Chapter 5 (Measuring - Results - and - Behaviors)

Measuring results and Behaviors
Measuring Results
• Measuring Results:

Organizations that implement a management by objectives
(MBO) philosophy are likely to implement performance
management system, including objectives and standards.

• Measuring Results:

o Determining Accountabilities
o Determining Objectives
o Determining Performance Standards
Determining Accountabilities
• Determining Accountabilities:

The first in determining accountabilities is to collect information
about the job. The primary source is, of course, the job description
that resulted from the job analysis and a consideration of unit-and
organization-level strategic priorities.

1. Process leadership
2. Supervision of nonexempt staff
3. Coaching
4. Team building consultation
5. Assessment instrument feedback
6. Product improvement
Determining Objectives
• Determining Objectives:
Objectives are clearly important because they help employees guide their
efforts. But to serve a useful function, objectives must have some
characteristics.
• Characteristics of Good Objectives:
• Specific and clear
• Challenging
• Agreed upon
• Significant
• Prioritized
• Bound by time
• Achievable
• Fully communicated
• Flexible
• Limited in number
Determining Performance Standards:
• Standards can refer to various aspects of a

specific objectives, including quality, quantity,
and time. Each of these aspects can be
considered criteria to be used in judging the
extent to which an objective has been achieved.
• Quality
• Quantity
• Time
• Quality: how well the objective has been achieved.

This can include usefulness, responsiveness, effect
obtained, acceptance rate, and feedback from users
or customers.

• Quantity: how much has been produced, how many,
how often, and at what cost.

• Time: due dates, adherence to schedule, cycle times,
deadlines.

• Characteristics of Good Performance Standards:

o Related to the position
o Concrete, specific, and measureable
o Meaningful
o Realistic and achievable
o Reviewed regularly
• Measuring Behavior
A behavior approach to measuring performance includes the
assessments of competencies.
Competences are measureable clusters of knowledge, skills and
abilities that are critical in determining how results will be achieved.

Types of competencies
• Types of competencies:
1. Differentiating competencies
2. Threshold competencies
• Differentiating competencies:
These competencies allow us to distinguish between average
and superior performers.

• Threshold competencies:
Competencies that everyone need to display to do the job to a
minimally adequate standard.

Types of competencies
• Components:
In describing competency the following
components must be present:
1. Definition of competency
2. Description of specific behavioral indicators
3. List of suggestions for developing the
competency.
Comparative and absolute behavioral measurement system:
Comparative Absolute

1. Simple rank order 1. Essays
2. Alternation rank order 2. Behavior checklists
3. Graphic rating scales
3. Paired comparisons 4. Critical incidents
4. Forced distribution

Anchors for Checklists of frequency and
amount:
• Anchors for Behaviour Checklists of frequency

• Seven-point scale Five-point scale
1. Always 1. Always
2. Constantly 2. Very often
3. Often 3. Fairly often
4. Fairly often 4. Occasionally
5. Sometimes 5. Never
6. Once in a while
7. Never
Anchors for Checklists of frequency and
amount:
• Anchors for Checklists of amount

• Seven-point scale Five-point scale

1. All 1. All
2. An extraordinary amount of 2. An extraordinary
amount of
3. A great amount of 3. Quite a bit of
4. Quite a bit of 4. Some
5. A moderate amount of 5. None
6. Somewhat
7. none

BARS
• BARS:
• Behaviorally Anchored Rating Scales, which are described next as
one of the several types of graphic rating scales. The graphic rating
scale is the most popular tool to measure performance.

• The aim of graphic rating scales is to ensure that the response
categories are clearly defined, that interpretation of the rating by an
outside party is clear, and that the supervisor and the employee
understand the rating

• BARS include the use of graphic rating scales that use critical
incidents as anchors. BARS improve on the graphic rating scales by
first having a group of employees identify all of the important
dimensions of a job.
Job Knowledge:
5 Exceptional: Employee consistently displays high level of job knowledge

in all areas of his or her job. Other employees go to this person for
training.
4 Advanced: Sows high levels of job knowledge in most areas of his or her
job. Consistently completes all normal tasks. Employee continuous
searching for more job knowledge and many seek guidance in some areas.
3 Competent: employee shows an average level of job knowledge in all

areas of the job. May need assistance completing difficult tasks.
2 Improvement needed: Does not consistently meet deadlines or complete

task required for this job. Does not attempt to acquire new skills or
knowledge to improve performance.
1 Major improved needed: typically performed tasks incorrectly or not at
all. Employee has no appreciation for improving his or her performance.
Knowledge of Accounting and Auditing
standards/ Theory:
3 performance: display very strong technical foundation, able to
proficiently apply knowledge on the job, willingly researches
areas, able to identify problems, can weigh theory vs. practice
considerations.
2 Midpoint performance: can resolve normal accounting issues,

has adequate technical foundations and skills, applications
requires some refinement, has some problems in weighing
theory vs. practice, can identify major problem areas.
1 Low point performance: displays weak accounting knowledge

and/or technical abilities to apply knowledge to
situation/issues on an engagement, has difficulty in
identifying problems and/or weighing factors of theory vs.
practice.
BARS
• Features of BARS:
• The meaning of each response category is clear.

• The individual who is interpreting the ratings
can tell clearly what response was intended.
• The performance dimension being rated is
defined clearly for the rater.

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Measuring results and Behaviors

• Standards can refer to various aspects of a

• Quality: how well the objective has been achieved.

• Characteristics of Good Performance Standards:

5 Exceptional: Employee consistently displays high level of job knowledge

3 Competent: employee shows an average level of job knowledge in all

2 Improvement needed: Does not consistently meet deadlines or complete

2 Midpoint performance: can resolve normal accounting issues,

1 Low point performance: displays weak accounting knowledge

• The meaning of each response category is clear.

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