How to extract job performance indicators?

As one of the problems of most small and medium-sized enterprises, performance appraisal often troubles enterprise managers, and the selection of indicators (such as KPI) is one of the problems of many bosses and managers. This article mainly introduces how to extract performance indicators. .

• What are job performance indicators?

Job performance is mainly a process of joint action by people's potential (quality), potential development (behavior), and potential development effect (result).

However, job performance indicators mainly refer to which aspects to measure or evaluate employees' work, and mainly solve the problem of "what to test".

Generally speaking, job performance indicators can be divided into three types: ability indicators, behavior indicators and result indicators.

The competency index mainly assesses what competencies the employees have and what competencies are required for the position?

Behavior indicators mainly assess the attitude and behavior of employees, what have they done, and are they willing to do it? Through the quantitative assessment of the work process, such as the main responsibilities in the job description, the key control points in the work process, etc.

Outcome indicators mainly assess what employees have accomplished and what results have they brought to the enterprise? Quantitative assessment of the results of behavior and reasonable design of job performance indicators is a very important part of the employee performance assessment process, and it is also a prerequisite for effective job performance assessment.

• Extraction of job performance indicators

• The steps and methods of index extraction

The extraction of performance indicators is generally divided into three steps:

1. Identify indicators, determine work results and core behaviors, and determine key performance indicators;

2. Design standards, determine the form of indicators, determine evaluation standards, determine assessors and information providers;

3. Judging indicators, judging the validity of evaluation criteria, judging the availability of information, judging the orientation of performance appraisal

In most cases, job responsibilities do not directly generate performance indicators, but need to be decomposed and transformed. The methods of decomposition and transformation are as follows:

1. Direct search method: Direct search method is the most direct method, usually referring to the measurement indicators that can be detected based on the first reaction.

2. Content decomposition: a kind of causal analysis of indicators, which refers to the decomposition of large indicators into small indicators.

3. Use PDCA: Analyze company metrics using the "plan-execute-check-feedback" cycle.

4. Using QQTC: The job indicators can be decomposed and assessed according to the four dimensions of Quantity, Quality, Time and Cost.

5. Key event method: The key event method refers to finding the core work events that need to be carried out to achieve strategic goals, and forming performance indicators.

• Identify indicators

Analyze potential capability requirements according to job responsibilities, extract job KPI indicators based on how fast, efficient, and economical jobs are, and screen indicators from strategic, critical, operability, and urgency levels based on the extracted indicators.

• Design specifications

1.   Quantitative indicators refer to key performance indicators that can be accurately defined, accurately measured, and can set performance goals and reflect work results. Quantitative indicators are divided into two types: absolute and relative. Absolute quantity indicators such as sales revenue, relative quantity indicators such as sales revenue growth rate. Commonly used quantitative index design methods include percentage rate method, level difference method, addition and subtraction method.

2. Qualitative indicators refer to key performance indicators that can be accurately defined, but the cost of accurate measurement is too high, and performance goals are difficult to quantify. Such as work negligence mistakes, work completion timeliness and so on. Different from quantitative indicators, its performance objectives are qualitative descriptions rather than quantitative precise numbers.

Qualitative index design methods include graded evaluation method, either-or method, and either-or method.

The determination of performance appraisers is generally determined through the top-down or 360 evaluation method. The evaluation information is generally provided by a third party as much as possible, and the performance goals are determined through historical data, benchmarking comparisons, and competitive commitments.

• Judgment indicator

How do we judge whether the indicators we designed are effective? In general, we can evaluate the effectiveness of indicators from the perspectives of relevance, controllability, practicability, accuracy, measurability and cost. Measure, at the same time, develop related tools for our indicator measurement, and ultimately, form our complete job performance indicator library.

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