Performance Management Flashcards
What is performance management?
Is a continuous process involving various activities designed to measure, guide, and improve organisational performance. It aligns employee performance with the strategic goals of the organisation. Two key definitions of performance management include:
-A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.
-The wide variety of activities, policies, procedures, and interventions designed to help employees improve their performance. These programs begin with performance appraisals but also include feedback, goal setting, training, and reward systems.
What is the Performance Management Process Model?
Murphy and DeNisi (2008) present a model that illustrates the performance management process. This model outlines how performance management is built on organisational goals and strategies and then translated into individual performance objectives and interventions.
Alignment with Organisational Strategy and Goals: The process begins by ensuring that individual goals are directly aligned with the broader organisational strategies. This alignment is essential to ensure that individual efforts contribute effectively to the organisation’s overall performance. For example, in educational settings, organisational objectives might include targets for student exam pass rates, broken down into specific teacher performance goals.
Performance Standards and Measurement: Performance standards are derived from these goals, serving as benchmarks for individual and team performance. Performance measurement, typically through appraisals, assesses employee performance at a given point. This appraisal compares the observed performance against the desired performance standard.
Feedback and Development: Feedback is provided to employees after performance is measured. If a gap exists between observed and desired performance (i.e., where performance does not meet the required standard), the next step involves introducing performance management interventions. These interventions, such as training, coaching, or goal setting, are designed to improve performance.
Cyclical and Continuous Process: Performance management is not a one-off activity. The process is cyclical, with continuous performance assessment, feedback, and goal setting aimed at ongoing improvement. Goals are adjusted based on organisational needs and progress, ensuring a consistent alignment between individual performance and organisational objectives.
What is the Performance Management Process?
Organisational Strategy: Drives the overall goals and objectives for the organisation.
Individual and Team Goals: Derived from the broader strategy and set measurable employee objectives.
Performance Measurement: Assess current performance levels through appraisals and comparisons against set standards.
Feedback and Development: Provides insight into performance gaps and introduces interventions for improvement.
Continuous Improvement: Reinforces the idea that performance management is a never-ending process of goal-setting, measuring, and developing.
What are the three processes in performance management?
Performance goal-setting, performance measurement, and performnce feeback
What is Goal-setting?
Goal-setting is a fundamental aspect of performance management and is a theory extensively supported by research. Developed primarily by Locke and Latham, goal-setting theory emphasizes the use of specific and challenging goals to enhance performance. In organisational contexts, setting goals ensures that individual performance aligns with the organisation’s broader objectives, serving both strategic and operational functions.
What are the key findings of goal-setting research?
Goal-Setting Enhances Performance:
Research shows that setting specific goals leads to significantly higher performance than having no goals or setting vague goals (Locke & Latham, 1980).
More difficult goals tend to result in greater effort and improved performance, but only when individuals possess the necessary skills and abilities to achieve those goals.
Specific and Measurable Goals:
Specific and measurable goals are more effective than general “do-your-best” goals. Locke and Latham (2002) found that individuals perform better when the expected standards are clear.
Goals should focus not just on results but may also incorporate behavioural changes or improvements in specific job-related skills or performance areas.
What are the mechanisms through which goals affect performance?
Direction of Behaviour:
Goals channel behaviour toward activities relevant to achieving the goal and away from distractions.
Energizing of Behaviour:
Setting challenging goals leads individuals to exert greater effort toward reaching those objectives.
Persistence:
More difficult goals tend to increase persistence as individuals prolong their efforts to succeed. However, this persistence cannot be maintained indefinitely without breaks or proper pacing, especially with tight deadlines.
Development of Strategies:
Goals stimulate individuals to develop strategies and skills to meet performance expectations, promoting learning and adaptation in work settings.
What are the factors that influence the relationship between goals and performance?
Goal Commitment: How committed individuals are to achieving their goals plays a critical role in determining goal-setting effectiveness.
Feedback: Providing continuous feedback helps individuals adjust their efforts and strategies toward goal achievement.
Task Complexity: Goal-setting more directly influences simple tasks. Other variables, such as training and problem-solving, play important roles for more complex tasks.
What is the Goal orientation theory?
Goal orientation theory differentiates between two types of goals that individuals might pursue in the workplace:
Learning Goal Orientation (LGO):
-Individuals with a learning goal orientation focus on developing new skills, gaining knowledge, and improving competence over time.
-LGO fosters adaptive learning and continuous improvement, making it particularly effective in roles that require problem-solving and skill development.
Performance Goal Orientation (PGO):
-Those with a performance goal orientation are focused on demonstrating their competence and achieving high-performance outcomes.
