THE CONCEPTUAL FRAMEWORK

DIFFERENT VIEWS ON WHAT PERFORMANCE IS PERFORMANCE AS OUTCOMES Results obtained Something that a person leaves behind as part of a purpose Outcome of work done Work done is linked to goals, customer satisfaction and economic contributions PERFORMANCE AS BEHAVIOUR It is a behviour or a action relevant to attain goals Behaviour of what employees do (not what produce) Behaviour of employees that can be measured Job-specific tasks proficiency Non-job specific behvaiours/proficiency (OCB) Oral and written communication proficiency Demonstration of effort Maintenance of personal discipline Supervision/leadership/management/administration PERFORMANCE AS BOTH Performance means both behaviours and results (outcomes) Mental and physical effort applied to tasks to get results When people perform well, it also covers results they deliver Carrying out work (behaviour) and accomplish outputs/outcomes

FACTORS AFFECTING PERFORMANCE THE LEARNER Needs the right level of competence, motivation, support, incentives to perform effectively THE LEARNER’S WORK GROUP Members can exercise strong positive or negative influence on the attitudes, behaviour and performance of learner THE LEARNER’S MANAGER Must provide continuous support and act as a role model, coach and stimulator THE ORGANISATION May produce barriers to effective performance if there is no vision, ineffective structure, culture or work systems Unsupportive employee relations policies and systems Inappropriate leadership and management style

FACTORS AFFECTING INDIVIDUAL PERFORMANCE DECLARATIVE KNOWLEDGE Facts concerning task requirements and goals PROCEDURAL KNOWLEDGE Combination of knowing what to do and how to do it MOTIVATION Level and persistence of effort

SYSTEMS FACTORS AFFECTING INDIVIDUAL PERFORMANCE Organisations should be treated as open systems which transform inputs into outputs Systems theory is the basis of input-process-output-outcome model of managing performance, which assess the entire contribution that an individual makes within the system in carrying out allocated job Inputs: skills and knowledge that an individual brings to a job Process: how people actually performs their jobs Outputs: results of performance expressed in quantified terms such as sales volume Outcomes: a visible effect which is the result of effort, but not measured in quantified terms This model is important becuase it: Provides a basis for measuring performance All the factors that influence performance are taken into account when assessing it

Perspectives & the “Cause-and-Effect” Principle Outcomes Inputs Transformation Outputs Organizations run on 7% of the data that they collect (according to a recent IBM study). The idea is not to invent new measures but rather how to use the data that we are already collecting. Edward de Bono “The same data in a new context creates new information.” Think of any SO as an “system” with inputs, transformation and outputs. ALWAYS use this tool to facilitate the discussion on indicators – it is the only way to get great indicators that everyone buys into. REMEMBER – the monthly trend of the indicator is far more important then the absolute value at any point-in-time. Organisational Learning Perspective Internal Process Perspective Financial Perspective Customer Perspective Public Sector Value Creation Process

CONTEXTUAL FACTORS Systems operate within the context of organisation Managers needs to understand patterns of behaviour observed and predict in which direction behaviour will move Use his knowledge to control behaviour Manager be able to diagnose the situation he is working in People should know the situation they work in The context includes organisational culture, employee relations climate, people involved and the internal environment, organisational structure, and technology and working practices, size, and external environment.

CONTEXTUAL FACTORS Organisational culture: shared beliefs, norms and values – can shape the way people act and interact Influence the way things gets done, how managers behave in managing people Employee relations climate: Perception of relationship between managers and employees Trust one another, fair treatment, open and honest management Harmonious relationship, employees commitment People: Composition of workforce (knowledge levels, abilities etc vary) Organisation structure: structure supporting the objectives setting functional, process, flat structures Technology and working practices: High technology requires innovation Extent to how computer/machine is controlled Size: PM of small firms cannot be scaled down to large companies External environment: turbulence in competitive, business, economic and political environment must be response or adapted to quickly

THEORIES UNDERPINING PERFORMANCE MANAGEMENT GOAL THEORY Four mechanisms that connect goals to performance outcomes: Direct attention to priorities & stimulation of effort Knowledge and skills to increase chances of success People use their skills more, if goals are challenging EXPECTANCY THEORY People expect rewards will follow effort & it will motivate them PM must influence behaviour to achieve better results Relationship between effort, achievement and reward is motivating people and provide them with sense of direction People want needs satisfaction, develop abilities, foster self-belief Positive feedback provide rewards in the form of recognition People use energy to actions to maximise needs satisfaction Evaluations and outcomes must be structured for employees to focus their actions in the ways desired by organisation CONTROL THEORY Focus on feedback as a means to shape behaviour Discrepancy between what people are doing and what is expected Hence, take a corrective action to overcome discrepancy Feedback is a crucial part of PM process

THEORIES UNDERPINING PERFORMANCE MANAGEMENT REINFORCEMENT THEORY Success in achieving goals and rewards are positive incentives and reinforce successful behaviour Positive feedback provides for positive reinforcement Constructive feedback reinforce behaviour which seek alternative means to achieve goals SOCIAL LEARNING THEORY It combines aspects of reinforcement and expectancy theory Emphasise importance of internal psychological factors, expectations about values/goals and ability of individuals to reach them SELF-EFFICACY THEORY Self motivation will be liked to self-belief of individuals that they will be able to accomplish certain tasks or learn certain things Give opportunity to employees to discuss with their managers how they can do more Managers must encourage self-belief when discussing performance and development

PERFORMANCE MANAGEMENT VALUES Belief that: Management has responsibility to create conditions in which high performance is achievable Everyone is concerned with improvement of performance (joint responsibility) People should be valued for what they are and what they achieve Individuals be given opportunity to express their views about objectives the are expected to achieve Individual needs and organisation needs be recognised and respected Individuals to understand and agree to measures used to monitor their performance and be able to track their own performance against measures Individuals have right to obtain feedback on their performance and to comment on feedback Know why decisions affecting them (emerging from performance reviews) have been made and should have the right to appeal Focus should be developing performance rather than merely managing it Priority be given to developmental aspects of performance management