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Text VersionA Handbook for Measuring Employee PerformanceALIGNING EMPLOYEE PERFORMANCE PLANS WITHORGANIZATIONAL GOALSWorkforce Compensation and Performance ServicePerformance Management and Incentive Awards DivisionsPMD–013 s September 2001

table of contentsFOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 2 CHAPTER 1 PERFORMANCEMANAGEMENT: BACKGROUND AND CONTEXT . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Employee PerformancePlans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 7contentsCHAPTER 2 DISTINGUISHING ACTIVITIES FROM ACCOMPLISHMENTS . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12The Beekeepers and TheirBees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . 1217 Categories ofWork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . 18Using Balanced Measures.................................................CHAPTER 3 DEVELOPING EMPLOYEE PERFORMANCEPLANS . . . . . . . . . . . . . . . . . . . . 20 25 Step 2: Determine Work UnitAccomplishments . . . . . . . . . . . . . . . . . . . . . . . . 28 Method A: GoalCascading Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Method B: Customer-FocusedMethod. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Method C:Work Flow Charting Method . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Step 1: Look at the Overall Picture.......................................Step 3: Determine Individual Accomplishments That Support Work UnitGoals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39Step 4: Convert Expected Accomplishments Into Performance Elements, IndicatingType and Priority.....43Step 5: Determine Work Unit and IndividualMeasures . . . . . . . . . . . . . . . . 47 Step 6: Develop Work Unit andIndividual Standards . . . . . . . . . . . . . . . . . . 52 Step 7: Determine HowTo Monitor Performance . . . . . . . . . . . . . . . . . . . . . . . 61 Step 8:Check the Performance Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 67 Guiding Principles for PerformanceMeasurement . . . . . . . . . . . . . . . . . . . . . . . . . . 68CHAPTER 4 LEARNINGAIDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 70Performance Measurement Quiz . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 70 Quick Reference: The Eight-Step Process . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 72APPENDIX A: Five-Level Appraisal—Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 APPENDIX B:Three-Level Appraisal—Examples . . . . . . . . . . . . . . . . . . . . . . . . . .

. 80 APPENDIX C: Two-Level Appraisal—Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84A HANDBOOK FOR MEASURING EMPLOYEE PERFORMANCE1