Performance Evaluation

Performance Evaluation

Authored By: Shirish Agarwal Manikant S Vittal Amitash Singh Chirag DaveMSE 608B Group Research Project

Guided By: Prof. Mark Rajai


Aziz Maredia

Key Learnings Areas in which performance evaluation is performed New introduced methods of performance evaluation Criteria for performance evaluation

ObjectiveSince a long time performance evaluation has been a major concern among organizations, teams and individuals. A properly conducted performance evaluation is desired by all. [1] One talented employee is worth more than ten inefficient employees. And to find this one talented employee a proper performance evaluation is needed. The purpose of this report is to identify different categories in which performance can be evaluated and methods by which performance evaluation can be performed. Performance Evaluation is performed mainly in three different sectors, such as:1) An individual 2) A team 3) An organization

IntroductionPerformance Evaluation is a continuous process of analyzing, identifying and measuring a team, an individual or an organizations performance. Consider following scenario: A Project Manager asks his subordinates to give peer review. The team members being good friends of each other give everyone a high ranking even though a lot of them did not deserve that ranking. This performance evaluation would be considered as of no use and wont be useful in determining any right conclusion or measuring an individuals capabilities.2|Page


In performance evaluation both the employee and the manager are involved in evaluating and measuring an individuals performance. [2] A good performance evaluation is necessary to retain good employees, as until an employee gets credit for his work and a proper appraisal he wont be eager enough to stay and continue with the same organization or under same manager (figure 1).

Figure 1: Striving for Excellence

Methods of Performance EvaluationAs said by Dr. Mark Rajai Performance Evaluation is one of the most critical and unsolved job. It is very difficult to have a proper, unbiased, right performance evaluation. [1, 2] There are cases when we know an individual personally and this tends to make us biased when evaluating a person, since he becomes our good friend. To stay away from such situations work and personal life should be separated. Even if we know the individual personally we should not bring the personal friendship in between the work scenarios. That is if even our friend is wrong at job we should rate his and evaluate him relative to his peers. [1] Here we have divided the methods of Performance Evaluation in two categories: 1) New Proposed ideas.

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2) Methods already being implemented.

New Proposed Ideas1) Team Evaluation Techniques:

Apart from Techniques that have always been followed by everyone, we have tried to introduce some new methodologies for Team evaluation. Team evaluation has always been an issue amongst a team evaluating a member unbiased. There are several scenarios in which due to lack of efforts of few of the team members whole team has to suffer and nobody even cares to ask them as they are friends or are scared that telling about those team members might affect the team spirit and overall evaluated grades. To overcome these issues and provide the team with unbiased grades following steps can be adapted. 1) Telling the team to communicate through emails so that it can be checked later on, if required, to see how much and how efficiently each team member contributed. 2) Using relative individual evaluation while evaluating one person of the team. 3) Checking on an individuals contribution to the project and evaluating that part of project along with whole team effort. 4) Giving a strong and complicated peer review to dig out the facts about all the team members. 5) Evaluating each team members knowledge of complete project individually and comparing it with the rest of team members answers.6) Evaluating an individual based on the complication of his work and the time required for

completing it.

2) Relative Evaluation: There can be certain scenarios when we know a person personally and tend to evaluate him liberally even though we know he is not good at his work. To avoid this, following steps can be followed:4|Page


1) Conceal the name and other personal identification details of every employee while evaluating. 2) Avoid mixing while at work and personal interaction. 3) Provide some internal certifications for both technical and domain knowledge to all so that every individuals knowledge can be identified to some extent through it. 4) Perform a relative evaluation of every employee. Here work of every employee should be taken in to consideration, including their peer reviews, their certification knowledge details and also their evaluation forms. Based on all a set of rankings should be defined and given to each employee. This way every employee would know their standings.

