition of Performance Analysis

A performance gap is a difference between the present level of performance and the desired level of performance.

The performance gap analysis helps organizations in recognizing the distance between organizational goals and performance delivered by employees.

It recognizes how much distance is left to achieve the goal and how long it has to go to achieve it. It further develops the plan and strategy in order to minimize this distance and attain the organizational goals.

In other terms, performance gap analysis defines those areas where employee lacks performance or areas where an organization lacks performance as compared to its competing firms.

Here, actual delivered performance at a specific position is compared with the standard performance.

One of the forms of performance gap analysis states about those additional skills and training which could be required to bring the organization or employees to the desired standard, whenever any change occurs.

Whereas, another form of performance gap analysis occurs at the time when advanced technologies or methods are brought into the organization.

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