How to identify a non performers? I mean what should be the parameters to judge them at various levels and how to convert them in performers?
From India, Shirala
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From India, Shirala
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Dear Colleague,
Performance Management: An Ongoing Challenge
Performance management is a key concept in the management field, and for a long time, there has been a lot of trial and error in management practices. Despite this, no perfect solution has been found for the challenges involved in this subject matter.
Parameters for Judging Performance
What should be the parameters to judge performance at various levels, and how can we convert identified non-performers into performers? Many practitioners have come close to the answer, but perfection has not yet been achieved on this intriguing question you raised. However, some good thoughts can be applied.
What is a Performance Parameter?
A performance parameter is a key indicator for any business to demonstrate health, hygiene, and growth. It is based on your business drivers, business model, and organizational objectives. Some organizations use performance indicators such as PBT (Profit Before Tax), Cost of Production (COP), Per-ton Cost (PTC), Customer Satisfaction Index (CSI), Market Share in the segment (MSS), Growth Percentage, New Market Share in a year, New Products, Service Levels, and so on. These indicators decide the fate of the business to be more profitable, sustainable, and to grow further. Hence, determining the performance parameters of the business is the first focus.
What Are Key Performance Indicators (KPIs)?
Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company's strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.
How to Identify Non-Performers?
It can be done through:
- Daily Work Reports
- Feedback from Supervisor or Immediate Manager
- Output Records
- Performance Evaluation System
- Quality or Market Complaints Ratio
- Rate of Rejection
- Quality Complaints Received
- Rate of Failures
- Delay in Meeting Project Timelines
- Loss Indicators in a Department
- MIS Reports about Cost, Profit, Daily Costing, and Profit Figures
These business drivers are then converted into performance parameters for each function of the organization, such as Finance, Marketing, R&D, Operations, HR, Quality, etc. These department-level parameters are cascaded into simple SMART-based parameters for each talent within the function. (SMART stands for Specific, Measurable, Achievable, Realistic, and Timely) - These are normally called KPIs or KRAs.
Once the KPI or KRA is fixed for a particular financial year, the performance or contributions of each talent are measured digitally on a 5-point scale, typically against expected versus actual contributions and results. Individuals are categorized into five buckets:
- Exceeding Expectations
- Outstanding Performance
- Meeting Expectations
- Average Performance
- Not Meeting Any Expectations (Below Average Performer)
This is done through a robust evaluation mechanism, and once talents are categorized, it becomes easier to identify the last two groups of talents to focus on. It is important to note that no system of performance management is perfect even today in any organization, and there are ongoing debates. However, we need to ensure the process is unbiased and conducted ethically.
Performance Improvement Plan (PIP)
The focus is on the last two groups, who are to be put into a Performance Improvement Plan (PIP). First, we need to understand the underlying factors preventing them from performing. It is beneficial to use an Assessment Development Center (ADC) to identify gaps in:
- Skill Level Challenges
- Ability-Related Challenges
- Attitude-Based Issues
Once identified, provide the necessary support to bring about the desired changes. If the challenge is skill-related, it is easier to train them by providing development insights and putting them under rigorous training.
If the challenge is related to capability or ability, consider job rotation or demotion to a lower-level job if possible, as developing them may be difficult.
If the challenge is related to attitude, it may be best to offer a golden handshake and terminate their employment contract. In my 30-plus years of experience, I have found it difficult to change the attitude of individuals who intentionally underperform, and retaining them can harm the organization's health and workforce.
Addressing Skill-Based Non-Performance
Skill-based non-performance can be tackled by:
- Skill Training and Measuring Improvements in a Time-Bound Manner
- Use of Technology Support to Enhance Performance
- Automation Possibilities to Eliminate the Hard Side of Jobs
- Development Programs with Evaluation and Feedback Systems
- Expertise Training in Imparting Specific Skills to Improve Performance
All these actions should be time-bound, and if no improvement is seen within the agreed timeframe, appropriate measures should be taken.
The Importance of Performance Management
The system of performance management is inevitable as it provides insights into contributors and non-contributors. We need to reward contributors and handle non-contributors appropriately to ensure organizational growth, health, and survival.
This system requires 100% full-time focus to bring the desired results to the organization. The HR team, operations, and top management must focus on:
- Deciding and Fixing Performance Parameters
- Establishing Systems and Processes to Measure Individual Contributions
- Controlling Talent Performance Levels
- Having a Robust System for Evaluating Performance Parameters
- Clearly Communicating Performance Expectations
- Sharing Performance Levels with Individuals
- Supporting Skill Training for Individuals
- Appropriately Rewarding or Reprimanding as Needed
- Keeping Performance Parameters SMART-Based
- Ensuring Performance Parameters Align with Business Objectives
- Continuously Refining Systems and Processes
- Encouraging a Performance Culture
All the best. There are many more insights available on this vast subject matter which you may explore further.
