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It's a tricky thing, in that performance is somewhat intangible. There is no universal measure of a good employee. There are a few ways of measuring general performance, but overall the process is situation specific. All you can do is look at the information you're given, and make the best judgment you can.
1. Ranking
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Rank all your employees in terms of performance. This is the simplest and crudest way of doing a performance evaluation, but it can often lead you to the easy conclusion. Analyze the difficulty of the job, the importance of the job to the overall goals of the company, and the ability of the employee doing the job. The people at the top of the ranking are worth keeping around. The people at the bottom of the ranking may not be.
Classify Jobs
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Break your business into its fundamental components. What exactly goes in to making your business run? Then, classify all the jobs your company provides using these components as your categories. If you find a job that doesn't fall into one of the essential categories, you may realize that employee is not as vital as he appears. Sometimes employees are very good at a job you just don't need them to be doing anymore.
Point System
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Using a point system is a fairly popular evaluation technique. Establish a set of compensable factors, such as difficulty of the work being done, level of authority and number of people required to get the job done. Once you have your list of compensable factors, go through each job and give it a score of how well it meets these factors. For example, if a job is very difficult to do, it would receive a high grade, but if it was fairly simple to do, the grade would be lower. This is a black and white way of seeing which jobs are the most important, and whether or not you can afford to lose an employee.
If all the positions at your company are invaluable, you'll have to look at the employees themselves. Analyze their contributions to see how frequently they contribute, the quality of the contributions, and the situations in which they contribute. Someone may do great work, but only when called upon to do so. Others may do work that is not as good, but they take great initiative. Figure out what qualities are most important to you in an employee, and find the people who best meet those requirements
Integrating Innovation, Leadership, and Cultural Change (local copy), Oct 2003 briefing by Garstka, Office of Force Transformation includes emerging competencies o
Change Leader Adapting to/managing/creating change Transformation Tolerance of others' views Implementation Leading with speed Communication skills Innovation Entrepreneurship Creating of new knowledge Risk taking and management Adaptability Leveraging technology Leading People Team builder Teamwork Cultural sensitivity Developing others Inspiring
Personal Leadership Vision Continuous learner Self-awareness Decisiveness Courage Aggressiveness Honesty and integrity Trust, loyalty, selflessness Initiative Energy and enthusiasm Results Driven Achievement oriented Accountable Collaboration Building coalitions Building consensus Partnering Building social networks Taking the risk to step beyond own
Problem Solving Interdisciplinary Collaborative Cutting Gordian Knots Influence Communications skills Negotiation skills Political acumen Strategic Thinking Mental agility Analytical Critical thinking Holistic/systems thinking Synthesis Thinking across boundaries Cognitive understanding External awareness
organization
Core Values are Integrity, Courage, Creativity, and Competence Vision & Strategy Force Application o Vision Creation & Execution o Operational Art o Strategic Art o Joint & Combined Warfighting o Strategic Awareness o SOF Integration o Opportunity Development o Joint SOF C4ISR Developing Partnerships o Situational Awareness o Communication Action Orientation o Collaboration o Problem Solving o Influencing/Negotiating o Decisiveness o Cultural Awareness o Initiative o Adaptability o Risk Management
Force Management o Asset Management o Technology Management o Resource Management Interpersonal Orientation o Team Building o People Development o Conflict Resolution
as of Jan 2004, from AFSLMO - posted here for comparison with final list above (click on column headings to go to expanded descriptions of competencies, including sub-competencies) Personal Leadership Leading People / Teams Leading the Institution o Exercising Sound o Inspiring, Empowering o Commanding Judgment and Exercising o Creating and Authority o Adapting Demonstrating Vision o Influencing & o Inspiring Trust o Shaping Strategy Negotiating o Leading Courageously o Translating Strategy o Attracting, Developing o Demonstrating Tenacity o Driving Transformation & Retaining Talent o Leading by Example o Thinking / Working o Fostering Teamwork & Across Boundaries o Assessing Self Collaboration o Applying Resource o Building Relationships Stewardship o Fostering Effective o Driving Execution Communication o Driving Continuous o Mentoring Improvement o Integrating Systems