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HR Issues

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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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