Manage HR
It
is the quality and the standard of the human resource recruited
that plays a key roll in differentiating between a successful
organisations and a "run of mill" organisation . In
this section, we will discuss the issues relating to this valuable
resource through a series of articles. And yes, we are
open to contributions from masters of this Art ... Are you one?
What
Gets Rewarded Is What Gets Done
Few
tasks evoke dread in a manger than performance and salary reviews.
Yet this is one of the few opportunities that managers get to
motivate employees and steer them in the right direction. The
key issue is to develop a performance review that is objective
and effective.
Traditional
performance reviews are too subjective and not based on achieving
corporate goals and promoting organisational values. However,
using a “compensation matrix coupled with objective assessments
and coaching sessions”, the desired goals can be achieved.
Clarify
Values And Objectives
Before you implement a compensation matrix, clarify the values
and objectives with each of your employees. Values are expressed
in mission statements that flag the principles on which the
company stands and what makes it unique.
Corporate
goals are what your company aspires. All of them are important,
but it’s not possible for your employees to concentrate
on achieving all of them. An employee can effectively concentrate
on only five to 10 of them at any given time. You need to make
choices about which ones to use to develop your matrix. For
instance, lets assume your company's success depends on developing
successful new products. Your corporate values include rapid
innovation and leading expertise in your field. Your revenue
target is up 10 percent from last year, your last two product
releases missed their deadlines and you have a cutting-edge
technology to incorporate into your next product. Meanwhile,
Matthew Wong, one of your key developers, is showing signs of
disinterest in the new technology, avoiding anything that hints
of risk. Perhaps the late release has affected his motivation.
Regardless, one of your best employees fails to deliver his
best and you want to do something about it. As a manager your
performance indicator for Matthew should concentrate on innovation,
expertise, revenue increase, meeting deadlines and new technology
utilisation (keeping in mind companies corporate goals).
William
S. Swan, PhD, in How to Do a Superior Performance Appraisal,
takes into consideration the following factors.
Set
Your Objective Standard
For creating objective standards for the different levels of
compensation, design the standards for each rating level in
each of the areas (lets say five in this case) you have decided
to concentrate on. Best would be to sit with your employee in
order to ensure his or her full cooperation.
Determine
weight of factors
Determine the weight of each factor in the overall assessment
of the employee's performance. If you decide that innovation
is the highest value, given your place in the market as a Product
Leader, revenue increase second, followed by ability to meet
deadlines etc.
Score
the Employees performance
Look at his performance according to the objective standards
set. For instance, if Matthew has done a fine job of rising
to the challenge, bringing three new products to market, increasing
revenues by 12 percent, meeting all deadlines, qualifying for
the next level of his professional certification three months
early and successfully incorporating the new technology in each
new product.
Calculate
the final score
When calculating the final score, don’t round off the figures.
Many employers believe it has a demoralizing effect. If desired
break the review period into two with different set of goals
for each. Employees appreciate a shorter review periods. They
have better hold on their work and can also get more meaningful
feedback and can score. Start a fresh in case things didn't
go well the first time.
Setting
goals and cutting employees loose for a year to fend for themselves
would be careless. Once the goals are set, you can use those
goals as a framework for ongoing coaching, mentoring and managing
the employee's efforts to achieve success.
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