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

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•      Employee induction KRA

It will be a good example to see, how we can evaluate Employee induction KRA. Employee induction is complete when few activities are completed. For our understanding we will not take all those activities but we will take two activities in our evaluation criteria to describe evaluation of Induction KRA. We will take Employee induction and Bank Account opening as two activities.

Let’s say TAT (Turn around time) to complete induction of an employee is 15 days and to open an account is 20 days then evaluation criteria will look like below:

Induction			Bank Account Opening
Induction Conducted in :	Score		Bank Account Opened in:	Score
<15 Days	130%		<20 Days	130%
15 Days	100%		20 Days	100%
16-25 Days	70%		21-30 Days	70%
26-30 Days	50%		31-35 Days	50%
More than 30 Days	-50%		More than 35 Days	-50%

•        Employee Birthday Mail

As it is a task, which will take very less time and also carry 5% weight-age. Simple way to evaluate this KRA is to see how many days HR executive has not sent Birthday mail.

Hence following evaluation criteria can be put in place:

Miss to send Birthday mail              :           0 time :          100%

                                                            :           1 time :           50%

                                                            :           2 times or above :     -50%

There are two important points, which you can observe in above evaluation.

• ·        There is no slab for giving more than 100% performance, which means, it is not necessary to give more than 100% in every KRA evaluation. There could be some KRA, where you as manager, would not like to give more than 100% or there is no chance of getting more than 100% in that KRA. But please note that number of such cases should not be more.
• ·        Also, HR executive has been penalized by given -50% performance, if he forgets to send B’day mail 2 times in a month. It is due to importance of this task and HR executive should not miss it twice a month.

I am leaving preparation of evaluation criteria of Exit Formalities and Miscellaneous work KRA on readers as exercise.

There could be some KRA, where you don’t want to associate any evaluation criteria but want to give performance percentage by yourself then it is doable although not advisable. Such evaluation criteria will be called qualitative, which allow manager to give performance percentage directly without any evaluation criteria. This can be done in case of KRA which are difficult to evaluate. As I said above, all KRA can be evaluated through data and logic but some KRA evaluation need more time to prepare data point hence manager do not wish to evaluated it and want freedom to give performance percentage by themselves which is ok.

Points to keep in mind while defining KRA, weight-age and EVALUATION CRITERIA

• ·        EVALUATION CRITERIA should always be discussed with employee and buy in should be taken else employee will not be with you and will tell story in case employee do not achieve good performance percentage at end of month.
• ·        Once agreed upon, it should be sent to employee over email and acceptance should be taken.
• ·        Any change in KRA, weight-age and EVALUATION CRITERIA, due to any reason, should be communicated back to employee in formal way.

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