From India, Chennai
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321Performance Management: An Ongoing Challenge
Performance management is a key concept in the management field, and for a long time, there has been a lot of trial and error in management practices. Despite this, no perfect solution has been found for the challenges involved in this subject matter.
Parameters for Judging Performance
What should be the parameters to judge performance at various levels, and how can we convert identified non-performers into performers? Many practitioners have come close to the answer, but perfection has not yet been achieved on this intriguing question you raised. However, some good thoughts can be applied.
What is a Performance Parameter?
A performance parameter is a key indicator for any business to demonstrate health, hygiene, and growth. It is based on your business drivers, business model, and organizational objectives. Some organizations use performance indicators such as PBT (Profit Before Tax), Cost of Production (COP), Per-ton Cost (PTC), Customer Satisfaction Index (CSI), Market Share in the segment (MSS), Growth Percentage, New Market Share in a year, New Products, Service Levels, and so on. These indicators decide the fate of the business to be more profitable, sustainable, and to grow further. Hence, determining the performance parameters of the business is the first focus.
What Are Key Performance Indicators (KPIs)?
Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company's strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.
How to Identify Non-Performers?
It can be done through:
- Daily Work Reports
- Feedback from Supervisor or Immediate Manager
- Output Records
- Performance Evaluation System
- Quality or Market Complaints Ratio
- Rate of Rejection
- Quality Complaints Received
- Rate of Failures
- Delay in Meeting Project Timelines
- Loss Indicators in a Department
- MIS Reports about Cost, Profit, Daily Costing, and Profit Figures
These business drivers are then converted into performance parameters for each function of the organization, such as Finance, Marketing, R&D, Operations, HR, Quality, etc. These department-level parameters are cascaded into simple SMART-based parameters for each talent within the function. (SMART stands for Specific, Measurable, Achievable, Realistic, and Timely) - These are normally called KPIs or KRAs.
Once the KPI or KRA is fixed for a particular financial year, the performance or contributions of each talent are measured digitally on a 5-point scale, typically against expected versus actual contributions and results. Individuals are categorized into five buckets:
- Exceeding Expectations
- Outstanding Performance
- Meeting Expectations
- Average Performance
- Not Meeting Any Expectations (Below Average Performer)
This is done through a robust evaluation mechanism, and once talents are categorized, it becomes easier to identify the last two groups of talents to focus on. It is important to note that no system of performance management is perfect even today in any organization, and there are ongoing debates. However, we need to ensure the process is unbiased and conducted ethically.
Performance Improvement Plan (PIP)
The focus is on the last two groups, who are to be put into a Performance Improvement Plan (PIP). First, we need to understand the underlying factors preventing them from performing. It is beneficial to use an Assessment Development Center (ADC) to identify gaps in:
- Skill Level Challenges
- Ability-Related Challenges
- Attitude-Based Issues
Once identified, provide the necessary support to bring about the desired changes. If the challenge is skill-related, it is easier to train them by providing development insights and putting them under rigorous training.
If the challenge is related to capability or ability, consider job rotation or demotion to a lower-level job if possible, as developing them may be difficult.
If the challenge is related to attitude, it may be best to offer a golden handshake and terminate their employment contract. In my 30-plus years of experience, I have found it difficult to change the attitude of individuals who intentionally underperform, and retaining them can harm the organization's health and workforce.
Addressing Skill-Based Non-Performance
Skill-based non-performance can be tackled by:
- Skill Training and Measuring Improvements in a Time-Bound Manner
- Use of Technology Support to Enhance Performance
- Automation Possibilities to Eliminate the Hard Side of Jobs
- Development Programs with Evaluation and Feedback Systems
- Expertise Training in Imparting Specific Skills to Improve Performance
All these actions should be time-bound, and if no improvement is seen within the agreed timeframe, appropriate measures should be taken.
The Importance of Performance Management
The system of performance management is inevitable as it provides insights into contributors and non-contributors. We need to reward contributors and handle non-contributors appropriately to ensure organizational growth, health, and survival.
