Chapter 4

HRM544/541/sn/Sept2014*CHAPTER 4Defining Performance and Choosing a Measurement ApproachHRM 541 PERFORMANCE MANAGEMENT

HRM544/541/sn/Sept2014

HRM544/541/sn/Sept2014*Overview Defining Performance Determinants of Performance Performance Dimensions Approaches to Measuring Performance Performance and Development Planning


HRM544/541/sn/Sept2014*Defining Performance Performance is:BehaviorWhat employees doPerformance is NOT:Results or OutcomesWhat employees produce


HRM544/541/sn/Sept2014*Behaviors labeled as Performance are:EvaluativeNegativeNeutralPositiveMultidimensionalMany different kinds of behaviorsAdvance or hinder organizational goals


HRM544/541/sn/Sept2014*Behaviors are Not alwaysObservableMeasurable

Results/Consequences may be usedTo infer behaviorAs proxy for behavioral measure


HRM544/541/sn/Sept2014*Determinants of PerformancePerformance = Declarative Knowledge X Procedural Knowledge X Motivation


HRM544/541/sn/Sept2014*A. Declarative Knowledge Information about Facts Labels Principles Goals Understanding of task requirements


HRM544/541/sn/Sept2014*B. Procedural Knowledge Knowing What to do How to do it

Skills Cognitive Physical Perceptual Motor Interpersonal


HRM544/541/sn/Sept2014*C. MotivationChoicesExpenditure of effortLevel of effortPersistence of effort


HRM544/541/sn/Sept2014*5 steps of Deliberate PracticeApproach performance with goal of getting betterFocus on performanceSeek feedback from expert sourcesBuild mental models of job, situation, organizationRepeat first 4 steps on an ongoing basis


HRM544/541/sn/Sept2014*Implications for Addressing Performance ProblemsManagers need information to accurately identify source(s) of performance problemsPerformance management systems mustMeasure performanceANDProvide information on SOURCE(s) of problems


HRM544/541/sn/Sept2014*Factors Influencing Determinants of Performance Individual characteristics Procedural knowledge Declarative knowledge Motivation HR practices Work environment


HRM544/541/sn/Sept2014*Performance Dimensions:Types of multi-dimensional behaviors:Task performanceContextual performancePro-social behaviorsOrganizational citizenship


HRM544/541/sn/Sept2014*1. Task performanceActivities that transform raw materials help with the transformation process Replenishing Distributing Supporting


HRM544/541/sn/Sept2014*2. Contextual performanceBehaviors that contribute to organizations effectiveness

provide a good environment in which task performance can occur


HRM544/541/sn/Sept2014*Differences Between Task and Contextual PerformanceTask PerformanceVaries across jobs

Likely to be role prescribed

Influenced byAbilitiesSkillsContextual PerformanceFairly similar across jobs

Not likely to be role prescribed

Influenced byPersonality


HRM544/541/sn/Sept2014*Why Include Task & Contextual Performance Dimensions in PM system?Global competitionCustomer service TeamworkEmployee perceptions of PMSupervisor views


HRM544/541/sn/Sept2014*Job Performance in Context


HRM544/541/sn/Sept2014*Approaches to Measuring PerformanceTrait ApproachEmphasizes individual traits of employeesBehavior ApproachEmphasizes how employees do the jobResults ApproachEmphasizes what employees produce


HRM544/541/sn/Sept2014*1. Trait ApproachEmphasis on individualEvaluate stable traitsCognitive abilitiesPersonalityBased on relationship between traits & performance


HRM544/541/sn/Sept2014*1. Trait ApproachAppropriate ifStructural changes planned for organization

DisadvantagesImprovement not under individuals controlTrait may not lead to Desired behaviors or Desired results


HRM544/541/sn/Sept2014*2. Behavior ApproachAppropriate ifEmployees take a long time to achieve desired outcomesLink between behaviors and results is not obviousOutcomes occur in the distant futurePoor results are due to causes beyond the performers controlNot appropriate if above conditions are not present


HRM544/541/sn/Sept2014*3. Results ApproachAdvantages:Less time Lower cost Data appear objective


HRM544/541/sn/Sept2014*3. Results ApproachMost appropriate when:Workers skilled in necessary behaviorsBehaviors and results obviously relatedConsistent improvement in results over timeMany ways to do the job right


HRM544/541/sn/Sept2014*Performance and development planning


HRM544/541/sn/Sept2014*Performance and development planningThe performance planning part of the performance management sequence involves the agreement between the manager and the individual of how the latter is expected to perform in terms of results and behaviours.


HRM544/541/sn/Sept2014*Content of discussionDiscussion on what the latter needs to do to achieve the agreed goals, raise standards, improve performance, develop the required competencies and, where appropriate, behave differently.

It also establishes priorities/ key accountabilities the key aspects of the job to which attention has to be given.


HRM544/541/sn/Sept2014*Aim of discussionThe aim is to ensure that the meaning of the objectives, performance standards and competencies is understood - converted into action.

The framework for performance management is provided by the performance agreement, which is the outcome of performance and development planning.


HRM544/541/sn/Sept2014*Aim of discussionThe agreement is the basis for managing performance throughout the year and for guiding improvement and development activities.

It is used as a reference point when reviewing performance and the achievement of improvement and development plans.


HRM544/541/sn/Sept2014*Who involved?Performance and development planning is carried out jointly by the manager and the individual.

These discussions should lead to an agreement on what needs to be done by both parties.


What is a Performance Agreement?

A method of establishing expectations and accountability for meeting a set standard of execution excellence -- and the consequences for not meeting them. Two or more parties agree on the actions the performer will execute and agree on the expected results from executing those actions. Oftentimes, there are consequences if the performer doesn't deliver as agreed.HRM544/541/sn/Sept2014*


Performance AgreementManagers and EmployeesManagers at major corporations have used performance agreements as a job performance improvement tool. However, performance agreements can be used for new hires before they start to develop bad habits. The Management Trainers at MindTools suggest on its website, "When establishing performance expectations, the overall objective is to come to an agreement that supports your organization's strategy." The employee rarely has any say in these matters, but it is an ideal time for her to express any objections she may have before promising to perform any of those actions.

HRM544/541/sn/Sept2014*


HRM544/541/sn/Sept2014*


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Chapter 4

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