Theory “Management of employee performance factors”

Welcome all. I have been working as an Internet project manager for more than four years, and during this time I have developed a theory that I want to tell you, and maybe you can help me bring it to practical implementation.

This theory will be useful to team leaders, human resources managers, project managers, art directors and heads of sales departments, who have a large staff of people whose work results directly depend on the emotional and psychological state of the employee.

I was faced with this problem when the management asked me the question: how much my employees satisfy me and what I do so that they would become more effective.
Therefore, I had to evaluate programmers, designers, copywriters from different angles and, if possible, give a personal pill for everyone to hand over the project to the deadline.

There are two solutions - trust your experience and intuition, or “digitize” your colleagues by keeping their activity history.

Managing employee performance coefficients ($ .ITE)

Task: creating a manager’s card, first collecting data for a certain period of time, and then finding the relationships between these data, determining the “medicine” with which you can improve the manager’s effectiveness. (It looks like BigData, right?)

With a large number of managers, a large number of remote offices, the
possibility of personal control of each manager as an employee and as a person is lost.
Then I took the sales manager as an example and try to reveal the essence of my theory using his example.

The theory of energy conservation is taken as the basis of the theory:

If you look at the manager as a production asset, you can understand that all investments in it (time (t), money ($), information (i), energy (e)) should be justified and bring even more time, money, information, energy to the company.

Consider the input that the Manager receives to a greater or lesser extent:
  • Money ($ 1): salary, bonuses, personal business.
  • Information (i1): training, insider, calls, analyzes, meetings, brainstorming.
  • Time (t1): days off, holidays, short working hours, drop in turnover (for example, refusal of reports, allocation of an assistant), the ability to work remotely, bouts and rallies.
  • Energy (e1): Sport, health, family, team friendliness, company loyalty, corporate parties, entertainment at work.

The presence / absence of these factors positively or negatively affects the output, i.e. what the company ultimately gets from the employee’s work. Their growth or increase. The manager in this case is a set of functions that transform the input data so getting output variables ($ 1, i2, t2, e2), and leaving personal variables ($ ∆, i∆, t∆, e∆).

To personal variables, we respectively assign:

  • Money $ ∆: company profit, number of paid holidays, losses, extra overtime unpaid work.
  • Information i∆: personal growth, character development, acquisition of professional knowledge.
  • Time t∆: free time, no work after the end of the working day.
  • Energy e∆: initiative, team

By the weekend ($ 1, i2, t2, e2) or corporate, variables we can include:

  • Money $ 1: a share in the total profit of the company, along with an increase in the profit of the company itself, KPI, fewer paid holidays, losses, additional overtime unpaid work.
  • Information i2: training other employees, finding new solutions to problems, increasing the number of calls, participating in meetings and exhibitions, working with insiders.
  • Time t2: speed of work, solution of goals, absence / presence of unnecessary negotiations within the company, increased call efficiency, delay in work.
  • Energy e2: initiative, team, manager loyalty to the company.

Time and money are very easy to evaluate. These are quantitative indicators. It is more difficult to evaluate information and energy, since there are no quantitative indicators, but you can enter a coefficient showing a deviation from the norm.

For example: a person was sick (coefficient e1 = 0.5) but continued to go to work, as he became the manager of a new project. Its e1 = 0.7. He was able to rally a friendly team (e2 = 1.3), which worked on the weekend ($ 2 = 1.1). Based on the energy conservation law, we obtain that e∆ = e2-e1 = 1.3-0.7 = 0.6, and at the same time we see that the variables e and $ (in a particular example, but in fact all) are dependent on each other from a friend as some function, let's call it F. Returning to our example, we get that e∆ is 0.6, which is true since the person was sick, but at the same time he spent his energy on extracurricular work and a new project, while generating $.

We will write down the formulas that we received:

$ ∆ = $ 2- $ 1
i∆ = i2-i1
t∆ = t2-t1
e∆ = e2-e1

Accordingly, we will get the manager’s card, if he understands whether he spends or generates resources. After a while, by the coefficients you can judge where he has problems and what needs to be influenced.

f ($) = x1 * ($ 2- $ 1) / $ 2 = x1 * $ ∆ / $ 2
f (i) = x2 * i∆ / i2
f (t) = x3 * t∆ / t2
f (e) = x4 * e∆ / e2

where x1, x2, x3, x4 are the variables of each person, because it is not known how the change in the input data will affect it ($ 1, i1, t1, e1.)

If you look at the value of these functions in time, i.e. build a graph where the abscissa is t and the ordinate is one of f (), we get a change in personal variables in time and an increase in manager’s efficiency and personal profitability. From here you can get that:

An ideal manager is one whose function of personal variables is direct, i.e. he gives more than he receives, being a generator of the flow of money, time, energy, information.

However, based on the formulas, it is clear that in the long run it is impossible to be an ideal manager - giving all the companies away while in the red. You can only convert i, t, e to $.

Since the goal of the company is to make a profit, it is necessary to find the dependence of f ($) on f (i), f (t), f (e). The most commonplace is the selection of functions in Excel.

If you are interested, I think I can invent an example of a document on the basis of which it will be possible to try this theory in practice.

That's all, I’m waiting for your questions here or at ivanmorev (at)

Cons of the theory:
The theory does not take into account the presence of an employee at the time of hiring some level of his resources, but due to the fact that the data will be collected over a long period of time, their influence will be leveled.

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