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Chapter 5Chapter 5 – Measuring Results and BehaviorsLearning Objectives5 Adopt a results approach to measuring performance including the development of accountabilities, objectives, and standards.5 Determine accountabilities and their relative importance.5 Identify objectives that are specific and c...

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Chapter 5

Chapter 5 – Measuring Results and Behaviors Learning Objectives 5.1 Adopt a results approach to measuring performance including the development of accountabilities, objectives, and standards. 5.2

Determine accountabilities and their relative importance.

5.3

Identify objectives that are specific and clear, challenging, agreed upon, significant, prioritized, bound by time, achievable, fully communicated, flexible, and limited in number.

5.4

Identify performance standards that are related to the position, concrete, specific, measurable, practical to measure, meaningful, realistic and achievable, and reviewed regularly.

5.5 Adopt a behavior approach to measuring performance including the identification and assessment of competencies. 5.6

Develop competencies that are defined clearly, provide a description of specific behavioral indicators that can be observed when someone demonstrates a competency effectively, provide a description of specific behaviors that are likely to occur when someone doesn’t demonstrate a competency effectively (what a competency is not), and include suggestions for developing them further.

5.7

Develop comparative performance measurement systems such as simple rank order, alternation rank order, paired comparisons, and forced distribution--being aware of the relative advantages and disadvantages of each.

5.8

Develop absolute performance measurement systems such as essays, behavior checklists, critical incidents, and graphic rating scales, and understand their advantages and disadvantages.

Chapter Outline Measuring Results and Behaviors Overview 1. Measuring Results 2. Measuring Behaviors

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1. Measuring Results • Key Questions o Where should each individual focus efforts? (accountabilities) o What are the expected objectives? (objectives) o How do we know how well the results were achieved? (performance standards) 

Key Accountabilities Broad areas of a job for which employee is responsible for producing results

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Objectives Statements of important and measurable outcomes

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Performance Standards Yardstick used to evaluate how well employees have achieved objectives

 Why do organizations with MBO philosophies implement PM systems that measure results?  How can linking objectives to individual goals sometimes lead to unintended consequences?

• Determining Accountabilities o Collect information about job (Job Description) o Determine importance of task or cluster of tasks  Percent of employee’s time spent performing task  Impact on unit’s mission if performed inadequately  Consequences of error

 How might one determine accountabilities for the Training Specialist/ConsultantLeadership & Training Development for Target Corporation?

• Determining Objectives o Purpose: to identify  Outcomes  Limited number  Highly important  When achieved  Dramatic impact on overall organization success o Characteristics of Good Objectives  Specific and clear  Challenging  Agreed upon  Significant  Prioritized 76

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Bound by time Achievable Fully communicated Flexible Limited in number

 What kinds of objectives could be developed for the position at Target where we identified accountabilities earlier?

 How do the example objectives in the book comply with these characteristics?

• Determining Performance Standards Standards refer to aspects of performance objectives, such as: o Quality  How well the objective is achieved o Quantity  How much, how many, how often, at what cost? o Time  Due dates, schedule, cycle times, how quickly Standards must include: o A verb o The desired result o A due date o Some type of indicator  Quality and/or  Quantity o Characteristics of Good Performance Standards  Related to position  Concrete, specific, measurable  Practical to measure  Meaningful  Realistic and achievable  Reviewed regularly

 Develop some performance standards for the position at Target, using accountabilities and objectives developed earlier.

 How do the example standards in the book comply with these characteristics? 2. Measuring Behaviors Overview • Identify Competencies

• Identify Indicators 77

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• Choose Measurement System Identify Competencies Measurable clusters of KSAs (critical in determining how results will be achieved)

• Knowledge • Skills • Abilities Types of Competencies  Differentiating o Distinguish between superior and average performance  Threshold o Needed to perform to minimum standard

 Why would “change management” be a threshold competency for an IT Project manager position?

 How is “process management” a differentiating competency for this position? Identify Indicators  Indicators are observable behaviors  Indicators are used to measure the extent to which competencies are present or not

 What are some indicators that a supervisor is demonstrating consideration? Initiating structure? Describing Competencies: necessary components

• Definition • Description of specific behaviors o When competency demonstrated o When competency not demonstrated

• Suggestions for developing the competency  How might a supervisor develop the competency of consideration?  How did Xerox Capital Services develop leadership in managers using this concept? Choose Measurement System • Comparative system--compares employees with each other

• Absolute system--compares employees with prespecified performance standard Comparative systems

• o

Simple rank order

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o o o

Alternation rank order Paired comparisons Forced distribution

 Why did CEO Jack Welch label GE’s forced distribution system the “vitality curve”? How did it work? 

