Human Resource-QA38

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Preface and Introduction

 
In today’s globalized world, it is relatively easy to gain access to the competition’s technology and products. Thanks to the Internet and the accompanying high speed of communications, technological and product differentiation is no longer a key competitive advantage in most industries.
 
This edition includes the following six important changes. More detailed information on each of these issues is provided in the section titled “Changes in This Edition.”
 
• There is an emphasis on the role of the context within which performance management takes place.
• This edition emphasizes that knowledge generated regarding performance management is
essentially multidisciplinary.
• This edition emphasizes the important interplay between science and practice.
 
• This edition describes the technical aspects of implementing a performance management
system in detail and, in addition, it emphasizes the key role that interpersonal dynamics
play in the process.
• This new edition includes new cases in almost every chapter. Taken together, this new edition includes a total of 43 case studies.
• Each of the chapters includes new sections.
 

Some Unique Features of this Book
 
Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the strategic goals of the organization. Performance management is critical to small and large, for-profit and not-for-profit, domestic and global organizations, and to all industries. In fact, the performance management model and processes described in this book have been used to create systems to manage the performance of college students.3 After all, the performance of an organization depends on the performance of its people, regardless of the organization’s size, purpose, and other characteristics.
 

Change in this Edition

 

This edition includes important updates and additional information. In preparation for revising and updating this book, I gathered more than 300 potentially relevant articles and books. About150 of those were most relevant, and about 50 of those new sources are now included in this edition. These sources have been published since the second edition of the book went into-production. This vast literature demonstrates an increased interest in performance management on the part of both academics and practitioners.
In addition to the aforementioned changes that permeate the entire book, each chapter includes new sections. As illustrations, consider the following chapter-by-chapter non exhaustive additions .
 

• Performance management around the world This material will be useful in terms of understanding that although performance management systems may have similar goals, their implementation and deployment will be affected by cultural and contextual factors depending on where the organization is located.
 
• Biases in the job analysis process and their effects in the resulting job analysis ratings This material will be useful in terms of providing guidelines on how to gather valid job analysis information.
 
• Relationship between strategies, goals, and firm performance (Chapter 3). This new material will be useful in providing guidelines on the most effective sequence of implementation of the various strategic planning steps as it cascades down and across the various organizational
units.
 
• Voice behaviour: Raising constructive challenges with the goal to improve rather than merely criticize, challenge the status quo in a positive way, and make innovative suggestions for change when others, including an employee’s supervisor, disagree (Chapter 4). This material will be useful in terms of understanding the multidimensional nature of performance and how different performance dimensions may be valued differently in different organizations.
 
• Relative percentile method for measuring performance (Chapter 5). This material will be useful regarding the development of measures to assess performance more accurately.
 
• Open-ended sections included in most appraisal forms (Chapter 6). This material will be Useful in terms of learning how to make the most of this information, which is typically?
 
You can read more about our case study assignment help services here.
 

 

Underutilized in most performance management systems.
 
• Calculation of return on investment of portions of a performance management system This material will be useful in terms of learning how to document the relative Effectiveness, in tangible and financial terms, of a performance management system.
 
• The feed forward interview (FFI) (Chapter 8). This new material will be useful in terms of Understanding how the FFI is a process that leads to uncovering the contextual and personal Conditions that lead to success regarding both achievement and job satisfaction.
 
• Disciplinary process that may lead to termination (Chapter 9). This material will be useful in terms of providing information on what to do when performance problems are identified but employees are unable or unwilling to address them effectively.
 
• Relationship between new legal regulations and the implementation of performance Management systems in China (Chapter 10). This new information will be useful in terms of understanding how the legal environment has a direct impact on performance
management practices worldwide.
 
• Types of learning that can take place as part of the team development plan in the performance planning stage (Chapter 11). This material will be useful in terms of providing a deeper understanding of specific interventions aimed at improving team learning and
performance.
 

Further, the following is a no exhaustive list of specific topics that have been updated and expanded in each chapter
 
• The discussion of voice behaviour (i.e., constructive criticisms that challenge the status quo and promote innovative improvements) as an important contribution of performance management systems, performance management’s contribution to minimizing employee
misconduct, an expanded discussion of allowances, an expanded discussion of the four different dimensions of fairness (i.e., procedural, distributive, interpersonal, and informational justice), the additional strategic purpose of performance management systems as acatalyst for on boarding (i.e., processes helping new employees to transition from organizational outsiders to organizational insiders), and the importance of implementing a system that is congruent with the cultural norms of the organization as well as the culture of the region and country where the organization is located.
 
• An expanded discussion of how rater accountability leads to improved accuracy in performance ratings (Chapter 6).
 
• An expanded discussion of how to evaluate whether the performance management system is working as intended, and a new section on the implementation of online performance management systems (Chapter 7).
 
• A description of the performance review meetings as work meetings—each one with specific purposes, the need to separate the performance review meetings to minimize negative surprises, an expanded discussion of how to deal with employee defensiveness during the performance review meeting, and the need to consider an employee’s personality (e.g., core self-evaluations) in the process of giving feedback.
 
