Defining Performance and Choosing a Measurement Approach: Overview Determinants of Performance Performance Dimensions Approaches to Measuring Performance Prentice Hall, Inc. © 2006

Defining Performance Performance is: Behavior What employees do Prentice Hall, Inc. © 2006

Defining Performance Performance is NOT: Results or Outcomes What employees produce Prentice Hall, Inc. © 2006

Behaviors labeled as Performance are: Evaluative Negative Neutral Positive Multidimensional Many different kinds of behaviors Advance or hinder organizational goals Prentice Hall, Inc. © 2006

Behaviors are Not always Observable Measurable Prentice Hall, Inc. © 2006

Results/Consequences may be used To infer behavior As proxy for behavioral measure Prentice Hall, Inc. © 2006

Determinants of Performance Declarative Knowledge X Procedural Knowledge Motivation Prentice Hall, Inc. © 2006

A. Declarative Knowledge Information about Facts Labels Principles Goals Understanding of task requirements Prentice Hall, Inc. © 2006

B. Procedural Knowledge Knowing What to do How to do it Skills Cognitive Physical Perceptual Motor Interpersonal Prentice Hall, Inc. © 2006

C. Motivation Choices Expenditure of effort Level of effort Persistence of effort Prentice Hall, Inc. © 2006

Implications for Addressing Performance Problems Managers need information to accurately identify source(s) of performance problems Performance management systems must Measure performance AND Provide information on SOURCE(s) of problems Prentice Hall, Inc. © 2006

Factors Influencing Determinants of Performance: Individual characteristics Procedural knowledge Declarative knowledge Motivation HR practices Work environment Prentice Hall, Inc. © 2006

Performance Dimensions: Types of multi-dimensional behaviors: Task performance Contextual performance Pro-social behaviors Organizational citizenship Prentice Hall, Inc. © 2006

Task performance Activities that transform raw materials help with the transformation process Replenishing Distributing Supporting Prentice Hall, Inc. © 2006

Contextual performance Behaviors that contribute to organization’s effectiveness and provide a good environment in which task performance can occur Prentice Hall, Inc. © 2006

Differences Between Task and Contextual Performance Task Performance Varies across jobs Likely to be role prescribed Influenced by Abilities Skills Contextual Performance Fairly similar across jobs Not likely to be role prescribed Influenced by Personality Prentice Hall, Inc. © 2006

Why Include Task & Contextual Performance Dimensions in PM system? Global competition Teamwork Customer service Supervisor views Prentice Hall, Inc. © 2006

Job Performance in Context That produce various results A performer (individual or team) Engages in certain behaviors In a given situation TRAIT BEHAVIOR RESULTS Prentice Hall, Inc. © 2006

Approaches to Measuring Performance Trait Approach Emphasizes individual traits of employees Behavior Approach Emphasizes how employees do the job Results Approach Emphasizes what employees produce Prentice Hall, Inc. © 2006

Trait Approach Emphasis on individual Evaluate stable traits Cognitive abilities Personality Based on relationship between traits & performance Prentice Hall, Inc. © 2006

Trait Approach (continued) Appropriate if Structural changes planned for organization Disadvantages Improvement not under individual’s control Trait may not lead to Desired behaviors or Desired results Prentice Hall, Inc. © 2006

Behavior Approach Appropriate if Not appropriate if Employees take a long time to achieve desired outcomes Link between behaviors and results is not obvious Outcomes occur in the distant future Poor results are due to causes beyond the performer’s control Not appropriate if above conditions are not present Prentice Hall, Inc. © 2006

Results Approach Advantages: Less time Lower cost Data appear objective Prentice Hall, Inc. © 2006

Results Approach (continued) Most appropriate when: Workers skilled in necessary behaviors Behaviors and results obviously related Consistent improvement in results over time Many ways to do the job right Prentice Hall, Inc. © 2006