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When doing performance reviews, managers may wish to listen to Grove's advice

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When doing performance reviews, managers may wish to listen to Grove's advice

Evaluating the performance of employees is a very complex and difficult task.

In most companies, performance reviews are an offensive topic. On the one hand, companies need to conduct performance reviews regardless of their size, and on the other hand, a Deloitte survey showed that 58% of managers believe that performance reviews neither motivate employees nor improve employee performance.

Even in Google, which is known for its OKRs, there are many problems with performance reviews. According to Googlegeist, Google's annual employee survey, satisfaction with performance management is consistently the lowest-rated segment.

How do you evaluate your employees' performance?

Andy Grove, the former CEO of Intel Corporation and the father of OKRs, once wrote "The First Lesson for Managers". In this book, Grove devotes an entire chapter to the topic of performance evaluation.

When managers are doing performance reviews for their employees, they may wish to listen to Grove's advice, which may give you some inspiration.

Grove's advice may seem mundane, but if you do it, you'll benefit from it.

01

No matter how difficult it is, you have to do a performance review

What is a Performance Appraisal?

Grove's definition is that a performance appraisal is a manager's feedback on the work of his subordinates. Evaluate the performance of subordinates, let subordinates know their performance results, and decide on the rewards of subordinates based on performance results, including job promotions, salary increases, share allotments, or other methods.

The results of a performance review, whether positive or negative, will have a large impact on subordinates and will continue for a long time.

For managers, performance appraisal is one of the management activities with the highest input-output ratio, which can motivate excellent employees to work harder.

However, performance appraisal is again a very difficult thing to do, because performance appraisal is prone to conflict and controversy.

Performance appraisals, if not handled properly, can directly affect the selection of subordinates.

I remember that there was a performance appraisal in the previous company, and there was an employee who failed the performance appraisal and resigned the day after knowing the result. In fact, if the manager communicates with him in all aspects, resignation is a completely avoidable thing.

Performance appraisal is not just for large enterprises or organizations, any organization, no matter how big or small, whether you are an educational institution, a government agency or a non-profit organization, as long as you care about operational performance, performance appraisal must be an important part of management activities.

When doing performance reviews, managers may wish to listen to Grove's advice

02

The purpose of performance appraisal is to improve the performance of employees

What exactly is the purpose of a performance review?

Some people say that it is to clarify the direction of work, some people say that it is to motivate employees, and some people say that it is to divide employees into three, six, nine and so on, and then reward the good and punish the bad......

It is true that performance appraisals have these roles.

However, the most basic role of performance appraisal is to improve and enhance the performance of employees. This is the most important purpose of performance review, and it is far more important than anything else.

In order to improve the performance of subordinates, performance evaluation needs to look at the skill level of subordinates to see what skills they lack and try to improve them, and second, to strengthen incentives for people who already have the right skills to create higher performance.

However, unfortunately, the purpose of many enterprise performance reviews is only to raise salaries, pay bonuses, or eliminate employees, rather than to improve and enhance employee performance.

03

Operational steps and key points of performance evaluation

The work of performance appraisal can be roughly divided into two steps: one is to evaluate the performance of subordinates, and the other is to feedback the evaluation results to subordinates face-to-face.

Neither of these things is easy to do.

Step 1: Evaluate the performance of your subordinates

Objectively assessing employee performance is a very difficult thing to do.

To make the performance appraisal process simpler, managers must be clear about their expectations of their subordinates before judging whether their performance is meeting expectations.

When we rank the performance of employees, compare their performance with what you expect from them. The higher this ratio, the higher his performance ranking.

So, the starting point of a performance review is the goal. "If we don't know what we want, the most likely outcome is nothing. ”

When doing performance reviews, managers may wish to listen to Grove's advice

When we evaluate the performance of our employees, we need to do the following:

(1) Balance output evaluation and process evaluation

When we evaluate the performance of our employees, we should evaluate them based on the combined performance and impact of process + results.

Output refers to how many designs an employee completes, how many sales are achieved, or how much output an employee increases, and so on.

The process refers to the process by which the employee achieves the goal, because the output of some of the employee's activities is completed within the year, and the output of some activities is achieved outside the year, paving the way for the future.

(2) Balance the short-term and long-term performance of employees

Another thing that must be balanced is short-term and long-term performance.

For example, on the one hand, engineers have to work hard to complete a new product design plan to help the company make money, and at the same time, they have to find ways to improve the process and method of new product design, so that they can be more efficient when they receive such projects in the future.

Obviously, when we evaluate the performance of an engineer, you have to consider both of these things.

(3) Balance individual and departmental performance

When evaluating a manager, do you evaluate only the performance of the individual or the performance of the subordinates he manages?

The answer is both. Because the company is ultimately pursuing the overall output of the entire department or group, the manager's responsibility is to increase the added value.

You have to find out what added value the manager adds: what does he do to the subordinates he manages, does he appoint a competent new person, how well does he train his subordinates, does he take steps to improve the current and future output of the department?

(4) Avoid falling into the potential trap

Grove emphasises that we evaluate the performance of our subordinates rather than their potential, so we must avoid falling into the potential trap.

If a subordinate has a good background, experience, or is very intelligent, and seems to have a lot of potential, but as long as the output is not good, he should not get a high score.

Because performance is evaluated for real performance rather than appearance, and for substantive outputs rather than forms.

Step 2: Inform the results of the assessment

(1) Emphasis on Juju

Most of us can only process a certain amount of information in a certain amount of time.

If you list seven questions and eight suggestions for improvement at once during an employee's performance review, the employee will be "overloaded" with information and may end up with nothing to remember.

You have to focus on the main issues. Delete the unimportant. If you want to pass too much to employees at once, employees can't digest it, and it can only backfire.

The purpose of a performance review is to improve the performance of employees, not to pour out all the observed facts and problems like removing garbage.

(2) Take into account both the positive and negative sides

Evaluate the performance of employees and consider both their strengths and weaknesses.

An effective performance appraisal report should include three points: strengths, weaknesses, and supporting strengths and weaknesses.

(3) Evaluate underperforming employees

The trickiest part of performance feedback is the feedback on underperforming employees.

Dealing with underperforming employees starts with making them aware of the problem. Often, underperforming employees tend to ignore their problems.

Therefore, the boss must find evidence and make him admit his mistake through evidence. The employee must be made to admit that there is a problem, and that it is his own.

When the subordinate acknowledges the problem, as the boss, he should work with the subordinate to find a solution to the problem and let the employee take action to improve.

(4) Evaluate high-performing employees

For underperforming subordinates, managers are often able to write long stories and tell them how to improve in great detail.

But when it comes to high-performing employees, many supervisors don't bother to help them improve their performance because they've done a good job.

Grove believes that bosses should spend more time with high-performing employees.

Because spending more effort on high-performing employees will have a higher input-output ratio. If they do it better, it will have a greater impact on the entire organization.

No matter how well a star subordinate performs, there will always be room for improvement. For celebrity subordinates, we also need to put forward suggestions for improvement and urge him to keep improving.

04

summary

For managers, "evaluating employees' performance and giving feedback on the results" is one of the toughest jobs for managers.

As a manager, evaluating the performance of employees is not just a simple score, rating the good and bad, and then giving bonuses based on the performance results.

The most important thing is to improve the performance of employees through performance reviews and help employees move towards higher goals.

When doing performance reviews, managers may wish to listen to Grove's advice

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