Chapter 4. Performance Evaluation (PE)
“Performance is your reality. Forget everything else” -Harold S. Geneen
Introduction:
I remember a performance evaluation process which I went through in the year 2002 and considered this as the best.
How many of you would like to understand the steps of this best process of performance evaluation?
Managers and employees both have the responsibility for Performance Evaluation (PE) which needs to be done annually. Many managers and employees find it difficult to handle this towards the end of the year.? The Goals-setting process need to follow the proven SMART (Specific, Measurable, Attainable, Relevant and Time-bound) Principle.? Goals to be derived from the overall Vision, Direction and Strategic Planning outcomes of the organization and then the function.
Once the Goals are decided, you determine the measurement criteria, i.e., when you can say the ‘Goals are accomplished’.
Examples
Goal/Objective (G&O): Ensure the department’s cost is managed within the budget. Deliver cost productivity based on increased volume of business to vendors.
Measurement Criteria: Monitor department’s expenses month by month; analyse variance, if any. Deliver 10% cost productivity on all items procured where the consumption has increased by 15%.
The above example follows the SMART principle. It is Specific, Measurable, Attainable, Realistic, and Time bound. If you prepare each of your Goals with clear Measurement criteria, the performance evaluation process will be highly transparent and easy to handle. It starts with self-appraisal by employee-supervisor evaluation, approval of ratings by the department head and HR, and ends after discussion with the employee.
How do you distinguish a person from performance?
A point to keep in mind is that a bad delivery of service does not mean the person is bad. Individuals always strive to do their best. A bad outcome of service is a performance issue. A person is expected to achieve certain outcomes or set of job expectations; when the outcome is bad, there is a gap between what is expected and what is achieved. This might happen because of various reasons, like not understanding the required expectations, the lack of required skills/knowledge or inadequate tools etc. which in turn necessitates dependency on external sources which the person does not have control over it.? Suppose the expectation is to analyse the given data on market survey and submit report with recommendations. If the assigned person is not good at analytics, then he might not do the job as expected. Even if he is good at analytics but does not have enough knowledge about the geographical constraints and customer needs, then he might not recommend the right choice. These two examples discussed are performance issues and not person issues. It is important to identify the role expectations and the match with skills/expertise of the person to identify the gaps and provide necessary training/coaching & support to fully meet the role expectations. While assessing performance of a person, it is especially important to distinguish person from performance.
Five steps for effective performance evaluation:
We all know the objective of performance evaluation is to help a team member to succeed and deliver the best. It should help individuals to achieve their personal and professional goals. The following five steps of the performance evaluation process prompted me as the best to be considered.
1.?? Goal setting process followed with the SMART principles- Specific, Measurables, Achievable, Realistic and Time bound
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2.?? Each goal had a well-defined measurement criterion which was mutually discussed and agreed at the time of goal setting
3.?? Quarterly reviews were conducted systematically, and feedback provided for areas of improvement
4.?? Quality time spent on mutually arriving at the developmental needs and suggestions provided to work on the same
5.?? Clearly distinguished the person from performance and provided opportunity to improve performance through the required skill enhancement
We all need to set up such a progressive performance evaluation system which helps both individuals and organizations to win.
“Use the proven SMART principles to set you Goals and Objectives”
Written by Ram Ramakrishnan (Success Coach)
Email: [email protected]
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