To link employee performance to organizational goals using the Weighted Average Method, you can follow these steps:
1. Identify Organizational Goals: Begin by clearly defining the organizational goals that you want to link to employee performance. These goals should be specific, measurable, achievable, relevant, and time-bound (SMART).
2. Weighted Criteria: Assign weights to each criterion based on its importance in achieving the organizational goals. For example, if one of the goals is to increase sales revenue, you may assign a higher weight to sales performance metrics.
3. Performance Evaluation: Evaluate each employee's performance against the set criteria. Use a rating scale or numerical values to assess performance objectively.
4. Calculate Weighted Average: Multiply the performance rating for each criterion by its weight and sum up these values to calculate the weighted average score for each employee.
5. Comparison: Compare the weighted average scores of employees against the organizational goals. Employees with higher scores aligned with the goals have effectively contributed to achieving them.
6. Feedback and Development: Provide feedback to employees based on their performance evaluation. Recognize and reward employees who have successfully met or exceeded the organizational goals. For those who fall short, offer development opportunities to improve their performance.
By following these steps, you can effectively link employee performance to organizational goals using the Weighted Average Method.