"If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it, you almost don't have to manage them."
― Jack Welch
― Jack Welch
The concept of evaluating work has been an age-old phenomenon, and in the post-industrial revolution era, where corporate companies are owned as joint stock companies, an employee performance evaluation is becoming a more and more sensitive issue. In the paragraphs below, you will learn about the process of job performance evaluation, as well as two great evaluation models.
The objectives of these two methods are the same and are targeted at the same points, which go as follows.
- The evaluation process involves the analysis of the productiveness of the employee. The entire process determines whether the employee has been successful in achieving the target that has been set forth.
- The second motive of the evaluation is that whether the employee has maintained a high standard of quality in getting the job done, and whether the result is satisfying.
- The third aspect of the evaluation is to find out whether the employee has been a good person. In some companies, this aspect is totally dismissed; however, in companies where the employees deal with external projects, this has been a key evaluation criteria.
- Reward and also warn employees of merits and shortcomings, and provide good performance appraisals.
Certain factors and criteria are to be considered while evaluating an employee, and some of them are summarized below.
- Attendance and punctuality
- Quality of work
- Quantity of work
- Work consistency
- Managerial skills
These are done by the manager or the employee's boss directly. It is a traditional performance review. He evaluates an employee based on certain factors, like his talents, behavior, efficiency, time taken to complete a target, etc. This method, however, isn't very effective, even though many organizations rely on them. This is because manager ratings are subjective; this kind of method can bring unnecessary problems in the company. Employees may concentrate more on impressing the manager and buttering him up, rather than being dedicated to their work.
In this method, a particular group is selected to evaluate, and a particular group of employees are assigned to that group. The group members evaluate the employee and report back to the senior management.
Review from Multiple Sources
This includes taking reviews and feedback from multiple sources, like seniors, managers, colleagues, peers, or even subordinates. This can be a pretty effective review if executed in the right manner.
This is where a process is carved out where the employee has to evaluate himself. This is not a proper method technically; rather, it is different from several other evaluation models.
Today, we know the American giant General Electric as a pinnacle of eminent success in the American electronics industry. Jack Welch, CEO of the company, has successfully developed and implemented the vitality curve for employee performance evaluation in the company. In his book Straight from the Gut, Welch explains that the employees of any organization can be divided into 3 types, namely A-B-C. In case of GE, the ratios were 20% to 70% to 10%. Welch explains the features of the three proportions.
- Group A was a leader in making things happen for the company and for themselves. This group of people were considered to be the most productive, and their job performance evaluation was rated positive.
- The second group B was one that was productive, but not substantially. This group was the major workforce of the company, and encouraging them should be the priority.
- Lastly, group C is the one where negativity was rife, and the will to work was almost absent.
The model established by Semler is termed to be suicidal by some executives. However, in spite of its difficulty, it has been rated as an excellent system of human resource management and a success among all examples of performance evaluation that are used in the modern era.
Semco, Semler's company believes in the soul of people. The company's operational memorandum is 'we the people'. This is how Semco evaluates performance.
- The employees set targets for themselves, with sufficient reasoning and logical grounds. The productivity of an employee is evaluated by the company as a whole, including juniors and superiors, at the end of the year; and, in some cases, also the people from some other departments.
- The employees have an access to all financial statements and engineering drawings so that they can study it.
- Employees cannot give suggestions. However, they can implement the suggestions. A proportion of their salary is cut; if the implemented suggestion works, then the company shares the substantial profits with the employee.
- A review of performance by a junior is reviewed seriously and juniors, as a group, can rate the person's performance.
- There is no restriction to the amount of time for which a person may work per day.
- Semco is the only company where employees also evaluate themselves and the jobs that they have done.
Based upon your own business model, you may set up your own evaluation criteria and employee satisfaction survey.