MODULE 2

BY : Payal Roy S
 Defining performance
 Determinants of performance
 Dimensions of Performance
 Approaches to Measuring performance
 Diagnosing the causes of poor performance
 Differentiating task from contextual performance
 Choosing a performance Measurement approach
 Measuring results and behaviors
 Gathering performance information
 Implementing performance management system
 Conducting Staff Appraisals: Introduction, need, skills required, the role of the
appraiser, job description & job specification, appraisal methods, Raters errors,
data collection, conducting an appraisal interview, follow up & validation, present
thoughts & future directions.
• An action (behavioral) aspect
a) assembling parts of a car engine
b) selling personal computers
c) performing heart surgery

• An outcome aspect of performance

a) numbers of engines assembled
b) sales figures
c) number of successful heart operations
 Is about behaviors or what employees do, & not about what
employees produce or the outcomes of their work.

 Is evaluative (i.e., we judge it based on whether it helps advance or

hinder organizational goals) & multidimensional (i.e., many
behaviors are needed to describe an employee’s performance).

 Is determined by a combination of declarative knowledge (i.e.,

information), procedural knowledge (i.e., know-how), and
motivation (willingness to perform)
“Performance = Declarative knowledge × Procedural knowledge × Motivation”
 Interpersonal skill
 Customer Service Orientation
 Teamwork
 Effective Communication
 Valuing Diversity
 Analysis and Problem-Solving
 Decision-Making and Results Orientation
 Adaptability
 Fostering a Safe and Secure Environment
 To Evaluate : performance
 To Control : How can managers ensure their subordinates are doing
the right thing
 To Budget : which are crude tools in improving performance
 To Motivate : Giving people significant goals to achieve and then
use performance measures
 To Celebrate : Organizations need to commemorate their
accomplishments
 To Promote : the system & the work force
 To Learn : identifying what works and what does not
 To Improve What exactly should who- do differently to improve performance
 An emphasis on the Employee leads to a Trait-based
Approach

 An emphasis on Behaviors leads to a Behavior-based

Approach

 An emphasis on Results leads to a Results-based Approach

 Individual traits that remain fairly stable throughout an
individual’s lifespan (e.g., cognitive abilities or personality)

 Most appropriate when an organization anticipates drastic

structural changes

 Disadvantage : Traits are not under the control of individuals

& even when individuals possess a specific positive trait (e.g.,
high intelligence), this does not necessarily mean that the
employee will engage in productive behaviors leading to
desired results
 What employees do (i.e., how work is done).
 Most appropriate when
(a) it will take a long time to achieve the desired outcomes
(b) the link between behaviors and results is not obvious
(c) outcomes are distant in the future
(d) poor results are due to causes beyond the employee’s control

 May not be the best choice if most of these conditions are

not present.
 In most situations, however, the inclusion of at least some
behavior-based measures is beneficial
 The outcomes and results produced by employees
 Basically a bottom-line approach that is not concerned about how
the work is done as long as certain specific results are obtained
 Most appropriate when
(a) workers are skilled in the needed behaviors
(b) behaviors and results are obviously related
(c) results show consistent improvement over time
(d) there are many ways to do the job right
 Encourages employees to achieve the desired outcomes in creative
& innovative ways
 On the other hand, measuring only results is typically not welcomed
by employees, even in types of jobs for which the expected result is
very clear
 In measuring performance adopting a results approach

 First step : is to identify accountabilities : These are the various areas in which an
individual is expected to focus.
 Second step : is to set objectives for each. Objectives should be (a) specific & clear
(b) challenging (c) agreed upon (d) significant (e) prioritized (f) bound by time (g)
achievable (h) fully communicated (i) flexible & (j) limited in number
 Third step : involves determining performance standards.
These are yardsticks designed to help understand to what extent the objective has
been achieved.
In creating standards, we must consider the quality, quantity and time dimensions.
Good standards are: (a) related to the position (b) concrete, specific, & measurable
(c) practical to measure (d) meaningful (e) realistic & achievable and (f) reviewed
regularly
 In measuring performance adopting a behavior approach

 First step :
Involves identifying competencies.
Competencies are measurable clusters of KSAs critical in determining how results will be achieved.
Examples of competencies are customer service, written or oral communication, creative thinking
and dependability.
 Second step :
Involves identifying indicators allowing us to understand the extent to which each individual
possesses the competency in question. These indicators are behavioral manifestations of the
underlying (unobservable) competency.
 Third step :
Includes choosing an appropriate measurement system, and there are two choices: Comparative &
Absolute.
 Includes evaluations of employees’ performance without making direct reference to other
employees.
 Such system includes
Essays
Behavior checklists
Critical incidents
Graphic rating scales
 Essays are difficult to quantify but produce useful and often detailed feedback.
 Behaviour checklists are easy to use and understand,
 Scale points used are often arbitrary, and we cannot assume that a one-point difference
has the same meaning along the entire scale (i.e., the difference between employees
scoring 5 and 4 may not have the same meaning as the difference between employees
scoring 3 and 2).
 Critical incidents allow supervisors to focus on actual job behavior rather than on vaguely
defined traits, but gathering critical incident data may be quite time consuming.
 Graphic rating scales are arguably the most frequently used method
 Campbell (1990) also mentioned several performance parameters that may have important
implications for the job performance setting and should be investigated by industrial and
organizational psychologists.
 The first one is the distinction between speed and accuracy. This distinction is similar to the
one between quantity and quality.[9] Important questions that should be considered include:
which is most valued by the organization, maximized speed, maximized accuracy, or some
balance between the two? What kind of trade offs should an employee makes? The latter
question is important because speed and accuracy for the same task may be independent of
one another.
 The second distinction is between typical and maximum performance. Sackett, Zedeck, and
Fogli [10] did a study on supermarket cashiers and found that there was a substantial
difference between scores reflecting their typical performance and scores reflecting their
maximum performance. This study suggested the distinction between typical and
maximum performance. Regular work situations reflect varying levels of motivation which
result in typical performance. Special circumstances generate maximum employee
motivation which results in maximum performance.