This document discusses different ways to measure employee performance and results. It describes key performance indicators (KPIs) and objectives and key results (OKRs) that are used to track progress towards goals. Employee self-assessments, peer reviews, and manager evaluations also provide feedback. Comparative measurement systems rank employees against each other or standards, using methods like simple or alternating rank order, paired comparison, and relative percentiles. Absolute methods like essays, behavior checklists, critical incidents, and graphic rating scales evaluate employees without direct comparisons. Measuring performance helps ensure employees are focused on priorities and making progress.

1. Measuring Results And
Behaviors
Performance and Companesation Management

2. Measuring Results
• Measuring results in performance management is the
process of tracking and evaluating how well employees
are achieving their goals and objectives.
• It helps to ensure that employees are aligned with
organizational goals, focused on the right priorities, and
making progress towards their objectives.

3. Ways to Measure Results
• Key performance indicators (KPIs): KPIs are specific and
measurable metrics that are used to track progress
towards a particular goal. For example, a sales
representative might have a KPI to close 10 new deals
per quarter.
• Objectives and key results (OKRs): OKRs are a goal-
setting framework that helps organizations to focus on the
most important objectives and track progress towards
them. OKRs are typically set at the organizational, team,
and individual level.

4. CONT.....
• Self-assessments: Self-assessments are a way for
employees to reflect on their own performance and
identify areas for improvement.
• Peer reviews: Peer reviews are a way for employees to
get feedback on their performance from their colleagues.
• Manager evaluations: Manager evaluations are a way for
managers to provide feedback on their employees'
performance and identify areas for improvement.

5. If one adopts a results approach, one needs to ask the
following key questions:
•What are the different areas in which this individual is
expected to focus efforts (key accountabilities)?
• Within each area, what are the expected objectives?
• How do we know how well the results have been
achieved (performance standards)

6. Key Accountabilities vs. Objectives vs.
Performance Standards
• Key accountabilities are broad areas of responsibility,
• while objectives are specific and measurable outcomes
that contribute to the achievement of key accountabilities.
• Performance standards are used to evaluate how well
employees have achieved their objectives

7. Measuring
result
Absolute
Methods
Comparative
methods

8. Comparative Systems
Compares employees' performance to the performance of
other employees in similar roles or to a pre-determined
standard.
Comparisons ranking system methods.....
• Simple rank order system
• Alternation rank order system
• Paired Comparision method
• Relative percentile method

9. Simple and Alteration Rank order system
• A simple rank order system is a method of ranking
employees based on their performance, that ranks
employees from best performer to worst performer. This
system is relatively easy to implement and administer, but
it can be susceptible to bias and favoritism.
• An alternation rank order system is a method of ranking
employees based on their performance, in which
employees are ranked from best performer to worst
performer, alternating between the two. This system is
designed to reduce bias and favoritism.

10. Example.....
• A company with an alternation rank order system might
rank its sales representatives from 1 to 10 based on their
sales performance, but they would alternate between
ranking the best and worst performers. For example, the
sales representative with the highest sales performance
would be ranked #1, the sales representative with the
lowest sales performance would be ranked #10, the
second highest sales performance would be ranked #2,
and the second lowest sales performance would be
ranked #9, and so on.

11. PairedComparision and its Equation
Supervisors systematically compare the performance of
each employee against the performance of all other
employees.
• The number of pairs of employees to be compared is
computed by the following equation.
• n(n - 1)/2
• where n is the number of employees to be evaluated.
• If a supervisor needs to evaluate the performance of 8
employees, she would have to make [8(8-1)]/2=28
comparisons.

12. Relative percentile method
• This type of measurement system asks raters to
consider all ratees at the same time and to estimate
the relative performance of each by using a 100-
point scale.

13. Absolute Methods
• In absolute systems, supervisors provide evaluations of
an employee’s performance without making direct
reference to other employees.
Such systems include..........
• essay
• behavior checklist
• critical incidents,
• graphic rating scales

14. Essay
• A supervisor writes an essay describing each employee’s
strengths and weaknesses and makes suggestions for
improvement.
• supervisors have the potential to provide detailed
feedback to employees regarding their performance.
• Essays do not provide any quantitative information,
making it difficult to use them in some personnel
decisions.
• (e.g., allocation of rewards)

15. Behavior checklist
• A second type of absolute system involves a behavior
checklist, which consists of a form listing behavioral
statements that are indicators of the various
competencies to be measured.
• The supervisor’s task is to indicate (“check”) statements
that describe the employee being rated.
• When this type of measurement system is in place,
supervisors are not so much evaluators as they are
“reporters” of employee behavior.

16. Cont.....
• Behavior checklists usually include a description of
the behavior in question (e.g., “the employee arrives
at work ontime”) followed by several response
categories such as “always,” “very often,” “fairly
often,” “occasionally,” and “never.”

18. Critical incidents
Every job includes some critical behaviors that make a
crucial difference between doing a job effectively and doing
it ineffectively.
• The critical incidents measurement approach involves
gathering reports of situations in which employees
exhibited behaviors that were especially effective or
ineffective in accomplishing their jobs.
• When critical incidents are collected, this measurement
method allows supervisors to focus on actual job behavior
rather than on vaguely defined traits.
• collecting critical incidents is very time consuming

19. Graphicrating scales
• The graphic rating scale is the most popular tool used to
measure performance.
• The aim of graphic rating scales is to ensure that the
response categories (ratings of behavior) are clearly
defined, that interpretation of the rating by an outside
party is clear, and that the supervisor and the employee
understand the rating.
• Graphic rating scales are most frequently used to assess
performance.

20. THANKYOU