代写 MGMT949 Performance Management assignment

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MGMT949

Performance Management

Managing for Engagement

Week 2

Understanding factors that influence

work behaviour

–Context factors

–Personal attributes

Last week

‘I do my best work when...’

30/08/2016

Last week: 3 conceptual approaches

to performance management

1. Prescriptive

2. Descriptive

3. Critical

What is a ‘unitarist’ approach to

HRM?

• Assumes employee goals are

identical with managerial goals

Employee

interests

Organisation

interests

Van Buren et al. 2011: 213

30/08/2016

What is performance?

Different conceptions of

‘performance’ by different

stakeholders

Competencies + Behaviours +

Results (Shields, 2016)

WHAT IS ‘PERFORMANCE’? (Cybernetic Model )

Individual Performance

Work Group Performance

Organisational Performance

Work Group Performance

Organisational Performance

Personal Results

e.g. Quantity,

Quality

Personal Behaviour

e.g. Effort, Citizenship

Personal

Competencies

e.g. Knowledge, Skills,

Abilities, Attitudes

Group Results

e.g. Productivity,

Quality

Work Group

Behaviour

e.g. Team-working

Work Group

Competencies

e.g. Collective know-

how

Organisational

Results

e.g. Profitability,

Customer Satisfaction,

Market Share

Organisational

Behaviour

e.g. Customer-focus,

Cooperation, Creativity

Organisational

Competencies

e.g. Core

Competencies and

People Capabilities

Outcomes

(Results)

Processes

(Behaviours)

Inputs

(Competencies)

Shields, 2016

30/08/2016

4

代写 MGMT949 Performance Management assignment

Mainstream:

performance management philosophy

People

• the most expensive resource

• need to control and monitor

• need direction (separation of planning

and execution of work functions)

Why is it necessary to

‘manage’ employee

performance at all?

• Strategic communication (role clarity)

• Relationship building (‘team spirit’)

• Employee development (competence)

• Employee evaluation (accountability)

(Shields, 2016)

‘done to’

employees

‘done to’

employees

30/08/2016

Mainstream: fundamentals of…

effective performance

management?

• Validity

– Construct validity

– Content validity

– Criterion-related validity

• Reliability

• Cost effectiveness

• Fairness

– Procedural

– Distributive

(Shields, 2016)

All about

measurement?

All about

measurement?

Psychology of work behaviour

HRM

practices

HRM

practices

Psycho-

logical

contract

Psycho-

logical

contract

Attitudes

Behaviour Results

Work

group

identity

Work

group

identity

30/08/2016

Complex link between employee attitudes and

behaviour (Engagement)

Chapter 2

• Work behaviours (Membership + Task + OCB)

• Work attitudes (Satisfaction, Commitment,

Motivation)

• The psychological contract (Tac, Tsi, Ba, Re)

• Organisational justice (DJ, PJ)

• Motivation in theory and practice:

• Content theories

• Process theories

Work behaviours

• Work behaviours are physical

and/or verbal actions by

individuals that are:

– Observable

– Measurable

– Causally linked to desired

performance Positively or negatively

30/08/2016

Key work behaviours

. 1. Membership behaviour

. 2. Task behaviour

. 3. Organisational citizenship

behaviour (OCB)

Organisational citizenship

behaviour (OCB)

1. MEMBERSHIP BEHAVIOUR

When people decide to join and remain with

an organisation. Characteristics:

• Reduced turnover/longer tenure

• Reduced absenteeism

Managing Employee Performance and Reward

30/08/2016

When employees perform specific work

tasks that have been assigned to them and

which form part of the organisation’s

technical core.

Characteristic: Increased work effort

Managing Employee Performance and Reward

TASK BEHAVIOUR

When employees voluntarily and altruistically undertake special

actions that exceed membership and task compliance.

Characteristics:

• Volunteering to carry out task activities not formally part of the

job (i.e. discretionary effort)

• Persisting with extra enthusiasm or effort to complete ones

own task activities

• Helping and cooperating

• Showing initiative/being innovative

• Endorsing, supporting and defending organisational objectives

Managing Employee Performance and Reward

ORGANISATIONAL CITIZENSHIP

BEHAVIOUR (OCB)

30/08/2016

What could an organisation do

to facilitate this type of

behaviour?

