Measuring Performance Discussion

Description

Discuss how metrics are utilized in organizations.
Discuss which metric you would use for each of  the three levels of performance (i.e., system, process, job/performer). 

Discuss which methods you have seen in the KSA workplace and which metric you might add to improve performance.
Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.5-1
Chapter 5
Measuring Results
and
Behaviors
Copyright © 2023 Chicago Business Press
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Measuring Results: Overview

Accountabilities

Objectives

Performance Standards
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Key Questions

Where should each individual focus their efforts?

What are the expected objectives?

How do we know how well the results were achieved?
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Accountabilities(1 of 2)

Broad areas of a job for which an employee is responsible
for producing results
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Determining Accountabilities(2 of 2)

Collect information about the job (Job Description)

Determine importance of task or cluster of tasks
• Percentage of employee’s time spent performing tasks
• Impact on the unit’s mission if performed inadequately
• Consequences of error
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Objectives(1 of 4)

Statements of important and measurable outcomes, that,
when accomplished, will help ensure success for the
accountability
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Determining Objectives(2 of 4)

Purpose is to identify outcomes:
• Limited in number
• Highly important
• Achieving them will have a dramatic impact on overall
organization success
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Characteristics of Good Objectives
(3 of 4)
Specific and Clear
Challenging
Agreed upon
Significant
Prioritized
Bound by time
Achievable
Fully Communicated
Flexible
Limited in number
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SMART Objectives( 4 of 4)

Setting SMART Objectives

What are the benefits of using SMART objectives?

Choose a short-term personal or professional goal and
frame the objective using the SMART technique
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Performance Standards(1 of 2)


Yardstick used to evaluate how well employees have
achieved objectives
Information about what to look for to determine the level
of performance that has been achieved
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Performance Standards(2 of 2)
Aspects of performance objectives:



Quality
• How well the objective is achieved
Quantity
• How much, how many, how often, and at what cost?
Time
• Due dates, schedule, cycle times, and how quickly?
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Standards Must Include

An Action

The Desired Result

A Due Date

A Quality or Quantity Indicator
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Good Performance Standards
Related to the position
Concrete,specific and measurable
Practical to measure
Meaningful
Realistic and achievable
Reviewed regularly
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Measuring Behaviors: Overview

Identify Competencies

Identify Indicators

Choose Measurement System
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Identify Competencies (1 of 2)

Measurable clusters of KSAs
• Knowledge
• Skills
• Abilities

Critical in determining how results will be achieved
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Company Spotlight


Identifying leadership competencies is a key part of
fostering leadership at Google
“Project Oxygen” identified a list of 10 behaviors that are
common to high-performing managers and therefor were
incorporated into the company’s manager development
program.
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Types of Competencies(2 of 2)

Differentiating
• Distinguish between superior and average
performance

Threshold
• Needed to perform to minimum standard
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Identify Indicators

Observable behaviors

Used to measure the extent to which competencies are
present or not
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Necessary Components for
Describing Competencies

Definition of competency

Description of specific behaviors
• When competency is demonstrated
• When competency is not demonstrated

Suggestions for developing the competency
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Choose a Measurement System(1of 2)

Comparative system
• Compares employees with one another

Absolute system
• Compares employees with pre-specified performance
standards
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Choose a Measurement System (2 of 2)
Comparative
Absolute
Simple rank order
Alternation rank order
Paired comparisons
Essays
Behavior checklist
Critical incidents
Relative percentile
Forced distribution
Graphic rating scales
blank
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Types of Comparative Systems

Simple rank order

Alternation rank order

Paired comparisons

Relative percentile

Forced distribution
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Simple Rank Order

Advantages:
• Simple and easy to do
• Results are clear

Disadvantages:
• Judges performance based on one dimension only
• May be difficult to rank similar performance levels
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Alternation Rank Order

Advantages:
• Simple and easy to do
• Results are clear
• Uses two anchors (best and worst)

Disadvantages:
• Judges performance based on one dimension only
• May be difficult to rank similar performance levels
• Does not specify threshold for acceptable
performance
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Paired Comparisons

Advantages:
• Thorough
• Final rankings are more accurate

Disadvantages:
• Very time consuming
• May encounter problem of comparing “apples and
oranges”
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Relative Percentile(1 of 2)

Advantages:
• Simple and easy to use
• Evaluates specific competencies or overall
performance

Disadvantages:
• May be difficult to consider all ratees at the same time
• Time consuming if using several scales for different
competencies
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Relative Percentile(2 of 2)

Example of Relative Percentile Method Scale
Don
Desiree
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Heather
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Forced Distribution

Advantages:
• Categorizes employees into specific performance
groups
• Facilitates reward assessment
• Competition may be good for organizational
performance

Disadvantages:
• Assumes performance scores are normally distributed
• May discourage contextual performance and
teamwork
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Company Spotlight (1 of 2)

General Electric (GE) has moved from forced distribution
ratings to a more performance management approach

Changes include:
• An app-based system to provide ongoing coaching
• Evaluating employees relative to desired traits
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Advantages of Comparative Systems

Easy to explain

Straightforward: Identifies top as well as
underperformers

Better control for biases and errors found in absolute
systems: Leniency, Severity, and Central tendency

Beneficial for jobs that are very autonomous

Attracts individuals high in cognitive abilities
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Disadvantages of Comparative Systems

Rankings may not be specific enough for:
• Useful feedback
• Protection from legal challenge

No information on relative distance between employees

Specific issues with forced distribution method
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Company Spotlight (2 of 2)