This system requires 100% full-time focus to bring the desired results to the organization. The HR team, operations, and top management must focus on:
- Deciding and Fixing Performance Parameters
- Establishing Systems and Processes to Measure Individual Contributions
- Controlling Talent Performance Levels
- Having a Robust System for Evaluating Performance Parameters
- Clearly Communicating Performance Expectations
- Sharing Performance Levels with Individuals
- Supporting Skill Training for Individuals
- Appropriately Rewarding or Reprimanding as Needed
- Keeping Performance Parameters SMART-Based
- Ensuring Performance Parameters Align with Business Objectives
- Continuously Refining Systems and Processes
- Encouraging a Performance Culture
All the best. There are many more insights available on this vast subject matter which you may explore further.
From India, Chennai
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The Importance of Position Descriptions
This problem emphasizes the need to have proper Position Descriptions and People Descriptions for each and every job in your organization. You use those documents to recruit people matching the stated requirements. As we see far too often here on CiteHR, there are way too many people in jobs they have no skills or ability to do—and it shows up in their poor performance. This is a major failure in the recruitment system. Fix that, and you are halfway there.
Performance Management Insights
I would add a couple of things to our colleague Dr. Siva's notes on Performance Management. Workers need to be assessed on the duties laid out in the Position Description, in addition to things like teamwork and the other non-task related skills needed. Each year, there needs to be a corresponding uptick in the performance of those duties. They have to demonstrate that they are making more widgets, processing more leave applications, making more sales, etc.
The Role of Stretch Goals
Secondly, there need to be stretch goals; you need to up the ante. This is similar to above, but also they should have goals to learn new skills, take on extra duties, start shadowing another employee to learn their job as a backup, etc.
Continuous Improvement and Personal Experience
In the last job I did before I retired, I was constantly monitored for continuous improvement. I was not allowed to stand still. In addition, I was expected to nominate some stretch goals to build my skills, and one of the things I did was to go outside of my division and serve on a committee implementing a new company-wide document storage IT system so we could go paperless.
Managing Non-Performers
But as Dr. Siva has said, sometimes, it is just better to move non-performers on. Some will never change no matter what you do. You can waste far too much time and energy on these people, and both you and the organization as a whole suffer.
From Australia, Melbourne
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This problem emphasizes the need to have proper Position Descriptions and People Descriptions for each and every job in your organization. You use those documents to recruit people matching the stated requirements. As we see far too often here on CiteHR, there are way too many people in jobs they have no skills or ability to do—and it shows up in their poor performance. This is a major failure in the recruitment system. Fix that, and you are halfway there.
Performance Management Insights
I would add a couple of things to our colleague Dr. Siva's notes on Performance Management. Workers need to be assessed on the duties laid out in the Position Description, in addition to things like teamwork and the other non-task related skills needed. Each year, there needs to be a corresponding uptick in the performance of those duties. They have to demonstrate that they are making more widgets, processing more leave applications, making more sales, etc.
The Role of Stretch Goals
Secondly, there need to be stretch goals; you need to up the ante. This is similar to above, but also they should have goals to learn new skills, take on extra duties, start shadowing another employee to learn their job as a backup, etc.
Continuous Improvement and Personal Experience
In the last job I did before I retired, I was constantly monitored for continuous improvement. I was not allowed to stand still. In addition, I was expected to nominate some stretch goals to build my skills, and one of the things I did was to go outside of my division and serve on a committee implementing a new company-wide document storage IT system so we could go paperless.
Managing Non-Performers
But as Dr. Siva has said, sometimes, it is just better to move non-performers on. Some will never change no matter what you do. You can waste far too much time and energy on these people, and both you and the organization as a whole suffer.
From Australia, Melbourne
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This is nice to read the views of learned members on PMS. Everything is very good and ideal in theory. However, the actual situation is far different from the ideal. In reality, the process should start from recruitment. There are hardly any organizations where recruiters spend systematic, value-added time selecting the right candidate as closely as possible to the job description. Therefore, in most organizations, the problem starts with the recruitment process.
From my 34 years of experience since 1976, working with three MNCs (GKW, Philips, & Vesuvius) and one reputed Indian organization (Voltas), and post-retirement to date, almost 12 years running my own organization where I also interact with MNCs and Indian organizations, I have never noticed any ideal PMS system really working as mentioned by all learned members.
Many organizations have no connection between KRA & KPI settings and business goals. Instead of proper assessment at the end of the year (once a year for the majority of organizations), there is no dialogue with the employee, rather a monologue. It is a CR (Confidential Report) decided by the superior for their subordinates. There are hardly any organizations where continuous feedback to employees for performance occurs. Moreover, there is always an instruction from HR to other functional superiors to fit the recommendation within the Bell Curve - 10% needs improvement, 80% successful, and 10% outstanding. Then there is unknowingly personal bias of the superior for some subordinates - good or bad.
