Defining Performance and Choosing a Measurement Approach

Overview Defining Performance Determinants of Performance Performance Dimensions Approaches to Measuring Performance

Defining Performance Performance is: Behavior What employees do

Defining Performance Performance is NOT: Results or Outcomes What employees produce

Behaviors labeled as Performance are: Evaluative Negative Neutral Positive Multidimensional Many different kinds of behaviors Advance or hinder organizational goals

Behaviors are Not always Observable Measurable

Results/Consequences may be used To infer behavior As proxy for behavioral measure

Determinants of Performance Declarative Knowledge X Procedural Knowledge Motivation

A. Declarative Knowledge Information about Facts Labels Principles Goals Understanding of task requirements

B. Procedural Knowledge Knowing What to do How to do it and

Procedural Knowledge (continued) Skills Cognitive Physical Perceptual Motor Interpersonal

(Deliberate Practice leads to excellence) C. Motivation Choices Expenditure of effort Level of effort Persistence of effort (Deliberate Practice leads to excellence)

Deliberate Practice Approach performance with goal of getting better Focus on performance What is happening? Why? Seek feedback from expert sources Build mental models of job, situation, organization Repeat first 4 steps on an ongoing basis

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

Factors Influencing Determinants of Performance: Individual characteristics Procedural knowledge Declarative knowledge Motivation HR practices Work environment

Performance Dimensions: Types of multi-dimensional behaviors: Task performance Contextual performance Pro-social behaviors Organizational citizenship

Task performance Activities that transform raw materials help with the transformation process Replenishing Distributing Supporting

Contextual performance Behaviors that contribute to organization’s effectiveness and provide a good environment in which task performance can occur

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

Why Include Task & Contextual Performance Dimensions in PM system? Global competition Customer service Teamwork Employee perceptions of PM Supervisor views

Job Performance in Context That produce various results A performer (individual or team) Engages in certain behaviors In a given situation TRAIT BEHAVIOR RESULTS

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

Trait Approach Emphasis on individual Evaluate stable traits Cognitive abilities Personality Based on relationship between traits & performance

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

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

Results Approach Advantages: Less time Lower cost Data appear objective

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

Quick Review Defining Performance Determinants of Performance Performance Dimensions Approaches to Measuring Performance