Managing performance

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aguinis_pm3_ppt_05.ppt

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Chapter 5

Measuring Results
and
Behaviors

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Performance management third edition

herman aguinis www.pearsonhighered.com

ISBN-13: ISBN-10:

978-0-13-255638-5 0-13-255638-3

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Key Questions

Where should each individual focus efforts?

What are the expected objectives?

How do we know how well the results were achieved?

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Measuring Results: Overview

Accountabilities

Objectives

Performance Standards

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Accountabilities

Broad areas of a job for which an employee is responsible for producing results

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Objectives

Statements of important and measurable outcomes

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Performance Standards

Yardstick used to evaluate how well employees have achieved objectives

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Determining Accountabilities

Collect information about the job (Job Description)

Determine importance of task or cluster of tasks

Percentage of employee’s time spent performing tasks

Impact on the unit’s mission if performed inadequately

Consequences of error

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Determining Objectives

Purpose: to identify outcomes

Limited number

Highly important

When achieved

Dramatic impact on overall organization success

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Ten Characteristics of Good Objectives

Specific and Clear

Challenging

Agreed Upon

Significant

Prioritized

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Ten Characteristics of Good Objectives (Continued)

Bound by Time

Achievable

Fully Communicated

Flexible

Limited in Number

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Determining Performance Standards

Standards refer to aspects of performance objectives, such as:

Quality

How well the objective is achieved

Quantity

How much, how many, how often, and at what cost?

Time

Due dates, schedule, cycle times, and how quickly?

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Standards Must Include

A verb
The desired result
A due date
Some type of indicator

Quality or

Quantity

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Good Performance Standards:
Six Characteristics

Related to the Position

Concrete, Specific, and Measurable

Practical to Measure

Meaningful

Realistic and Achievable

Reviewed Regularly

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Measuring Behaviors: Overview

Identify competencies
Identify indicators
Choose measurement system

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Identify Competencies

Measurable clusters of KSAs

Knowledge

Skills

Abilities

That are critical in determining how results will be achieved

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Types of Competencies

Differentiating

Distinguish between superior and average performance

Threshold

Needed to perform to minimum standard

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Identify Indicators

Observable behaviors
Used to measure the extent to which competencies are present or not

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Necessary Components for
Describing Competencies

Definition
Description of specific behaviors

When competency is demonstrated

When competency is not demonstrated

Suggestions for developing the competency

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Choose a Measurement System

Comparative system

Compares employees with one another

Absolute system

Compares employees with prespecified performance standards

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Advantages of Comparative Systems

Easy to explain
Straightforward
Identifies top as well as underperformers
Better control for biases and errors found in absolute systems

Leniency

Severity

Central tendency

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Disadvantages of Comparative Systems

Rankings may not be specific enough for:

Useful feedback

Protection from legal challenge

No information on relative distance between employees
Specific issues with forced distribution method

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Comparative Systems

Simple rank order
Alternation rank order
Paired comparisons
Relative percentile
Forced distribution

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Simple Rank Order

Advantages:

Simple and easy to do

Results are clear

Disadvantages:

Judges performance based on one dimension only

May be difficult to rank similar performance levels

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Alternation Rank Order

Advantages:

Simple and easy to do

Results are clear

Uses two anchors (best and worst)

Disadvantages:

Judges performance based on one dimension only

May be difficult to rank similar performance levels

Does not specify threshold for acceptable performance

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Paired Comparisons

Advantages:

Thorough

Final rankings are more accurate

Disadvantages:

Very time consuming

May encounter problem of comparing “apples and oranges”

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Relative Percentile

Advantages:

Simple and easy to use

Evaluates specific competencies or overall performance

Disadvantages:

May be difficult to consider all ratees at the same time

Time consuming if using several scales for different competencies

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Forced Distribution

Advantages:

Categorizes employees into specific performance groups

Facilitates reward assessment

Competition may be good for organizational performance

Disadvantages:

Assumes performance scores are normally distributed

May discourage contextual performance and teamwork

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Absolute Systems

Essays
Behavior checklists
Critical incidents
Graphic rating scales

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Advantages and Disadvantages of Absolute Systems

Advantages:

Can be used in large and small organizations

Evaluations more widely accepted by employees

Disadvantages:

Higher risk of leniency, severity, and central tendency biases

Generally, more time consuming than comparative systems

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Behavior Checklists

Advantages:

Easy to use and understand

Provides quantitative information

Widespread use

More objective than other systems

Disadvantages:

May feel impersonal and disconnected

Scale points used are often arbitrary

Difficult to get detailed and useful feedback

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Essays

Advantages:

Simplest absolute method

Individualized for each employee

Can be done anytime

Potential for detailed feedback

Disadvantages:

Unstructured and may lack detail

Depends on supervisor’s writing skill

Comparisons virtually impossible

Lack of quantitative information; difficult to use in personnel decisions

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Critical Incidents

Advantages:

Focus on actual job behavior

Provides specific examples

Employees identify with rating

Disadvantages:

Collecting critical incidents can be very time consuming

Quantification is difficult

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Graphic Rating Scales

Advantages:

Meanings, interpretations, and dimensions being rated are clear

Useful and accurate