Respond to the questions posted and write a minimum of 250 words for this question with a minimum of one source for the response.1. Based on your reading on week two how does the Harley-Davidson, Inc. goals fit the model of setting goals after the organization has established the Mission and Vision statement?2. Student Response-Please respond to classmate’s postings with a minimum of 250 words per post. You are required to use a reference source for each response.Robert,According to the text, aligning individual, unit or division, and organizational priorities is possible, “In fact, a recent study including 338 organizations in 42 countries found that performance management is the third most important factor affecting the success of a strategic plan” (Aguinis, 2013, p. 63). While all organizations need to achieve strategic plans, larger organizations must do so for successful achievement of enterprise goals. Organizations that operate in rapidly changing environments need performance management systems to remain viable and competitive (Aguinis, 2013). Noted in the Academy of Management Journal, “Further, recent meta-analyses have corroborated the validity of goal-setting theory’s major premise, which is that specific, challenging goals lead to higher performance than vague, easy goals” (Chesney & Locke, 1991, p. 400). The purpose of performance management is to help employees to achieve goals which in turn allow the organization to achieve its goals.The text notes the benefits achieved by Key Bank of Utah after implementing a performance management plan that was aligned with the organizations strategic plan. Key Bank enjoyed several benefits after implementing a new performance management system. Those benefits included employees focused on goals, more decision making power for employees, better understanding between management levels, and increased communication within the organization (Aguinis, 2013). Strategic human resource management uses performance management to help the organization achieve its goals. Organizations achieve competitive advantage by managing employees properly (Batool, Rahman, & Akhtar, 2016). It is through effective performance management, organizations like Key Bank are able to receive so many benefits to the betterment of the organization.
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Chapter 2
Performance Management Process
G
A
T
E
In theory, the Performance
S Review process can be thought of
as a positive interaction between
a “coach” and an employee,
,
working together to achieve maximum performance.
In reality, it’s more like finding a dead squirrel in your
backyard and realizing D
the best solution is to fling it onto
your E
neighbor’s roof.
—SCOTT ADAMS (THE DILBERT PRINCIPLE)
A
N
D
LEARNING OBJECTIVES
R
By the end of this chapter, you will be able to do the following:
A
Understand that performance management is an ongoing process that includes the
interrelated components of prerequisites, performance planning, performance
execution, performance assessment,
1 performance review, and performance
renewal and recontracting.
1
Conduct a job analysis to determine the job duties, knowledge, skills, and abilities
(KSAs), and working conditions of2a particular job.
Write a job description that incorporates
the KSAs of the job and information on
3
the organization and unit mission and strategic goals.
T
Understand that the poor implementation of any of the performance management
process components has a negativeSimpact on the system as a whole.
Understand that a dysfunctional or disrupted link between any two of the
performance management process components has a negative impact on the
system as a whole.
Understand important prerequisites needed before a performance management
system is implemented, including knowledge of the organization’s mission and
strategic goals and knowledge of the job in question.
37
Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc.
38
Part I • Strategic and General Considerations
Distinguish results from behaviors, and understand the need to consider both in
performance management systems.
Describe the employee’s role in performance execution, and distinguish areas over
which the employee has primary responsibility from areas over which the manager
has primary responsibility.
Understand the employee’s and the manager’s responsibility in the performance
assessment phase.
Understand that the appraisal meeting involves the past, the present, and the future.
Understand the similarities between performance planning and performance
G
renewal and recontracting.
A
Create results- and behavior-oriented performance
standards.
T
As described in Chapter 1, performance
management is an ongoing process.
Performance management does not take place
just
once a year. Performance manageE
ment is a continuous process including several components.1 These components are
S
closely related to each other, and the poor implementation
of any of them has a negative
impact on the performance management system
as
a
whole.
The components in the per,
formance management process are shown in Figure 2.1. This chapter provides a brief
description of each of these components. Subsequent chapters address each of the
components in greater detail. Let’s start with
D the prerequisites.
