Confused About Weightages in Performance Reviews? Insights Needed from IT Pros

Hi,

I am in the midst of implementing Performance Review in my organization. I had initially formulated 2 sections: one is Assignments Undertaken and completed, and the other section is Attributes which would include points like commitment, interpersonal skills, risk-taking, etc. Now I am very much confused about weightages. Please let me know:

1. The role of weightages
2. Who would assign them
3. On what basis they would be assigned
4. Are there 2 types of weightages for assignments and attributes?

Can anybody suggest how it is basically followed in IT companies or refer to any articles or websites?

Regards,
Soumya Shankar

Hi,

Good to see that you are taking the initiative to implement weighted appraisals. These weights are generally given for skill sets defined for the specific job and can be assigned at each stage of the appraisal process. The weights need to be allocated to each job with respect to the key responsible areas. Line managers can provide weights for work-oriented aspects, while HR managers can determine weights for soft skills.

Once the appraisal is completed and the weights are allocated, the average can be calculated. HR can then utilize its analytical skills to draw conclusions.

Regards,
RAM

Weightages in Performance Review

The role of the weightages is to stress the importance of the elements in assessing the total. If there are 4 elements in the total review, then all the four elements may not have the same importance.

ELEMENTS WEIGHTS WEIGHTS ratings

EQUAL UNEQUAL out of 10

A 25 15 7

B 25 40 8

C 25 20 5

D 25 25 6

If you multiply the weights x ratings, it will give you a proper perspective/relevant assessment of the person's performance.

The weights are normally given by the line managers, to whom the person reports.

The weights are set by the line manager according to the need of the time period and the employees are informed beforehand.

For example, the sales manager might put more emphasis on "prospecting" for new accounts in the first six months of the year. Hence, prospecting gains more importance/weightage. In the second half, the sales manager may stress sales value. Hence, sales value gets more weightage.

Assignments carry performance criteria. Attributes carry value elements for each attribute.

Regards,

Leo Lingham

Hi,

Thanks for the reply. Please see my understanding below and let me know if I am right.

First of all, the line manager fixes the weightages for the attributes. Secondly, in the review form, he scores against each attribute. For example, for a developer, if Quality is weighted as 4 out of 5, and he scores 6 out of 10, then we would calculate it as 4 * 6, which would be 24 out of 50.

a. What would happen to the self-review scores? Out of the scores given by the line manager and the employee, which would be more important?

b. On what basis do we fix grades for the employees? I mean, a person achieving 80% and above would fall in Grade A, and for those employees, the incentives would be Rs.______/- Is this right, or is there any other way of ascertaining the grades? (The grading is for the software developers.)

c. What is the normal incentive pattern for software developers? Is it fixed based on the company revenues? How do we ascertain the percentages for each grade?

I would be grateful if anybody could clear my doubts.

Regards,
Soumya Shankar

My Apology for the Delay.

Due to an oversight, I missed your question.

Example

attributes weight rating out of 10 Total

X 5 8 40

Y 3 6 18

Z 2 7 14

Total: 10 72

Total Attributes 10x10=100 Achieved = 72

The weights must add up to 10 or 100, etc.

The manager/employee will use the same weights, which will be developed by the manager/HR manager after discussion.

The ratings will be carried out by the manager/employee separately. Then the manager/employee will sit together, discuss their ratings, and come to a common understanding.

Grading Could Be

+90% and above - Excellent - 90% incentive

[80-89] - Very good - 85%

[70-79] - Good - 75%

[50-69] - Fair - 60%

Below 50 - Poor - Nil

The incentive package is always based on sales/gross margin and the company's net income.

Regards,

Leo Lingham

Hi!

The development and/or construction of weights, rating guides/systems, and tables of equivalents are very complex matters. Weights must be determined by the Immediate Superior or Manager who is familiar with the importance of the work factors identified within the department or the organization as a whole. Its gross universe must not exceed 100%; otherwise, you will encounter problems in setting up your overall rating guide. The rating guide must reflect a realistic range of the point scores adopted. A pre-test must be implemented; otherwise, you can arrive at a questionable system.

The normal tool for rewards distribution adopted by organizations worldwide is the normal distribution curve. Adopting a straight percentage method linked immediately to the performance rating can overshoot the budget authorized by top management for a particular appraisal period.

Best wishes.

Ed Llarena, Jr. Managing Partner Emilla Consulting