-PGO is linked to achieving measurable performance targets but can lead to avoidance of challenges if individuals fear failure.
How do you implement goal-setting in Performance Management?
Balance Between Challenge and Ability: Goals should be sufficiently challenging to motivate employees but not so difficult that they become discouraging. Ensuring employees have the skills and resources to achieve their goals is essential for success.
Clear Communication and Measurement: Goals should be communicated clearly and must be measurable so that progress can be tracked effectively.
Provide Regular Feedback: Ongoing feedback helps employees adjust their strategies, stay motivated, and focus on their goals. Feedback also strengthens goal commitment.
Adjust for Task Complexity: It is important to break goals into smaller, manageable milestones and provide training or learning opportunities for complex tasks.
Incorporate Learning and Performance Goals: Managers should recognize the value of learning goals (LGO) for roles requiring continuous development and performance goals (PGO) with clear, measurable outcomes. A balanced approach can promote both personal growth and organizational success.
What two theories explain the interaction between individual traits and work environment demands in driving performance?
Trait Activation Theory and the Theory of Work Adjustment
What is the Trait Activation Theory (TAT)?
Trait Activation Theory offers a way to understand the link between an individual’s personality traits and work performance. The central idea is that specific work situations activate personality traits, guiding performance behaviour. Key points from the theory are:
Situational demands activate traits: Individual differences in traits are stimulated by work tasks or the work context (e.g., social interactions or organisational culture).
Performance behaviours are a response to the situation: When an individual’s traits are aligned with the job demands, they are more likely to express behaviours that lead to positive performance.
Reward structures shape behaviour: The presence of both intrinsic (e.g., personal satisfaction) and extrinsic rewards (e.g., financial bonuses) influences how individuals respond to job demands, guiding behaviour towards desired outcomes.
Trait consistency with job requirements: Positive performance occurs when there is alignment between an individual’s traits and the job demands. For example, a highly extroverted person is likely to perform well in a role that requires social interaction, as the job demands activate their natural tendencies.
Trait Activation: Work demands activate certain personality traits in individuals. These demands can arise from tasks, the organizational context, or social interactions.
-Situation Strength: Situations vary in the extent to which they allow personal traits to influence behavior.
-Strong situations: Control behavior and minimize the effect of individual traits.
-Weak situations: Allow more freedom, enabling personal traits to influence behavior and performance outcomes.
Performance Behaviors:
-Traits need to align with job demands for positive performance outcomes.
-Rewards (intrinsic or extrinsic) further motivate positive performance behaviors.
Implications for Performance:
-Traits should match the job requirements for optimal performance.
-Performance improvement is limited if traits do not align with job demands, as this theory does not emphasize trait change.
What are the ways that can promote positive performance change?
Organisations should align job demands with employee traits to activate positive performance behaviours.
Rewards and recognition systems should be designed to reinforce desired behaviours, encouraging individuals to perform at their best.
Opportunities for learning and development should be embedded in the workplace to allow individuals to adjust and grow when their traits and job demands misalign.
Managers can consider offering employees greater autonomy in weak-situation jobs to allow individual strengths to emerge and flourish.
What is the Theory of Work Adjustment?
The Theory of Work Adjustment expands the understanding of performance by explaining how individuals adapt when there is a misalignment between their KSAOs (Knowledge, Skills, Abilities, and Other characteristics) and the demands of their job. This theory suggests that performance is most positive when there is a good fit between the person and their work environment. However, when this fit is poor, individuals can take two primary actions to adjust and ensure positive performance:
Job crafting: Involves making changes to the job or altering aspects of tasks to improve alignment with individual strengths. For example, a worker may proactively seek tasks that match their competencies or negotiate role changes that allow them to use their skills more effectively.
Self-development: If a person feels their abilities or traits are not sufficient for the job’s demands, they can engage in learning and development activities (such as training or coaching) to enhance their capabilities and improve their fit for the job.
Personality traits can evolve through work experiences, particularly when people engage in developmental activities to improve their job fit.
Emphasizes the potential for personality development at work, suggesting that individuals can learn and adapt over time.
Implications for Performance Management:
-Effective performance improvement relies on combining developmental interventions with accurate performance evaluations.
-Performance growth is achieved by:
Identifying how well behavior aligns with job requirements.
Providing opportunities for employees to either craft their jobs or engage in learning and development.
How does positive performance change occur?
Occurs when there is an optimal fit between the individual’s traits and the demands of the work environment, alongside the opportunity for continuous learning and development.
