Measuring Performance {Lecture Notes}

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Prentice Hall, Inc. Herman Aguinis, University of Colo at Denver Defining Performance and Defining Performance and Choosing a Measurement Choosing a Measurement Approach: Overview Approach: Overview Defining Performance Determinants of Performance Performance Dimensions Approaches to Measuring Performance

Transcript of Measuring Performance {Lecture Notes}

Page 1: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Defining Performance and Choosing a Defining Performance and Choosing a Measurement Approach: OverviewMeasurement Approach: Overview

Defining PerformanceDeterminants of PerformancePerformance DimensionsApproaches to Measuring Performance

Page 2: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Defining Performance Defining Performance

Performance is:• Behavior• What employees do

Page 3: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Defining PerformanceDefining Performance

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

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Behaviors labeled as Performance are:Behaviors labeled as Performance are:

1. Evaluative– Negative– Neutral– Positive

2. Multidimensional– Many different kinds of behaviors– Advance or hinder organizational goals

Page 5: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Behaviors are Not alwaysBehaviors are Not always

– Observable– Measurable

Page 6: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Results/Consequences may be usedResults/Consequences may be used

– To infer behavior– As proxy for behavioral measure

Page 7: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Determinants of PerformanceDeterminants of Performance

Performance =

Declarative Knowledge X

Procedural Knowledge X

Motivation

Page 8: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

A. Declarative KnowledgeA. Declarative Knowledge

• Information about– Facts – Labels– Principles– Goals

• Understanding of task requirements

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

B. Procedural KnowledgeB. Procedural Knowledge

• Knowing– What to do– How to do it

• Skills– Cognitive– Physical– Perceptual– Motor– Interpersonal

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

C. MotivationC. Motivation

• Choices– Expenditure of effort– Level of effort– Persistence of effort

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Implications for Addressing Implications for Addressing Performance ProblemsPerformance 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

Page 12: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Factors Influencing Determinants of Factors Influencing Determinants of Performance:Performance:

• Individual characteristics– Procedural knowledge– Declarative knowledge– Motivation

• HR practices• Work environment

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Performance Dimensions:Performance Dimensions:Types of multi-dimensional behaviors:Types of multi-dimensional behaviors:

• Task performance• Contextual performance

– Pro-social behaviors– Organizational citizenship

Page 14: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Task performanceTask performance

Activities that • transform raw materials • help with the transformation process

– Replenishing– Distributing– Supporting

Page 15: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Contextual performanceContextual performance

Behaviors that • contribute to organization’s effectiveness

and• provide a good environment in which task

performance can occur

Page 16: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Differences Between Differences Between Task and Contextual PerformanceTask 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

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Why Include Task & Contextual Why Include Task & Contextual Performance Dimensions in PM system?Performance Dimensions in PM system?

1. Global competition2. Teamwork3. Customer service 4. Supervisor views

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Job Performance in ContextJob Performance in Context

A performer(individual or

team)

In a given situation

Engages in certain

behaviors

That produce various results

TRAIT BEHAVIOR RESULTS

Page 19: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Approaches to Measuring PerformanceApproaches to Measuring Performance

• Trait Approach– Emphasizes individual traits of employees

• Behavior Approach– Emphasizes how employees do the job

• Results Approach– Emphasizes what employees produce

Page 20: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Trait ApproachTrait Approach

• Emphasis on individual• Evaluate stable traits

• Cognitive abilities• Personality

• Based on relationship between traits & performance

Page 21: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Trait Approach (continued)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

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Behavior ApproachBehavior Approach

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 controlNot appropriate if • above conditions are not present

Page 23: Measuring Performance {Lecture Notes}

Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Results ApproachResults Approach

Advantages:• Less time • Lower cost • Data appear objective

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Prentice Hall, Inc. © 2006 Herman Aguinis, University of Colorado at Denver

Results Approach (continued)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