Defining Performance and Selecting a Measurement Approach

Description

Strategic Planning Case Study(100 points)
Saudi Vision 2030 details the long-term goals that the Kingdom of Saudi Arabia (KSA) hopes to achieve. These ambitious goals are well defined, extremely detailed, and impact all levels of society. Review the message from HRH Prince Mohammed Bin Salman Aziz Al-Saud about Saudi Arabia’s Vision for the future: https://www.vision2030.gov.sa/v2030/leadership-message/
After reviewing the vision statement from HRH Prince Mohammed Bin Salman Aziz Al-Saud and other components of Vision 2030, select an organization of your choice, which is located in the KSA. Then, address the following: 
Critique the organization’s mission statement, values, and vision.  
Explain the alignment, or lack thereof, of the selected organization’s mission, values, and vision with Saudi Vision 2030. 
Address what improvements must be made to the organization’s mission statement, values, and vision to ensure further alignment with Vision 2030.
What resources are available to businesses that want to ensure alignment with Vision 2030, but need additional support/guidance regarding this alignment?
Explain why all organizations located in the KSA must align their strategy with Vision 2030. Then, detail the implications associated with lacking alignment with Vision 2030. 

Part II: System Implementation
Chapter 4: Defining Performance and
Choosing a Measurement Approach
◼ Chapter 5: Measuring Results and
Behaviors
◼ Chapter 6: Performance Analytics
◼ Chapter 7: Rolling Out the
Performance Management System

Copyright © 2019 Chicago Business Press
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Chapter 4
Defining Performance
and
Choosing a Measurement Approach
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Overview

Defining Performance

Determinants of Performance

Performance Dimensions

Approaches to Measuring
Performance
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Company Spotlight



Sprint uses five core dimensions to define
what successful performance looks like
Both task and contextual performance are
measured
Includes:
• Employees write behavioral examples of how
they have performed on each dimension
• Employees are evaluated not only on results,
but also on how they are achieved through
working with others
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Defining Performance
Performance is:

Behaviors and actions
• What employees do
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Defining Performance
Performance is:

Results and Products
• The outcome of employee behaviors
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Defining Performance
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Behaviors Labeled as
Performance Are…
Evaluative

Negative

Neutral

Positive
Multidimensional


Many different kinds of behaviors
Advance or hinder organizational
goals
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Behaviors Are NOT Always…
•Observable
•Measurable
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Results or Products May Be
Used…
To infer behavior
◼ As proxy for behavioral
measure

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Determinants of Performance
Performance =
Abilities and other traits
X
Knowledge and skills
X
Context
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Determinants of Performance
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Abilities and Other Traits
Cognitive Abilities
◼ Personality
◼ Stable Motivational Dispositions
◼ Physical Characteristics and Abilities

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Knowledge and Skills
Job-Related Knowledge
◼ Skills, Attitudes and Malleable
Motivational States

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Declarative Knowledge

Information about
• Facts
• Labels
• Principles
• Goals

Understanding of task
requirements
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Procedural Knowledge

Knowing
• What to do
• How to do it

Skills
• Cognitive
• Physical
• Perceptual
• Motor
• Interpersonal
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Context
HR Policies and Procedures (e.g.,
compensation system)
◼ Managerial and Peer Leadership
◼ Organizational and National Culture
◼ Issues about time and timing of
performance
◼ Resources and opportunities given to
employees

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Abilities and Other Traits, and
Knowledge and Skills
Knowledge and Skills are more
malleable (i.e., easier to change)
◼ Individual differences that are easier
to change through interventions are
called “states”

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Motivation

Choices
• Expenditure of effort (”state”
motivation)
• Level of effort (“state”
motivation)
• Persistence of effort (stable
trait)

Deliberate practice leads to
excellence
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Deliberate Practice
Approach performance with goal of
getting better and better
2. Focus on performance
• What is happening?
• Why?
3. Seek feedback from expert sources
4. Build mental models of job, situation,
and organization
5. Repeat first four steps on an ongoing
basis
1.
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Deliberate Practice
https://www.youtube.com/watch?v=
1-sjUoGO250
◼ What are some of the tips to perform
deliberate practice well?
◼ What are some of the benefits of
deliberate practice?

