Review results communication to the employee : This is the last step of the
196 CASE STUDIES
Level 1 Level 2
Level 3 Levels 1, 2 Items Plus . . .
Level 4 Level 3 Plus
Technical Expertise
Demonstrates basic
engineering skills.
Work is of good quality.
Works on tasks of low
to medium complexity,
based on specifications
developed by others.
Working technical knowledge in one
technical area. Work employs
company - wide BKMs.
Shows consistent growth
improvement in areas of
contribution.
Works on tasks of low to
medium complexity,
based on specifications
developed by others.
Regarded as an expert in area of
contribution. Work has high
quality consistent with the complexity
and risk of assignment.
Work either extends or employs
company - wide BKMs.
Shows consistent growth
improvement in area of expertise and its
application.
Needs minimal assistance on
medium to complex tasks.
Regarded as an expert in several
technical areas. Understands risks
and manages them effectively.
Exhibits initiative independence in
finding ways to ramp up in new
technical areas.
Comfortable with medium to
high complexity projects.
Teamwork and Leadership
Viewed by peers as
a positive team player;
demonstrates a professional
attitude.
Gives credit where credit is
due. Viewed by
peers as a positive
team player; demonstrates
a professional attitude.
Displays a willingness to
volunteer for projects outside
job scope.
Gives credit where credit
is due. Viewed by peers
as an excellent role model for
communication, teamwork, and
leadership skills.
Shifts between leader and follower
as needed. Sets clear
expectations and requirements
for team. Networks
effectively to share methods
and information to uncoversolve
issues.
Openly shares and accepts ideas.
Viewed by manager as more
of a peer than a subordinate.
Builds credibility and consensus
both within team and external to
team.
Identifies problems and
solves them.
Business Understanding
Understands high level of
how his work impacts the
whole project. Understands
how hisher work and that
of hisher immediate
work group fits business
goals. Independently
adapts hisher work and that
of hisher immediate
work group based on a solid
understanding of business goals.
Identifies, quantifies, and
flags problems at a team level.
Proactively generates
possible solutions to problems
including cost benefit analyses;
drives solutions across the project.
Project Human Resource Management 197
Problem Solving
Actively seeks appropriate
guidance to overcome
roadblocks issues.
Identifies, quantifies, and
flags problems. Proposes viable
solutions to problems and
analyzes options with stakeholders.
Investigates and overcomes
challenges through creative methods,
principals, and practices.
Learnings from other projects are
incorporated such that problems encountered
previously are avoided on current
project.
May contribute to project - level
productivity enhancements.
Correctly implements technical solutions
of a projecttask involving a small
team of engineers. Crisply identifies
problem statement and develops a
phase solution plan.
Contributes to productivity
enhancements. Responsible for
developing a function, reusable
by other projects.
Planning Scheduling
Executes to schedule on
assigned work with attention
to detail.
Clearly communicates
workschedule to supervisor.
Tracks progress against schedule.
Detects and promptly flags
schedule risks. Clearly
communicates workschedule to
supervisor. Develops own
plansschedule; can organize and
schedule group tasks. Recognizes the
importance of setting, tracking,
and meeting schedules.
Identifies schedule - limiting tasks and
proactively searches for improvements.
Deals effectively with dynamically
changing circumstances
and minimizes negative impact
consequences. Performs proper
scoping of tasks and risk
assessment. Detects schedule
risks and communicates and
addresses them quickly.
Proactively provides options
for controlling schedule change.
Coach, Train
Mentor Freely and
proactively shares
knowledge with others.
Freely and proactively shares
knowledge with others.
Provides guidance to
the projectteam in area of
expertise.
May lead or act as primary
reviewer during designproject
reviews. Considered
the primary reviewer for
high - level product documents.
Clearly presents concepts to
outside groups and upper - level
management.
Produces clear technical
documents and training materials.
Minimum Qualification
Guidelines BS 0+ years
experience. MS 0+ years
experience. BS 3+ years
experience or MS 2+ years
experience. BS 4+ years
experience or MS 3+ years
experience or PhD 0+ years
experience.
198 CASE STUDIES
RATING AND RANKING
The outcomes of the evaluation process are a measurement of employees ’ per- formances, rewarding those who performed to expectations, developing all
employees, and adjusting their compensations. Some people think that the review and evaluation is done at a certain time, such as the beginning of the year, but
the truth is that the review process is a year - long process. Managers ’ observa- tions of employee performance are continuous. Managers set the expectations
for employee performance at the beginning of the year and communicate them clearly to employees. Table 9.1 shows the level of performance set by the organi-
zation for the fi rst four job levels at SEMITech. Each employee should know these expectations by heart and perform according to their job level or higher. After all,
employees are going to be measured against these expectations which means they are going to be “ Rated and Ranked ” with these performance metrics in mind.
Direct Manager Rating DMR
Managers evaluate annual employees ’ performances and determine their ratings. The “ rating ” is just an indication of the employee ’ s performance compared to the
manager ’ s expectation and compared also to peers ’ performance. Simply put, it is a score of “ how each employee performed. ” The “ measuring stick ” is a matrix,
such as the one in Table 9.1 , preset by the company or the specifi c department. The manager ’ s expectation is this measuring stick. It should not be set higher or
lower than the expectation set for the employee ’ s job level. For example, if an employee is level 1, the manager ’ s expectation should not be that the employee
should manage hisher own tasks or perform on par. At the same time, a level 4 employee should not be expected to be given low - level instructions on how to
perform their tasks.