• An expanded discussion of non financial rewards.
 
• New material regarding challenges faced in implementing performance management with Expatriate teams
 

Faculty Resources

 

Each of the chapters includes a list of its learning objectives as well as summary points and cases for discussion. I hope this additional material will allow students to have an enjoyable and productive learning experience that will enhance your own individual human capital. Also, there are several resources available for instructors including PowerPoint slides, exam questions and answers(multiple choice and essay-type), role plays, and approximately 40 additional cases (about 4 perchapter) that can be used for in-class discussions, examination materials, or take-home homework or examinations. These materials will allow instructors to prepare for teaching this course more quickly and help make teaching this course a more enjoyable and interactive experience. These faculty resources can be downloaded by visiting www.pearsonhighered.com/aguinis and clicking onInstructor Resources.
 

1.1Definition of Performance Management

 
Consider the following scenario:Sally is a sales manager at a large pharmaceutical company. The fiscal year will end in one week. She is overwhelmed with end-of-the-year tasks, including reviewing the budget she is likely to be allocated for the following year, responding to customers’ phone calls, and supervising a group of 10 salespeople. It’s a very hectic time, probably the most hectic time of the year.
 
1. Continuous process. Performance management is ongoing. It involves a never-ending process of setting goals and objectives, observing performance,and giving and receiving ongoing coaching and feedback.
 
2. Alignment with strategic goals. Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organization’s goals and, consequently, help the organization gain a competitive advantage. Performance management therefore creates a direct link between employee performance and organizational goals and makes the employees’ contribution
to the organization explicit.
 

1.2 The Performance of Management Contribution
 
There are many advantages associated with the implementation of a performance management system.9 A performance management system can make the following important contributions:10
 
1. Motivation to perform is increased. Receiving feedback about one’s performance increases the motivation for future performance. Knowledge about how one is doing and recognition about one’s past successes provide the fuel for future accomplishments.
 
2. Self-esteem is increased. Receiving feedback about one’s performance fulfills a basic human need to be recognized and valued at work. This, in turn, is likely to increase employees’ self-esteem.
 
3. Managers gain insight about subordinates. Direct supervisors and other managers in charge of the appraisal gain new insights into the person being appraised.
 
4. The definitions of job and criteria are clarified. The job of the person being appraised may be clarified and defined more clearly. In other words, employees gain a better understanding of the behaviors and results required of their specific position. Employees also gain a better understanding of what it takes to be a successful performer (i.e., what are the specific criteria that define job success).
 
5. Self-insight and development are enhanced. The participants in the system are likely to develop a better understanding of themselves and of the kind of development activities that are of value to them as they progress through the organization. Participants in the system also gain a better understanding of their particular strengths and weaknesses that can help them better define future career paths.
 
6. Administrative actions are more fair and appropriate. Performance management systems provide valid information about performance that can be used for administrative actions such as merit increases, promotions, and transfers as well as terminations.
 
7. Organizational goals are made clear. The goals of the unit and the organization are made clear, and the employee understands the link between what she does and organizational success. This is a contribution to the communication of what the unit and the organization are all about and how organizational goals cascade down to the unit and the individual employee. Performance management systems can help improve employee acceptance of these wider goals (i.e., organizational and unit levels).
 
8. Employees become more competent. An obvious contribution is that employee performance is improved. In addition, there is a solid foundation for helping employees become more successful by establishing developmental plans.
 
9. Employee misconduct is minimized.13 Employee misconduct is an increasingly pervasive phenomenon that has received widespread media coverage. Such misconduct includes accounting irregularities, churning customer accounts, abusing overtime policies, giving inappropriate gifts to clients and potential clients hoping to secure their business, and using company resources for personal use.
10. There is better protection from lawsuits. Data collected through performance management systems can help document compliance with regulations (e.g., equal treatment of all employees regardless of sex or ethnic background). When performance management systems are not in place, arbitrary performance evaluations are more likely, resulting in an increased exposure to litigation for
the organization.
 
11. There is better and more timely differentiation between good and poor performers.Performance management systems allow for a quicker identification of good and poor performers. Also, they force supervisors to face up to and address performance problems on a timely basis (i.e., before the problem becomes so entrenched that it cannot be easily remedied).
 
12. Supervisors’ views of performance are communicated more clearly. Performance management systems allow managers to communicate to their subordinates their judgments regarding performance. Thus, there is greater accountability in how managers discuss performance expectations and provide feedback. Both assessing and monitoring the performance of others are listed as key competencies for
managers by the Management Standards Centre (www.management-standards.org,Units B3, B4, and B7). When managers possess these competencies, subordinates receive useful information about how their performance is seen by their supervisor.
 
13. Organizational change is facilitated. Performance management systems can be a useful tool to drive organizational change. For example, assume an organization decides to change its culture to give top priority to product quality and customer service.
 
