PERFORMANCE:Determinants of Job Performance, Why is performance measured?, Performance Management

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Human Resource Management (MGT501)

Lesson 25

PERFORMANCE

After studying this chapter, students should be able to understand the following:

Internal Barriers to Career Advancement

Successful Career-Management Practices

Individual and Organizational Perspectives on Career Planning

Performance

LESSON OVERVIEW

In this lecture, we will discuss the barriers to effective career development. Next, we will learn about some

basic concepts of performance. We will also discuss an important function of effective management is

accurate measurement of employee performance. This chapter discusses the foundation, design, and

implementation of performance measurement systems. In addition, it describes the principles of effective

performance management.

M. Internal Barriers to Career Advancement

There can be following types of barrier that can influence the effectiveness of the career advancement.

· Lack of time, budgets, and resources for employees to plan their careers and to undertake

training and development.

· Rigid job specifications, lack of leadership support for career management, and a short-term

focus.

· Lack of career opportunities and pathways within the organization for employees

N. Successful Career-Management Practices

Following steps can be helpful towards successful career management practices in the organizations.

· Placing clear expectations on employees.

· Giving employees the opportunity for transfer.

· Providing a clear succession plan

· Encouraging performance through rewards and recognition.

· Encouraging employees to continually assess their skills and career direction.

· Giving employees the time and resources they need to consider short- and long-term career goals.

O. Individual and Organizational Perspectives on Career Planning:

Effective career planning, that is ensured with monitoring to record the failures and successes, provides

continuous chances and opportunities to employees towards career development that will definitely produce

more committed and effective workforce.

P. Performance:

Why Do We Care?

Performance can be defined as efforts along with the ability to put

Ability

efforts supported with the organizational policies in order to

achieve certain objectives.

PERFORMANCE

Performance is the function of:

Opportunity

Motivation

a) Ability: The basic skills possessed by the individual that

are required to give certain performance enhances the level

Performance =

f (Ability, Motivation, Opportunity)

of performance.

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Human Resource Management (MGT501)

b) Motivation: Activities in HRM concerned with helping employees exert high energy levels and to

get performance in desirable direction.

c) Opportunity: Circumstances under which performance is made they can be ideal or vice versa.

I. Determinants of Job Performance

There are three basic determinants of the job they are as following:

Willingness to perform: If employee is performing tasks and responsibilities in the organization

with willingness level of the performance will be high and

Determinants of Job

will be up to the standards.

Capacity to Perform: If the basic qualifications abilities

Performance

and skills required performing specific tasks are

possessed by the employees the level of performance will

Willingness

to perform

be in accordance with the set standards and vice versa.

Opportunity to Perform: Favorable circumstances and

opportunities to perform the challenging tasks which are

Job performance

more contributory towards achievement of the

Capacity to

Opportunity

organization's mission and objective can be reasons to

perform

to perform

have more effective performance from employees.

II. Sample Core Performance Indicators

These indicators are used to measure Organizational Effectiveness. Researchers see primary management

tasks as control, innovation, and efficiency. Control means dominating the external environment, attracting

resources, and using political processes. Innovation entails developing skills to discover new products and

processes and designing adaptable structures and cultures. Efficiency involves developing modern plants for

rapid, low-cost production, fast distribution, and high productivity.

a. The External Resource Approach: Control

Using the external resource approach, managers evaluate a firm's ability to manage and control the external

environment. Indicators include stock price, profitability, return on investment, and the quality of a

company's products. An important factor is management's ability to perceive and respond to environmental

change. Stakeholders value aggressiveness and an entrepreneurial spirit.

b. The Internal Systems Approach: Innovation

Using the internal systems approach, managers evaluate organizational effectiveness. Structure and culture

should foster flexibility and rapid response to market changes. Flexibility fosters innovation. Innovation is

measured by the time needed for decision making, production, and coordinating activities.

c. The Technical Approach: Efficiency

The technical approach is used to evaluate efficiency. Effectiveness is measured by productivity and

efficiency (ratio of outputs to inputs). Productivity gains include increased production or cost reduction.

Productivity is measured at all stages of production. Service companies could measure sales per employee or

the ratio of goods sold to goods returned. Employee motivation is an important factor in productivity and

efficiency.

d. Measuring Effectiveness: Organizational Goals

Organizational effectiveness is evaluated by both official and operative goals. Official goals are the formal

mission of an organization. Operative goals are specific long-term and short-term goals that direct tasks.

Managers use operative goals to measure effectiveness. To measure control, managers examine market share

and costs; to measure innovation, they review decision-making time. To measure efficiency, they use

benchmarking to compare the company to competitors. A company may be effective in one area and

ineffective in another. Operative goals must be consistent with official goals.

III.

Why is performance measured?

Enhances motivation & productivity

Assists in validation studies

Detects problems

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Human Resource Management (MGT501)

Helps evaluate change efforts

Provides basis for making decisions

Differentiates employees in job-related areas

Helps ensure legal compliance

IV. Performance Management

A process that significantly affects organizational success by having managers and employees work together

to set expectations, review results, and reward performance. Performance management is a means of getting

better results... by understanding and managing performance within an agreed framework of planned goals,

standards and competence requirements. It is a process to establish a shared understanding about what is to

be achieved, and an approach to managing and developing people so that it will be achieved. The Goal of

measuring performance is to improve the effectiveness & efficiency of the organization by aligning the

employee's work behaviors & results with the organization's goals improving the employee's work

behaviors & results. It is on-going, integrative process.

Key Terms

Performance: Performance can be defined as efforts along with the ability to put efforts supported with

the organizational policies in order to achieve certain objectives.

Motivation: Activities in HRM concerned with helping employees exert high energy levels and to get

performance in desirable direction.

Performance Management: A process that significantly affects organizational success by having managers

and employees work together to set expectations, review results, and reward performance.

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