PERFORMANCE MANAGEMENT

MODULE 3.
APPROACHES AND
ISSUES TO
MANAGING
PERFORMANCE
Reference:

Aguinis, Herman (2013). Performance Management, 3e. Pearson

Education, Inc.
Armstrong, M. (2009). Armstrong's Handbook of Performance
Management: An Evidence-Based Guide to Delivering High
Performance (4th ed., pp. 89-94). London: Kogan Page Limited.

Jaika Almira R. Agena

INSTRUCTOR
MODULE CONTENT
This module is intended for the discussion of the
issues and approached to managing performance.
Topics include the factors that determine
performance, approaches and challenges in
measuring performance and the challenges in
managing underperformers.

LEARNING OBJECTIVES
3-1 Define what performance is
3-2 Identify various factors that determine
performance
3-3 Describe the three approaches that can be
adopted to measure performance
3-4 Discuss the challenges in managing
performance and how to manage
underperforming employees
APPROACHES AND ISSUES TO
MANAGING PERFORMANCE
DEFINING PERFORMANCE

We earlier learned that performance management systems usually include both what
an employee does (behaviors) and the outcomes of an employee's behavior (results).
But we have to separate these two to define performance. Performance is only about
behavior or what employees do, and not about the outcomes of their work.

Performance is evaluative. Behaviors can be judged as negative, neutral,

or positive for individual and organizational effectiveness.

Performance is multidimensional. There are many different kinds of

behaviors that have the capacity to advance (or hinder) organizational
goals.

Because not all behaviors are observable or measurable, performance management

systems often include measures of results or consequences that we infer are the
direct result of employees' behaviors.

DETERMINANTS OF PERFORMANCE
We begin this discussion with the question: Why are individuals not equal in terms of
performance? A combination of three factors answers this question.
Declarative knowledge. This is the information about facts and things,
including information regarding a given task's requirements, labels,
principles and goals.
Procedural knowledge. This is the combination of knowing what to do and
how to do it; it includes cognitive, physical, perceptual, motor, and
interpersonal skills.

Motivation. It includes 3 types of choice behaviors: (1) the choice to

expend effort, (2) choice of level of effort, and (3) choice to persist in the
expenditure of that level of effort.

Table 3.1 Factors determining performance

APPROACHES AND ISSUES TO
MANAGING PERFORMANCE
Individuals who have achieved top level of performance in their fields have one
thing in common: deliberate practice. Deliberate practice involves the following:
1. Approach performance with the goal of getting better and better.
2. As you are performing, focus on what is happening and why you are doing
things the way you do.
3. Once your task is finished, seek performance feedback from expert sources,
and the more sources, the better.
4. Build mental models of your job, your situation, and your organization.
5. Repeat steps 1-4 continually and on an ongoing basis.

APPROACHES TO MEASURING PERFORMANCE

Behavior Approach
The behavior approach emphasizes what employees do on the
job and does not consider employees' traits or the outcomes
resulting from their behaviors. This is a process-oriented
approach that emphasizes how an employee does the job.
This approach is most appropriate under the following
circumstances:
The 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.

Results Approach
This is a bottom-line approach that is not concerned about
employee behaviors and processes but instead focuses on what
is produced.
This approach is most appropriate under the following
circumstances:
Workers are skilled in the needed behaviors.
Behaviors and results are obviously related.
Results show consistent improvement over time.
There are many ways to do the job right.

Trait Approach
This approach emphasizes the individual performer and ignores
specific situation, behaviors, and results. It includes cognitive
abilities (which are not easily trainable) or personality (which is
not likely to change over time.
APPROACHES AND ISSUES TO
MANAGING PERFORMANCE
Some challenges that are involved in the implementation of traits approach
include the following:
1. Traits are not under the control of individuals. Traits are stable over the life
span of a person, and are not likely to change even if the person is willing to
exert effort to change.
2. The fact that individuals possess a certain trait doesn't necessarily mean that
this will lead to the attainment of desired results and behaviors.

Situations that may use the trait approach usually include drastic structural
changes that will lead to reorganization of most functions. This will eventually
lead to reallocation of human resources that would then rely on the traits of
individuals.

CHALLENGES IN MANAGING PERFORMANCE

We understand that performance is a combined effect of three different factors.