14. Motivation, commitment, and intentions to stay in the organization are enhanced. When employees are satisfied with their organization’s performance management system, they are more likely to be motivated to perform well, to be committed to their organization, and not try to leave the organization.17
 
For example, satisfaction with the performance management system is likely to make employees feel that the organization has a great deal of personal meaning for them. In terms of turnover intentions, satisfaction with the performance management system leads employees to report that they will probably not look for a new job in the next year and that they don’t often think about quitting.
 
15. Voice behaviour is encouraged. A well-implemented performance management system allows employees to engage in voice behaviour that can lead to improved organizational processes. Voice behaviour involves making suggestions for changes and improvements that are innovative, challenge the status quo, are intended to be constructive, and are offered even when others disagree.19 For example, the performance review meeting can lead to a conversation during which the employee provides suggestions on how to reduce cost or speed up specific process.
 
16. Employee engagement is enhanced. A good performance management system leads to enhanced employee engagement. Employees who are engaged feel involved, committed, passionate, and empowered. Moreover, these attitudes and feelings result in behaviours that are innovative and, overall, demonstrate good organizational citizenship and take action in support of the organization.
 
 
1.3 Disadvantage/Dangers of Poorly Implemented PM Systems
 

What happens when performance management systems do not work as intended, as in the case of Sally’s organization? What are some of the negative consequences associated with low-quality and poorly implemented systems? Consider the following list
 
1. Increased turnover. If the process is not seen as fair, employees may become upset and leave the organization. They can leave physically (i.e., quit) or withdraw psychologically (i.e., minimize their effort until they are able to find a
job elsewhere).
 
2. Use of misleading information. If a standardized system is not in place, there are multiple opportunities for fabricating information about an employee’s performance.
 

3. Lowered self-esteem. Self-esteem may be lowered if feedback is provided in an inappropriate and inaccurate way. This, in turn, can create employee resentment.
 
4. Wasted time and money. Performance management systems cost money and quite a bit of time. These resources are wasted when systems are poorly designed and implemented.
 

5. Damaged relationships. As a consequence of a deficient system, the relationship among the individuals involved may be damaged, often permanently.
 
6. Decreased motivation to perform. Motivation may be lowered for many reasons, including the feeling that superior performance is not translated into meaningful tangible (e.g., pay increase) or intangible (e.g., personal recognition) rewards
 

7. Employee burnout and job dissatisfaction. When the performance assessment instrument is not seen as valid and the system is not perceived as fair, employees are likely to feel increased levels of job burnout and job dissatisfaction. As a consequence, employees are likely to become increasingly irritated.22
 
8. Increased risk of litigation. Expensive lawsuits may be filed by individuals who feel they have been appraised unfairly.
 
9. Unjustified demands on managers’ and employees’ resources. Poorly implemented systems do not provide the benefits provided by well-implemented systems, yet they take up managers’ and employees’ time. Such systems will be resisted because of competing obligations and allocation of resources (e.g., time). What is sometimes worse, managers may simply choose to avoid the system altogether, and employees may feel increased levels of overload.23
 
10. Varying and unfair standards and ratings. Both standards and individual ratings may vary across and within units and be unfair.
 
11. Emerging biases. Personal values, biases, and relationships are likely to replace organizational standards.
 
12. Unclear ratings system. Because of poor communication, employees may not know how their ratings are generated and how the ratings are translated into rewards..
 

Learning Objectives

 

By the end of this chapter, you will be able to do the following
 
_ Define what performance is and what it is not.
 
_ Understand the evaluative and multidimensional nature of performance.
 
_ Identify the various factors that determine performance, including declarative knowledge, procedural knowledge, and motivation.
 
_ Gather information about a performance problem and understand which of the three main determinants of performance need to be addressed to solve the problem.
 
_ Design a performance management system that includes both task and contextual performance dimensions.
 
_ Understand that performance should be placed within a context: a performer in a specific situation engaging in behaviors leading to specific results.
 
_ Adopt a behavior approach to measuring performance, which basically focuses on how the job is done and ignores the performer’s traits and results produced.
 
_ Adopt a results approach to measuring performance, which basically focuses on the outcomes of work and ignores the performer’s traits as well as the manner in which the work is done.
 

4.2 DETERMINANTS OF PERFORMANCE
 

What factors cause an employee to perform at a certain level?
 
Why do certain individuals perform better than others?
 
A combination of three factors allows some people to perform at higher levels than others: (1) declarative knowledge, (2) procedural knowledge, and (3) motivation.(4) Declarative knowledge is information about facts and things, including information regarding a given task’s requirements, labels, principles, and goals. Procedural knowledge is a combination of knowing what to do and how to do it and includes cognitive, physical, perceptual, motor, and interpersonal skills. Finally,motivation involves three types of choice behaviours
 

We can think of a handful of individuals who have achieved the top level of performance in their fields. Think about Tiger Woods as a golf player, Bill Gates as Microsoft’s founder and businessman, Bobby Fischer as a chess player, Thomas Edison as an inventor, and Socrates as a philosopher.
 
How did they achieve such excellence?
 
What made these individuals’ performance so extraordinary?
 
How were they able to improve their performance constantly even when others would believe they had reached a plateau?
 
What these individuals have in common is that they devoted large number of hours to deliberate practice.
 

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