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  • Performance-monitoring system

    In the last byte, we looked at the source of the three categories of problems. In this byte, we move on understand what performance monitoring system would keep note of.

    Performance-monitoring systems are varied in numbers. One category is that of result-oriented methods. Examples of these include the goal setting and MBO methods. There are some other methods that use modern technology for the purpose.

    While using modern technology – the accuracy of the measurement might increase; there are a host of questions on principles and morals that could arise when performance is being measured. An example could be – should the individual being measured really know that he/she is being measured?

    The Goal-setting and MBO methods are result oriented, but shift the emphasis to being subjective, judgmental on the results. The goals once set at the beginning and these form the bench mark on which the evaluation is done. The lop side here is that, in case a new opportunity arises to improve performance, these tend to be missed.

    In the next byte, we look at moving on to understanding the feedback aspect of performance measurement in greater detail.

  • Performance Management: Actual & Measured 3

    In the last byte, we looked at the various problems that arise in the assessment of performance. In this byte, we look at understanding these in greater detail.

    To help recap the source of various problems:

    • Deficiency results from overlooking important aspects of a person’s actual performance.
    • Unreliability results from poor-quality performance measures
    • Invalidity results from inaccurate definition of the expected job performance.

    The Reliability problem could further originate from any of the following sources:
    1. The effect of the situational factors such as mood or timing of the evaluation
    2. The Disagreement between evaluators about the methods
    3. The Temporary personal factors like fatigues, or ill health of the person being evaluated.
    It is to be noted that no existing system of performance appraisal is completely free from defects. Addressing the various emotions and defenses are essential to make the attempt of performance appraisal developmental in nature.
  • Performance Management: Actual & Measured 2

    In the last byte, we looked at the difference between what is actually performed by the employee and what aspect of the performance is measured.

    If we look at the diagram a bit closely and understand what aspects of errors could arise from such measurement?

    A first look at the diagram – would indicate 2 possible areas where the defects in measurement could arise from – these are the areas of the 2 circles which are not part of the true assessment area indicated. Refer the diagram below:

    The area of the circle of actual performance which has been over looked by the evaluator is essentially a deficiency in the measurement itself. This is called Deficiency Problem.
    The area of the circle of measured performance which has been outside the true-assessment area could have two sorts of problems:
    1. The reliability of the measurement
    2. The validity of the measurement
    We shall explore these in detail in the next byte.
  • Performance Management: Actual & Measured

    In the last byte, we looked at performance appraisal and what the objective would be when one attempts to have a performance appraisal. In today’s byte, we begin understanding performance measurement in greater detail.

    Measuring Performance of individuals is not an easy task. As an evaluator it is always possible to overlook certain features, while considering only a few! Yes, part of this problem could be due to the timing of the measurement and the other part could be the nature of the work itself! Whatever the reason – it is always possible that we overlook parts of the performance. If we are to consider this piece of measuring using circles like shown below, we through overlooking would have shifted the 2 circles – actual and measured performance away from each other.


    The overlap between what is actual and what is measure is what is truly assessed by the evaluator. This would definitely put you to think – What about the area which in the measured circle which is not the true assessment? We shall deal about this in the next byte.
  • Performance Management: Appraisal

    In the last byte, we looked at the importance of defining performance before any performance management could be got in place. In today’s byte, we attempt to understand performance appraisal in a greater detail.

    Performance Appraisal essentially means the evaluation of an individual’s performance.

    As supervisors/first level managers in an organization, one could look at his/her role as dual fold – a mentors/coach and an evaluator. As a mentor/coach, the supervisor would be responsible for encouraging the employee (- individual contributor at the entry level). As an evaluator, the supervisor is responsible for making judgments that influence employee’s roles in the organization.

    The major purpose of performance appraisal is to give the employee:

    • feedback on performance,
    • identify employee’s development needs,
    • to make demotion and termination decisions,
    • to develop information about the organization’s selection and placement decision.
    It is important next to really understand how one measures performance, we shall continue the discussion in the next byte.
  • Performance: Organizational Citizenship Behavior

    In the last byte, we began our discussion on performance management and identified the various stages in it. In today’s byte, we look at how do we define performance and set the stage for other stages in performance management.

    It is very clear from the discussion thus far that employees need to understand their performance expectations very clearly to perform well at work. This process of getting the expectations understood falls under the performance definition stage. Expectations about an individual’s performance will not be on any single dimension, but would be on multi-dimensions – these could include not just the task specific skill but others like interpersonal skills, administrative and finance skills etc depending on the stage at which one is in the career growth.

