There are two schemes for evaluating personnel performance according to MBO:
Each indicator for which the employee has reached the required value is paid. It is useless to exceed current or previous standards, you will not get additional money for this, but if you fail to meet them, you can lose part of your income. Acceptable values for performance indicators are 80-85%.
They create an MBO matrix that combines all the tasks and numerical coefficients of performance indicators. The performance of each employee and the entire company staff is assessed in accordance with it.
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Unfortunately, there is no oman email list universal algorithm for objective and accurate assessment of the work of any employee or personnel of any organization. Existing methods are very diverse, and each company selects them in accordance with the specifics of its activities, the distribution of responsibilities and roles in the team, ideas about the ideal employee in a particular position, and accepted methods for calculating performance.
All these important systems of measuring the performance of employees, including those working in partner companies, are tools for calculating the performance of individual employees and entire teams. The final assessment of work will be more truthful and complete if the assessments obtained as a result of using different methods are combined.
Evaluating performance using the KPI system
Before calculating KPI (key performance indicators), you need to think through the business development strategy - describe the result that needs to be achieved during the reporting period. Then it is important to develop action tactics and set goals for each department.
After this, they move on to creating a responsibility matrix, analyzing the available resources and checkpoints (or, if we use SCRUM terminology, sprints). For each stage of work, they formulate their own requirements for the result.
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The next step is to build the KPI system itself: select the most important indicators for assessing efficiency, which will be used at each stage; rank them, and assign them weights.
The final step is to create a personnel motivation and remuneration system that will be linked to KPIs.
At this point, the preparatory phase of work ends, and we can begin to directly implement the system for assessing performance indicators: informing staff about changes, automating control and calculations (at the level of an individual employee, department, and the entire company staff).
Evaluating employee performance using the KPI system
Developing a development strategy and tactics is a strictly individual issue for each enterprise. But it is important to analyze the preparatory phase of KPI implementation in detail, focusing on each point.