Equivalence of Goals & Rewards!

What´s most important step in performance Management? Goal setting – obviously!  You get goal setting process wrong, and all subsequent process steps possibly can´t correct damage done.

Should incumbents of similar jobs have equivalent difficulty of goals? 

Well! This situation might lead to one employee having a better chance of making an impact compared to another employee, & consequently get a better rating.

So what do we do? We have to be fair to employees!

I see 2 possible ways of addressing such a situation.

•  We could have a manager playing moderator role – ensuring equivalent (comparable) jobs having equivalent difficulty of goals.   
• We could also let imbalance in goals exist.

o  But then we have to ensure that the process is not deemed unfair. A significant portion of fairness/unfairness lies in allocation of rewards on basis of performance -  what is the rating used for  - how it impacts compensation/next year´s assignments/career moves also needs to be taken care of.  Since goals are for year, hence differentiation of rewards on basis of performance should also be short term (e.g. – bonus for the year, merit increase for the year, etc) and not long term (e.g. –career moves, succession plans,  etc).

But then,  I feel that non-equivalence of goals can be a by-product (something that happens because of changes in environmental conditions in year).  

At goal setting stage, equivalence of goals should be attempted, and that is a managerial prerogative.  This is important, because as humans we always strive for an equal chance to be unequals- and we trust our managers to provide that equal chance.

It is possible that even after this equal chance, the results across equivalent level employees vary dramatically (in terms of business impact) for equal levels of effort.  Environmental changes might significantly tilt the playing ground towards one/some employees.

Again, as managers, we can either moderate the results (factoring in environmental difficulty) or rewards in terms of business impact.

In later case, linkage of rewards system to performance system has to be tweaked. Since the performance is for the year, we should also reward (on basis of performance) for the year – a reward that at most has an impact for a year´s time!

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Sourav

Communities at work!

This year I am working on creating 2 communities – horizontal grouping of employees who come from different teams but are characterized by some similarity (e.g. – role, past experiences, gender, etc).

Why am I attempting to form a community? Well, there are changes that I am attempting in these 2 horizontal employee groupings. The attempt is to make the members of these communities far more effective at work and in their careers.

I have option of rolling out initiatives for them or to make them involved in entire ´upping the bar´ process (from design to execution).

Again  I have option of forming having a representative committee working on changes, or to involve the entire community – let them even own formation of representative committee (if that´s the path they want to choose).

So in essence, i am trying to create an impact on the 2 communities by working through community itself.

I am grappling with a few further questions.

• What makes community members come together and do something beyond their own self interest? 
•  If community has to work and make an impact, what is my role?

Would a community be different than a group?

I think word community has a much more involved sense – there is a sense of informality and also of belongingness/identity.

What are principles I can use to create a community from group of individuals who don´t necessarily work with each other/come across each other infrequently?

Well, I see 2 possibilities.

• Goals that inspire members to action (at times there may be no immediate self-benefit associated). 
• Goals pursuing which would further the self-benefit of members too.

I also see a possible hindrance- the need to show a green scorecard in a quarter (bane of stock market registered companies) is an opposing force to need to act today on something that needn´t necessarily yield results in short term.

How will these communities span out? I am not sure. There still are questions I don´t have answers to. 

I would share more as I create.

What have been your experiences in creating a community?

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Sourav

Bell Curves!

I had drafted this post a little more than a week back. 

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I have been neck deep into moderations (fitting employees in bell curve) over last half a week. I managed to complete the exercise by the end of the working week too. There was this sense of exaltation when I completed the exercise.

Over weekend, I have been wondering 'Moderation exercise has been completed successfully. But  has that ensured in better performance management?'

This question led me to another question 'Why do we have performance management systems? Why are they required?'.

The following are my answers. A good performance management system would have 4 elements effectively incorporated:

• Goals- clarity, mutual acceptance (SMART is one way of defining characteristics of effective goals), etc.
• Work planning- it's important that along with the 'what' the 'how' also gets captured. The 'How' is largely company specific.
• Review/feedback- an individual needs to know whether s/he is headed in right direction; and what changes in 'what' and 'how' need to be made.
• Rewards- employees must experience rewards process to be procedurally and distributively just.

What I experienced over last week was only distribution part of 'rewards' piece in the performance management framework.

I am eager to see what is the quality of discussions between a manager and his/her reporting employee at goals, work planning, and review/feedback stages.

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Sourav