I have come across the concept of ‘score card’ for
employees in an organization. It is an employee performanceassessment tool.
Each employee’s work is categorized in to some parts and each part is given
some weightage depending on its significance. The employee is allotted with a score in each part of the work depending
on his performance in that work. Partwise performancepercentages and overall performancepercentage are calculated and based on these parameters, his salaryhike is decided for the coming fiscal. Can we take the average of all the partperformance
percentages to get the overallperformance figure?
Let us consider
the following scenario:
The deciding
parameters are Work Efficiency, Punctuality, Analysation skills and Problem
solving skills each having equal weightage of 25%. And an employee has got the following
scores:
Parameter

Weightage

Employee score

Part %

Work efficiency

25

20

80%

Punctuality

25

25

100%

Analyzation skills

25

15

60%

Problem solving skills

25

20

80%

The overall
performance can be calculated straightaway like
Total score
achieved by employee/ total max. Score = (20+25+15+20)/(25+25+25+25)
= 80%
I can also find
it by taking average of part percentages:
(80+100+60+80)/4
= 320/4 = 80%
Now I
change the weightages allotted to the parameters like this:
Parameter

Weightage

Employee score

Part %

Work efficiency

50

40

80%

Punctuality

20

20

100%

Analyzation skills

10

6

60%

Problem solving skills

20

16

80%

Overall
performance % = (40+20+6+16)/(50+20+10+20) = 82%
But if I do it by
taking average of individual percentages, I will get (80+100+60+80)/4 = 320/4 =
80%
Where
has it gone wrong?
Here
comes the concept of weightages. I need to take care of the weightage of each
part. In the first problem, the weightage given to each part is 25 and hence weightage
fraction for each part is 25/100 = ¼. So when I say that the overall average is
(80+100+60+80)/4, it really meant this:
“(1/4)*80
+(1/4)*100 +(1/4)*60 +(1/4)*80” Here I multiply the partpercentages with the
respective weightage.
Coming to the
second problem, the weightage for the first part is 50/100 = ½, weightage for
second part is 20/100 = 1/5, weightage for third part is 10/100 = 1/10 and
weightage for fourth part is 20/100 = 1/5.
So the overallperformance = (1/2)*80 + (1/5)*100
+ (1/10)*60 + (1/5)*80 = 40+20+6+16 = 82%
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