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Advantages of Comparative Systems o Easy to explain o Straightforward o Better control for biases and errors found in absolute systems - Leniency - Severity - Central tendency Disadvantages of Comparative Systems o Rankings may not be specific enough for - Useful feedback - Protection from legal challenge o No information on relative distance between employees o Specific issues with forced distribution method

 USC Professor Ed Lawler compares the forced distribution method to a salamander. Is this appropriate?  How does the following company’s experience with forced distribution relate to our discussion? (Yahoo! Inc. or Microsoft or General Electric)

• Absolute systems o Essays o Behavior checklists o Critical incidents o Graphic rating scales Essays  Advantage:  Potential to provide detailed feedback  Disadvantages:  Unstructured and may lack detail  Depends on supervisor writing skill  Lack of quantitative information; difficult to use in personnel decisions Behavior checklists

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 

Advantage: o Easy to use and understand Disadvantages: o Scale points used are often arbitrary

o



 

Difficult to get detailed and useful feedback Several examples of language for behavior checklists are in the text--which seemed effective? Why? Why not? Critical incidents o Two kinds of measurement o Report of specific employee behavior - Allows focus on specific behavior - Very time consuming  Examples of behavior illustrative of core competencies--manager circles best description  Easier to use  Describes behavior desired How could the Tom Jones report be changed from the first kind of measurement to the second? Which of these kinds of measurements is shown in the City of Irving example? Graphic rating scales  Clear meaning for each response category  Consistent interpretation by outside readers  Supervisor and employee should have same understanding of rating Graphic rating scales: BARS improvement Behaviorally Anchored Rating Scales (BARS) o Uses critical incidents as anchors o Involves multiple groups of employees in development  Identify important job elements  Describe critical incidents at various levels of performance  Check for inter-rater reliability

Measuring Performance (Wrap-up) • Several types of methods

• Differ in terms of:  Practicality (time and effort)  Usefulness (quantifiable) Measuring Results and Behaviors: Summary • Measuring Results o Identify accountabilities

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o o

Set objectives Determine standards of performance

• Measuring Behaviors o Identify competencies o Identify indicators o Choose measurement system Review Learning Objectives Worked Solutions for End-of-Chapter Cases Case Study 5.1: Accountabilities, Objectives, and Standards Below is a job description for a sourcing and procurement internship position for Disney Consumer Products Studio. Based on the information in the job description, create accountabilities, objectives, and standards for the job described. Title: Graduate Associate, Sourcing & Procurement Accountabilities: 



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Provide analytical support for sourcing projects impacting business units. Successful analytical support will ensure that project decisions are made on well-researched reasons. Poorly made project decisions may delay client deliverables or damage the Disney brand. (20% of time) Benchmark current pricing models and develop new approaches to pricing/buying various products and services that yield creative and business advantages. This is extremely important to the continued sustainability of Disney, and will be critical to capture new portions of the market share. Incorrectly identifying pricing models would be crushing to the Disney business and would directly impact the bottom line. (30% of time) Assist in the development of spend profiles, key stakeholder lists, savings opportunities where existing contracts are leveraged, savings opportunities in commodity areas that have not been sourced, and sourcing and procurement strategy. Will play a small role in these extremely important activities. Successfully developing spend profiles, identifying key stakeholders, identifying savings opportunities, and developing a successful business strategy are keys to the financial stability of Disney. (50% of time)

Objectives: 



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Develop spend profiles, key stakeholder lists, and a sourcing and procurement strategy. These tasks need to be completed by July 1, 2004. Identifying savings opportunities where existing contracts are leveraged and identifying savings opportunities in commodity areas that have not been sourced are ongoing tasks. Report weekly on savings identified. Benchmark current pricing models and develop new approaches to pricing/buying various products and services that yield creative and business advantages. Benchmarking project due by August 1, 2008. Developing new approaches to pricing is an ongoing project. Turn in biweekly reports on new findings to your manager by COB every other Friday. Provide analytical support for sourcing projects impacting business units. Ongoing project 81

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where information must be delivered inside project deadlines and budget guidelines. Performance Standards:    

Identified savings opportunities where existing contracts were leveraged and identified commodity areas that have not been sourced on a weekly basis for total savings of 5% over previous quarter spending. Benchmarked current pricing models by August 1, 2008 in 80 hours or less of time billed. Submitted new approaches to pricing/buying various products and services on a weekly basis resulting in at least two new pricing approaches being adapted by the company by September 1, 2008. Provided ongoing analytical support for sourcing projects as rated by monthly project evaluations conducted by the relevant project managers and communicated to your manager on a monthly basis. (Suggested points: 10, .4[5.2], .3[5.3], .3[5.4])