Based on appraisal scores, most organizations identify non-performers and performers. In some organizations, employees are informed through HRMS packages instead of informing them across the table in a congenial atmosphere. Very few superiors spend one hour a year with subordinates discussing performance. Employees feel that if they are not in the good books of the superior, they are not being properly assessed. During my tenure, I only had one boss who spent more than an hour discussing with me in a very warm atmosphere, not only about my performance but also about my future focus areas linking to business goals.
What should be the approach?
As I have already mentioned, it should start from the recruitment process where the recruitment board should consist of cross-functional superiors with proper job descriptions and, depending on the level of recruitment, there may be 2/3 rounds, and one common member should be from the concerned department to match the chemistry of the employee with the chemistry of the organization.
Steps for proper induction
The next step should be proper induction (tailored based on the level of the employee, the business of the organization, and future focus - varying from 1 day to 1 month). There must be one mentor for new recruits, especially for management staff, for a period of 1 year (to complete one appraisal cycle). There are cases when a subordinate is better than the superior, and the superior either becomes vindictive (in the majority of cases) or accepts the quality of the subordinate. A mentor has a great role to play in those cases.
If there is an attitude problem identified as a non-performer, it is very difficult to change the employee. But with continuous mentoring and identifying the key issues, it is possible to change, if not 100%, at least to a successful level. In my career, I have done this with two employees, one directly in my department (ex-serviceman, Security Officer) and another, an Accounts executive young female employee. But this is a really difficult job that requires patience and determination.
From my personal observations, I can say that there are very few organizations that are scientifically following the system; others, at the end of the year, by thumb rule, decide the fate of the employees.
Regards, S K Bandyopadhyay (Howrah, WB) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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From my 34 years of experience since 1976, working with three MNCs (GKW, Philips, & Vesuvius) and one reputed Indian organization (Voltas), and post-retirement to date, almost 12 years running my own organization where I also interact with MNCs and Indian organizations, I have never noticed any ideal PMS system really working as mentioned by all learned members.
Many organizations have no connection between KRA & KPI settings and business goals. Instead of proper assessment at the end of the year (once a year for the majority of organizations), there is no dialogue with the employee, rather a monologue. It is a CR (Confidential Report) decided by the superior for their subordinates. There are hardly any organizations where continuous feedback to employees for performance occurs. Moreover, there is always an instruction from HR to other functional superiors to fit the recommendation within the Bell Curve - 10% needs improvement, 80% successful, and 10% outstanding. Then there is unknowingly personal bias of the superior for some subordinates - good or bad.
Based on appraisal scores, most organizations identify non-performers and performers. In some organizations, employees are informed through HRMS packages instead of informing them across the table in a congenial atmosphere. Very few superiors spend one hour a year with subordinates discussing performance. Employees feel that if they are not in the good books of the superior, they are not being properly assessed. During my tenure, I only had one boss who spent more than an hour discussing with me in a very warm atmosphere, not only about my performance but also about my future focus areas linking to business goals.
What should be the approach?
As I have already mentioned, it should start from the recruitment process where the recruitment board should consist of cross-functional superiors with proper job descriptions and, depending on the level of recruitment, there may be 2/3 rounds, and one common member should be from the concerned department to match the chemistry of the employee with the chemistry of the organization.
Steps for proper induction
The next step should be proper induction (tailored based on the level of the employee, the business of the organization, and future focus - varying from 1 day to 1 month). There must be one mentor for new recruits, especially for management staff, for a period of 1 year (to complete one appraisal cycle). There are cases when a subordinate is better than the superior, and the superior either becomes vindictive (in the majority of cases) or accepts the quality of the subordinate. A mentor has a great role to play in those cases.
If there is an attitude problem identified as a non-performer, it is very difficult to change the employee. But with continuous mentoring and identifying the key issues, it is possible to change, if not 100%, at least to a successful level. In my career, I have done this with two employees, one directly in my department (ex-serviceman, Security Officer) and another, an Accounts executive young female employee. But this is a really difficult job that requires patience and determination.
From my personal observations, I can say that there are very few organizations that are scientifically following the system; others, at the end of the year, by thumb rule, decide the fate of the employees.
Regards, S K Bandyopadhyay (Howrah, WB) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] USD HR Solutions – To Strive towards excellence with effort and integrity
From India, New Delhi
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Why Improving Performance Management Systems Is So Difficult.doc