Methods already being implemented3) Balanced Scorecard[3]:

The Balanced Scorecard (BSC) methodology introduced by Robert Kaplan and David Norton in early 1990s, is a system which enables organizations to measure and manage corporate performance. It is defined as "a strategic planning and management system that is used to align business activities to the vision and strategy of an organization, improve internal and external communications, and monitor organization's performance against strategic goals". The BSC is a tool whose ultimate purpose is assisting value-based management to implement strategy at all levels of the organization. It is a top-down approach to business performance management. The BSC is unique in that it combines traditional financial measures with nonfinancial (operational) measures to measure the health of the company from the following four equally important perspectives : Financial Measures the impact of the economic functions on growth, profitability and risk from shareholder's perspective (sales growth, net income, return on investment, return on assets, cash flow, etc.). Customer Measures the ability of an organization to provide quality goods/services that meet customer expectations (satisfaction, customer retention, loyalty, market share, etc.) Internal Business Process Measures the internal business processes that create customer and shareholder satisfaction (project management, total quality management, cycle time, costs,etc.). Learning and Growth Measures the organization environment that fosters change, innovation, information sharing5|Page


and growth (staff morale, job satisfaction, skill sets, training, knowledge sharing, innovation, employee retention, etc.). The BSC approach involves creating a set of measurements for the above four strategic perspectives. Although the focus of each perspective is distinctly different, there is a universal linkage between the four perspectives. For example, if a company invests in learning and growth to improve employee skills and elevate morale, then those results will be translated into improved internal business processes. These activities will then result in superior quality products and services for the customer, which in turn drive increased sales and an improved financial bottom line. Balanced scorecard should be used as a communication, informing and learning system, not as a controlling system. Implementing the BSC system company-wide should be the key to the successful realization of the strategic plan/vision. A BSC should result in :

Motivated/knowledgeable employees (figure 2) Enhanced information system Improved processes Monitored progress Greater customer satisfaction Increased financial results.

Figure 2: Motivation through appraisals4) 180 Degree Evaluation [4, 5]

In a 180 degree performance evaluation feedback and opinion regarding any individual is taken from supervisor or higher authorities only.5) 360 Degree Evaluation [5]

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In a 360 degree performance evaluation feedback and opinion for any individual is taken from his seniors, peers and juniors as well. This gives detailed information regarding that individual in every circumstance and from every perspective.6) Follow-up mechanisms for all activities

Follow up mechanism can be termed as reporting. Here the employee or an individual reports to his supervisor after completion of every work giving details about the complexity of work and the time required to complete the work. The supervisor can then check the quality of the finished work and evaluate the person on a pro data basis. 5) Direct observation [5]

Here for an evaluation of any individual within an organization or a team, the supervisor should keep a direct check on the employee apart from taking peer reviews. Direct observation helps a lot in knowing the person and his faults clearly than knowing it through someone elses experience.

7) Achieved expectations and outcomes This methodology is the simplest one. Here the supervisor has his own set of expectations from an individual and sets a goal for him which he discloses to him. Now its on the employees part to work well and achieve all the expectations. Evaluation is then done on the basis of set goals and fulfillment of targets. The quality of work and the time required to complete it is always kept in handy while evaluating.8) Written evaluation

In a written evaluation a performance evaluation form should be distributed to the employees or individual whose performance has to be evaluated. The employee/individual is then expected to fill up the form and submit it back. Following steps are then needed to be taken by the supervisor for evaluation. 1) Consider all facts from previous performance evaluation to do a background check. 2) Provide expectation and goals for next appraisal period.

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Performance Evaluation 3) Perform final evaluation discussion which is employee signoff. Here the ratings and

the evaluated performance is shared with the employee to tell him his shortcomings and the positive points too.

9) Performance Management Process [5, 6]

