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39 Cards in this Set
- Front
- Back
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Why is behavioural assessment such a perennially troubled aspect of management? |
You can't manage it if you can't measure it. What gets measure and rewarded gets done What gets measured is what is easy to measure If you don't measure results, you can't tell success from failure. |
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Performance explanation |
inputs are translated into outputs through work processes. So the KSAO's an employee brings to an org. shows the potential performance this person has -- through effort which is guided by behaviour, work ethics and attitude those competencies are translated into a certain amount of produced goods/services of a certain standard. In most ogs you don't work as an individual so the team performance works on a similar system as the individual 0 the potential combined KSAO's of the team result in certain synergies or in some instances in disorder - which impacts on productivity levels. The same goes for the organisation as a whole unit -- this is what gives some firms the competitive advantage - they have assimilated their workforces competencies to reflect the organisations objectives -- eg. customer focus - Mc Donalds, Safety -Volvo/Qantas, Microsoft-creativity. |
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Aspects of the process of performance measurement? |
Defining targets, standards and capability requirements. understand what the level of current performance is in terms of results, behaviours and competencies |
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Three approaches to Performance measurement |
Competency assessment (inputs - Competencies - individual KSAs) Behavioural appraisal/assessment (processes - work behaviours - individual) Results based assessment (outcomes - results - individual, group and organisational). |
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Results based performance measurement |
1. How to define results 2. KRAS, KPIS and goals 3. Measurement validity and reliability 4. Goal-setting 5. Balanced scorecard. |
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What are results? |
Product/Service Quantity: 1. Quantity produced/sold 2. Customer/client volume 3. New accounts created 4. Labour productivity Product/Service Quality: 1. Attainment of a standard (quality, level of service) 2. Direct rates 3. Safety 4. Environmental impact Financial Outcomes. 1. Revenue 2. costs (materials, capital HR) 3. Net Profit 4. Rate on return on Assets Investment and equity. 5 Economic value added. Timeliness 1. speed of response to customer demand/inquiry 2. delivery time 3. new product/service development time 4. time to market 5. Achievements compared with timetable 6. Amount of backlog Innovation 1. New product/service development 2. Plant diversification Multi-stakeholder perceptions and reactions: 1. External customer satisfaction and level of product/service take-up 2. Employee satisfaction and commitment 3. Judgement of external shareholders and share markets 4. Community perception/brand image 5. Corporate social responsibility/environment/quadruple bottom line |
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How do you measure results |
Goals are defined (eg increase productivity by 5 % over the year). Key result areas are determined (Eg plant productivity) Key Performance Indicator (e.g units produced per person per hour. |
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Measurement reliability and validity |
Objective and accurate? Easy to measure vs. important to measure Danger of focussing on 'numbers' Partial reflection of a larger reality |
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Main requirement for measuring results validly and reliably |
Measure should be: 1. Related to appropriate strategic goals and objectives, with each measure weighted accordingly (i.e. construct validity) 2. Relevant to the objectives and accountabilities of the individuals and groups concerned (i.e. construct validity) 3. Comprehensive, covering all key result areas (i.e. content validity) 4. Accurate indicators of actual performance against the performance standards or criteria set (i.e criterion-related validity). 5. Focused on measurable outputs that can be clearly defined and for which evidence can be made available (i.e. reliability) 6. Based on solid data or evidence that will be available as the basis of measurement (i.e. reliability) 7. Verifiable - provide accurate information that will confirm the extent to which objectives have been met (ie. criterion related validity and reliability). 8. Able to provide a sound basis for feedback and further performance development. |
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Two main Results based performance management techniques |
1. Goal-setting 2. Balance score care Remember that main requirements for measuring performance effectively consis of - Results-based performance measure should be related to appropriate strategic goal and objectives |
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What is Goal setting |
origins: Practice pioneered by Drucker in the form of management by objectives (MBO) Current approaches informed by Goal-Setting Theory Goal Setting Theory 1. Specific goals increase performance (do your best) 2. Difficult but attainable goals, when accepted, result in higher performance than easy goals (expectancy theory) 3. Motivation is stronger when there is a sense of goal ownership/commitment 4. People will perform better when they get feedback on how well they are progressing towards their goals (i.e. need for achievement and recognition) 5. People must believe that they can perform (expectancy, self efficacy). |
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What are the advantages of Goal setting? |
It is 1. Objective 2. Involved 3. Specific 4. strategic focus 5. Continuous feedback 6. Continuous improvement 7. Future oriented 8. Better communication 9. Ends Vs Means |
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What are the disadvantages of goal setting |
1. May ignore some aspects of work 2. Easy goal setting if linked to pay 3. still subjectivity in measures and targets 4. situational constraints ignore 5. Goals may change 6. Focus on ends to detriment of means (quality) |
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What are the features of the balanced scorecard |