E
A
There are two important prerequisites thatNare required before a performance management system is implemented: (1) knowledge of the organization’s mission and strategic
D 2 As described in detail in Chapter 3,
goals and (2) knowledge of the job in question.
knowledge of the organization’s mission and
R strategic goals is a result of strategic planning (as also discussed in detail in Chapter 3, the strategic planning process may take
A are created; thus, there is a constant interplace after the mission and vision statements
2.1 PREREQUISITES
play between mission and vision and strategic planning). Strategic planning allows an
organization to clearly define its purpose or reason for existing, where it wants to be in
the future, the goals it wants to achieve, 1
and the strategies it will use to attain these
goals. Once the goals for the entire organization
have been established, similar goals
1
cascade downward, with departments setting objectives to support the organization’s
2
overall mission and objectives. The cascading
continues downward until each
employee has a set of goals compatible with
those
of
the organization.
3
Unfortunately, it is often the case that many organizational units are not in tune
T
with the organization’s strategic direction. However, there seems to be a trend in the positive direction. For example, a study S
including public sector organizations in
Queensland, Australia, showed a fairly high level of strategic integration of the human
resources (HR) function. Specifically, approximately 80% of the organizations that
participated in the study were categorized as having achieved the highest level of strategic integration. This level is characterized by a dynamic and multifaceted linkage based
on an “integrative relationship between people management and strategic management
process.”3 Recall that an important objective of any performance management system is
to enhance each employee’s contribution to the goals of the organization. If there is a lack
Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc.
Chapter 2 • Performance Management Process
Prerequisites
Performance
Planning
Performance
Execution
Performance
Assessment
Performance
Review
Performance
Renewal &
Recontracting
G
A
T
E
S
,
D
E
A
N
D
R
A
1
1
2
3
T
S
FIGURE 2.1 Performance Management Process
of clarity regarding where the organization wants to go, or if the relationship between
the organization’s mission and strategies and the unit’s mission and strategies is not
clear, there will be a lack of clarity regarding what each employee needs to do and
achieve to help the organization get there.
Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc.
39
40
Part I • Strategic and General Considerations
The second important prerequisite before a performance management system is
implemented is to understand the job in question. This is done through job analysis. Job
analysis is a process of determining the key components of a particular job, including activities, tasks, products, services, and processes. A job analysis is a fundamental prerequisite of
any performance management system. Without a job analysis, it is difficult to understand
what constitutes the required duties for a particular job. If we don’t know what an
employee is supposed to do on the job, we won’t know what needs to be evaluated and
how to do so.
As a result of a job analysis, we obtain information regarding the tasks carried out
and the knowledge, skills, and abilities (KSAs) required of a particular job. Knowledge
includes having the information neededGto perform the work, but not necessarily
having done it. Skills refer to required attributes
that are usually acquired by having
A
done the work in the past. Ability refers to having the physical, emotional, intellectual,
T
and psychological aptitude to perform the work, but neither having done the job nor
having been trained to do the work is required.
E 4
The tasks and KSAs needed for the various jobs are typically presented in the
S
form of a job description, which summarizes the job duties, needed KSAs, and
, As an illustration, see the box “Job
working conditions for a particular job.
Description for Trailer Truck Driver.” This job description includes information
about what tasks are performed (e.g., operation of a specific type of truck). It also
D
includes information about the needed knowledge
(e.g., manifests, bills of lading),
skills (e.g., keeping the truck and trailer
under
control,
particularly in difficult
E
weather conditions), and abilities (e.g., physical and spatial abilities needed to turn
A
narrow corners).
Job analysis can be conducted using N
observation, off-the-shelf questionnaires, or
interviews. Data are collected from job incumbents (i.e., those doing the job at present) and their supervisors. Alternatively,Dif the job is yet to be created, data can be
gathered from the individual(s) responsible
R for creating the new position and those
who will supervise individuals in the new position. Observation methods include job
analysts watching incumbents do the job,Aor even trying to do the work themselves,
and then producing a description of what they have observed. This method can be
subject to biases because job analysts may not be able to distinguish important from
1
unimportant tasks. Such analysis may not be suitable for many jobs. For example, a
1 officer for safety reasons or the work of
job analyst could not do the work of a police
a software programmer for the lack of knowledge and skills to do the work. Off-the2
shelf methods involve distributing questionnaires, including a common list of tasks
3 out, indicating the extent to which each
or KSAs, and asking individuals to fill them
task or KSA is required for a particular job
T in question. These generic off-the-shelf
tools can be practical, but they might not capture the nuances and idiosyncrasies of
S
jobs out of the mainstream.
