Chapter 4 Defining Performance and Choosing a Measurement

Chapter 4 Defining Performance and Choosing a Measurement Approach Amber Malmstead

4. 1 Defining Performance

Performance Management Systems Includes measurements of: Behavior What an Employee does Results The outcomes of an Employee’s behavior

Characteristics of Performance Behaviors Evaluative Can be judged: negative, positive, neutral The behavior’s contribution to the individual, unit, or organization Multidimensional Many different behaviors that advance or hinder organization’s goals

Not all Behaviors are Measurable Evaluate the results

4. 2 Determinants of Performance

Performance Factors Declarative Knowledge Procedural Knowledge Motivation

Declarative Knowledge of facts and things Task requirements Labels Principles Goals

Procedural Knowledge Knowing what to do and how to do it Cognitive skills Physical skills Motor skills Interpersonal skills

Motivation Choice to expend effort Choice of level of effort Choice to persist in the expenditure of that level of effort

Declarative Knowledge Procedural Knowledge Motivation Performance

Deliberate Practice 1. Approach Performance with the goal of getting better 2. As you are performing, focus on what is happening and why you are doing things the way you do 3. After your task, seek performance feedback from expert sources; the more sources the better 4. Build mental models of your job, situation, and organization 5. Repeat steps 1 -4 continually

Implications for Addressing Performance Problems A lack one or combination of Declarative Knowledge, Procedural Knowledge, or motivation causes poor performance Possible solution: Employee Training There may not be a solution

Factors Influencing Determinants of Performance Employee past experiences Human resources (HR) practices Work environment Survivor Syndrome: cause by downsizing Results in employee frustration, resentment, anger, and negative effect on motivation

4. 3 Performance Dimensions

Two Important Types of Behavior Task Performance Tasks involving the production process from raw materials to final good or service Contextual Performance Behavior contributing to an organization‘s effectiveness caused by a good working environment Teamwork and Trust

Task Performance Activities that transform raw material into goods and services Activities that help with the organization’s transformation process in efficiency and effectiveness: Replenishing the supply of raw materials Distributing its finished product Providing planning and coordination Supervising Staff functions

Contextual Performance Persisting enthusiasm and exerting extra effort as necessary to successfully complete a task Volunteering to carry our tasks not formally a part of the job Helping and cooperating with others Following organizational rules and Procedures Endorsing, supporting, and defending organizational objectives

Table 4. 2 Main Differences Between Task and Contextual Performance Task Performance Contextual Performance Varies across jobs Fairly similar across jobs Likely to be role prescribed Not likely to be role prescribed Influence: abilities and skills Influenece: personality

Why Should Task and Context Performance be Included in Performance Management Systems 1. 2. 3. 4. 5. Global competition is raising the levels of effort required by employees Globalization increased the need to offer outstanding customer service Many organizations are forming employees into teams It is believed to increase fairness if Contextual Performance is measured along side Task Performance Difficult for supervisors to ignore contextual performance’s effect on overall employee performance

Why Should Task and Context Performance be Included in Performance Management Systems (Continued) All organizational members are given an opportunity to bring the added individual value to the organization regardless of cultural and behavioral differences

Voice Behavior Additional type of behavior associated with Context Performance Emphasizes expression of constructive challenges with goals to improve Challenges the status quo Making innovative suggestion for change and standard procedures modifications

4. 4 Approaches to Measuring Performance

Figure 4. 1 Job Performance in Context A performer (individual or team with certain traits) In a given work situation Engages in certain behaviors That produce various results

Behavior Approach How It Is Done Circumstances: No obvious link between behavior and results When outcomes occur in the distant future choose to evaluate behaviors in short intervals Poor results are due to causes beyond the performer’s control

Results Approach The Bottom-line Focuses on what is produced (sales, number of errors, time spent with customers, and accounts acquired) Circumstances: Workers are skilled in the needed behavior: based on knowledge, skill, and results Behaviors and results are obviously related Results show consistent improvement over time There are many ways to do the job

Table 4. 3 Behavior Approach V. Results Approach When to adopt a behavior approach to measure performance : The link between behaviors and results are not obvious Outcomes occur in the distant future Poor results are due to causes beyond the performer’s control When to adopt a results approach to measure performance: Workers are skilled in the needed behaviors Behaviors and results are obviously related Results show consistent improvement over time There are many ways to do the job right

!!!!Surprise!!!! Most companies measure both Behavior and Results Approaches

Trait Approach Emphasizes the Individual Ignores Specific situations Behaviors Results Evaluates Cognitive ability (not easily trainable) Personality (not likely to change over time)

Trait Approach (Continued) Believes in a positive relationship between Abilities Personality traits Desirable work-related behaviors

Challenges of the Trait Approach 1. Traits are not under control of individuals The traits are fairly stable over one’s lifespan Not likely to change even with substantial effort Employees may feel this approach to be unfair 2. Possessing a certain trait does not mean equal desired results Example: Intelligence + Faulty Equipment = Efficiency

Chapter 4 Defining Performance and Choosing a Measurement Approach Amber Malmstead