Chapter 3 defining performance and choosing a measurement approach

Chapter 3Chapter 3
DefiningDefining
PerformancePerformance
andand
Choosing a MeasurementChoosing a Measurement
ApproachApproach
4-4-11

Defining PerformanceDefining Performance
Performance is defined asPerformance is defined as what anwhat an
employee does (his or heremployee does (his or her
behaviors). It does not include thebehaviors). It does not include the
results or outcomes of an employee’sresults or outcomes of an employee’s
behaviors.behaviors.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice HallCopyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 4-4-22

Two Additional Characteristics of theTwo Additional Characteristics of the
Behaviors Labelled PerformanceBehaviors Labelled Performance
1. Evaluative – such behaviors can be judged as1. Evaluative – such behaviors can be judged as
negative, neutral, or positive for individual andnegative, neutral, or positive for individual and
organizational effectiveness. Thus, the valueorganizational effectiveness. Thus, the value
of these behaviors can vary based on theirof these behaviors can vary based on their
contribution toward the accomplishment ofcontribution toward the accomplishment of
individual, unit, and organizational goals.individual, unit, and organizational goals.
2. Multidimensional – There are many different2. Multidimensional – There are many different
kinds of behaviors that can advance (orkinds of behaviors that can advance (or
hinder) organizational goals.hinder) organizational goals.

Behaviors are Not AlwaysBehaviors are Not Always
Observable or MeasurableObservable or Measurable
Because not all behaviors are observableBecause not all behaviors are observable
or measurable, PM systems often includeor measurable, PM systems often include
measures of results or consequencesmeasures of results or consequences
that we infer are the direct result ofthat we infer are the direct result of
employees’ behaviors.employees’ behaviors.

Results or Consequences MayResults or Consequences May
Be Used to Infer BehaviorBe Used to Infer Behavior
A salesperson whose job consists of visitingA salesperson whose job consists of visiting
clients to offer them products or services isclients to offer them products or services is
often evaluated on his or her sales volumeoften evaluated on his or her sales volume
– a proxy for a behavioral measure – since– a proxy for a behavioral measure – since
the salesperson’s supervisor may be backthe salesperson’s supervisor may be back
in the home office and cannot observe thein the home office and cannot observe the
salesperson’s behaviors.salesperson’s behaviors.

Determinants of PerformanceDeterminants of Performance
Performance =Performance =
Declarative KnowledgeDeclarative Knowledge
XX
Procedural KnowledgeProcedural Knowledge
XX
MotivationMotivation

Declarative KnowledgeDeclarative Knowledge
Declarative Knowledge is informationDeclarative Knowledge is information
about:about:
• Facts and Things (including informationFacts and Things (including information
regarding a given task’s requirements)regarding a given task’s requirements)
• LabelsLabels
• PrinciplesPrinciples
• GoalsGoals

Procedural KnowledgeProcedural Knowledge
Procedural Knowledge is a combination of:Procedural Knowledge is a combination of:
Knowing what to do and how to do it.Knowing what to do and how to do it.
Includes cognitive, physical, perceptual,Includes cognitive, physical, perceptual,
motor, and interpersonal skills.motor, and interpersonal skills.

MotivationMotivation
Motivation involves three types of choiceMotivation involves three types of choice
behaviors:behaviors:
• Expenditure of effort (e.g., “I will go toExpenditure of effort (e.g., “I will go to
work today.”)work today.”)
• Level of effort (e.g., “I will put in myLevel of effort (e.g., “I will put in my
best effort at work today.”)best effort at work today.”)
• Persistence of effort (e.g., “I will persistPersistence of effort (e.g., “I will persist
no matter what.”)no matter what.”)

Deliberate PracticeDeliberate Practice
Deliberate Practice involves the following steps:Deliberate Practice involves the following steps:
Approach performance with the goal of gettingApproach performance with the goal of getting
better and better.better and better.
As you are performing, focus on what isAs you are performing, focus on what is
happening and why you are doing things the wayhappening and why you are doing things the way
you do.you do.
When your task is finished, seek performanceWhen your task is finished, seek performance
feedback from many expert sources.feedback from many expert sources.
Build mental models of your job, your situation,Build mental models of your job, your situation,
and your organization.and your organization.
Repeat steps 1-4 on an ongoing basis.Repeat steps 1-4 on an ongoing basis.

