Chapter 4

PERFORMANCE MANAGEMENT

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 Determinants of performance
A combination of three factors allow some
people to perform at higher levels than
others.
• Declarative knowledge
• Procedural knowledge
• Motivation

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 Declarative knowledge
• Declarative knowledge is information about
facts and things, including information
regarding a given tasks requirement, labels,
principles, and goals.

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 Procedural knowledge
• Procedural knowledge is a combination of
knowing what to do and how to do it and
includes cognitive, physical, perceptual,
motor, and interpersonal skills.

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 Motivation
Motivation involves three type of choice
behaviors.
– Choice to expand effort (e.g I will go to work
today)
– Choice of level of effort (e.g I will put in my best at
work versus I will not try very hard)
– Choice to persist in the expenditure of that level
of effort (e.g I will give up after a little while
versus I will persist no matter what)

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Determinants of performance (Contd.)
• The three determinants have a multiplicative
relationship, such that
– Performance = Declarative Knowledge x
Procedural Knowledge x Motivation

• If any of the determinants has a value of 0,

then performance also has a value of zero.

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 Implications for addressing
performance problems
• The fact that performance is affected by
combined effect of three different factors has
implications for addressing performance
problems.

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 Implications for addressing
performance problems (Contd.)
• In order to address performance problems
properly, manager must find information that
will allow them to understand whether the
source of problem is declarative knowledge,
procedural knowledge, motivation or some
combination of these three factors.

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 Factors influencing determinants of
performance
The factors that determine performance are
affected by
• The employee
• Human resource(HR) practices
• And the work environment.

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Determinants of performance (Contd.)
There are three individual characteristics that
determine performance:
• Procedural knowledge
• Declarative knowledge
• Motivation

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Determinants of performance (Contd.)
• In addition HR practices and work
environment can affect performance.
• When addressing performance problems,
manager first need to identify which of these
factors is hampering performance and then
helps the employee improve his or her
performance.

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 Performance Dimensions
• Performance is multidimensional, meaning
that we need to consider many different type
of behaviors to understand performance.

• Although we can identify many specific

behaviors, two types of behaviors or
performance facets stand out:
– task performance and
– contextual performance.

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 Performance Dimensions (Contd.)
• Contextual and task performance must be
considered separately because they do not
necessarily occur in tandem.

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 Task Performance
Task performance is defined as
• Activities that transform raw materials into
the goods and services that are produced by
the organization.

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 Task Performance
• Activities that help with the transformation
process by replenishing the supply of raw
materials, distributing its finished products, or
providing important planning, coordination,
supervising or staff functions that enable the
organization to function effectively and
efficiently

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 Contextual Performance
• Many authors use the labels pro-social behaviors
and organizational citizenship behaviors in
referring to contextual performance.

• Contextual performance is defined as those

behaviors that contribute to the organization’s
effectiveness by providing a good environment in
which task performance can occur.

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 Contextual Performance (Contd.)
Contextual performance includes behaviors such
as the following

• Persisting with enthusiasm and exerting extra

effort as necessary to complete ones own task
activities successfully (e.g being punctual and
rarely absent, expending extra effort on the
job)

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 Contextual Performance (Contd.)
• Volunteering to carry out task activities that
that are not formally part of the job (e.g
suggesting organizational improvements,
making constructive suggestions)

• Helping and cooperation with others (e.g

assisting and helping co workers and
customers)

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 Contextual Performance (Contd.)
• Following organizational rules and procedures
(e.g following orders and regulations, showing
respect for authority, complying with
organizational value and policies)

• Endorsing, supporting, and defending

organizational objectives (e.g organizational
loyalty, representing the organization
favorably to outsiders)

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 Reasons for inclusion of Task and
Contextual Performance in PMS
• There are numerous pressing reasons why
both task and contextual performance
dimensions should be included in a
performance management system.

• First, global competition is raising the levels of

effort required of employees.