The equation below shows the multiplicative relationship surrounding
performance:
Performance = Declarative Knowledge x Procedural Knowledge x Motivation

To be able to address problems in performance, managers must know first which

factor, or a combination of factors, is the source of the performance problem.

Similarly, the abilities and previous experience of the employee, various HR

practices, and the work environment are also factors that determine performance.
When addressing performance problems, managers first need to identify which of
these factors is hampering performance and then help the employee improve his
or her performance.

MANAGING UNDER-PERFORMANCE

Performance management is a positive process that involves building on

strengths. But, in some cases, it is also about helping people to improve.

Managing underperformers should be a positive process. It

should be based on feedback throughout the year and
looks forward to what can be done by individuals to
overcome performance problems and importantly, how
managers can provide support and help.

"There are no bad soldiers, only bad

officers."
APPROACHES AND ISSUES TO
MANAGING PERFORMANCE
GENERAL APPROACHES TO MANAGING UNDER-PERFORMANCE

It is important to ensure that under-performing employees understand and

acknowledge there is a problem when it can be attributed to them and accept
some responsibility for achieving a solution. However, still the most effective
measure was to have competent and confident managers who were prepared to
tackle the problem.

THE FIVE BASIC STEPS TO MANAGE UNDER-PERFORMERS

Identify and agree on the problem. Analyze the

feedback and, as far as possible, obtain
agreement from the individual on what the
shortfall has been.

Establish the reason (s) for the shortfall. When

seeking reasons for any shortfalls the manager
should not crudely be trying to attach blame. The
aim should be for the manager and the individual
jointly to identify the facts that have contribution
to the problem.

Decide and agree n the action required. Action

may be taken by the individual, the manager or
both parties. Whichever action is agreed, both
parties must understand how they will know
that it has succeeded.

Resource the action. Provide the coaching,

training, guidance, experience or facilities required
to enable agreed actions to happen.

Monitor and provide feedback. Both managers

and individuals monitor performance, ensure that
feedback is provided or obtained and analyzed,
and agree on any further actions that may be
necessary.
APPROACHES AND ISSUES TO
MANAGING PERFORMANCE
USE OF A CAPABILITY PROCEDURE

Every attempt should be made to deal with performance problems as they arise or
at least consider them dispassionately at a review meeting. While there are
disciplinary procedures attached to under-performance, many organizations still
use of a capability procedure when handling performance issues. Such procedures
are stages as follows:

If a manager believes that an employee's performance

is not up to standard, an informal discussion is held
with the employee to establish the reason and to
agree the actions required by the employee and/or the
manager to improve performance.
Should the employee show insufficient improvement over
a defined period, a formal interview will be arranged with
the employee. The aims of this interview is to (a) explain
the shortfall, (b) identify the causes of unsatisfactory
performance and determine what - if any - remedial
treatment can be given, (c) set a reasonable period for
the employee to reach standard, and (d) agree on a
monitoring system during that period, and provide the
consequences if these were not met.

At the end of the review period, a further formal

interview will be held, at which time the required
improvement has been made.

Employees may appeal against their dismissal.

This practice suggest that that immediate action is taken to deal with
performance problems. Raising problems immediately means that they are
dealt with as a normal management process, and the capability procedure
should only be resorted to when this process fails in spite of every effort to
make it succeed.
END OF MODULE TEST
CASE ANALYSIS: DIAGNOSING CAUSE OF POOR PERFORMANCE

Read the situation below and answer the questions that follow:

Heather works in the training department of a large information technology (IT)

organization. She is in charge of designing and delivering interpersonal skills
training, including communication skills, networking, and new manager training
classes. Heather has excellent knowledge of how to design a training class. She
incorporates behavioral modeling and practice into all of her classes. She has
also conducted research on what good communication consists of, how to
network, and what new managers need to know to be successful. However,
individuals who attend Heather's training classes often give her low ratings,
stating that she has a hard time answering specific questions in classes and
that she does not seem approachable after the classes when individuals want to
ask questions.

1. You are Heather's manager. In your opinion, what is causing Heather's poor
performance? Is it due to a deficiency in declarative knowledge or
procedural knowledge?
2. What remedy can be done to address the performance problem?