A lot of organizations follow Performance Management Process (PMP). Features of the PMP Here is a look at the main features of the PMP: Year-round process. The PMP involves feedback between the supervisor and employee throughout the year, not just at the end of the year. A special emphasis is placed on the supervisors coaching of the employee so that they can fulfill the expectations set forth at the beginning of the year. Numberless ratings. The PMP is a numberless system. On each Accountability, an employee will receive one of the following ratings: Does Not Meet Standards, Needs Improvement, Meets Standards or Exceeds Standards. Introduction of Behaviors. Many agencies have developed their own performance appraisal systems and have rated employees on factors like customer service that affect their performance. With the PMP, all employees have a chance to be rated on the following Behaviors: Customer Service Orientation, Teamwork, Problem-Solving Initiative, Leadership (if applicable), and Observing Work Hours/Using Leave. The Behaviors will be rated Does Not Meet Standards, Meets Standards or Exceeds Standards, except for Observing Work Hours/Using Leave, which wont have an option for Exceeds Standards. Partnership. The PMP encourages a partnership between the supervisor and employee, focusing on regular discussions about Accountabilities, performance expectations and development plans. The supervisor and employee begin the year with an extensive discussion of the Accountabilities and what is expected from the employee. Both the supervisor and employee have a responsibility to initiate conversations about performance throughout the year. Training for supervisors. All supervisors will be required to go through a training program before they do any performance appraisals with the PMP. They will be provided with additional training materials, resource guides and definitions of Behaviors so they can do a good job of assessing employees performance and helping them improve. When supervisors receive their own evaluation at the end of the year, a mandatory Accountability will be on Performance Management, so supervisors have an incentive to follow through with their commitment to coach employees. .

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Figure 3: Appraisals and relation with managers. Roles of Supervisors, Employees and Reviewers in the PMP Several people share the responsibility in the coaching, development and feedback involved in the PMP. Following are descriptions of the roles played by various people(figure 3): Supervisors Role in the PMP: Planning: o Explain to the employee how they help the agency provide services to the public and other agencies. o Work with the employee to define Accountabilities and performance standards. o Make sure they understand the Accountabilities and expectations about their work. o Explain the five Behaviors, what is expected from the employee and why. o Let the employee know they are responsible for taking an active role in managing and assessing their performance throughout the year. Coaching: o Provide frequent informal coaching. Point out the good work that the employee is doing. Help the employee whose performance is lagging to bring their work up to par. o Identify ways that the employee can develop and improve, and work with the employee to create development plans. Ask the employee for suggestions, so that they are encouraged to take an active role. o Promptly communicate new opportunities and changes that affect the employees work. o Identify observable actions that the employee should take so that your suggestions are concrete and can be implemented. o Make informal notes (perhaps on a calendar) when the employee does a good job, follow through on development plans, or have problems doing so. These notes will help the supervisor with the Mid-Year Review and the completion of the PMP form. o Keep track of praise or complaints from customers regarding an employees work.9|Page


Review: o Put together all saved notes or documents about the employees performance and assess their performance on Accountabilities and Behaviors. o Ask the employee for feedback about how they performed during the year. o They may remind the supervisor of particular instances of good performance or problems outside their control that hurt their ability to do their job well. o Complete PMP form, then discuss ratings and comments with the employee.

Figure 4: Telling scope of improvement to employees Employees Role in the PMP: Planning: o Meet with your supervisor at the beginning of the PMP year (figure 4). Discuss your Accountabilities and how they fit into the agencys goals for successful operation. Make suggestions on how to improve the description of the Accountabilities. o Ask the supervisor questions until it is clear what is expected from you on all Accountabilities and Behaviors. o Tell your supervisor how you view the Accountabilities and Behaviors so that you can clear up any possible misunderstandings about what is expected. o Discuss customers expectations, the supervisors priorities, budget and anything else you can think of that relates to getting the job done. Coaching: o Take responsibility for your own continuous performance improvement and development. o Make plans and follow through to meet the requirements of your Accountabilities and Behaviors.

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Periodically throughout the year, ask the supervisor for feedback on your performance. Consider the feedback you receive to be suggestions for improving performance, not personal criticisms. Try to follow through on suggestions for improvement and development of new skills. o Talk to the supervisor about your progress as well as any obstacles to improvement, so that the supervisor can help remove the barriers to good performance. o Write down when you do well on Accountabilities and Behaviors so that you can make sure your supervisor knows about your accomplishments. o Request a brief meeting with your supervisor, if needed, to ask for direction or a refresher discussion on Accountabilities and Behaviors. o Occasionally re-read the Accountabilities and Behaviors that were discussed in the Planning meeting at the beginning of the year. Review: o Monitor your performance by asking others to tell you how youre doing and by keeping notes on your progress. o Prepare for the review discussion by collecting your notes on your performance. o Participate in the review meeting by showing your supervisor any notes youve made about your accomplishments and by suggesting things that might help you during the next PMP year.o

