1

PERFORMANCE MANAGEMENT SYSTEM

Course Instructor: Ms. Hina Shahab

Lecture 5 Outline
2

Performance Execution Managers Responsibilities in the Performance Execution Phase Employees Responsibilities in the Performance Execution Phase Track of Employees Performance Others Access to Employee Performance Log Motivating to Deliver Good Performance Recognition An Effective Motivational Tool Gap Identification Document Performance Improvement Discussion

Performance Execution
3

What to execute? Once the performance-planning phase has been completed, its time to get the job doneto execute the plan.

1. 2.

For the Individual: The critical responsibility is getting the job done i.e. achieving the objectives. For the Appraiser: There are two major responsibilities: Creating the conditions that motivate Confronting and correcting any performance problems

PM Execution
4

In an effective performance management system, performance execution also includes a midterm review to ensure that performance is on track.

Managers Responsibilities in PE Phase

5

Maintaining performance records Updating objectives as conditions change Providing feedback and coaching for success Providing development experiences and opportunities Reinforcing effective behavior Conducting a midterm review meeting

Employees Responsibilities in PE Phase

6

Solicit performance feedback and coaching. Communicate openly with your appraiser on progress and problems in achieving objectives. Update objectives as conditions change. Complete the development plan. Keep track of achievements and accomplishments. Actively participate in the midterm review meeting.

Track of Employees Performance

The best way to make sure that you do keep track of your peoples performance is to use whatever record-keeping system you are using right now. Its easier to adjust an existing procedure than to create an entirely new one. The performance log, in whatever form one keeps, is private and informal record of how people have done their activities on the job keep tracks of employee performance

Motivation for Performance

8

Key Elements 1. 2. 3. Intensity: how hard a person tries Direction: toward beneficial goal Persistence: how long a person tries

Techniques to Motivate an Individual

9

1.

2.

3. 4. 5.

6.

Six techniques have a predictable effect on increasing an individuals motivation: Create opportunities for achievement and accomplishment. Allow people freedom, discretion, and autonomy in doing the job. Provide opportunities for learning and growth. Increase the amount of challenge. Make sure that the work itself is inherently capable of motivation. Provide recognition.

Motivating to
10

The first responsibility of a manager in the performance execution phase is to create the conditions that motivate.

Pay A Real Motivator? is the ringer in the motivation equation. It is the one factor that shows up as both a source of satisfaction and a source of dissatisfaction.

Intrinsic vs. Extrinsic Motivation

Intrinsic Motivation being
driven by positive feelings associated with doing well on a task or job

Extrinsic Motivation

motivation caused by the desire to attain specific outcomes

11

A Model of Intrinsic Motivation

Opportunity Rewards Accomplishment Rewards

From Task Activities

Sense of Choice

Sense of Competence

From Task Purpose

Sense of Meaningfulness

Sense of Progress

12

Ken Thomass Model of Intrinsic Motivation

13

Employees are intrinsically motivated when rewards an employee gets from work result from: Choice the ability to freely self-select and perform task activities. Competence the sense of accomplishment from skillfully performing chosen tasks or activities. Meaningfulness pursuing a task that matters in the larger scheme of things. Progress the feeling of significant advancement in achieving the tasks purpose.

8-15

The Job Characteristics Model

Core job characteristics Critical psychological state Outcomes

Figure 8-5

Skill variety Task identity Task significance Autonomy

Experienced meaningfulness of work Experienced responsibility for outcomes of the work

High intrinsic work motivation High growth satisfaction High general job satisfaction High work effectiveness

Feedback from job

Knowledge of the actual results of the work activities

1. 2. 3. Moderators Knowledge and skill Growth need strength Context satisfaction

McGraw-Hill

14

Theory X and Theory Y (Douglas McGregor)

15

16

NEED HIERARCHY THEORY

Higher-order needs Selfactualization needs Esteem needs Social needs Safety needs Physiological needs Lower-order needs

ERG Theory (Clayton Alderfer)

17

Concepts: More than one need can be operative at the same time. Core Needs Existence: provision of basic material requirements. If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases.

Relatedness: desire for relationships.

Growth: desire for personal development.

David McClellands Theory of Needs

18

nPow

nAch

nAff

19

Two-Factor Theory (Frederick Herzberg)

Factors characterizing events on the job that led to extreme job dissatisfaction
20

Factors characterizing events on the job that led to extreme job satisfaction

Comparison of Satisfiers and Dissatisfiers

21

EXPECTANCY THEORY
Effort Performance Reward

Expectancy

Instrumentality

Valence of reward

MOTIVATION
Abilities and traits Role perceptions and opportunities

JOB PERFORMANCE

Expectancy Theory
22

Equity Theory
23

Referent Comparisons:
Self-inside Self-outside Other-inside

Other-outside

Equity Theory (contd)

24

25

EQUITY THEORY: A SUMMARY AND EXAMPLE

INEQUITABLE RELATIONSHIP
Andy is overpaid compared to Bill Andys outcomes ($30,000/year) Andys inputs (40 hour/week) Andy feels guilty Bill is underpaid compared to Andy Bills outcomes ($25,000/year) Bills inputs (40 hours/week) Bill feels angry

EQUITABLE RELATIONSHIP
Andy is equitably paid compared to Bill Andys outcomes ($30,000/year) Andys inputs (40 hour/week)

Bill is equitably paid compared to Andy

Bills outcomes ($30,000/year) Bills inputs (40 hours/week)

Andy feels satisfied

Bill feels satisfied

Equity Theory (contd)

26

Equity Theory (contd)

27

Propositions relating to inequitable pay: 1. Overrewarded employees produce more than equitably rewarded employees.

2.
3. 4.

Overrewarded employees produce less, but do higher quality piece work.

Underrewarded hourly employees produce lower quality work. Underrewarded employees produce larger quantities of lowerquality piece work than equitably rewarded employees

Goal-Setting Theory (Edwin Locke)

28

Goal Setting: Some Impressive Effects

29

100 90 80 70 60 50
Performance at the goal level was sustained seven years after the goal was first set

Goal level 94 Percentage of Maximum Weight Carried on Each Trip

There was a dramatic improvement in performance after a goal was set

1 2 3
Before goal

4 5 6 7 8 9 10 11 12
After Goal Seven Years Later

Four-Week Periods

Matching Achievers and Jobs

30

Reinforcement Theory
31

Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated.

Performance Dimensions
32

Recognition A Motivational Tool

33

When you recognize something, you are aware of it, you are not ignoring it, youre paying attention to it. That is the heart of recognition -letting people know that you are aware that they performed well and that you appreciate their good work. Recognition can be symbolized in many ways, but it always starts with AWARENESS If we want to make the recognition we provide actually have a motivational stimulus, the recognition that the individual receives must be contingent on that persons having done something that is worthy of being recognized. If we just recognize people as a nice human relations tactic, then our recognition efforts will have no motivational value at all.

Gap Identification
34

Identifying the gap between desired and actual performance is the most difficult part of solving performance problems. If the manager doesnt clearly define the gap between what he wants and what he gets, he is not going to be successful in bringing about a change in the employees performance.

Document Performance Improvement Discussion

35

The best way to document a performance discussion is to send the employee a memo summarizing your conversation and the employees agreement to correct the problem as soon as you have completed the discussions.

Quiz
36

Case Study?