For SEMITech, an employee gets one of five ratings: 1. Outstanding O: This rating indicates the employee consistently outperforms
peers with similar job scope and responsibilities. 2. Overachieve OA: This indicates that the employee achieved results that go
beyond the requirements of the job in all key areas. The employee often out- performs others with similar job descriptions and level.
3. Meet Expectation ME: The employee makes a solid contribution in key areas of responsibility with some guidance and supervision. The employee
performs on par with peers with the same level and similar responsibilities. 4. Below Expectation BE: The employee successfully meets some but not all
of the responsibilities and expectations outlined in Table 9.1 . Heshe requires substantial supervision for the level of experience at which heshe was hired.
The employee performs below peers with similar responsibilities. 5.
Need Improvement NI: Frequently does not meet job requirements and needs substantial supervision and more guidance than is justified to carry
Project Human Resource Management 199
out responsibilities. Heshe consistently underperforms job requirements
compared to peers with a similar level of experience. The DMR process is as follows:
1. The employee provides a self - assessment sheet describing the employee ’ s view of hisher performance. The self - assessment contains the employee ’ s current
position and area of responsibilities, main achievements of the previous year, main strengths, and areas of improvements.
2. The manager and the employee discuss the self - assessment and feedback is provided by the employee ’ s peers and customers about hisher performance.
They also discuss a development plan. The manager integrates the feedback with the self - assessment and has an initial review for the employee.
3. Based on the discussion, the performance matrix is created showing the
employee ’ s self - assessment, the feedback solicited from peers, the manager ’ s observations, and a comparison of employee ’ s performance to his peers in the
same team. The manager then assigns a “ Rating ” to the employee
4. The manager discusses his decision with his manager to ensure proper rating distribution. Then the manager creates a matrix with all employees ’ names and
their ratings. The matrix also includes employees ’ levels and positions. See Table 9.2 .
Organization Rating and Ranking Session
After the manager decides on a rating for each of his subordinates, an objective rating and ranking calibration session is assembled on the organizational level
Table 9.2 Direct Manager ’ s Rating and Ranking Matrix Rank
Name Level
Position
1 John Smith I
2 SW Engineer
2 Jane Doe
4 HW Engineer
3 Samantha Jay
1 SW Engineer
4 Dennis McDonald
3 SW Engineer
5 Vijay Krishna
5 SW Engineer
6 Hou Meng
4 SW Engineer
7 Sasha Tee
3 SW Engineer
8 Matt Pen
1 SW Engineer
9 Jacob Gauge
1 SW Engineer
10 Kyle Mist
1 HW Engineer
200 CASE STUDIES
and attended by all peer managers of the same organization and the second - or third - level managers. The purpose of this staff level review is to ensure each
employee ’ s performance is evaluated relative to the expectations of the job level set by the organization and the peer performance in other teams. In other words,
the employee performance is not only measured against his immediate peers of the same team, but also against peers with the same job level from other teams
in the organization. This is to ensure that peers from different teams in the same big organization are treated and compensated equally. This is an attempt to neu-
tralize a manager ’ s bias.
The following steps are SEMITech ’ s organization level rating and ranking process which spans across multiple sessions over one to three months.
1. Each manager provides his own list of employees with their performance rat- ings, positions, and job levels see Table 9.2 .
2. A matrix is created with all employees in the organization of the same job level and function. They are grouped together to rank them against one another.
3. The high - level managers review the matrix in depth and analyze the achieve- ments of all employees. These managers mark questionable ratings and make
notes to question managers for details. 4. An R R meeting session is scheduled. The meeting starts with each manager
justifying to the second - or third - level managers ’ questionable ratings, pro- motions, and demotions of hisher employees. This step is very emotional, as
managers try to defend their employees ’ achievements as they reflect on their own performance eventually. It is very likely that high - level managers will ask
their subordinate managers to reconsider some ratings for some employees and maybe re - rate them and submit a modified matrix.
5. It may take several sessions to reach a final Organization Rating and Ranking. The final outcome of these sessions is a calibrated rating and ranking matrix
which means some ratings for some employees may change. An employee may not get promoted this year as hisher manager would have wished. Some
employees may get promoted and some may get demoted. Historically speak- ing, about 90 to 95 percent of submitted employees ’ ratings are approved by
the second - or third - level managers from the first time because all managers go through review training beforehand and they realize they have to justify
every decision they make on employees ’ ratings.
6. The second - or third - level manager approves the final rating and ranking matrix after heshe considers SEMITech ’ s own performance rating distribu-
tion guideline. The guideline is as follows: 15 to 20 percent for OutstandingOverachievers
65 to 75 percent Meet Expectation 5 to 15 percent Below ExpectationNeed Improvement
● ●
●
Project Human Resource Management 201
7. After finalizing the organization R R matrix, each manager takes the ratings and integrates them in the employees ’ reviews with compensation changes
made where applicable. Many of SEMITech ’ s employees wonder if their annual review and rating
and ranking processes are the best method to measure employee performance. Employees point to the fact that the average employee worked for SEMITech
for only five years. Senior management thinks the process provides the best and most fair method for employee evaluation. They point to the evidence that the
company has been very successful in the industry for more than 30 years.
Discussion items
1. Discuss the advantages and disadvantages of SEMITech ’ s rating and ranking approach.
2. Does the employee ’ s promotion depend heavily on the marketing skill of their manager to represent them well during the R R session?
3. How do the government
’ s diversity quota and affirmative action impact
SEMITech ’ s R R approach?
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