MGT-520: Managing Perform. Module 06: Defining Performance and Selecting a Measurement Approach

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Module 06: Introduction

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In this module, you will examine the relationship between strategic planning and performance management approaches and identify how to link organizational needs with specific approaches.
Learning Outcomes
Analyze the determinants and facets of performance in an organization.
Evaluate the trait, behavior, and results approach to performance evaluation for appropriate use and application.
ReadingsRequired:Chapter 4 in Performance Management: Defining Performance and Choosing and Measurement ApproachDemo, G., Rezende Costa, A. C., Veloso Coura, K., Carolina Miyasaki, A., & Fogaça, N. (2020). What do scientific research say about the effectiveness of human resource management practices? Current itineraries and new possibilities. Revista de Administraçãao Da UNIMEP, 18, 138–158.SAP. (n.d.). 10 ways to improve the performance management process. SAP Insights.
Recommended:Chapter 4 PowerPoint slides from Performance ManagementBerkeley University of California. (2020). Performance expectations = results + actions & behaviors. Guide to Managing Human Resources, Chapter 7.
Module 06: Critical Thinking
Performance Management
A central factor that can determine the effectiveness of a performance management system, of course, is whether an employee’s performance is raised, thereby raising the overall performance (and profitability) of the organization. This is accomplished by ensuring that the performance of an employee is directly tied to the organization’s overall strategic goals/objectives.In this critical thinking assignment, choose any Saudi Arabian company in which you are familiar (it does not need to be one that you have worked for). Research the specific goals or objectives of the organization over the next 5 years, along with the main principles of a performance management system, and then address the following questions:
Give a brief review of the organization you have chosen.
State the 2-3 most important goals/objectives for the organization over the next five years.
As mentioned above, the key to an effective performance management system is to directly tie organizational goals with an employee’s specific goals. If that employee accomplishes those goals, then the organization has an opportunity (collectively) to reach its overall goals/objectives. Given that statement, choose any position you are familiar with in that organization. They develop 3 goals that the person in that position must accomplish over the next years in order to be successful in their position and, as a result, that would allow the organization to be successful. Below is an example:
EXAMPLE:
The goal of the Riyad Bank is to increase its profit margins by 5 percent over the next two years. Therefore, one of the performance goals for the Chief Financial Officer is to develop a strategy that, when implemented, will reduce expenses a minimum of 2 percent in each of the subsequent 3 years.If addressed correctly, students will learn, via the performance management system, to create performance standards that directly tie employee performance to organizational performance.
Your well-written paper should meet the following requirements:
Be 4 to 5 pages in length, which does not include the required title and reference pages, which are never a part of the content minimum requirements.
Use Saudi Electronic University academic writing standards and APA style guidelines.
Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles unless the assignment calls for more.
It is strongly encouraged that you submit all assignments into the Turnitin Originality Check before submitting it to your instructor for grading. If you are unsure how to submit an assignment into the Originality Check tool, review the Turnitin Originality Check—Student Guide for step-by-step instructions.
Review the grading rubric to see how you will be graded for this assignment.


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Copyright © 2023 Chicago Business Press
1
Part II: System Implementation




Chapter 4: Defining Performance and Choosing a
Measurement Approach
Chapter 5: Measuring Results and Behaviors
Chapter 6: Performance Analytics
Chapter 7: Rolling Out the Performance
Management System
Copyright © 2023 Chicago Business Press
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Chapter 4
Defining Performance
and
Choosing a Measurement Approach
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4-3
Overview

Defining Performance

Determinants of Performance

Performance Dimensions

Approaches to Measuring Performance
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Defining Performance(1 of 3)
Performance is:

Behaviors and actions
• What employees do
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Defining Performance(2 of 3)
Performance is:

Results and Products
• The outcome of employee behaviors
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Defining Performance(3 of 3)
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Behaviors Labeled as Performance
Are…
Evaluative

Negative

Neutral

Positive
Multidimensional

Many different kinds of behaviors

Advance or hinder organizational goals
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Behaviors Are NOT Always…
• Observable
• Measurable
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Results or Products May Be Used…


To infer behavior
As proxy for behavioral measure
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Determinants of Performance(1 of 2)


Performance =
Abilities and other traits


X
Knowledge and skills


X
Context
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Determinants of Performance(2 of 2)
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Abilities and Other Traits




Cognitive Abilities
Personality
Stable Motivational Dispositions
Physical Characteristics and Abilities
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Knowledge and Skills


Job-Related Knowledge
Skills, Attitudes and Malleable Motivational States
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Declarative Knowledge


Information about
• Facts
• Labels
• Principles
• Goals
Understanding of task requirements
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Procedural Knowledge


Knowing
• What to do
• How to do it
Skills
• Cognitive
• Physical
• Perceptual
• Motor
• Interpersonal
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Motivation


Choices
• Expenditure of effort (”state” motivation)
• Level of effort (“state” motivation)
• Persistence of effort (stable trait)
Deliberate practice leads to excellence
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Abilities and Other Traits, and
Knowledge and Skills



Knowledge and skills are more malleable than
abilities and other traits.
Individual differences that are less malleable are
called “traits”
Individual differences that are more malleable are
called “states”
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Deliberate Practice
1.
2.
3.
4.
5.
Approach performance with goal of getting
better and better
Focus on performance
• What is happening?
• Why?
Seek feedback from expert sources
Build mental models of job, situation, and
organization
Repeat first four steps on an ongoing basis
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Context