1. A multi-measure/multi-stakeholder approach to organisation-wide performance management 2. Setting and communicating strategically-aligned goals and measuring/rewarding goal-achievement ' what you measure is what you get'. 3. Three key stakeholder interests: shareholders, customers, employees. 4. Focus on 'value creation' processes rather than just cost-control activities 5. Balances 'lag indicators' (e.g. annual financial results, market share) with 'lead indicators' (e.g learning, creativity, innovation) 6. Balances hard, short-term goals (e.g. financial goals) with long-term goals (e.g. organisational learning and business process improvement). 7. Aligns performance goals of individual employees, work, groups, operating units and whole organisation i.e.'cascading'. 8. Each employee has a 'personal scorecard' as part of the wider objective-setting process. 9. Enables systematic tracking of impact of changes in HR practices (e.g. increased outlays on staff development) on performance outcomes (e.g. new product innovation; customer satisfaction) 10. Strategy mapping used to draw up scorecard. |
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The balanced scorecard has four perspectives |
Financial - how do we appear to shareholder? Customers - how do customers see us? Internal business process - at what must we excel Internal learning and growth - how can we continue to improve and create value? These surround the overall vision and strategy |
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Organisations that designed their BSC with cause and effect between measures gained greater benefits from it than those that did not. |
Overall accounting measures sill central, with non financial measures to complement financial measures rather than being substitutes for them. Perceived benefit: better strategy development, better strategy focus and better communication. Also focuses more consideration to non-financial performance drivers |
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What are the advantages of the balanced scorecard? |
Internal strategic alignment Balances financial and non-financial criteria Balances short-term and long-term goals Cross functional Internal and external fit Importance of HR L&D Can be customised Can be linked to rewards |
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What are the disadvantages of the balanced scorecard? |
Difficult to translate org goals into individual goals Overlooks other stakeholders Insensitive to org specifics Assumes linear cause and effect 4 results areas may be in conflict Time differentials between 4 results area Measurement does not equal effective strategic thinking or good performance management. |
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Managing behaviour and competencies |
Behaviourally based PM - Behavioural observation sources - Behavioural assessment error/unreliablity - behavioural rating methods Competency-based PM -What are competencies? -Competency analysis -Competency assessment/ rating --Results behaviours or competencies?? |
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Behavioural assessment |
Deals with the appraisal or assessment of employees' work behaviour - membership behaviour -task behaviour -org citizen behaviour |
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What are the sources of behavioural information |
1. Supervisory assessment 2. Peer assessment 3. Subordinate assessment 4. Self assessment 5. External stakeholder assessment 6. Multi-source assessment |
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What is the difference between the 360 and 180 behavioural observation sources |
360 - supervisor, peers, subordinate, customers) 180 - supervisor, peers, customers |
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Behavioural Assessment methods |
Comparative methods - Ranking - Forced ranking or distribution Rating Methods - Critical Incident method - graphic rating scales -Behaviourally anchored rating scales -Behavioural observation scales -Weighed check list - Forced choice |
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Causes of error/unreliability in behaviour assessment |
Judgement error (unintentional; perceptual-cognitive) 1. Halo - impact of one positive or negative incident 2. Horns- one negative incident colour the overall assessment 3. Recency - rate the basis of most recent and clearly recalled observation. Classification error (intentional, Political) 1. leniency error - give some or all assessees an undeservedly high rating. 2. Harshness error - assessor may be unduly harsh with some or all 3. Central tendency error - locating at/around midpoint. |
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Rating methods: Behavioural Anchors |
1. positive anchors only Communication 2. positive and negative anchors (contrasts the positive with negative) |
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Common design issues |
conflation of behavioural criteria Invalid behavioural statements or anchors Inadequate difference between behavioural statements and anchors. Inadequate attention to behavioural frequency Inadequate grade descriptors Inadequate guidelines for determining an overall rating |
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What are the 7 deadly sins of performance measurement? |
1. Vanity - measuring to make people or the organisation look good 2. Provincialism - measuring too narrowly 3. Narcissism - measuring from the wrong poing of view 4. Laziness - assuming one knows what to measure. 5. Pettiness - measuring only a small component of what matters 6 Inanity - measuring without though of the consequences on human behaviour 7. Frivolity - passing the blame rather than tracking root causes |
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What are competencies |
Iceberg model where skill and knowledge are visible and self concept, social role and values, motives and personality are all hidden. Competencies are sets of skills knowledge, abilities behavioural characteristics and other attributes that, in the right combination and for the right set of circumstances predict superior performance. |
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Results, Behaviours or competencies |
Use results where - ends (results) can be more accurately specified and measure than means (e.g. management work, project teams, targeted research work, FX and equity trading) - Work group performance is more important than individual performance |
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Results, behaviours or competencies? |
