BMG735

Managing People in the Organisation

Mark McCrory MCIPD, CPsychol

Performance Management
Learning Objectives
• Describe and critique objective measures of
performance
• Understand the difference between task
performance and organizational citizenship
behaviour
• Describe competencies and their use in
performance management
• Describe and evaluate methods of performance
appraisal
• Understand the importance of feedback and
improvement in performance management
• Consider whether PM as a concept is flawed
Performance Management

• Continuous process of identifying,

measuring and developing the
performance of individuals and teams and
aligning performance with the strategic
goals of the organization.
The Importance of Performance
Management
• Translating strategy to individual behaviour is
performance management

• Set performance expectations

▫ Job description
▫ Goal setting
▫ Ongoing management

• After that - three key areas

▫ Performance Measurement
▫ Performance Feedback
▫ Performance Improvement
Performance Management

1. Performance Measurement

2. Performance Feedback

3. Performance Improvement
Measuring Job Performance
• Job performance is multi-dimensional

• Variety of ways of measuring performance

1. Task 2. Behaviours 3. Other

performance (competencies) approaches
1. Task Performance
• Explicitly the tasks someone is employed to do
• Objective indicators
▫ Sales figures / Service duration / Utilisation /
Production rates / Quality etc.

• Measured:
▫ Objective indicators
▫ Task/outcome – achieved or not
▫ Manager evaluation
 Qualitative (comments)
 Survey items or rating scales
1. Quantifying Job Specific
Task Performance
• Survey items and ratings scales
▫ Different types
 Verbally anchored likert scale
 Observation based likert scale
 Unanchored likert scale
 Comparative scale
1. Quantifying Job Specific
Task Performance
• Improving rating scales
▫ Training (minimising bias)
 See ‘Attitudes and Behaviours at Work’ or
‘Coaching’ slides
▫ Forced distribution
▫ Multiple raters (see later)
2. Behaviours (Competencies)
• Competency modelling
▫ An approach to analysing job performance,
and the skills, abilities and attributes
underlying performance

• “An underlying characteristic of a person,

which results in effective and/or superior
performance of a job”
(Boyzatis, 1982)
2. Behaviours (Competencies)

• Competencies should be:

▫ Defined behaviourally

• Usually consist of:

▫ A label
▫ A broad definition
▫ Behavioural indicators or descriptors
Example Competency
• Decision Making - Makes timely decisions based on examination of
the available facts, taking into consideration the implications of
the decision

▫ Positive
 Makes timely decisions as required
 Decisions are linked to objectives
 Decisions are based on relevant facts and information
 Identifies when decisions must be made based on incomplete or
ambiguous information
 Seeks guidance when appropriate
 Reviews and considers decisions in light of new information
▫ Negative
 Avoids making decisions
 Seeks too much information and so fails to make decisions
 Makes decisions that are not based on relevant information
 Decisions are not linked to objectives
 Makes decisions beyond the scope of their authority
Example - BARS
• Planning and Organisation
▫ Identifies priorities, sets deadline and plans schedules.
Effectively manages own time to achieve goals. Gives
consideration to wider implications of plans made.
1. Plans are short-term, reactive and not related to objectives
2. Plans are linked to objectives but these tend to be short-
term
3. Plans are linked to objectives, are longer term and are
based on priorities and deadlines
4. Identifies priorities, sets deadlines and plans schedules.
Effectively manages own time to achieve goals. Gives
consideration to wider implications of plans made.
Measuring Job Performance
• Job performance is multi-dimensional

• Variety of ways of measuring performance

1. Job specific 2. Behaviours 3. Other

task (competencies) approaches
performance
3. Other Approaches
• Proxy measures
▫ Absence / Timekeeping

• Organisational Citizenship Behaviour

▫ The extra contributions (not necessarily outside job

responsibilities)
 Personal support
 Organisational support
 Conscientiousness initiative

▫ Counterproductive behaviours
Measuring Job Performance
• Job performance is multi-dimensional

• Variety of ways of measuring performance

1. Task 2. Behaviours 3. Other

performance (competencies) approaches
Performance Feedback
Feedback
• People need to know:
▫ How they are doing
▫ What they need to do differently

• Feedback can be:

▫ Objective or subjective
▫ General or specific
▫ Positive or negative
▫ Spoken or written
▫ Immediate or delayed
(Cooper and Furnham, 2012)
Performance Feedback
• Helpful vs harmful feedback
▫Focus on behaviour
▫One or two critical behaviours
▫Desired rather than undesired behaviours
▫Honest or hurtful
▫Feedback without goals = no change
Latham
(2009)

• Poor feedback shown to be more harmful

than no feedback
Performance Feedback –
Desire to respond
Multisource or 360 Degree
Feedback
Key practical
components
(Fletcher, 2008)

 Feedback
process
 Rating
instruments
 Raters
Multisource or 360 Degree Feedback

• Developing self-awareness
• Does it work?
▫ Evidence is mixed (Smither et al., 2005)
Performance
Improvement
Performance Improvement

• Training and Development

• Coaching / Mentoring

• Disciplinary Proceedings