(See P. 42)

Work attitudes: definition

“An attitude is conscious state of mind

about aspects of th

“An attitude is conscious state of mind

about aspects of th e self, the work context,

and/or the relationship between self and

context”

e self, the work context,

and/or the relationship between self and

context” (Shields et al, 2016, p.21)

– Consists of

• affective state(values and emotions) = e.g. I

like people, job satisfaction

affective state(values and emotions) = e.g. I

like people, job satisfaction

• e Cognitive state (thoughts and beliefs) = e.g All

people management subjects are good

• Behaviour/action/response = e.g. I attend

PM class

Behaviour/action/response = e.g. I attend

PM class

30/08/2016

If attitudes shape behaviour, what

shapes attitudes?

Personality: ‘Big Five’

1. Emotional stability

2. Extraversion

3. Openness to experience

4. Agreeableness

5. Conscientiousness

self situation performance

3. Work attitude categories

• Work motivation

• Job satisfaction

• Organisational commitment

30/08/2016

Work motivation

– Strength of a person’s willingness to undertake work effort “

(Shields et al, 2016: 21).

– The willingness to exert high levels of effort toward O’nal

goals conditioned by the effort’s ability to satisfy some

individual need” (S.P Robbins).

– A process that starts with a physiological or psychological

deficiency or need that activates behaviour that is aimed at

a goal or incentive”

(Fred Luthans)

Three dimensions:

1. The direction of effort (Why people take certain actions rather than

others; e.g. emphasising product quantity over quality)

2. The intensity of effort (Why the actions taken involve either a lot of

effort, or a little)

3. The persistence of effort (Why some actions are more sustained and

enduring than others)

Shields et al, 2016

• How happy am I in my job?

• The overall positive or negative attitudes that

employees hold towards the job and the job context

(Shields et al. 2016 P.33)

The overall positive or negative attitudes that

employees hold towards the job and the job context

(Shields et al. 2016 P.33)

• Covers both intrinsic (job content) factors and

extrinsic (job context) factors, including rewards

Job satisfaction

30/08/2016

Job satisfaction

c Intrinsic = job content/factors intrinsic to the job.

Motivators of two factor theories

c Extrinsic = job context, relationships, culture, HR

practices, etc. E.g Hygiene factors of two factor theory

How satisfied are you with your

 job content?

 job context?

Organisational commitment

• The strength of the employee’s attachment to the organisation;

feeling of belongingness

• Commitment + effort = ‘engagement’

Three dimensions:

1. Affective commitment (wish to remain because of perceived

emotional benefits)

2. Normative commitment (felt obligation to remain because of

perceived indebtedness to the organisation)

3. Continuance commitment (felt need to remain because of

perceived costs of leaving)

But commitment to who or what, exactly?

Organisational commitment

30/08/2016

Organisational commitment

. 1. Affective = emotional attachment

. 2. e Normative = moral obligation

. 3. Continuance = cost/benefit calculation

Relationship between

work attitudes and work behaviour

Relationship between

work attitudes and work behaviour

Task

Behaviour

Organizational

Citizenship

Behaviour

Membership

Behaviour

Affective

org.

commitment

Job

satisfaction

motivation

30/08/2016

Relationship between Motivation, Job satisfaction & Performance

(Porter- Lawler Integrated Model)

PERFORMANCE

(6)

SATISFACTION

(9)

PERCEIVED

EFFORT

REWARD

PROBABILIT

Y(2)

TASK

PERCEPTIO

N (5)

EXTRINSIC

REWARDS

(7b)

VALUE OF

REWARDS

(1)

ABILITY &

TRAITS (4)

INTRINSIC

REWARDS

(7a)

PERCEIVED

EQUITABLE

REWARDS

(8)

EFFORT (3)

The psychological contract

A contract: an agreement about the mutual

responsibilities of parties in an exchange

relationship. Involves a promise, a

payment/consideration and an acceptance.

The psychological contract: perceptions or

expectations by each party as to what they and the

other party have undertaken to give and receive in

the exchange.

Why does it exist? Because the employment

exchange is typically very open-ended and

imprecise, often leading to ‘contract drift’.

30/08/2016

Psychological contract

(employee perspective)

 Organisational

citizenship

behaviour

 Membership

behaviour

 Task behaviour

 Organisational

commitment

 Job and reward

satisfaction

 Task motivation

Organisational:

 Culture

 Climate

 Leadership

 HR strategy

 HR practices

Individual:

 Prior experience

 Expectations

 Needs

 Work values and

beliefs

 Personality

Behavioural

outcomes

Attitudinal

outcomes

State and basis of

the psychological

contract

Inputs

+ OR –

 Trust-worthiness:

Do/can I trust my

employer?

