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CHAPTER 4
Defining Performance
and
Choosing a
Measurement Approach
HRM 541
PERFORMANCE
MANAGEMENT
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Overview
1. Defining Performance
2. Determinants of Performance
3. Performance Dimensions
4. Approaches to Measuring Performance
5. Performance and Development Planning
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Defining Performance
Performance is:
Behavior
What employees do
Performance is NOT:
Results or Outcomes
What employees produce
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Behaviors labeled as
Performance are:
1. Evaluative
Negative
Neutral
Positive
2. Multidimensional
Many different kinds of behaviors
Advance or hinder organizational goals
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Behaviors are Not always
Observable
Measurable

Results/Consequences may be used
To infer behavior
As proxy for behavioral measure
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Determinants of Performance
Performance =
Declarative Knowledge
X
Procedural Knowledge
X
Motivation
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A. Declarative Knowledge
Information about
Facts
Labels
Principles
Goals
Understanding of task requirements
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B. Procedural Knowledge
Knowing
What to do
How to do it

Skills
Cognitive
Physical
Perceptual
Motor
Interpersonal
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C. Motivation
Choices
Expenditure of effort
Level of effort
Persistence of effort

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5 steps of Deliberate Practice
1. Approach performance with goal of
getting better
2. Focus on performance
3. Seek feedback from expert sources
4. Build mental models of job, situation,
organization
5. Repeat first 4 steps on an ongoing basis
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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
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Factors Influencing Determinants
of Performance
Individual characteristics
Procedural knowledge
Declarative knowledge
Motivation
HR practices
Work environment
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Performance Dimensions:
Types of multi-dimensional behaviors:
1. Task performance
2. Contextual performance
o Pro-social behaviors
o Organizational citizenship
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1. Task performance
Activities that
transform raw materials
help with the transformation process
Replenishing
Distributing
Supporting
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2. Contextual performance
Behaviors that
contribute to organizations
effectiveness

provide a good environment in which
task performance can occur
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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
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Why Include Task & Contextual
Performance Dimensions in PM
system?
1. Global competition
2. Customer service
3. Teamwork
4. Employee perceptions of PM
5. Supervisor views
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Job Performance in Context
A performer
(individual or
team)
In a given
situation
Engages in
certain
behaviors
That produce
various
results
TRAIT BEHAVIOR RESULTS
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Approaches to Measuring Performance
1. Trait Approach
Emphasizes individual traits of
employees
2. Behavior Approach
Emphasizes how employees do the job
3. Results Approach
Emphasizes what employees produce
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1. Trait Approach
Emphasis on individual
Evaluate stable traits
Cognitive abilities
Personality
Based on relationship between traits &
performance
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1. Trait Approach
Appropriate if
Structural changes planned for organization

Disadvantages
Improvement not under individuals control
Trait may not lead to
Desired behaviors or
Desired results
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2. Behavior 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
performers control
Not appropriate if
above conditions are not present
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3. Results Approach
Advantages:
Less time
Lower cost
Data appear objective

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3. Results Approach
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

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Performance and development
planning
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Performance and development
planning
The 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.
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Content of discussion
1. Discussion 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.

2. It also establishes priorities/ key
accountabilities the key aspects of the job
to which attention has to be given.
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Aim of discussion
1. The aim is to ensure that the meaning of the
objectives, performance standards and
competencies is understood - converted into
action.

2. The framework for performance management is
provided by the performance agreement,
which is the outcome of performance and
development planning.
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Aim of discussion
3. The agreement is the basis for managing
performance throughout the year and for
guiding improvement and development
activities.

4. It is used as a reference point when reviewing
performance and the achievement of
improvement and development plans.
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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.
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Performance Agreement
Managers and Employees
Managers 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.

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