Interviews are a very popular job analysis method. During a job analysis interview, the job analyst asks the interviewee to describe what he or she does (or what individuals in the position do) during a typical day at the job from start to finish (i.e., in
chronological order). Alternatively, the job analyst can ask the interviewee to describe
the major duties involved in the job and then ask him or her to break down these duties
into specific tasks. Once a list of tasks has been compiled, all incumbents should have
Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc.
Chapter 2 • Performance Management Process
BOX 2.1
Job Description for Trailer Truck Driver: Civilian Personnel Management
Service, U.S. Department of Defense
Operates gasoline- or diesel-powered truck or truck tractor equipped with two or more driving
wheels and with four or more forward speed transmissions, which may include two or more gear
ranges. These vehicles are coupled to a trailer or semitrailer by use of a turntable (fifth wheel) or
pintle (pivot) hook. Drives over public roads to transport materials, merchandise, or equipment.
Performs difficult driving tasks such as backing truck to loading platform, turning narrow corners,
negotiating narrow passageways, and keeping truck
Gand trailer under control, particularly on wet
or icy highways. May assist in loading and unloading truck. May also handle manifest, bills of
A to the shipment.
lading, expense accounts, and other papers pertinent
T
E
an opportunity to review the information and rate each task in terms of frequency and
criticality. The frequency and criticality scalesSmay be the following:5
,
Frequency
Criticality
D 0: not critical
0: not performed
1: every few months to yearly
E 1: low level of criticality
2: every few weeks to monthly
A 2: below average level of criticality
3: every few days to weekly
3: average level of criticality
N
4: every few hours to daily
4: above average level of criticality
D 5: extremely critical
5: hourly to many times each hour
R
Rating both frequency and criticality A
is necessary because some tasks may be
performed regularly (e.g., making coffee several times a day) but may not be very
critical. The job analyst can then multiply the frequency scores by the criticality scores
1
to obtain an overall score for each task. So, if making coffee receives a frequency score
1
of 4 (i.e., “every few hours to daily”) and a criticality
score of 0 (i.e., “not critical”), the
overall score would be 4 × 0 = 0. Considering frequency scores alone would have given
2
us the wrong impression that making coffee is a task that deserved a prominent role in
3 can be ranked from highest to lowest to
the job description. Overall scores for all tasks
obtain a final list of tasks.
T
Numerous job analysis questionnaires are available on the Internet. These
S with a paper survey or in interview
questionnaires, which can be administered online,
format, can be used for a variety of positions. For example, the state of Delaware uses a
job analysis questionnaire available at http://www.delawarepersonnel.com/class/
forms/jaq/jaq.shtml or http://www.delawarepersonnel.com/class/forms/jaq/jaq
.htm. This questionnaire includes 18 multiple-choice job content questions. Job content
information is assessed through three factors: (1) knowledge and skills, (2) problem
solving, and (3) accountability and end results. As a second example, the city of
Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc.
41
42
Part I • Strategic and General Considerations
Alexandria, Virginia, uses a job analysis questionnaire available at http://alexandriava
.gov/class_comp/job_analysis.html. This instrument does not include multiple-choice
questions. Instead, employees answer more general questions about their jobs together
with the allocation of the percentage of time employees spend performing each duty.
In addition, respondents are encouraged to attach forms, work schedules, reports,
memoranda, and other materials that may help explain the responses provided.
Conducting a Google search for the phrase “job analysis questionnaire” leads to several
other instruments. Be aware that some of these instruments may have been created for
specific types of jobs and industries (e.g., service jobs, nonsupervisory jobs). Make sure
you check the suitability of the instrument before using it in a different organizational
Gvarious instruments already available may
context. Combining items and formats from
be the most effective way to proceed.
A
An important component of a good job analysis is rater training. In other words,
T
there are several biases that can affect the accuracy of the information provided by
individuals regarding KSAs needed for a E
job.6 Consider the following biasing factors:
S to report that their own behaviors and
1. Self-serving bias: This bias leads people
personality traits are more needed for
, successful job performance compared to
behaviors and personality traits of others. This is because people tend to attribute
success to themselves and failure to external causes (i.e., factors outside of their
control).
D
2. Social projection and false consensus bias: Social projection bias leads people to
believe that others behave similarly toEthemselves and, hence, lead people to think
about themselves when reporting KSAs
A for their job instead of people in general.