HR policies and procedures
Managerial and peer leadership

Organizational and national culture

Time and timing of performance

Resources given to employees

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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
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Performance Dimensions:
Types of Multidimensional Behaviors

Task performance

Contextual performance
• Pro social behaviors
• Organizational citizenship

Counterproductive performance

Adaptive Performance
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Task Performance
Activities that

Transform raw materials

Help with the transformation process
• Replenishing
• Distributing
• Supporting
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Contextual Performance
Behaviors that

Contribute to the organization’s effectiveness
AND

Provide a good environment in which task
performance can occur
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Company Spotlight(1 of 3)



Goldman Sachs increased accountability in the
company’s performance appraisals
Put a new metric-based system to test
Examples:
• Linking performance standards, measurement,
and rewards
• Addressing Goldman Sachs’ gender gap
• Put more employee compensation under
employee’s control
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Differences Between
Task and Contextual Performance
Task Performance
Contextual Performance
• Varies across
jobs
• Fairly similar
across jobs
• Likely to be
role
prescribed
• Not likely to
be role
prescribed
• Influenced by
• Influenced by
• Abilities
• Personality
• Skills
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Why Include Task and Contextual
Performance Dimensions in PM System?
1.
2.
3.
4.
5.
6.
Global competition
Customer service
Teamwork
Employee perceptions of PM
Supervisor views
Cultural differences
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Voice Behavior

Behavior that emphasizes expression of
constructive challenge with the goal to improve
rather than merely criticize

Challenges the status quo in a positive way

Makes innovative suggestions for change

Recommends modifications to standard
procedures
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Counterproductive Performance

Behaviors and results that are voluntary

and violate organizational norms

Threaten well-being of the organization, its
members, or both
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Examples of counterproductive
performance

Exaggerating hours worked

Gossiping about coworkers and one’s supervisor

Cyber loafing

Intentionally working slowly and carelessly

Staying out of sight to avoid work
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Adaptive Performance


Related to an individual’s adaptability to
changes

Be it in the organization and it’s goals,

in the requirements of the job,

or the overall work context
Becoming increasingly important due to rapid
changes
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Examples of adaptive performance

Handling emergencies

Solving problems creatively

Dealing with uncertain and unpredictable work
situations

Demonstrating interpersonal adaptability

Demonstrating cultural adaptability
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Competency Architecture(1 of 3)

Four types of competencies

Core competencies

Job Family Competencies

Technical or Professional Competencies

Leadership Competencies
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Competency Architecture(2 of 3)

Benefit of implementing a competency
architecture

Alignment

Fairness

Continuity
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Competency Architecture(3 of 3)

A competency-based job profile can help



The organization by giving employees a clear
learning path
Leaders and HR professionals by providing solid
foundation for an organization’s development
programs
Job seekers by giving them a high-level
overview of the prospective job.
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Approaches to Measuring Performance
Behavior Approach

Emphasizes how employees do the job
Results Approach

Emphasizes what employees produce
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Behavior Approach
Appropriate if…

Link between behaviors and results is not obvious

Outcomes occur in the distant future

Poor results are due to causes beyond the
performer’s control
Not appropriate if…

Above conditions are not present
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Company Spotlight(2 of 3)




Dollar General uses a behavioral approach to
measure performance
Identified behaviors that serve as indicators of
underlying competencies
Behaviors are reviewed and utilized to encourage
certain outcomes and provide
feedback and rewards to staff members
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Results Approach
Advantages:
• Less time
• Lower cost
• Data appear objective
Most appropriate when:
• Workers skilled in necessary behaviors
• Behaviors and results obviously related
• Consistent improvement in results over time
• Many ways to do the job right
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Company Spotlight (3 of 3)




Basecamp divides its employees workload into sixweek work cycles containing 1-2 “big batch
projects” and 4-8 “small batch projects”
Uses a results-approach to performance planning
Company focuses exclusively on getting the
project done within 6 weeks and does not measure
efficiency or compare actual to estimated costs
Team decides how to get the project done
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Quick Review

Defining Performance

Determinants of Performance

Performance Dimensions

Approaches to Measuring Performance
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4-41
Copyright
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any
means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
Copyright © 2023 Chicago Business Press
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Exceeds
Expectations
Meets
Expectation
Some
Expectations
Unsatisfactory
Quantity
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Initial post and
two other posts
of substance.
Initial post and
one other post
of substance.
Initial post only.
Did not
participate.
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Demonstrates
excellent
knowledge of
concepts, skills,
and theories
relevant to the
topic.
Demonstrates
knowledge of
concepts, skills,
and theories.
Demonstrates
satisfactory
knowledge of
concepts, skills,
and theories.
Did not
participate.
5 to 6 points
3 to 4 points
1 to 2 points
0 to 0 points
Discussion
post(s) exceed
expectations in
terms of support
provided and
extend the
discussion.
Discussion
post(s) meet
expectations in
terms of
support
provided.
Statements are
satisfactory in
terms of
support
provided.
Did not
participate.
6 to 7 points
4 to 5 points
1 to 2 points
0 to 0 points
Writing is well
organized, clear,
concise, and
focused; no
errors.
Some significant
but not major
errors or
omissions in
writing
organization,
focus, and
clarity.
Numerous
significant
errors or
omissions in
writing
organization,
focus, and
clarity.
Did not
participate.
Content
Support
Writing
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