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MODULE 2

BY : Payal Roy S

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Defining performance Determinants of performance Dimensions of Performance Approaches to Measuring performance Diagnosing the causes of poor performance Differentiating task from contextual performance Choosing a performance Measurement approach Measuring results and behaviors Gathering performance information

Implementing performance management system Conducting Staff Appraisals: Introduction, need, skills required, the role of the

appraiser, job description & job specification, appraisal methods, Raters errors,data collection, conducting an appraisal interview, follow up & validation, presentthoughts & future directions.

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An action (behavioral) aspecta) assembling parts of a car engine

b) selling personal computersc) performing heart surgery

An outcome aspect of performance

a) numbers of engines assembledb) sales figuresc) number of successful heart operations

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Is about behaviors or what employees do, & not about whatemployees produce or the outcomes of their work.

Is evaluative (i.e., we judge it based on whether it helps advance orhinder organizational goals) & multidimensional (i.e., manybehaviors are needed to describe an employees performance).

Is determined by a combination of declarative knowledge (i.e.,information), procedural knowledge (i.e., know-how), andmotivation (willingness to perform)Performance = Declarative knowledge Procedural knowledge Motivation

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Declarative knowledge :x Refers to knowledge about facts and things

x It represents the knowledge of a given tasks requirements

x For ex, knowledge of principles, facts, etc

Procedural knowledge & skill :x If declarative knowledge is knowing what to do, procedural knowledge

and skill is knowing how to do it

x For ex, procedural knowledge & skill includes cognitive skill, perceptual

skill, interpersonal skill, etc.

Motivation :x A combined effect from three choice behaviorschoice to expend

effort, choice of level of effort to expend, & choice to persist in the

expenditure of that level of effortx It reflects the direction, intensity, & persistence of behaviors

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Interpersonal skill

Customer Service Orientation

Teamwork Effective Communication

Valuing Diversity

Analysis and Problem-Solving Decision-Making and Results Orientation

Adaptability

Fostering a Safe and Secure Environment

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To Evaluate : performance

To Control : How can managers ensure their subordinates are doingthe right thing

To Budget : which are crude tools in improving performance To Motivate : Giving people significant goals to achieve and then

use performance measures

To Celebrate : Organizations need to commemorate their

accomplishments To Promote : the system & the work force

To Learn : identifying what works and what does not

To ImproveWhat exactly should who- do differently to improve performance

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An emphasis on the Employee leads to a Trait-basedApproach

An emphasis on Behaviors leads to a Behavior-basedApproach

An emphasis on Results leads to a Results-based Approach

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Individual traits that remain fairly stable throughout anindividuals lifespan (e.g., cognitive abilities or personality)

Most appropriate when an organization anticipates drasticstructural changes

Disadvantage : Traits are not under the control ofindividuals & even when individuals possess a specificpositive trait (e.g., high intelligence), this does notnecessarily mean that the employee will engage in

productive behaviors leading to desired results

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What employees do (i.e., how work is done). Most appropriate when

(a) it will take a long time to achieve the desired outcomes

(b) the link between behaviors and results is not obvious(c) outcomes are distant in the future(d) poor results are due to causes beyond the employees

control

May not be the best choice if most of these conditions arenot present.

In most situations, however, the inclusion of at least some

behavior-based measures is beneficial

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The outcomes and results produced by employees

Basically a bottom-line approach that is not concerned about howthe work is done as long as certain specific results are obtained

Most appropriate when(a) workers are skilled in the needed behaviors

(b) behaviors and results are obviously related(c) results show consistent improvement over time

(d) there are many ways to do the job right

Encourages employees to achieve the desired outcomes in creative& innovative ways

On the other hand, measuring only results is typically not welcomedby employees, even in types of jobs for which the expected result isvery clear

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In measuring performance adopting a results approach

First step : is to identify accountabilities : These are the various areas in whichan individual is expected to focus.

Second step : is to set objectives for each. Objectives should be (a) specific &clear (b) challenging (c) agreed upon (d) significant (e) prioritized (f) bound bytime (g) achievable (h) fully communicated (i) flexible & (j) limited in number

Third step : involves determining performance standards.

These are yardsticks designed to help understand to what extent the objective

has been achieved.

In creating standards, we must consider the quality, quantity and timedimensions.

Good standards are: (a) related to the position (b) concrete, specific, &measurable (c) practical to measure (d) meaningful (e) realistic & achievable

and (f) reviewed regularly

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In measuring performance adopting a behavior approach

First step :

Involves identifying competencies.Competencies are measurable clusters of KSAs critical in determining how resultswill be achieved.Examples of competencies are customer service, written or oral communication,creative thinking and dependability.

Second step :Involves identifying indicators allowing us to understand the extent to which eachindividual possesses the competency in question. These indicators are behavioralmanifestations of the underlying (unobservable) competency.

Third step :Includes choosing an appropriate measurement system, and there are two

choices: Comparative & Absolute.

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Comparative systems base the measurement on comparingemployees with each other

Simple rank order

Alternation rank order Paired comparisons

Forced distribution

Comparative systems are easy to explain, and the resulting data areeasy to interpret, thus facilitating administrative decisions

On the other hand, employees are usually compared with eachother in terms of one overall single category rather than specificbehaviors or competencies

This produces less useful feedback for employees to use for futureimprovement.

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Includes evaluations of employees performance without making direct referenceto other employees.

Such system includesEssays

Behavior checklists

Critical incidentsGraphic rating scales

Essays are difficult to quantify but produce useful and often detailed feedback. Behaviour checklists are easy to use and understand, Scale points used are often arbitrary, and we cannot assume that a one-point

difference has the same meaning along the entire scale (i.e., the differencebetween employees scoring 5 and 4 may not have the same meaning as thedifference between employees scoring 3 and 2).

Critical incidents allow supervisors to focus on actual job behavior rather than onvaguely defined traits, but gathering critical incident data may be quite timeconsuming.

Graphic rating scales are arguably the most frequently used method

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Campbell (1990) also mentioned several performance parameters that may have importantimplications for the job performance setting and should be investigated by industrial andorganizational psychologists.

The first one is the distinction between speed and accuracy. This distinction is similar to theone between quantity and quality.[9] Important questions that should be consideredinclude: which is most valued by the organization, maximized speed, maximized accuracy,or some balance between the two?What kind of trade offs should an employee makes? Thelatter question is important because speed and accuracy for the same task may beindependent of one another.

The second distinction is between typical and maximum performance. Sackett, Zedeck,and Fogli [10] did a study on supermarket cashiers and found that there was a substantialdifference between scores reflecting their typical performance and scores reflecting theirmaximum performance. This study suggested the distinction between typical andmaximum performance. Regular work situations reflect varying levels of motivation whichresult in typical performance. Special circumstances generate maximum employeemotivation which results in maximum performance.