MGT 520 SEU Quality Performance Management Systems Case Study

Description

Case Study (105 points)

All performance improvement programs should have a measurement component or Key Performance Indicators (KPIs) to ensure quality. These indicators are known by many names: metrics, measures, checks, or evaluations, but they all serve the same purpose: to evaluate the success or the failure of the performance management initiative. Select your current or previous employer, when addressing the requirements below:

Explain the three levels of performance (i.e., system, process, job/performer) and then select a metric that would be suitable to use for each level.

Include an example of what the metric is measuring and how it is used to interpret performance at each respective level.  

Explain what type of performance evaluation system you would use to evaluate a specific job position of your choice. Justify why you believe this is the right system to use.

Based upon the selected system, what assessment method would you utilize? Justify why you believe that this is an effective assessment method.

Choose a specific industry in Saudi Arabia and explain how your selected system and method are aligned or different from performance management practices in the industry you have chosen.

Unformatted Attachment Preview

Chapter 5
Measuring Results
and
Behaviors
Copyright © 2019 Chicago Business Press
5-1
Key Questions
◼
◼
◼
Where should each individual focus
their efforts?
What are the expected standards?
How do we know how well the results
were achieved?
Copyright © 2019 Chicago Business Press
5-2
Measuring Results: Overview
◼
Accountabilities
◼
Objectives
◼
Performance Standards
Copyright © 2019 Chicago Business Press
5-3
Accountabilities
◼
Broad areas of a job for which an
employee is responsible for
producing results
Copyright © 2019 Chicago Business Press
5-4
Determining Accountabilities
◼
◼
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
Copyright © 2019 Chicago Business Press
5-5
Objectives
◼
Statements of important and
measurable outcomes, that, when
accomplished, will help ensure
success for the accountability
Copyright © 2019 Chicago Business Press
5-6
Determining Objectives
◼
Purpose is to identify outcomes:
• Limited in number
• Highly important
• Achieving them will have a dramatic
impact on overall organization
success
Copyright © 2019 Chicago Business Press
5-7
Characteristics of Good Objectives
Copyright © 2019 Chicago Business Press
5-8
SMART Objectives
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◼
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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
Copyright © 2019 Chicago Business Press
5-9
Performance Standards
◼
◼
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
Copyright © 2019 Chicago Business Press
5-10
Performance Standards
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?
Copyright © 2019 Chicago Business Press
5-11
Standards Must Include
◼
An Action
◼
The Desired Result
◼
A Due Date
◼
A Quality or Quantity Indicator
Copyright © 2019 Chicago Business Press
5-12
Good Performance Standards
Copyright © 2019 Chicago Business Press
5-13
Measuring Behaviors: Overview
◼
Identify Competencies
◼
Identify Indicators
◼
Choose Measurement System
Copyright © 2019 Chicago Business Press
5-14
Identify Competencies
◼
Measurable clusters of KSAs
• Knowledge
• Skills
• Abilities
◼
Critical in determining how results will
be achieved
Copyright © 2019 Chicago Business Press
5-15
Company Spotlight
◼
◼
Xerox Capital Services (XCS) used
leadership competencies to create
leadership development program
Steps followed:
• Senior managers and leaders identified
the 12 most critical competencies for
success at XCS
• 12-week curriculum developed with
readings and course material
Copyright © 2019 Chicago Business Press
5-16
Types of Competencies
◼
Differentiating
• Distinguish between superior and
average performance
◼
Threshold
• Needed to perform to minimum
standard
Copyright © 2019 Chicago Business Press
5-17
Identify Indicators
◼
◼
Observable behaviors
Used to measure the extent to
which competencies are present or
not
Copyright © 2019 Chicago Business Press
5-18
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
Copyright © 2019 Chicago Business Press
5-19
Choose a Measurement System
◼
Comparative system
• Compares employees with one another
◼
Absolute system
• Compares employees with pre-specified
performance standards
Copyright © 2019 Chicago Business Press
5-20
Choose a Measurement System
Copyright © 2019 Chicago Business Press
5-21
Types of Comparative Systems
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Simple rank order
◼
Alternation rank order
◼
Paired comparisons
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Relative percentile
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Forced distribution
Copyright © 2019 Chicago Business Press
5-22
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
Copyright © 2019 Chicago Business Press
5-23
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
Copyright © 2019 Chicago Business Press
5-24
Paired Comparisons
◼
Advantages:
• Thorough
• Final rankings are more accurate
◼
Disadvantages:
• Very time consuming
• May encounter problem of comparing
“apples and oranges”
Copyright © 2019 Chicago Business Press
5-25
Relative Percentile
◼
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
Copyright © 2019 Chicago Business Press
5-26
Relative Percentile
◼
Example of Relative Percentile
Method Scale
Don
Desiree
Copyright © 2019 Chicago Business Press
Heather
5-27
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
Copyright © 2019 Chicago Business Press
5-28
Company Spotlight
◼
◼
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
5-29
Copyright © 2019 Chicago Business Press
Forced Distribution
◼
◼
◼
Forced Distributions
Why might forced distributions
demotivate employees?
How have forced distributions evolved
over the years?
Copyright © 2019 Chicago Business Press
5-30
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
Copyright © 2019 Chicago Business Press
5-31
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
Copyright © 2019 Chicago Business Press
5-32
Company Spotlight
◼
◼
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
5-33
Copyright © 2019 Chicago Business Press
Nature of Performance
Distribution
◼
◼
◼
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
Copyright © 2019 Chicago Business Press
5-34
Nature of Performance Distribution
◼
◼
◼
Nature of Performance Distribution
What does the “myth of the bell curve”
refer to?
Under what situations are traditional
assumptions of performance more likely
to hold?
Copyright © 2019 Chicago Business Press
5-35
Nature of Performance Distribution
5-36
Copyright © 2019 Chicago Business Press
Producing Star Performers
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◼
◼
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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
5-37
Copyright © 2019 Chicago Business Press
Absolute Systems
◼
Essays
◼
Behavior checklists
◼
Critical incidents
◼
Graphic rating scales
5-38
Copyright © 2019 Chicago Business Press
Behavior Checklists
◼
Advantages:
• Easy to use and understand
• Provides quantitative information
• Widespread use
• More objective than other systems
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Disadvantages:
• May feel impersonal and disconnected
• Scale points used are often arbitrary
• Difficult to get detailed and useful feedback
5-39
Copyright © 2019 Chicago Business Press
Behavior Checklists
◼
Example of Behavior Checklist Item
Copyright © 2019 Chicago Business Press
5-40
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
5-41
Copyright © 2019 Chicago Business Press
Critical Incidents
◼
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
5-42
Copyright © 2019 Chicago Business Press
Critical Incidents
◼
Example of Critical Incidents for
Adaptability/Flexibility
5-43
Copyright © 2019 Chicago Business Press
Graphic Rating Scales
◼
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
5-44
Copyright © 2019 Chicago Business Press
Graphic Rating Scales:
BARS Improvement
◼
◼
◼
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
5-45
Copyright © 2019 Chicago Business Press
BARS Improvement
◼
Example of BARS Improvement scale
5-46
Copyright © 2019 Chicago Business Press
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
5-47
Copyright © 2019 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
5-48
Copyright © 2019 Chicago Business Press
Measuring Performance
◼
Several types of methods
◼
Differ in terms of:
• Practicality (time and effort)
• Usefulness (quantifiable)
5-49
Copyright © 2019 Chicago Business Press
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
5-50
Copyright © 2019 Chicago Business Press
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.
Copyright © 2019 Chicago Business Press
Copyright © 2019 Chicago Business Press
1-51

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