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 Reasons for inclusion of Task and
Contextual Performance in PMS
(Contd.)
• Second related to the issue of global
competition is the need to offer outstanding
customer service.
– Contextual performance behavior can make a
profound impact on customer satisfaction.

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 Reasons for inclusion of Task and
Contextual Performance in PMS
(Contd.)
• Third, many organizations are forming
employees into teams.
– Although some teams my not be permanent
because they are created to complete a short
term task.
– The reality of today’s world of work is that teams
are here to stay.
– Interpersonal cooperation is a key determinant of
team effectiveness.
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 Reasons for inclusion of Task and
Contextual Performance in PMS
(Contd.)

• Fourth, including both task and contextual

performance in the performance management
system provides an additional benefit;
– Employee being rated are more satisfied with the
system and also believe the system is more fair if
contextual performance is measured in addition
to task performance.

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 Reasons for inclusion of Task and
Contextual Performance in PMS
(Contd.)

• It seems that employees are aware that

contextual performance is important in
affecting organizational effectiveness and
therefore;
– Believe that these types of behavior should be
included in a performance management system in
addition to more traditional task performance.

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 Reasons for inclusion of Task and
Contextual Performance in PMS
(Contd.)

• Finally when supervisors evaluate

performance it is difficult for them to ignore
the contextual performance dimension, even
though the evaluation form that they are
using may not include any specific questions
about contextual performance.

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 Approaches to measure performance
The employees do not function in vacuum, they
work in organizational context, engaging in
certain behaviors that produce certain results.

The same employee may behave differently if

placed in a different situation.

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 Approaches to measure performance
(Contd.)
• The common approaches that are used to
measure performance are:
– Trait approach
– Behavior approach
– Result approach

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 Trait approach
• Trait approach emphasizes the individual
performer and ignores the specific situation,
behavior, and results.
• If one adopts the trait approach, raters
evaluate relatively stable traits.
• These can include abilities such as cognitive
abilities or personality.

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 Trait approach (Contd.)
• These can include abilities;
– such as cognitive abilities (which are not easily
trainable) or
– personality (which is not likely to change over
time).

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 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 basically a process oriented approach that
emphasizes how an employee does the job.

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 Behavior approach (Contd.)
• Behavior approach is most appropriate under the
following circumstance:
– The link between behaviors and results is not
obvious:
• sometimes the relationship between behaviors and the
desired outcomes is not clear.
• In some cases the desired results are not achieved in
spite of fact that the right behaviors are in place.

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 Behavior approach (Contd.)
– Outcomes occur in distant future:
• when the desired results will not be seen for months,
or even years, the measurement of behavior is
beneficial.

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 Behavior approach (Contd.)
– Poor results are due to causes beyond the
performers control:
• when the results of an employees performance are
beyond the employees control ,then it makes sense to
emphasize the measurement of behaviors.

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 Results approach
• The result approach emphasizes the outcomes
and results produced by the employees.

• It does not consider the traits that employees

may possess or how employees do the job.

• This is basically a bottom line approach that is not

concerned about the employees behaviors and
processes but instead focuses on what is
produced.

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 Results approach (Contd.)
The result approach is most appropriate under
the following circumstances:
• Workers are skilled in the needed behaviors:
– an emphasis on result is appropriate when
workers have the necessary knowledge and the
skills to do work.

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 Results approach (Contd.)
• Behavior and results are obviously related :
– in some situations, certain results can be obtained
only if a worker engages in certain specific
behaviors. This is a case of jobs involving
repetitive tasks such as assembly line work or
newspaper delivery

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 Results approach (Contd.)
• Results show consistent improvement over
time:
– when the results improve consistently over time,
it is an indication that workers are aware of
behaviors needed to complete the job
successfully.
– In these situations, it is appropriate to adopt a
results approach to assessing performance.

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 Results approach (Contd.)
• There are many ways to do the job right :
– when there are different ways in which one can
do the tasks required for a job, a result approach
is appropriate.
– An emphasis on result can be beneficial because it
could encourage employees to achieve the desired
outcomes in creative and innovative ways.

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Thank You

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