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Context
HR policies and procedures
◼ Managerial and peer leadership


Organizational and national culture

Time and timing of performance

Resources given to employees
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Implications for Addressing
Performance Problems


Managers need information to accurately
identify source(s) of performance
problems
Performance management systems must…
• Measure performance
AND
• Provide information on source(s) of
problems
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Performance Dimensions:
Types of Multidimensional
Behaviors
Task performance
◼ Contextual performance

• Prosocial behaviors
• Organizational citizenship
Counterproductive performance
◼ Adaptive Performance

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Task Performance
Activities that


Transform raw materials
Help with the transformation
process
• Replenishing
• Distributing
• Supporting
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Contextual Performance
Behaviors that

Contribute to the organization’s
effectiveness
AND

Provide a good environment in
which task performance can occur
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Differences Between
Task and Contextual Performance

Task Performance
• Varies across
jobs
• Likely to be role
prescribed
• Influenced by

Abilities

Skills

Contextual
Performance
• Fairly similar across
jobs
• Not likely to be role
prescribed
• Influenced by

Personality
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Why Include Task and Contextual
Performance Dimensions in PM
System?
1.
2.
3.
4.
5.
6.
Global competition
Customer service
Teamwork
Employee perceptions of PM
Supervisor views
Cultural differences
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Voice Behavior




Behavior that emphasizes expression
of constructive challenge with the
goal to improve rather than merely
criticize
Challenges the status quo in a positive
way
Makes innovative suggestions for change
Recommends modifications to standard
procedures
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Counterproductive Performance



Behaviors and results that are
voluntary
and violate organizational norms
Threaten well-being of the organization,
its members, or both
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Examples of counterproductive
performance





Exaggerating hours worked
Gossiping about coworkers and one’s
supervisor
Cyberloafing
Intentionally working slowly and
carelessly
Staying out of sight to avoid work
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Adaptive Performance

Related to an individual’s
adaptability to changes


Be it in the organization and it’s
goals,

in the requirements of the job,

or the overall work context
Becoming increasingly important due
to rapid changes
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Examples of adaptive
performance

Handling emergencies

Solving problems creatively



Dealing with uncertain and
unpredictable work situations
Demonstrating interpersonal
adaptability
Demonstrating cultural adaptability
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Approaches to Measuring
Performance
Behavior Approach

Emphasizes how employees do the job
Results Approach

Emphasizes what employees produce
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Behavior Approach
Appropriate if…

Link between behaviors and results is not
obvious

Outcomes occur in the distant future

Poor results are due to causes beyond
the performer’s control
Not appropriate if…

Above conditions are not present
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Company Spotlight
Dollar General uses a behavioral approach to
measure performance
◼ Identified behaviors that serve as indicators
of underlying competencies
◼ Behaviors are reviewed and utilized to
encourage certain outcomes and provide
◼ feedback and rewards to staff members

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Results Approach
Advantages:
• Less time
• Lower cost
• Data appear objective
Most appropriate when:
• Workers skilled in necessary behaviors
• Behaviors and results obviously related
• Consistent improvement in results over
time
• Many ways to do the job right
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Company Spotlight




Basecamp divides its employees workload into
six-week work cycles containing 1-2 “big batch
projects” and 4-8 “small batch projects”
Uses a results-approach to performance
planning
Company focuses exclusively on getting the
project done within 6 weeks and does not
measure efficiency or compare actual to
estimated costs
Team decides how to get the project done
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Measuring Performance
https://www.youtube.com/watch?v=Jz8xB
kQCpuE&amp=&t=48s
◼ What kind of approach to measuring
performance is used at Pfizer?
◼ How is the focus on measuring
performance based on patient figures
different than sales figures? What are
some of the benefits of this approach?
◼ Is this an appropriate approach to
measuring performance for Pfizer? Why or
why not?

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Quick Review

Defining Performance

Determinants of Performance

Performance Dimensions

Approaches to Measuring
Performance
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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.
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