Defining Performance and Its Metrics

Performance can be defined as the value an employee contributes to their organization, with high performance indicating significant value addition and low performance resulting in value drain. Managers can effectively assess performance by asking three pivotal questions: whether the employee is making their work easier or harder, whether they would rehire them, and how they would feel if the employee resigned. This approach emphasizes focusing on outcomes rather than minute details, allowing managers to evaluate employees based on their contributions instead of getting lost in daily tasks. By prioritizing this framework, managers can avoid the pitfalls of excessive empathy that often leads to overlooking underperformance.