Preparing To Measure Perfromance

Preparing to
measure
Performance
Ryan Gould
3011EHR.2018.T1.03
Today’s agenda
 Part 1: Reflecting on the relationship between Strategy and
Performance Management
 Part 2: Preparing to measure performance
 Part 3: Setting up next weeks reflection, progress on group

assessment
Part 1:
Reflecting on last week
Part 2:
Preparing to measure performance
This lecture will cover:
 How to predict individual performance
 Two dimension of performance behaviour
 Three approaches to performance measurement
Remember: Performance is not only an outcome
Defining Performance
 Performance is NOT:
 Results or outcomes, nor
 What employees produce
 Rather performance is:

 What employees do (their behaviour)
Therefore, performance is behaviour that contributes to the
effectiveness of the organisation and others in the unit
Understanding Performance
Performance = (A x M x O)
(Blumberg & Pringle, 1982)
A = Ability – can do
M = Motivation – will do
O = Opportunity - environment
Determinants of Performance
 Declarative knowledge (DK)
 Knowing information about facts and things
 Facts, principles, goals
 Procedural knowledge: (PN)

 Knowing what to do and how
 Cognitive, Psychomotor, Physical, Interpersonal skills
 Motivation (M)
 Employees desire to perform tasks
Understanding motivation further
 Motivation represents three types of choice behaviours:
1. Choice to expend effort (Direction)
2. Choice of level of effort (Intensity)
3. Choice to persist in the expenditure of effort (Persistence)
 Expectancy Theory serves as our theoretical basis for motivation

Motivation = Expectancy X Instrumentality X Valence
The multiplicative effect of performance determinants
 All determinants of performance MUST be present for performance to

reach high levels. Consider the following equation:
Performance = (DK x PK x M)
Ryan’s Formula
Performance = A[DK x PK] x M[E x I x V] x O

Deliberate practice
1. Approach performance with goal of getting better and better
2. Focus on performance (What is happening? Why?)
3. Seek feedback from expert sources
4. Build mental models of job, situation, and organisation
5. Repeat first four steps on an ongoing basis
Factors that influence performance
 Employees’ ability and previous experience
 HR practices
 Work environment
 Procedural knowledge – employee may have knowledge to perform the
task but not the skill to do them because of lack of opportunity for practice
 Motivation – changes in org such as downsizing could have impact on
employees eg survivor syndrome
Implications for addressing performance problems
 Managers need information to accurately identify source(s) of

performance problems
 Performance management systems must…
 Measure performance
AND
 Provide information on source(s) of problems
Performance dimensions
 Task performance
 Contextual performance
 Pro-social behaviour
 Organisational citizenship
Task performance
 Activities that:
 Transform raw materials
 Help with the transformation process
 Replenishing
 Distributing
 Supporting
Contextual performance
 Behaviours that contribute to the organisation’s effectiveness by providing a good environment in
which task performance can occur.
 For example:
 Enthusiasm and exerting extra effort – being punctual, not being absent
 Volunteering to do task activities not part of the job – making suggestions for improvements
 Helping co-workers
 Following rules and procedures
 Voice behaviour
Differences between task and contextual performance
 Task performance  Contextual performance

 Varies across jobs  Similar across jobs
 Likely to be role prescribed  Not likely to be role prescribed
 Influenced by abilities and skills  Influenced by personality
Activity 1
Why include task and contextual performance?
1. Global competition
2. Customer service
3. Teamwork
4. Employee perceptions of PM
5. Supervisor views
6. Cultural differences
3 Approaches to measuring performance
1. Behaviour Approach
 Emphasises how employees do the job
2. Results Approach
 Emphasises what employees produce
3. Trait Approach
 Emphasises individual traits of employees
Behaviour approach
 HOW work is performed (i.e. a process)
 An approach to PM that focuses primarily on observing, recording, measuring,
appraising or assessing work behaviour
 Approx 46% or organisations in Australia use behaviourally based measures as
part of their PM approach
 Relies on observation and judgement – more prone to human error and biases
 Sources of behavioural information – supervisor, peers, self, external
customers/clients
Behaviour approach (cont)
 Appropriate if ….
 Outcomes occur in the distant future; Employees take a long time to
achieve desired outcomes
 Link between behaviours and results is not obvious
 Poor results are due to causes beyond the performer’s control
 Not appropriate if …
 Above conditions are not present
Results approach
 Advantages:
 Less time A bottom-line
 Lower cost approach concerned
 Data appear objective with the OUTCOMES
 Most appropriate when:

 Workers skilled in necessary behaviours
 Behaviours and results obviously related
 Consistent improvement in results over time
 Many ways to do the job right
Trait Approach
 Most appropriate when:
 Emphasis on individual
 Evaluate stable traits (i.e. cognitive abilities, personality)
 Positive relationship between abilities, personality traits, and desirable work-related behaviours
 Appropriate if structural changes planned for organisation
 Disadvantages:
 Improvement not under individual’s control
 Trait may not lead to desired behaviours or results
Activity 2
Part 3:
Setting up the reflection for next week
Points of reflection for next week:
 Performance is:
 Determinants of performance are:
 Dimensions of performance are:
 The 3 approaches to measuring performance are:

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Preparing to

 Part 2: Preparing to measure performance

 Part 3: Setting up next weeks reflection, progress on group

 Rather performance is:

 Procedural knowledge: (PN)

 Expectancy Theory serves as our theoretical basis for motivation

 All determinants of performance MUST be present for performance to

Performance = A[DK x PK] x M[E x I x V] x O

 Managers need information to accurately identify source(s) of

 Task performance  Contextual performance

 Most appropriate when:

 Determinants of performance are:

 Dimensions of performance are:

 The 3 approaches to measuring performance are:

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