Implications for AddressingImplications for Addressing
Performance ProblemsPerformance Problems
In order to address performance problemsIn order to address performance problems
properly, managers must find information thatproperly, managers must find information that
will allow them to understand whether the sourcewill allow them to understand whether the source
of the problem is declarative knowledge,of the problem is declarative knowledge,
procedural knowledge, motivation, or someprocedural knowledge, motivation, or some
combination of these factors.combination of these factors.
Thus, PM systems need not only measureThus, PM systems need not only measure
performance but also provide information aboutperformance but also provide information about
the source of any performance deficiencies.the source of any performance deficiencies.

Factors InfluencingFactors Influencing
Determinants of PerformanceDeterminants of Performance
 Three individual characteristics -Three individual characteristics -
procedural knowledge, declarativeprocedural knowledge, declarative
knowledge, and motivation – determineknowledge, and motivation – determine
performance.performance.
 In addition, HR practices (e.g., theIn addition, HR practices (e.g., the
amount of training available toamount of training available to
employees) and the work environmentemployees) and the work environment
(e.g., downsizing) can affect(e.g., downsizing) can affect
performance.performance.

Performance Dimensions:Performance Dimensions:
Types of MultidimensionalTypes of Multidimensional
BehaviorsBehaviors
Since performance is multidimensional, we needSince performance is multidimensional, we need
to consider many different types of behaviors toto consider many different types of behaviors to
understand it. Two types of behaviors areunderstand it. Two types of behaviors are
particularly important:particularly important:
Task performance.Task performance.
Contextual performance (also called prosocialContextual performance (also called prosocial
behaviors or organizational citizenshipbehaviors or organizational citizenship
behaviors).behaviors).

Task PerformanceTask Performance
Task Performance is defined as activities that:Task Performance is defined as activities that:
 transform raw materials into the goods andtransform raw materials into the goods and
services that are produced by the organization.services that are produced by the organization.
 help with the transformation process byhelp with the transformation process by
replenishing the supply of raw materials;replenishing the supply of raw materials;
distributing its finished products; or providingdistributing its finished products; or providing
important planning, coordination, supervising,important planning, coordination, supervising,
or staff functions that enable the organizationor staff functions that enable the organization
to function effectively and efficiently.to function effectively and efficiently.

Contextual PerformanceContextual Performance
Contextual Performance is defined as behaviorsContextual Performance is defined as behaviors
that contribute to an organization’sthat contribute to an organization’s
effectiveness by providing a good environmenteffectiveness by providing a good environment
in which task performance can occur.in which task performance can occur.
Contextual Performance includes behaviorsContextual Performance includes behaviors
such as:such as:
 Persisting with enthusiasm and exerting extraPersisting with enthusiasm and exerting extra
effort as necessary to complete one’s own taskeffort as necessary to complete one’s own task
activities successfully.activities successfully.
 Helping and cooperating with other coworkers.Helping and cooperating with other coworkers.
 Following organizational rules and procedures.Following organizational rules and procedures.

Differences BetweenDifferences Between
Task and Contextual PerformanceTask and Contextual Performance
 Task PerformanceTask Performance
• Varies acrossVaries across
jobsjobs
• Likely to be roleLikely to be role
prescribedprescribed
• Influenced byInfluenced by
Abilities andAbilities and
SkillsSkills
 ContextualContextual
• Fairly similar acrossFairly similar across
jobsjobs
• Not likely to be roleNot likely to be role
prescribedprescribed
• Influenced byInfluenced by
PersonalityPersonality

Why Include Task and ContextualWhy Include Task and Contextual
Performance Dimensions in a PM System?Performance Dimensions in a PM System?
1.1. Global competition is raising the level of taskGlobal competition is raising the level of task
and contextual performance required ofand contextual performance required of
employees for an organization to beemployees for an organization to be
competitive.competitive.
2.2. Customer service – Global competition is alsoCustomer service – Global competition is also
raising the need for outstanding customerraising the need for outstanding customer
service.service.
3.3. Teamwork – Many organizations have formedTeamwork – Many organizations have formed
employees into teams.employees into teams.