False consensus bias is similar in that it leads people to believe that others share
N
the same beliefs and attitudes as themselves.
D
Taken together, self-serving, social projection, and false consensus biases affect
R to believe that their own KSAs are those
job analysis ratings because they lead people
driving success on their jobs. So, these leadAto an exaggerated view regarding the KSAs
needed—and this exaggeration is based on precisely the KSAs that job incumbents
have.
How do we address these biases? A
1recent experimental study involving two
independent samples of 96 administrative support assistants and 95 supervisors
1
working for a large city government implemented
a successful Web-based training
7
program that succeeded in mitigating these
biases.
Specifically, across the five job
2
characteristics rated in that study, individuals who did not participate in the Web-based
3 support assistants) and 68% (supervisors)
training program were 62% (administrative
more likely to provide a higher rating than
T if the same individual provided the job
analysis ratings after participating in the training program. The Web-based training
S administer, provides a common frame of
program, which takes about 15 minutes to
reference for all raters and includes the following five steps:
1.
2.
3.
4.
5.
provide raters with a definition of each rating dimension
define the scale anchors
describe what behaviors were indicative of each dimension
allow raters to practice their rating skills, and
provide feedback on the practice
Performance Management, Third Edition, by Herman Aguinis. Published by Prentice Hall. Copyright © 2013 by Pearson Education, Inc.
Chapter 2 • Performance Management Process
The information obtained from a job analysis is used for writing a job description.
Writing a job description may seem like a daunting task; however, it does not have to be
difficult. Generic job descriptions can be obtained from the Occupational Informational
Network (O*NET) (http://online.onetcenter.org/find/). O*NET is a comprehensive
database of worker attributes and job characteristics that provides a common language
for defining and describing occupations. The descriptions available via O*NET can
serve as a foundation for a job description. O*NET descriptions can be easily adapted
and changed to accommodate specific local characteristics. For example, see O*NET’s
generic description for truck drivers in the box “Summary Report for Tractor-Trailer
Truck Drivers” (from O*NET). First, the summary description can be checked for accuracy and relevance by supervisors. Then, theGlist of KSAs provided by O*NET can be
readily rated by incumbents (and additional KSAs
A may be added if needed).
O*NET can also be a very useful resource for small businesses because, for most of
T
them, conducting a job analysis may not be feasible simply because there are not sufficient numbers of people from whom to collect
E data. In addition, O*NET can be used
when organizations expand and new positions are created. One thing needs to be clear,
S
however: jobs change. Thus, job descriptions must be checked for accuracy and updated
,
as needed.
Job descriptions are a key prerequisite for any performance management
system because they provide the criteria (i.e., yardsticks) that will be used in measD behaviors (i.e., how to perform) or
uring performance. Such criteria may concern
results (i.e., what outcomes should result E
from performance). In our truck driver
example, a behavioral criterion could involve the skill “equipment maintenance.”
A to which the employee “performs
For example, a supervisor may rate the extent
routine maintenance on equipment and determines
when and what kind of mainteN
nance is needed.” Regarding results, these criteria usually fall into one of the folD cost-effectiveness, and (4) timeliness.8
lowing categories: (1) quality, (2) quantity, (3)
In the truck driver example, results-oriented
R criteria can include number of accidents (i.e., quality) and amount of load transported over a specific period of time
A
(i.e., quantity).
Some organizations are becoming aware of the importance of considering prerequisites before implementing a performance management system. Take the case of
1
Deaconess Hospital in Oklahoma City, Oklahoma, which includes a workforce of
1
650 physicians and a total of 1,400 employees
(http://www.deaconessokc.org/).
Deaconess Hospital has been able to effectively integrate employees’ job descriptions
2
within their performance management system. The need for this integration was rein3
forced by results from an employee survey revealing
that employees did not know what
they were being evaluated on. Therefore, with
the
input of employees, the hospital
T
updated each of the 260 job descriptions. At present, each employee’s job description is
S forms incorporate task performance
part of the performance review form. The new
standards as well as behaviors specific to individual jobs. For example, a nurse may be
evaluated on “how well he or she safely, timely, and respectfully administers patient medication and on his or her planning and organization skills.” In addition, Deaconess
Hospital has been able …
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