Reviewers Role in the PMP: Planning: o Read the PMP form before and after the supervisor and employee have had their Planning session. Talk to the supervisor about plans for the meeting, as well as checking afterward on how the meeting went. o Check on whether the Accountabilities include statements of performance standards -that is, statements describing what it would take to receive a rating of Meets Standards. o Talk to the supervisor and make sure the expectations for the Accountabilities and Behaviors were communicated clearly. Discuss any points of disagreement that may have arisen during the Planning session. Coaching: o Ask the supervisor periodically if informal discussions or coaching sessions have taken place. o Ask the supervisor how various employees are doing on the job. If the answer seems weak, you may need to encourage the supervisor to talk to employees more frequently about their performance. Review: o Talk to the supervisor before and after the Mid-Year Review. Check in advance on the kind of feedback the supervisor plans to give. Afterward, find out how the meeting went. o After the Planning meeting, the Mid-Year Review, and Year-End Review, sign the section of the PMP form titled Record of Meetings/Discussions. The same kinds of questions you posed to the supervisor after the Planning session should be asked after each review session. o Look over the fully completed form. Re-read how the supervisor and employee wrote the Accountabilities and Behaviors, then look at the results and ratings.11 | P a g e


Talk to the supervisor about how well the process went and how it might go better in the future. o Make sure that the supervisor has explained each rating with written comments in the results section. (Written results are required for all ratings except Meets Standards.) o Check for a given supervisors consistency in managing the performance of a number of employees. Check for consistency between supervisors in the use of the PMP. A given supervisor should be consistent in the interpretation of the meaning of ratings and other facets of the PMP, and a number of supervisors with similar employees should be consistent in their understanding and use of the system. o Discuss with the supervisor whether verbal or written feedback is being given to employees. A supervisor who is not used to praising employees may need to be reminded of its importance.o

Here are some ways of collecting information: [7] Direct Observation - Observing the employee while they perform day-to-day activities. Written Material - Any form of written material that the employee creates, generates or reviews, such as letters, reports or forms that are used as part of the job. Notes from Customers - The supervisor should keep a copy of any notes that customers have written about the employee. These notes may be part of a system of monitoring the services being provided, or they may be specific to a situation. Notes from the Employee - The employee is supposed to keep the supervisor informed of their progress and any problems that might be keeping them from doing their job as well as they would like. At the end of the year, these notes can help a supervisor remember a specific situation where the job performance was excellent or unacceptable.

Supervisors own notes - If the supervisor notices an accomplishment or a problem, but doesnt have the time at the moment to have a brief Coaching session, the supervisor may write a note and put it in a file to refer to later.

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Evaluation formsRating: 1 5, 1 being poorest and 5 best.

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Team (Peer) Evaluation form

Team member name Attendance in team meetings % of total project work taken Complexity of project work Criticality of project work Made contributions and updates through email or any communication form that can be monitored Team etiquette Class room presence Overall Project knowledge Total Score Presentation Evaluation form

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Performance Evaluation Team member name Complexity of part of presentation being presented Keeping the audience interested Delivery of content Presence during presentation Use of allotted time Answering Questions Co-ordination Confidence Total Score Comments

A sample performance evaluation form of an organization is shown below [3]:

Job e

Profil

valid from :

responsi ble:

This job profile is not applicable for position or task evaluation. In different countries the corresponding legal norms, agreements and/or guidelines apply to the evaluation.

Basic

Name of FunctionMgt: Management PM: Project Management IC: Individual Contributor

Scrum Team Member - Member RoleCKF: Corporate Key Function GKF: Group Key Function RKF: Regional Function Key

Dept. / Location

Performance Evaluation

Documents

good performance evaluation

proper performance evaluation

right performance evaluation

page performance evaluation

individuals performance

organizations performance

team members

talented employee