Why Include Task and ContextualWhy Include Task and Contextual
Performance Dimensions in a PMPerformance Dimensions in a PM
System? (continued)System? (continued)
4. Employee perceptions of PM – Employees are4. Employee perceptions of PM – Employees are
more satisfied with the PM system and believe itmore satisfied with the PM system and believe it
is fairer if contextual performance is measured inis fairer if contextual performance is measured in
addition to task performance.addition to task performance.
5. Supervisor views – Since contextual5. Supervisor views – Since contextual
performance has an impact on ratings of overallperformance has an impact on ratings of overall
performance even when only task performance isperformance even when only task performance is
measured, it makes sense to include contextualmeasured, it makes sense to include contextual
performance more explicitly.performance more explicitly.

Voice BehaviorVoice Behavior
Behavior that emphasizes expression ofBehavior that emphasizes expression of
constructive challenges with the goal ofconstructive challenges with the goal of
improving employee performance ratherimproving employee performance rather
than merely criticizing it.than merely criticizing it.
Challenges the status quo in a positive way.Challenges the status quo in a positive way.
Makes innovative suggestions for change.Makes innovative suggestions for change.
Recommends modifications to standardRecommends modifications to standard
procedures.procedures.

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

Job Performance in ContextJob Performance in Context
The previous power point shows thatThe previous power point shows that
employees do not perform in a vacuum.employees do not perform in a vacuum.
Instead, they work in an organizationalInstead, they work in an organizational
context, engaging in certain behaviors thatcontext, engaging in certain behaviors that
produce certain results. The sameproduce certain results. The same
employees may behave differently (andemployees may behave differently (and
produce different results) if placed in aproduce different results) if placed in a
different situation (e.g., working with adifferent situation (e.g., working with a
different supervisor or using betterdifferent supervisor or using better
machinery).machinery).

Approaches to MeasuringApproaches to Measuring
Behavior ApproachBehavior Approach
 Emphasizes how employees do the job. Does not
consider employees’ traits or the outcomes resulting
from their behaviors.
Results Approach
 Emphasizes only the outcomes produced by employees.
Trait Approach
 Emphasizes only the individual traits (e.g., intelligence,
conscientiousness) of employees.

Behavior ApproachBehavior Approach
Appropriate if:Appropriate if:
 Employees take a long time to achieve desiredEmployees take a long time to achieve desired
outcomes.outcomes.
 Link between behaviors and results is notLink between behaviors and results is not
obvious.obvious.
 Outcomes occur in the distant future.Outcomes occur in the distant future.
 Poor results are due to causes beyond thePoor results are due to causes beyond the
performer’s control.performer’s control.
Not appropriate if:Not appropriate if:
 The above conditions are not present.The above conditions are not present.

Results ApproachResults Approach
Advantages:Advantages:
• Takes less time and is less expensive thanTakes less time and is less expensive than
tracking employees’ behavior.tracking employees’ behavior.
• Data appear objective.Data appear objective.
Most appropriate when:Most appropriate when:
• Workers skilled in necessary behaviors.Workers skilled in necessary behaviors.
• Behaviors and results obviously related.Behaviors and results obviously related.
• Consistent improvement in results over time.Consistent improvement in results over time.
• Many ways to do the job right.Many ways to do the job right.

Trait ApproachTrait Approach
Most appropriate when:Most appropriate when:
 Emphasis on individualEmphasis on individual
• Evaluate stable traits (i.e., cognitive abilities,Evaluate stable traits (i.e., cognitive abilities,
personality)personality)
 Positive relationship between abilities, personalityPositive relationship between abilities, personality
traits, and desirable work-related behaviorstraits, and desirable work-related behaviors
 Appropriate if structural changes planned forAppropriate if structural changes planned for
organizationorganization
DisadvantagesDisadvantages
 Improvement of traits is not under individual’s controlImprovement of traits is not under individual’s control
 Trait may not lead to desired behaviors or resultsTrait may not lead to desired behaviors or results

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