Personnel Rating Indices - CiteHR
Aguinn
Management Consultant/business Advisor
Leolingham2000
Management Consultant
Pooja_mehra
Hr Consulting Lead
+1 Other

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Hello, fellow Gurus:

I'm hoping that perhaps one of you might have an answer on this question for me.

I have been presented with an Employee rating system, but it's like nothing I've seen or worked with previously.

Here are the classifications and Employee rating scales as they were presented to me:

1. High Potential, High Contribution

2. High Potential, Solid Contribution

3. High Potential, Low Contribution

4. Solid Potential, High Contribution

5. Solid Potential, Solid Contribution

6. Hold in Position, Low Contribution

7. Optimally Placed, High Contribution

8. Continue in Position, Solid Contribution

9. Low Potential, Low Contribution

Does this system appear similar to anything you've used for assessment previously? Anyone recognize the pattern as a proprietary system?

If so, what were the pitfalls to rating employees with this set of attributes?

Finally, if you've used this system, could you please let me know how the assessments were distributed; i.e., how can you quantify the difference between a High Potential/Solid Contribution and a Solid Potential/High Contribution?

I'm all ears. Thanks for your feedback, group!

Alan Guinn, Managing Director

The Guinn Consultancy Group, Inc.

Hi Alan,

This is a 3x3 matrix for potential and performance. You would need to define what ratings would go where in this matrix. After employees have been rated on their performance and potential they should be plotted on this matrix.

Typlically the following action could be taken for employees in these quadrants:

1.High Potential, High Contribution (promote - fast track)

2. High Potential, Solid Contribution (promote)

3. High Potential, Low Contribution (do not promote, provide targeted training and give warning, or put in another job)

4. Solid Potential, High Contribution (Promote)

5. Solid Potential, Solid Contribution (provide development)

6. Hold in Position, Low Contribution (do not promote, provide development and give warning, or put in another job)

7. Optimally Placed, High Contribution (keep in place)

8. Continue in Position, Solid Contribution (keep in place)

9. Low Potential, Low Contribution (ask to leave)

The difference in 2 and 4 shall be incentives. Typlically incentive is performance driven, therefore more incentive shall be provided to employees in 4 than the one's in 2.

Hope this helps.

regards,

ALAN,

I know this question was posted almost 3 weeks ago.

I had done this exercise in a couple of clients, almost 14 years

ago in 90/91.

It is not hard to set it up , but the sales/ marketing managers

struggle to run it/ update it and maintain it.

The clients need the consultants most of the time.

ALSO doing the 3x3 matrix is more difficult and time consuming,

as the sales managers have to be in the field most of the

time.

I HAVE TACKLED THE SITUATION WITH 2X2 MATRIX

AND IT WORKS WELL / EASY TO HANDLE.

I AM GOING TO PRINT THE WRITE UP HERE BELOW.

SALES FORCE PROFILING

NO TWO SALESPEOPLE ARE ALIKE

HENCE, IT IS NECESSARY TO HAVE THE FLEXIBILITY IN MANAGING THE SALESPEOPLE EACH SALESPERSON ACCORDING TO HIS OR HER NEEDS AND MERITS.

YOU CAN APPRAISE THE SALES TEAM, USING THE PROCESS AS

LISTED IN THE FOLLOWING PAGES.



MANAGING SALES FORCE COMPOSITION

No two people are alike. Yet some marketing and sales managers treat sales people as though they were homogeneous in terms of skills, abilities, aptitudes, motivations and effectiveness. consequently, management often employs the same, or relatively similar incentives, compensation programmes, training programmes, and supervisory tools for all its salespeople. A failure to recognise salespeople's inherent differences may well lead to a less productive sales force than would result if differences were recognised.

obviously, it is not for an administrator to cater to the idiosyncrasies of each salesperson. However, it is possible to group salespeople who are similar on some set of dimensions (for example, reward orientation, stage in career, job tenure, level of performance/achie'vement, age) and manage them differently than salespeople in other groups. For example, a sales force can be segmented into several groupings with each receiving different motivation, communication, and administrative treatments. Through sales force segmentation the performance level of each group will be improved. Also salespeople have a career cycle during which they pass through decline based upon their levels of achievement and job tenure. Thus, sales personnel can be categorised based on their stage in the career cycle, and those in one stage can be managed differently from those, in the others.





An important concern of sales management is relative allocation of salespeople to the several groups. In other words, what kind of balance does management want to attain in the sales force (for example, few trainees and many veterans, many trainees and few veterans) in order to achieve organisational and marketing department objectives, describes a process that can be used to assess the status of a sales force's current composition, to form an ideal sales force mix,and to prescribe the required managerial actions. The sales force performance consists of four quadrants in which sales people can be classified based upon their achieved level of performance and their growth potential.

Both the performance axis and the potential axis are continuous along which a salesperson can be placed. Performance refers to current total performance. This would vary across sales forces and across industries. For example, the salient performance characteristics of some sales jobs may include the number of sales calls, number of closed sales, total sales volume, and profit contribution per salesperson; the performance characteristics of other sales jobs, however, may include the above dimensions, as well as customer goodwill, product installation skill, customer service and the number of product demonstrations. Thus, it is upon incumbent management to clearly define what it considers to be total performance.

