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    Employee Performance

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    navya Singh
    The document discusses various methods for measuring employee performance variability (standard deviation or SD) across jobs, which is important for utility analysis. It outlines approaches like using cost accounting, estimating SD as a percentage of salary (e.g. 40%), and techniques that calculate SD in dollar values based on job complexity, supervisor estimates, or differences in system effectiveness. The document also notes that SD is difficult to obtain from existing records and compares the roles of cast members like Mickey Mouse versus park sweepers in terms of performance variability and strategic importance.

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    Employee Performance

    Uploaded by

    navya Singh
    74 views19 pages
    The document discusses various methods for measuring employee performance variability (standard deviation or SD) across jobs, which is important for utility analysis. It outlines approaches like using cost accounting, estimating SD as a percentage of salary (e.g. 40%), and techniques that calculate SD in dollar values based on job complexity, supervisor estimates, or differences in system effectiveness. The document also notes that SD is difficult to obtain from existing records and compares the roles of cast members like Mickey Mouse versus park sweepers in terms of performance variability and strategic importance.

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    This presentation deals with concepts of employee performance, specific to the field of HR.

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    The document discusses various methods for measuring employee performance variability (standard deviation or SD) across jobs, which is important for utility analysis. It outlines approaches like using cost accounting, estimating SD as a percentage of salary (e.g. 40%), and techniques that calculate SD in dollar values based on job complexity, supervisor estimates, or differences in system effectiveness. The document also notes that SD is difficult to obtain from existing records and compares the roles of cast members like Mickey Mouse versus park sweepers in terms of performance variability and strategic importance.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    74 views19 pages

    Employee Performance

    Uploaded by

    navya Singh
    The document discusses various methods for measuring employee performance variability (standard deviation or SD) across jobs, which is important for utility analysis. It outlines approaches like using cost accounting, estimating SD as a percentage of salary (e.g. 40%), and techniques that calculate SD in dollar values based on job complexity, supervisor estimates, or differences in system effectiveness. The document also notes that SD is difficult to obtain from existing records and compares the roles of cast members like Mickey Mouse versus park sweepers in terms of performance variability and strategic importance.

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    HR ANALYTICS – 4 TH TERM (2019-20) Prof Manish

    EMPLOYEE PERFORMANCE
    Pivot point: where differences in performance most affect success
    Example: Disney theme park
     What is the important talent for theme park success?
     Where would an improvement in the quality of talent and organization make the biggest difference in
    strategic success?
     Faculty resources and staff resources
     Key constraint for the park: “delightful minutes”
     85 acres
     100s of small and large attractions
     Talent pool: Mickey Mouse and Park sweeper
    WHY DOES PERFORMANCE VARY ACROSS JOBS
    Two reasons
     Nature of the job: to the extent it allows autonomy and discretion
     Cooking French fries in a restaurant vs. project leader of an advertising campaign or a salesperson
     Relative value to the organization of variations in performance
     Software engineers designing new products for leading edge software companies vs. employees preparing daily reports in a
    financial services company
     Variation is less crucial
     Mickey mouse vs sweeper
     Sweeper: high SD
     Mickey: high value
     McDonald’s vs. Starbucks: role of a front-line associate
     How would performance-yield curve for the two look like?
     Focus on achieving minimum standard vs improving performance
     Notion of “Find the Best Candidate for every position” – right or wrong?
     Kano Analysis: differential effect of improved performance
    ROLE OF SD IN UTILITY ANALYSIS
    It cannot generally be obtained from exiting records
     Has been most difficult parameter to obtain

    Complicated cost accounting methods which are both costly and time consuming
     Cost in monetary value of each employee
     Then computing the SD

    Some newer although subjective measures


    COST ACCOUNTING APPROACH
    Cost considerations
     Average value of production or service units
     Quality of objects produced or services accomplished
     Overhead, including rent, light, heat, cost depreciation, or rental of machines and equipment
     Errors, accidents, spoilage etc.
     General social effectiveness
     Time spent of other employees and mangers

    Eight Steps
    Limitation
     Not based on units of performance
    40 PERCENT RULE
    Wages and salaries average 57 percent of the value of goods and services
    SD as 40% of salary
    One SD difference therefore about 20% of average output
    SD values differ based on complexity of jobs
     Less complex
     15%
     Medium
     25%
     High
     46%
     Life Insurance
     97%
     Salesperson
     39%
     Management, Leadership Jobs will have high SDs
    GLOBAL ESTIMATION
    If the monetary value of job performance is normally distributed
     85th percentile (one SD above average)
     50th percentile
     15th percentile

    Two ways for calculating SDs


     By using the average value found for jobs of similar complexity
     Using supervisory estimates
    CASCIO-RAMOS ESTIMATE OF PERFORMANCE IN
    DOLLARS (CREPID)
    Assumption: organization’s compensation program reflects current market rate for
    jobs
    8 steps
    SD obtained is about 3 and half times larger than the SD of the actual distribution of
    salaries
    SYSTEM EFFECTIVENESS TECHNIQUE
    Situations in which individual salary is only a small percentage of the value of
    performance to the organization or of the equipment operated
     It calculates the difference in system effectiveness between the average performer and someone who
    is one SD better than average
    SUPERIOR EQUIVALENTS TECHNIQUE
    Uses estimate of how many superior (85th percentile) performers would be needed to
    produce the output of a fixed number of average performers

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