Defining Performance and Choosing

a Measurement Approach
Chapter 4
Learning objectives
• Define what performance is and what it is not.
• Identify the various factors that determine performance.
• Gather information about a performance problem.
• Design a performance management system that includes both task and
contextual performance dimensions.
• Adopt a behavior approach to measuring performance
• Adopt a results approach to measuring performance.
• Adopt a trait approach to measuring performance.
• Understand the situations under which a behavior, results, or trait approach to
measuring performance may be most appropriate.
DEFINING PERFORMANCE

• Performance management systems usually include measures of

both behaviors (what an employee does) and results (the
outcomes of an employee’s behavior).
DEFINING PERFORMANCE

Characteristics of the Behaviors :

First, they are Evaluative.
This means that such behaviors can be judged as negative, neutral, or
positive for individual and organizational effectiveness.
Depending on contributions toward the accomplishment of goals.
Second, performance is Multidimensional.
Many kinds of behaviors that have the capacity to advance (or hinder)
organizational goals.
DETERMINANTS OF PERFORMANCE
• A combination of three factors allows some people to perform at higher
levels than others:
(1) Declarative knowledge, information about facts and things, including
information regarding a given task’s requirements, labels, principles, and
goals.
(2) Procedural knowledge, is a combination of knowing what to do and how
to do it and includes cognitive, physical, perceptual, motor, and interpersonal
skills.
(3) Motivation involves three types of choice behaviors:
1. Choice to expend effort (e.g., “I will go to work today”)
2. Choice of level of effort (e.g., “I will put in my best effort at work” versus “I
will not try very hard”)
3. Choice to persist in the expenditure of that level of effort (e.g., “I will give up
DETERMINANTS OF PERFORMANCE
• An employee might have excellent declarative knowledge and
procedural knowledge, yet no motivation to perform. the overall
performance, therefore, is likely to be poor.
Implications for Addressing Performance Problems
• To address performance problems properly, managers must find information that
will allow them to understand whether the source of the problem is declarative
knowledge, procedural knowledge, motivation, or some combination of these
three factors
• If an employee lacks motivation but the manager believes the source of the
problem is declarative knowledge,
• The manager may send the employee to a company-sponsored training program
so he can acquire the knowledge that is presumably lacking.
• This would obviously be a waste of time and resources of organization
Factors Influencing Determinants of Performance

• The factors that determine performance are affected by:

1. The employee (i.e., abilities and previous experience),
2. Human resources (HR) practices,
3. The work environment.
Factors Influencing Determinants of Performance
• For example, some companies offer more opportunities for training than do
others.
In these companies, declarative knowledge is not likely to be a big problem
because, when lack of knowledge is identified, employees have multiple
opportunities to fill in the gap.
• However, performance problems may be related more to procedural knowledge
and motivation. In terms of procedural knowledge, employees may have the
knowledge to perform certain tasks but may not have the skill to do them
because of lack of opportunity for practice.
• In terms of motivation, downsizing interventions may have caused a “survivor
syndrome,” which includes retained employees’ feelings of frustration,
resentment, and even anger.
These feelings are likely to have strong negative effects on motivation, and
employees may expend minimal energy on their jobs.
PERFORMANCE DIMENSIONS

• Performance is multidimensional, meaning that we need to consider

many different types of behaviors to understand performance.

• Although we can identify many specific behaviors, two types of

behaviors or performance facets stand out:
1. Task performance
2. Contextual performance (discretionary behaviors)
Two types of behaviors
1. Task performance is defined as
• activities that transform raw materials into the goods and services
through helping with the transformation process

For example: replenishing the supply of raw materials, distributing its

finished products, or providing important planning, coordination,
supervising, or staff functions.

2. Contextual performance (discretionary behaviors) defined as:

behaviors that contribute to the organization’s effectiveness by
providing a good environment in which task performance can occur.
PERFORMANCE DIMENSIONS
• Why both task and contextual performance dimensions should be
included in a performance management system?

First, today’s globalized world and accompanying competitive forces

make it imperative that the workforce also engage in positive contextual
performance.

Second, related to the issue of global competition is the need to offer

outstanding customer service. For example, when an employee puts in
extra effort to satisfy a customer’s needs.
PERFORMANCE DIMENSIONS
• Why both task and contextual performance dimensions should be
included in a performance management system?

Third, many organizations are forming employees into teams.

Interpersonal cooperation is a key determinant of team effectiveness.

Fourth, Employees believe the system is fairer if contextual

performance is measured in addition to task performance.