Deloitte abandoned forced distribution ratings in favor of
a system that provides feedback on a project or quarterly
basis

Changes include:
• Documented, weekly “check-ins” with employees
• Supervisor training on how to evaluate performance
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Copyright © 2023 Chicago Business Press
Nature of Performance Distribution(1 of 2)



Forced distribution implies that performance is normally
distributed
Recent research shows that, instead, performance is
distributed following a heavy-tail
That is,
• There are more star performers
• Differences between top and average performers are
much greater
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Nature of Performance Distribution(2 of 2)
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Producing Star Performers







Identify and eliminate situational constraints
Allow star performers to rotate across teams
Invest sufficient resources in star performers
Attend to stars developmental network
Shield from financial challenges
Give them preferential treatment, but explain why to all
workers
Invest disproportionate amount of resources in stars
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Absolute Systems

Essays

Behavior checklists

Critical incidents

Graphic rating scales
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Behavior Checklists(1 of 2)

Advantages:
• Easy to use and understand
• Provides quantitative information
• Widespread use
• More objective than other systems

Disadvantages:
• May feel impersonal and disconnected
• Scale points used are often arbitrary
• Difficult to get detailed and useful feedback
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Behavior Checklists(2 of 2)

Example of Behavior Checklist Item
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Essays

Advantages:
• Simplest absolute method
• Individualized for each employee
• Can be done anytime
• Potential for detailed feedback

Disadvantages:
• Unstructured and may lack detail
• Depends on supervisor’s writing skill
• Comparisons virtually impossible
• Lack of quantitative information; difficult to use in
personnel decisions
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Critical Incidents(1 of 2)

Advantages:
• Focus on actual job behavior
• Provides specific examples
• Employees identify with rating

Disadvantages:
• Collecting critical incidents can be very time
consuming
• Quantification is difficult
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Critical Incidents(2 of 2)

Example of Critical Incidents for Adaptability/Flexibility
Completely
Ineffective
Somewhat
Ineffective
Effective
Highly Effective
Exceptional
Able to focus on
only one task at a
time
Easily distracted
from work
assignments/
activities
Handles a variety
of work
assignments/
activities with few
difficulties
Handles a variety
of work
assignments/
activities
concurrently
Easily juggles a
large number of
assignments and
activities
Avoids or
attempts to
undermine
changes
Complains about
necessary
changes
Accepts reasons
for change
Understands and
responds to
reasons for
change
Encourages and
instructs others
about the benefits
of change
Refuses to adopt
changed policies
Makes only those
changes with
which they agree
Adapts to
changing
circumstances
and attitudes of
others
Adapts to changes
and develops job
aids to assist
others
Welcomes change
and looks for new
opportunities it
provides
Considers only
own opinion when
seeking solution
Occasionally
listens to others
but supports own
solution
Listen to others
and seeks
solutions
acceptable to all
Ensures that
everyone’s
thoughts and
opinions are
considered in
reaching a solution
Actively seeks
input in addition to
recognized sources
and facilitates
implementation of
solution
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Graphic Rating Scales(1 of 2)

Advantages:
• Meanings, interpretations, and dimensions being
rated are clear
• Useful and accurate
• Most popular tool

Disadvantages:
• Time consuming and resource-laden to develop
• Lacks individualized feedback and recommendations
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Graphic Rating Scales:
BARS Improvement(2 of 2)

Behaviorally Anchored Rating Scales (BARS)
Uses critical incidents as anchors

Involves multiple groups of employees in development

• Identify important job elements
• Describe critical incidents at various levels of
performance
• Check for inter-rater reliability
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BARS Improvement

Example of BARS Improvement scale
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Exceptional Employee consistently displays high level of job knowledge in all
areas of his or her job. Other employees go to this person for training.
4
Advanced Shows high levels of job knowledge in most areas of his or her
job Consistently completes all normal tasks.Employee continues searching for more job
knowledge and may seek guidance in some areas.
3
Competent Employee shows an average level of job knowledge in all areas of the
job.May need assistance completing difficult tasks
2
Improvement Needed Does not consistently meet deadlines or complete tasks
required for this job.Does not attempt to acquire new skills or knowledge to improve
performance.
1
Major Improvement Needed Typically performs tasks incorrectly or not at all Employee
has no appreciation for improving his or her performance.
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Advantages and Disadvantages of
Absolute Systems

Advantages:
• Can be used in large and small organizations
• Evaluations more widely accepted by employees

Disadvantages:
• Higher risk of leniency, severity, and central tendency
biases
• Generally more time consuming than comparative
systems
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Copyright © 2023 Chicago Business Press
Role of Context


Plays important role in determining how performance is
measured
Examples
• Competitive versus Collaborative
• Value of long-term relationships with customers
• Industry Trends
• Leadership
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Measuring Performance

Several types of methods

Differ in terms of:
• Practicality (time and effort)
• Usefulness (quantifiable)
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Copyright © 2023 Chicago Business Press
AI and Performance

Some of the performance management activities that
can be enhanced by AI:
• Identification of high performers
• Identification of low performers
• Identify workers’ strengths
• Hiring
• Measurement of employee-engagement
• Retention
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Potential Problems with AI


AI technology tends to be unregulated and opaque.
AI technology may replicate and even reinforce existing
biases.
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Quick Review




Measuring Results
• Determine Accountabilities
• Determine Objectives
• Determine Performance Standards
Measuring Behaviors
• Comparative Systems
■ Nature of the Performance Distribution
• Absolute Systems
Role of Context
How Organizations are Using AI to Measure
Performance and Identify Talent
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otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
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