Quality Management Programs

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Chapter 5

Measuring Results

and

Behaviors

5-1

Key Questions

Where should each individual focus their efforts?

What are the expected standards?

How do we know how well the results were achieved?

5-2

Measuring Results: Overview

Accountabilities

Objectives

Performance Standards

5-3

Accountabilities

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

5-4

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

5-5

Objectives

Statements of important and measurable outcomes, that, when accomplished, will help ensure success for the accountability

5-6

Determining Objectives

Purpose is to identify outcomes:

Limited in number

Highly important

Achieving them will have a dramatic impact on overall organization success

5-7

Characteristics of Good Objectives

5-8

Setting SMART Objectives

What are the benefits of using SMART objectives?

Choose a short-term personal or professional goal and frame the objective using the SMART technique

5-9

SMART Objectives

Performance Standards

Yardstick used to evaluate how well employees have achieved objectives

Information about what to look for to determine the level of performance that has been achieved

5-10

Performance Standards

Aspects of performance objectives:

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?

5-11

Standards Must Include

An Action

The Desired Result

A Due Date

A Quality or Quantity Indicator

5-12

Good Performance Standards

5-13

Measuring Behaviors: Overview

Identify Competencies

Identify Indicators

Choose Measurement System

5-14

Identify Competencies

Measurable clusters of KSAs

Knowledge

Skills

Abilities

Critical in determining how results will be achieved

5-15

Company Spotlight

Xerox Capital Services (XCS) used leadership competencies to create leadership development program

Steps followed:

Senior managers and leaders identified the 12 most critical competencies for success at XCS

12-week curriculum developed with readings and course material

5-16

Types of Competencies

Differentiating

Distinguish between superior and average performance

Threshold

Needed to perform to minimum standard

5-17

Identify Indicators

Observable behaviors

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

5-18

Necessary Components for Describing Competencies

Definition of competency

Description of specific behaviors

When competency is demonstrated

When competency is not demonstrated

Suggestions for developing the competency

5-19

Choose a Measurement System

Comparative system

Compares employees with one another

Absolute system

Compares employees with pre-specified performance standards

5-20

Choose a Measurement System

5-21

Types of Comparative Systems

Simple rank order

Alternation rank order

Paired comparisons

Relative percentile

Forced distribution

5-22

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

5-23

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

5-24

Paired Comparisons

Advantages:

Thorough

Final rankings are more accurate

Disadvantages:

Very time consuming

May encounter problem of comparing “apples and oranges”

5-25

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

5-26

Relative Percentile

5-27

Example of Relative Percentile Method Scale

Don

Desiree

Heather

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

5-28

Company Spotlight

General Electric (GE) has moved from forced distribution ratings to a more performance management approach

Changes include:

An app-based system to provide ongoing coaching

Evaluating employees relative to desired traits

5-29

Forced Distributions

Why might forced distributions demotivate employees?

How have forced distributions evolved over the years?

5-30

Forced Distribution

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, and Central tendency

Beneficial for jobs that are very autonomous

Attracts individuals high in cognitive abilities

5-31

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

5-32

Company Spotlight

Deloitte abandoned forced distribution ratings in favor of a system that provides feedback on a project or quarterly basis

Changes include:

Documented, weekly “check-ins” with employees

Supervisor training on how to evaluate performance

5-33

Nature of Performance Distribution

Forced distribution implies that performance is normally distributed

Recent research shows that, instead, performance is distributed following a heavy-tail

That is,

There are more star performers

Differences between top and average performers are much greater

5-34

Nature of Performance Distribution

What does the “myth of the bell curve” refer to?

Under what situations are traditional assumptions of performance more likely to hold?

5-35

Nature of Performance Distribution

5-36

Nature of Performance Distribution

Producing Star Performers

5-37

Identify and eliminate situational constraints

Allow star performers to rotate across teams

Invest sufficient resources in star performers

Attend to stars developmental network

Shield from financial challenges

Give them preferential treatment, but explain why to all workers

Invest disproportionate amount of resources in stars

Absolute Systems

Essays

Behavior checklists

Critical incidents

Graphic rating scales

5-38

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

5-39

Behavior Checklists

5-40

Example of Behavior Checklist Item

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

5-41

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

5-42

Critical Incidents

5-43

Example of Critical Incidents for Adaptability/Flexibility

Graphic Rating Scales

Advantages:

Meanings, interpretations, and dimensions being rated are clear

Useful and accurate