Case Study 5.2: Evaluating Objectives and Standards Answers will vary based on objectives and standards met. The greater the number of boxes checked in the table, the better the objectives and standards. Objectives must have the following characteristics: Comments X Specific and clear X Challenging Have to assume that the manager and X Agreed upon employee agreed on all objectives. X Significant X Prioritized X Bound by time X Achievable Again, have to assume that the supervisor communicated objectives to subordinate and X Fully communicated to all stakeholders involved in objectives. Assume that the manager takes into consideration any valid reasons that the subordinate may not have met the objectives X Flexible X Limited in number Performance standards must have the following characteristics: Comments X Related to the position X Concrete, specific, and measurable X Practical to measure X Meaningful X Realistic and achievable X Reviewed regularly

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(Suggested points: 5, .5[5.3], .5 [5.4]) Case Study 5.3: Measuring Competencies at the Department of Transportation Indicators of Learning and Strategic Systems Thinking: Frequency

This employee engages in the following behaviors: Enrolls in training classes Works to develop new skills Takes into account all forms of transportation and their role in the DOT when making decisions Solicits information from team members Solicits information from customers Volunteers relevant information to team discussions Able to explain role of each unit Able to explain link between work units and DOT

Always 5

Very often 4

Fairly many times 3

Occasionally 2

Moderately 3

Somewhat 2

Never 1

Indicators of Organizational Learning: Agreement This employee engages in the following behaviors: Demonstrates understanding of DOT culture Accurately explains major products and services offered Demonstrates understanding of how work units contribute to one another and the organization as a whole Establishes formal channels to accomplish work Establishes informal channels to accomplish work Understands and explains key policies, practices, and procedures Understands and communicates political realities and implications to work

Very much 5

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Pretty much 4

Slightly 1

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(Suggested points: 5, [5.6]) Case Study 5.4: Creating BARS-Based Graphic Rating Scales for Evaluating Business Student Performance in Team Projects 1. Competencies:  Teamwork: Ability to work with a team to finish all project deliverables on time and according to instructions. Assists others as necessary and constantly seeks to further relationships with team members. Failure to develop teamwork will result in reduced team effectiveness due to lack of communication and cooperation between team members.  Business knowledge: Aware of current business trends and applies relevant business research skills to projects at hand. Always learning new skills, staying current on business news, and talking with business professionals. Failure to develop business knowledge will result in a decrease in the quality of work produced by the team.  Communication: Ability to articulate verbally or through written communication ideas on project deliverables. Use of correct grammar, professional presentation, and clear and concise messages characterize good communication. Failure to communicate well will result in the decreased performance of the team, because team members will no longer understand ideas put forth. 2. Behavioral Indicators:  Teamwork o Friendly environment exists o Team members’ input is accepted o Offers to help other team members when necessary  Business knowledge o Student offers input when group is discussing business problems o Actively researches solutions presented o Reads business news sources on a daily basis to stay up-to-date on business trends  Communication o Clearly articulates points in meetings o Uses correct grammar and word usage in written communications o Professionally presents ideas and findings in project presentations

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3. Critical Incidents: Indicator Student offers input when group is discussing business problems Actively researches solutions presented Reads business news sources on a daily basis to stay up-to-date on business trends

Clearly articulates points in meetings Uses correct grammar and word usage in written communications Professionally presents ideas and findings in project presentations Friendly environment exists Team members’ input is accepted

Offers to help other team members when necessary

High Performance

Average Performance

Continuously provides relevant input into group discussions Researches practical and theoretical implications of decision

Offers input on areas of expertise in group discussions

Comments on a daily basis on the status of ongoing business developments of interest

Comments on a weekly basis on the status of ongoing business developments of interest

Presents ideas in a clear and concise manner and ensures that team members understand point

Presents ideas in a clear and concise manner

Written communications are clear, free of spelling and grammatical mistakes Prepares presentation so ideas are communicated well and in a professional manner Takes an interest in team members outside of project Supportive of other team members’ ideas Volunteers for extra assignments so that team members can finish projects on time and to the highest standards

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Researches practical implications of decision

Clear use of language in written reports Minimally prepares for presentations, so communication is rushed or drags on

Poor Performance

Does not offer input into group discussions Does not research implications of business decisions Does not comment on the status of ongoing business developments of interest Does not get point across in meetings, which results in arguments with other team members or miseducation of team members Poor spelling and grammatical usage in written reports

Does not prepare for presentations

Talks to team members to complete tasks Solicits, but does not support team members’ ideas

Withdrawn from team Does not solicit input from other team members

Offers to help team members if deadline is approaching

Does not offer to help team members

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4. Scales: Teamwork: Ability to work in a team to finish all project deliverables on time and according to instructions. Assists others as necessary and constantly seeks to further relationships with team members. Failure to develop teamwork will result in reduced team effectiveness due to lack of communication and cooperation between team members.

5 3 1

Exceptional: Takes an interest in team members outside of project. Competent: Talks to team members to complete tasks. Major Improvement Needed: Withdrawn from te...