    Let’s take for example – an individual doctor working in a hospital. In addition to knowing the necessary diagnostic and treatment skills, he/she would be expected to have good interpersonal skills (presented as bed-side manners) to enhance the healing process of a patient. Extending this to other professions, we can clearly see that each specific job in an organization requires its own definition of skills and behaviors essential for excellent performance.

    It would be interesting to remind the readers here of the discussion we had on organizational citizenship behavior (OCB). OCB is a sought after dimension of individual performance that pans across jobs. It involves individual discretionary behavior that promotes the organization and is not explicitly rewarded! This is an important dimension of expectations that organizations look for and hence worth mentioning here.

  • Performance Management

    In the last byte, we looked at how goal setting is related to performance. In today’s byte, we begin our discussion on performance management and shall continue the same over the next few bytes.

    Performance management deals with the attempt of an organization to achieve the best performance from its employees. Given this challenge, performance management could be thought of as having the following phases:

    1. Defining
    2. Measuring
    3. Appraising
    4. Providing Feedback
    5. Improving performance.
    The above order is extremely important to be kept in mind. Only if the definition of performance in behavioral terms is gone well can the next few stages be really built on. Once defined, we could use the definition to make performance more measurable and then perform an assessment on the same. This information of the measurement and assessment could be fed back to the individual and used as basis for goal setting and establishing plans for performance improvement.

    Coupling this with the way we can reinforce learning through rewards, poor performance can be corrected. We shall discuss some of these stages performance management as we move ahead.

  • Goal Setting: Summary

    In the last byte, we looked at how goal setting improves performance evaluation. In today’s byte, we look to summarize the discussion on goal setting thus far and then build the bridge for transitioning to the next topic of performance and its management.

    We began with outlining the need for goal setting and identified the characteristics of an effective goal. We mentioned that the goals would have to be defined in a SMART method to make it more effective. The relation between a goal which is challenging and the manner in which an individual’s task performance increases was briefly highlighted.

    We then went on to explore the functions that goal setting performs. Broadly it performs 3 functions:

    1. Increasing work motivation and Task Performance
    2. Reducing role-stress, conflict and ambiguity
    3. Improving performance evaluation.
    Goal setting programs are widely applied in the industry and the ease of implementation is defined by the state in which the company is – Companies in the stable predictable industrial settings would find it more easily implementable than those working in a dynamic environment.

    As goal setting is related to the ability to improve performance at work place, we shall move the next discussion on to the issue of performance management.

  • Goal Setting: Management By Objective

    In the last byte, we looked at how goal setting reduces role stress, conflict and ambiguity. In today’s byte we look at how goal setting could help improve performance evaluation.


    In effect, goal setting increases the accuracy and validity of performance evaluation. One example in such a goal setting process is the famous method – Management By Objectives (MBO) a concept originated by Peter Druker. This goal setting process could be called by various names like – work planning and review, performance planning and evaluation etc.


    If we can categorize the stages of these goals setting process, we see two distinct stages:
    1. Planning
    2. Evaluation
    The Planning stage involves the individuals and departments being given discretionary control to develop operational and tactical plans to support the corporate objectives. Clear, Consistent, Measurable and Ordered set of goals to articulate WHAT to do are the primary outcome, the HOW is generally determines by the operational support planning. Once the goals are set, the individual know both the WHAT and HOW pieces and understands that both are important.


    The Evaluation stage consists of interim reviews of the goal progress. Typically a formal process, these are designed to help employees take self corrective action, and are not designed for the final evaluation. There is no “once size fits all” in this approach – these evaluation methods need to tailored for the business.
  • Goal Setting: Stress and Effectiveness

    In the last byte, we looked at how we could improve the effectiveness of goal setting in an organizational context. In today’s byte, we discuss regarding role stress.

    It is not uncommon that once an employee joins an organization, he/she would be expected to do a lot of things in the work place. The individual is trying to exert pressure on self to perform to the expectations of all around, in many cases it also happens that there are conflicts that the individual would have to handle.
    When an employee joins the organization, it is really the supervisors, coworkers and other employees that form important sources of task-related information.  Ensuring that these are communicated well is important to ensure that role-stress is not hard-hitting on the employee, which in adverse cases could lead to the employee leaving the organization.

    Effective goal setting definitely reduces role stress associated with the conflicting and confusing expectations. Managers and supervisors play a major role in clarifying the task-role expectations that are communicated to the employees.

    Improved communication related to the role-clarity leads to reduction in role-stress. It is the right communication that forms the source of success of any goal-setting process. Employee participation is a must to ensure that the goal is attainable.

    It is just prudent for the manager to ensure employees are constantly in communication and there is a constant touch to really be successful!