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Performance Management

Keeping a Diary on Employee Performance

December 8, 2006 By Nagesh Belludi 1 Comment

Blog reader Sasawat from Bangkok (Thailand) asks:

“I recently joined a multinational chemicals company that uses a performance appraisal system. I supervise seven engineers. To help me do their performance evaluations at the end of the year, should I maintain a diary to record their projects and actions?”

Most managers rely on employee performance in the period immediately preceding the performance evaluation deadline. Unfortunately, they do not weigh performance from throughout the year (or quarter, if their organizations use a quarterly review system.) Some employees exploit this behavior by slacking-off during most of the year and by shaping-up in the weeks before a performance evaluation is due.

Keeping a Diary on Employee PerformanceA log or a diary will help managers record employee projects and behaviors in one location. Clearly, recording significant and relevant examples of employee performance helps managers write objective performance summaries.

Recording events in a dairy every week, however, becomes overwhelming when you have seven employees. Instead, ask each employee to keep a diary of his/her achievements. Review this information with your employee once every week. Give regular, specific feedback, both affirmative and corrective. This ensures that you keep yourself informed of your employee’s work and demonstrates that you care about his/her current work and achievements.

When a performance evaluation is due, study the employee’s diary along with your notes, if any from your weekly meetings. You should not have to dig through your files or seek reports from various sources. You will have accumulated all the data you will need, in one place, to help you prepare for an effective performance evaluation statement and discussion.

Wondering what to read next?

  1. A Guide to Your First Management Role // Book Summary of Julie Zhuo’s ‘The Making of a Manager’
  2. Employee Engagement: Show Them How They Make a Difference
  3. Heartfelt Leadership at United Airlines and a Journey Through Adversity: Summary of Oscar Munoz’s Memoir, ‘Turnaround Time’
  4. How to Handle Employees who Moonlight
  5. The Hot-Desking Lie: How It Killed Focus and Gutted Collaboration

Filed Under: Managing People Tagged With: Great Manager, Performance Management

Performance Management: What is Forced Ranking?

September 27, 2006 By Nagesh Belludi 4 Comments

Reader Sriram from Chennai (India) asks,

A multinational recently acquired our 35-employee software testing company. Our personnel department sent an email on how this purchase affects us. The email mentioned a new forced ranking system for performance evaluation. Can you describe this system?

Every organization needs a formal approach to track individual contributions and performance against organizational goals and to identify individual strengths and opportunities for improvement. Typically, this system involves placing employees along a performance curve or classifying employees into categories of percentiles for performance.

Bell curve for forced ranking / performance management

Jack Welch, General Electric’s former CEO, is often associated with a 20-70-10 distribution: the top 20 percent is rewarded for best performance, the middle 70 percent is rated ‘average’ and the bottom 10 percent is coached for improvement. The ‘rank-and-yank’ system, also associated with Jack Welch, automatically terminates employees in the bottom category, allowing organizations to purge the worst performers.

Although an individual’s supervisor conducts the formal performance review discussion, management higher-ups assign the individual’s ranking following debates on performances of comparable individuals from across the organization. Often, these higher-ups are not knowledgeable enough of an individual’s performance. An individual’s ranking then depends on the supervisor’s willingness to fight on behalf of the individual. The ranking is ‘forced’ because an individual may be ranked in a lower category regardless of whether the direct supervisor (and hence the most knowledgeable reviewer) would have rated the individual that way on his/her own.

In intent, the forced ranking system is an excellent method for rewarding top performers and setting specific deadlines for improvement for poor performers. Despite its appeal, the system has several drawbacks. For instance, the system promotes individual performance over teamwork and often leads to dissatisfaction among ‘average’ and poor performers. In my opinion, most of this dissatisfaction stems from poor administration of the system at the ground level. I will cover this in another blog article.

Wondering what to read next?

  1. General Electric’s Jack Welch Identifies Four Types of Managers
  2. Never Skip Those 1-1 Meetings
  3. Goal-Setting for Managers: Set Tough but Achievable Challenges
  4. Bringing out the Best in People through Positive Reinforcement
  5. The Trouble with Targets and Goals

Filed Under: Managing People Tagged With: Performance Management

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!