Performance Evaluation (PE):

As Managers we have the responsibility for PE and PDP of the employee working with us. PE is not a once a year activity. Many managers and employees find it difficult to handle this at the end of the year. Once you are clear about the Vision and Direction, next comes is strategic planning, which we discussed in the Strategic Planning article. Next step is Goals, Objectives and the Measurement criteria. We should ensure the Goals setting process follows the SMART principle- (Specific, Measurable, Attainable, Realistic and Time bound). You should derive the Goals and Objectives from the overall Vision, Direction and Strategic Planning outcome. Performance evaluation is done normally once a year, so in the Goal setting process you decide on what all can be done during this period.

Once you decide on the Goals & Objectives you determine the measurement criteria i.e., when you can say the Goals/Objectives is accomplished.

For example-

Goal/Objective is “Ensure the department’s cost is well managed within the budget. Deliver cost productivity based on increased volume of business to vendors”

Measurement Criteria: “Monitor department’s expenses month and month, analyze variance if any. Deliver 10% cost productivity on all items procured where the consumption has increased by 15%”

This example follows the SMART principle. It is specific, Measureable, Attainable, Realistic and Time bound. If you prepare each and every G&O with clear Measurement criteria, the performance evaluation process will be very transparent and easy to handle. Most organization follow self appraisal by employee??supervisor evaluation??normalization of ratings by the department head & HR?discussion with employee.

Apart from the above, some other practices I had seen/followed are:-

1. Quarterly review of G&O and providing feedback and re-align the priorities if required.

2. You also could develop a detailed metric against each objective as to when you will rate “Below expectations, Needs Improvement, Meets Expectations, Exceeds Expectations, Outstanding Contribution”

Let’s go back to the above example- you could define

Below expectation: Monitoring of cost is not done. Consumption increase by 20-25% and cost gone up by 5%

Needs Improvement: Cost monitored variance analysis not done. Consumption increased by 20-25% and cost down by 5%

Meets expectations: Cost monitored and variance analysis done. Consumption increased by 15-20% and cost down by 12-15%

Exceed expectations: Consumption increased by 10-15% and cost down by 16-20%

Outstanding: Consumption increase by 10% and cost down by 15-20%

3. If you think a particular feedback will help improve the performance an employee, don’t wait for the review cycle, provide it at the earliest opportunity possible, preferred is immediate.

4. Check with employee periodically whether they have any issue in achieving their G&O and do midterm correction if things are beyond their control.

If SMART principles are followed in the Goal setting, the PE process session will be an excellent one to handle.

Personal Development Plan (PDP):

We discussed about SWOT (Strength, Weakness, Opportunity and Threat) analysis in the Strategic Planning session from the organization point of view. If the real PDP has to emerge individuals needs to do their SWOT analysis at least once a year. Once it is done, leave a couple of week’s time and review it again and make the necessary corrections if any and discuss with your manager, mentor/s to fine tune the same to draw up your final PDP. Apart from SWOT analysis, the inputs for your PDP will also come from the Performance Evaluation and 360 deg feedback. Once the PDP is developed draw up time bound plans to work on them. Manager can play key role at this juncture & guide the employee.

For example- if you would like to develop your written communication skills. You should have a clear plan to work on things which you would like to improve. Ensure every communication of yours is reviewed by your trusted person & set goal to reduce the spelling mistakes, improve the flow of thought, rating of how well the intended message was understood etc.

Essentially you should have clear measurement criteria that indicates whether you are progressing or some more work needs to be done. Monitor them periodically according to your time bound plan. Nothing is impossible once you determined to focus and work on it. In PDP individual employee’s responsibility is more than that of supervisor’s. Let me end with quote form Swami Vivekananda “Problem is problem unless we know not the solution”

Most organization will have their appraisal cycle coming during March/April time frame so get ready for your PE and PDP.

 

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