| Literature DB >> 32981944 |
Herman Aguinis1, Jing Burgi-Tian2.
Abstract
Many organizations are curtailing or even abandoning performance management because of difficulties measuring performance and disruptions in performance-based pay due to the COVID-19 crisis. Contrary to this growing and troubling trend, we argue that it is especially important during the crisis to not only continue but also strengthen performance management to communicate a firm's strategic direction, collect valuable business data, provide critical feedback to individuals and workgroups, protect organizations from legal risks, and retain top talent. To do so, we offer a solution to overcome the challenges associated with measuring performance during a crisis. Specifically, we extend and expand upon the well-established Net Promoter Score measure in marketing and introduce the Performance Promoter Score (PPS) to measure performance. We offer evidence-based recommendations for collecting PPS information for individuals, workgroups, and other collectives, computing a Net Performance Promoter Score (NPPS); using multiple sources of performance data, and using PPS for administrative and developmental purposes as well as to provide more frequent performance check-ins. PPS is a convenient, practical, relevant, and useful performance measure during a crisis such as the COVID-19 pandemic, but it is also an innovation that will be useful long after the pandemic is over.Entities:
Keywords: COVID-19; Employee development; Employee performance; Leadership; Net Promoter Score; Performance appraisal; Performance management
Year: 2020 PMID: 32981944 PMCID: PMC7505577 DOI: 10.1016/j.bushor.2020.09.001
Source DB: PubMed Journal: Bus Horiz ISSN: 0007-6813
Recommendations for using and maximizing benefits of the Performer Promoter Score (PPS) to measure performance of employees, workgroups, and other collectives
| Recommendations | Implementation guidelines |
|---|---|
| 1. Collecting PPS for individuals, workgroups, and other collectives | Measure performance using the following three questions: How likely is it that you would recommend working with [name of individual, workgroup, or unit] to a friend or a colleague? Why did you provide the rating that you provided? What would it take to raise the score just by one point? Compute PPS summary statistics (e.g., mean, median) for specific individuals, workgroups, and units for making performance comparisons and establishing benchmarks See |
| 2. Computing a Net Performance Promoter Score (NPPS) | Subtract the percentage of detractors (6 and below) from the percentage of promoters (9s and 10s). See |
| 3. Using multiple sources of performance data (aka 360-degree systems) | Collect performance information from multiple sources (i.e., employees themselves, supervisors, peers, direct reports, partners, vendors, and customers) Use multiple strategies to create a list of raters who are sufficiently familiar with the employee or unit being assessed: Employees being rated can invite raters because they are familiar with the people with whom they interact closely Managers can also contribute to the list of raters thus minimizing employees’ personal bias The human resources function can use name rosters of workgroups, committees, and meeting attendees to invite people to evaluations for each other Use self-evaluations to enhance acceptance and gather information for performance improvements, but do not collect just self-ratings to make administrative decisions |
| 4. Using PPS for administrative purposes | Link reward, recognition, and promotion to PPS Reward employees promptly Use monetary as well as nonmonetary rewards |
| 5. Using PPS for developmental purposes | Give employees time to process and absorb the feedback and incorporate a debrief during performance conversations Use answers to the two open-ended questions to (a) identify areas of strengths and improvements, (b) establish new developmental goals, and (c) identify additional resources (e.g., training, improved IT support) that may be needed to improve performance When answers to the two open-ended questions are two voluminous to analyze manually, use text-analysis tools available in the public domain |
| 6. Using PPS to provide more frequent performance check-ins | Provide frequent feedback to adjust work hours, job responsibilities, and priorities, and create a sense of connection and belongingness |
Figure 1Performance Promoter Score (PPS) and calculation of the Net Performance Promoter Score (NPPS)
Illustrative Performer Promoter Score (PPS) information collected from direct reports of manager at a services organization
Recommendations for anticipating and minimizing problems with using the Performer Promoter Score (PPS) to measure performance of employees, workgroups, and other collectives
| Potential problem | Recommendations for addressing the problem |
|---|---|
| 1. Begging: Putting psychological pressure so that raters provide a high score | Warning employees and units that they should not preempt PPS scores by contacting potential data sources (e.g., “the company reserves the right to ask raters whether employees have mentioned PPS to them and, if they have, those scores would be automatically eliminated”) |
| 2. Nudging: Offering special incentives hoping to get higher ratings | Ensure rater anonymity and confidentiality |
| 3. Exchanging: Employees teaming up together to game the system (e.g., agreeing to give a score of 9 or 10 to each other) | Examine the quality of answers to the two open-ended questions to differentiate between people who are genuinely rating others as higher performers and people who are just giving out high ratings as favors |
| 4. Skewing the sample: Including only raters with whom employees have a positive relationship in the hopes of receiving a high rating | Use multiple methods to create the rater list: Raters are chosen by employees, managers, and by using rosters of various workgroups, committees, and meeting attendees Raters are chosen based on an analysis of email communication and identifying individuals with frequent and close work relationships When evaluating the performance of workgroups, use both internal and external raters |