(Recommended for All Department Heads)
Organization KPIs are always in measurable terms. When it comes to employees KPIs, except for sales and operations, usually all other department KPIs have following issues:
- Blurred line of sight between business-critical success factors and job critical success factors.
- Excessive focus on measuring the job “attributes” and “activities” rather than “outcomes”.
- Appraisal is based on subjective phrases, rather than evidence based performance.
- No objective criterion to validate individual performance against business performance.
Consequences for the Organization
- Overly inflated bell curve at employee level do not correspond with business performance.
- Line managers lose faith in objectivity of performance management system and blame HR.
- Top management is not able to distinguish between star performers and deadwood.
- Non-merit performance system promotes inequity in reward, frustrate high performing employees, resulting in grievances, loss of morale and attrition.
- Analyzing organization’s vision, mission, values, goals and objectives.
- Identifying organization performance critical success factors “CSFs” to be embedded into employees’ performance CSFs.
- Differentiating between KRA, KPI and objective.
- Aligning employee KPIs with organizational KPIs with a focus on measuring volume of work, cost, turnaround time, quality and impact in verifiable terms.
- Performance rating and ranking.
- Calculating workforce performance index and organization financial performance Index.