How to Build mature performance management system without any automation software?- Part 4- Lets understand, how to define evaluation of a KRA?

Evaluation Criteria against each KRA

This is one of the difficult tasks which functional manager and HR manager will face. 

I would suggest both functional and HR manager to spend quality time on this because it is the measurement criteria which will decide performance level of an employee.

I have seen many functional managers stating that some of their KRA can not be measured in quantity. But I feel that there is nothing which cannot be evaluated in quantified term, but it is true that some KRA need lot of efforts to measure. Now the decision which we need to take is whether we want to spend that much of time and energy to evaluate that KRA or we would like to keep it as qualitative evaluation where there is no as such data behind the evaluation and performance is given on manager judgement.

Please note followings while preparing evaluation criteria:

• Evaluation criteria should not be very lenient or strict.
• In case of lenient evaluation criteria, employee will over score and in case of strict EVALUATION CRITERIA, employee will underscore.
• Employee evaluation should be strictly on EVALUATION CRITERIA defined. In case of any change in evaluation criteria it should be properly communicated to employee before implementation.
• Employee should get 100% as performance in a particular KRA, when he do exactly what is expected from him. E.g. If a person is suppose to do 40 calls in a month then he should get 100% if he do 40 calls.
• There should be provision (performance slabs) of scoring more than or less than 100% also.
• There are some KRAs, where you don’t want to give more than 100%, in that let the highest be 100% and do not keep any slab for more than 100%.

Example:

Let’s take example of above profile and try to define evaluation criteria for each KRA. Reader can change it as per their own company design and process.

•  Recruitment KRA

Below is a sample,  to define evaluation criteria for Recruitment KRA. Let’s say, HR executive is expected to fill any position within 30 days then following can be evaluation criteria:

RP Closed in :	Score
< 28 Days	130%
29-28 Days	120%
30 Days	100%
31-40 Days	70%
41-50 Days	50%
More than 50 Days	-50%
Hiring Open Till Date	-50%

Now you can see that person has been given 100% for closing a position in 30 days wherein there are options if person close the position before or after 30 days. You as a manager can change the evaluation slab and performance percentage against each slab. Also, you must have noticed that HR executive is getting maximum 130% and minimum -50% for recruitment. Maximum performance percentage has been kept as 130% considering that it is difficult of a person to achieve more than 130% in most of the KRA (today even if employee can give 100% of what is expectation from him then also management will be super happy J ). Minimum performance percentage has been kept as -50% to penalize employee who are falling at “not expected level” of evaluation criteria matter.

I am taking so much time to explain how to evaluate a KRA because if you understand how to make evaluation criteria for one then you will be able to make it for other.

In above case, we are assuming that one set of evaluation criteria will be sufficient to evaluate recruitment KRA, but let’s say, you need two set of evaluation criteria to evaluate single KRA. Example, if we say, HR executive should close below manager profiles in 45 days but manager and above profiles in 30 days, then we have two set of evaluation criteria to take care. Hence now it would look like as below:

Recruitment
Lead Executive and below			Managers and above
RP Closed in :	Score		RP Closed in :	Score
<42 days	130%		< 28 Days	130%
44-42 Days	120%		29-28 Days	120%
45 Days	100%		30 Days	100%
46-55 Days	70%		31-40 Days	70%
56-65 Days	50%		41-50 Days	50%
More than 65 Days	-50%		More than 50 Days	-50%
Hiring Open Till Date	-50%		Hiring Open Till Date	-50%

Now you can take average or weighted average of performance coming out of above mentioned two evaluation criteria, to get Recruitment KRA final performance.

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