Use behaviours where: - Means (behaviours) can be more easily specified than ends (results) - Work is individualised but routine and thus possible to specify a single best sequence of task behaviours plus desired OCB (e.g. routine service work, administrative work) - There is ongoing opportunity to observe individual's work behaviour (e.g. constant supervision) |
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Results, behaviours or competencies? |
Use competencies where: - High performance is based on underlying abilities, values and attitudes rather than technical knowledge and skill (high-discretion service work; emotional labour) - Work is non-routine and discretionary (e.g. managers, knowledge workers) - Individual and group results difficult to quantify/attribute (e.g. knowledge workers, exploratory research, customer service work, teachers, healthcare workers). - Traditional job assignments have been replaced by broad, fluid and largely self managing roles - The organisation wishes to change is culture and employees' values attitudes (and beliefs?) |
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When should you balance Results, behaviours and competencies? |
Balance all three when: -work inputs, activities and outcomes can all be specified/measured to some degree and all are important (e.g. routine work requiring high quality precision, CSOs/ Call centres, teaching, general management roles |
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What is the 'best practice' approach? |
The best practice approach posits that there is a particular set of human resource practices that can be applied in virtually any organisational context to increase performance and deliver outcomes beneficial to all stakeholders - including employees. Performance effect believed to be stronger when practices bundled to complement each other and create positive synergies. -- Whole is greater than the sum of its parts. Covers a number of related prescriptive models of HRM Workers respond best - and most creatively 0 when given broader responsibilities, encouraged to contribute, and helped to take satisfaction in the work. High commitment or involvement in management is widely seen as the foundation of best practice people management. Typically seen as entailing all of the following: Job security, a well-developed internal labour market and promotion system; job enrichment; employee participation and involvement in decision making; self-managed work teams; open two way communication, extensive skill development, reduced status differentiation and reward practices that relate pay to employee skill or competencies and to group or org performances. |
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What are some of the items in best practice bundles? |
1. employment security 2. selective hiring 3. self-managed teams or team working 4. high pay contingent on org performance 5. Extensive training 6. Reduction of status differences 7. Information sharing. or 1. Employee involvement programs 2. job security 3. job autonomy and challenge 4. Training opportunities 5. Single employment status 6. High pay 7. Non-union workplace 8. Systematic and open communication. |
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What is the appeal of best practice? |
It offers a clear consistent and ready made solution - perhaps the perfect one. Treat employees as untrustworthy makes a bad psychological contract. Treat them as trustworthy crates positive Psyc contract and justice perception. |
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What are the downsides of best practice? |
Many variations of practices and bundles that conceivably produce a high-performance outcome. Some versions include performance pay where as others do not. Inconsistencies - high compensation contingent on org performance -- does this mean the firm should maintain high pay levels even when firm performance falls -- logically should reduce -- but does not acknowledge this possibility. Dammed if it does and dammed if it doesn't |
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What is the best-fit approach? |
Proposes that far form there being one superior and universally applicable set of HR practices, such practices should be tailored differently so as to fit each organisations specific internal and external circumstances. -- What is best will be contingent on the organisation's precise strategic purpose, operating context, structure, size, age, management style, culture, workforce profile and the like. mixture of contingency and resource based models - main difference is emphasis -- contingency theory emphasises the importance of configuring HR practices to match the firms business strategy and external competitive environment whereas the resource-based model stresses the competitive potential of aligning practices to achieve maximum leverage from the firms internal resource capabilities, particularly it's unique hr competencies. |
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What is the contingency model |
known as the matching model. Draws on precepts from the field of strategic management as well as from strategic choice theory. focus on need to align practices with external context -- lasting competitive advantage from hrm comes from developing HR practices that are appropriate for an orgs specific context. Firms attain and sustain vertical and horizontal alignment for competitive advantage. behavioural requirements depend on firm stage - start up, growth, maturity |
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What is the resource based model |
key to competitive advantage lies with internalities rather than externalities. strategic value of organisations internal resources - especially intangible (workforce competencies and organisational knowledge, learning, and embedded culture) Must have Human capital resources that meed VRIO requirements 1. Valuable - resources that allow the firm to exploit opportunities and neutralise threats 2. Rare - resources that are scarce supply to firms current/potential competitors. 3. Difficult do Imitate - hard to substitute, or an equivalent. 4. Organisation supported- integrated in the firms structure horizontally - polices and practices - can be exploited neglects the performance potential of HR competencies resource based view offers a far more practical flexible, dynamic approach to achieving fit than does an approach that emphasises accommodation to external contingencies. This said to be particularly so for firms operating in unpredictable and rapidly changing environments. |