Potential refers to the level of improvement and growth a salesperson is likely to experience. In other words, has the salesperson under consideration, topped off his/her still growing terms of performance?

Determine the potential of a salesperson using various techniques like

Assessment center etc.



When the performance level and potential of each salesperson are jointly considered, a basis emerges for evaluating current sales forces composition and determining the necessary managerial action. Although there are many possible combinations, classification of sales people into four performance/potential categories can be used, to illustrate the sales force performance diagnosis







HIGH

!

!

!P QUADRANT 2 QUADRANT 4

!O LOW PERF/HIGH POTENT HIGH PERF/HIGH POTENT

!T

!E

!N

!T

!I

!A

!L QUADRANT 1 QUADRANT 3

! LOW PERF/ LOW POTENT HIGH PERF/ LOW POTENT

!

!

!LOW PERFORMANCE HIGH

!---------------------------------------------------------------------------

LOW POTENTIAL/LOW PERFORMANCE: Salespeople who combine low potential and low levels of performance are considered problems. Problems are salespeople who may, at the extreme, cost the organisation more money than they are bringing in. More likely, the firm incurs the opportunity cost of realising lower sales than would be possible with a higher quality performer. The problems might be senior salespeople who are watching the industry pass them by, or a relatively new salesperson who lacks ability but was hired because of poor recruitment and selection or was poorly trained. A key characteristic of the problems is that improvement is very difficult for them.

[ SALESPERSON WITH PROBLEM]

================================================== ====

HIGH POTENTIAL/LOW PERFORMANCE: Salespeople who have high

potential but are performing at a relatively low level are Newsales trainees

or those just out of their training programme, who have just received territorial responsibilities. Management will probably spend much time with these people in

both formal and informal training sessions.Management

obviously should help these growth prospects develop into

productive and successful sales personnel.

[ SALESPERSON WITH GROWTH POTENTIAL ]

================================================== ==

HIGH POTENTIAL/HIGH PERFORMANCE: Salespeople who are

performing at a high level and are expected to improve are

their leaders of the sales force. They are salespeople who

have been out of the training programme long enough to have

achieved a high performance level but are still growing in

skill. Management finds it economically rewarding to spend

time with the leaders to facilitate their growth and

improvement. One on one counselling, curbstone conferences,

on the spot coaching as well as continued formal training

probably will be used selectively with this group.

[ SALESPERSON WITH LEADERSHIP POTENTIAL]



LOW POTENTIAL/HIGH PERFORMANCE: Sales people who are solid performers but who will probably not improve much in the future are the mature performers. They are primarily senior salespeople who are performing well, but are unlikely, and probably unwilling, to attempt to increase their sales efforts substantially. Because they are performing at a satisfactory level, management spends little time with them. Mature performers generate a greater contribution to the company, than it costs to keep them in the field.

[ SALESPERSON WITH MATURITY ]



SALES MANAGERIAL ACTIONS

The purpose of the sales force performance diagnosis is to assess the composition of the sales force, to prescribe what it should be, and to suggest what managerial actions will be necessary to achieve the desired balance.

To use the tool in the above manner requires that management, ask the following three questions:

1. what is the present composition of the sales force (where are we?)

2. what sales force composition do we want (where do we want to go?)

3. How do we achieve the desired balance in the composition of the sales force (what managerial actions are necessary?)





MANAGERIAL ACTION TO TAKE,GIVEN THE PRESENT SALESFORCE COMPOSITION.

--------------------------------------------------

QUADRANT 1.

1. Low potential/ Low performance (problems).

SALESPEOPLE



ACTION.

Terminate.

Move to other corporate

position.

Retain.

Change supervisory

approach.

Change motivational tools.

----------------------------------------------

QUADRANT 2

2. High potential/ Low performance (growth prospects).

SALESPEOPLE

Terminate.

Change product responsibilities.

Accelerate training.

Use special supervisory tools.

----------------------------------------------

QUADRANT 3

3. High potential/ High performance (leaders).

SALESPEOPLE

Terminate.

Change product responsibilities.

Accelerate training.

Use special supervisory tools.

----------------------------------------------------

QUADRANT 4

4. Low potential/ High performance (mature performance).



SALESPEOPLE

Change or modify position.

Change motivational tools.

Retrain.

Change supervisory tools.

Reallocate territories.

-----------------------------------------

HOPE THIS IS USEFUL TO YOU

REGARDS

LEO LINGHAM

Leo,
Thanks for your reply.
My initial response to this client was to advise them that there are significantly better rating systems out there, but in what could only be described as a political decision, the decision was made to use a rating index system "someone" had bought into.
It's the age old issue of the client believes "X" and the consultant knows "Y".
You've encountered it countless times, as have I. After testing for understanding, you're left with utilizing persuasion to either drive the bus, or realizing there will be no change made....in this case, unfortunately, the latter.
I appreciate your input and analysis--concise and well documented, as always.
Best to you.
ag

Guys shall i put a question for this article?
While im go through this article relating to peformance and potential rating i found this ,please be clarify my doubt!!!
in 3*3 matrix High potential and solid contribution means solid contribution is meant for Average or High?
please be clarify my quries im in need to prepare this excersise for my employees.
regards
sehma

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