Finally, when supervisors evaluate performance, it is difficult for them

to ignore the contextual performance dimension, even though the
evaluation form they are using may not include any specific questions
about contextual performance.
APPROACHES TO MEASURING PERFORMANCE

Three approaches that can be used to measure performance:

1. Behavior,
2. Results,
3. and Trait approaches
APPROACHES TO MEASURING PERFORMANCE
Behavior Approach (process approach)
• The behavior approach emphasizes what and how an employee does the job.
• The behavior approach is most appropriate under the following
circumstances:
1. The link between behaviors and results is not obvious. the desired result
may not be achieved although the right behaviors are in place.
• For example, a salesperson may not be able to close a deal because of a
downturn in the economy.
• In other cases, results may be achieved despite the absence of the correct
behaviors.
2. Outcomes occur in the distant future. When the desired results will not be
seen for months, or even years.
3. Causes beyond the performer’s control. For example, the employee
APPROACHES TO MEASURING
PERFORMANCE
Results Approach
• The results approach emphasizes the outcomes and results produced by the
employees.

• This is basically a bottom-line approach that is not concerned about

employee behaviors and processes but, instead, focuses on what is produced
(e.g., sales, number of accounts acquired, time spent with clients on the
telephone, number of errors).
• Defining and measuring results usually takes less time than defining and
measuring behaviors needed to achieve these results.
• This approach is usually seen as more cost-effective because results can be
less expensive to track than behaviors.
• Overall, data resulting from a results approach seem to be objective and very
APPROACHES TO MEASURING PERFORMANCE
• The results approach is most appropriate under the following
circumstances:
1. Workers are skilled in the needed behaviors. when workers know
what specific behaviors are needed and sufficiently skilled to know
what to do to correct any process-related problems.
APPROACHES TO MEASURING PERFORMANCE
• The results approach is most appropriate under the following
circumstances:
2. Behaviors and results are obviously related.
In some situations, certain results can be obtained only if a worker
engages in certain specific behaviors.
This is the case of jobs involving repetitive tasks such as assembly-
line work or newspaper delivery.
• Take the case of a person delivering newspapers. Performance can
be measured adopting a results approach: whether the newspaper is
delivered to every customer within a particular time frame. For the
employee to obtain this result, she needs to pick up the papers at a
specific time and use the most effective delivery route. If these
APPROACHES TO MEASURING PERFORMANCE
The results approach is most appropriate under the following circumstances:

3. Results show consistent improvement over time. Such improvement is

an indication that workers are aware of the behaviors needed to
complete the job successfully.
4. There are many ways to do the job right. An emphasis on results can
be beneficial because it could encourage employees to achieve the
desired outcomes in creative and innovative ways.
APPROACHES TO MEASURING PERFORMANCE
• Measuring both behavior and results is the approach adopted by
many organizations.
Trait Approach
• The trait approach emphasizes the individual performer and ignores
the specific situation, behaviors, and results.
• If one adopts the trait approach, raters evaluate relatively stable
traits. These can include abilities, such as cognitive abilities (which
are not easily trainable) or personality (which is not likely to
change over time).
• For example, performance measurement may consist of assessing an
employee’s intelligence and conscientiousness at the end of each
review period.
• This approach is justified based on the positive relationship found
between abilities (such as intelligence) and personality traits (such
as conscientiousness) and desirable work-related behaviors.
Trait Approach
Challenges of implementing a system that emphasizes the
measurement of traits only
First, traits are not under the control of individuals.
not likely to change even if an individual is willing to exert
substantial effort to do so.
Employees may feel that a system based on traits is not fair.
Trait Approach
Challenges of implementing a system that emphasizes the
measurement of traits only
Second, the fact that an individual possesses a certain trait (e.g.,
intelligence) does not mean that this trait will necessarily lead to
desired results and behaviors.
For example, If the equipment is faulty and coworkers are
uncooperative, even a very intelligent and conscientious employee is
not likely to engage in behaviors conducive to supporting the
organization’s goals.
Trait Approach

• Despite these challenges, there are situations in which a trait-

oriented approach can be fruitful.
• For example, as part of its business strategy, an organization may
anticipate drastic structural changes that will lead to the
reorganization of most functions and the resulting reallocation of
employees
• In such a circumstance, it may be useful to assess the traits
possessed by the various individuals so that fair and appropriate
decisions are made regarding the allocation of human resources
across the newly created organizational units.
Trait Approach

• This is, of course, a unique circumstance. In most

organizations, performance is not measured using the trait
approach.
• This is why two more popular approaches to measuring
performance are based on behaviors and results.