 Deal delivery:

Am I getting the

deal that I was

promised? (4 types)

 Felt-fairness:

Am I treated fairly?

Source: Adapted from Guest (1998)

• Transactional (new deal short term) = If you perform at high

level for as long as we need you, we will provide you with exciting

work and opportunities to develop your human capital &

employability.

• l Transitional ( short term) = If you work harder than before, we

may be able to keep you on, but you may have to be prepared to

accept pay freeze or even pay cut .

• Balanced (long term) = if you contribute consistently as a team

player (OCB type) we will offer you a reward mix that balances

your needs and ours.

• Relational (Old deal-long term) = if you are loyal and work

hard as directed, we will provide you with a secure job, pay

increases, T & d opportunities

Four types of Mgtespoused deal/

contracts

30/08/2016

Management-espoused psychological contracts:

‘relational’ vs ‘transactional’

And you’ll be a part of:

 an exciting, dynamic organisation (for as long

as we need each other)

And you’ll be a part of:

 a dull but safe organisation (for the long haul)

We’ll provide:

 A challenging work environment

 Opportunities for you to develop your

knowledge, skills, abilities and marketability

 External employability

 Reward for your individual contribution

 Appropriate work–life balance

We’ll provide:

 A secure job (here)

 Internal training opportunities

 Steady pay increases

 Financial security

If you:

 Develop the competencies we need

 Apply them in ways that help us to succeed

 Behave consistently with our corporate values

If you:

 Are loyal

 Work hard

 Do as you are told

Basis of the employment exchange:

 Economic-instrumental exchange

Basis of the employment exchange:

 Social-emotional exchange

Key principle:

 ‘A flexible, mutually beneficial partnership’

for as long as the partnership is necessary

Key principle:

 ‘A fair day’s work for a fair day’s pay’ over

the long term

‘Transactional’(espoused new deal) ‘Relational’(espoused traditional deal)

Source:

Adapted

from

Rousseau

(1995)

Breach of psychological contract:

some causes

1. Reneging on promise

(= failure to deliver on the deal):

• Pay cut or lower increases

• Withdrawal of overtime

• Longer hours

2. Incongruence of expectations

(= misalignment of expectations):

• Poor initial communication

• Misunderstanding

30/08/2016

3. Contract drift:

• Organisational change (restructure, merger, acquisition)

• Downsizing and loss of job security

• Increasing workloads

• Substitution of temporaries for permanents

• Growing pay inequality

4. Perceived unfairness

(= Organisational injustice)

Breach of psychological contract:

some causes

‘Organisational justice’

(or felt-fairness) perceptions

Distributive justice:

Perceived fairness of employment outcomes (including rewards/pay received)

 Am I adequately rewarded for what I contribute?

 How do I compare with those I like to compare myself with?

Interactional justice:

Perceived fairness of interpersonal/emotional relationships:

 Am I treated with dignity and respect in my daily work relationships?

Procedural justice:

Perceived fairness of employment decision-making processes (e.g. job evaluation;

performance appraisal)

 How am I treated by the decision-makers?

Basic requirements for procedural justice:

• Same standards consistently applied

• Judgement based on evidence

• Fair hearing/voice (including right to refute and appeal)

• Adequate notice (of underperformance; opportunity to improve)

30/08/2016

Distributive justice:

equity theory (J.S. Adams)

Feeling of over-

reward inequity

Outcomes B

Inputs B

> Outcomes A

Inputs A

Feeling of reward

equity

Outcomes B

Inputs B

= Outcomes A

Inputs A

Feeling of under-

reward inequity

Outcomes B

Inputs B

< Outcomes A

Inputs A

A’s assessment/

attitude

Reference person

(B)

Focal

person/self

(A)

Equity Theory

Compares his/her

Input/Output ratio

(O/I) self

A reference person

(RP) with input

(IRP) and output

(ORP)

(O/I) reference

person

A person (P) with

certain input (I) may

receive certain out

come (O)

IP/OP >IRP/ORP =INEQUITY

IP/OP =IRP/ORP =EQUITY

IP/OP <IRP/ORP =INEQUITY

30/08/2016

Perceived outcomes: Pay, benefits, recognition,

status, achievement, satisfaction, security, etc.

Perceived inputs: Knowledge, skills, ability,

qualifications, experience, age, seniority, loyalty,

effort, time, performance, responsibility, etc.

Possible behavioural responses:

• Leave for a more rewarding position elsewhere

• Change outcomes within organisation

• Change inputs

Distributive justice:

equity theory (J.S. Adams)

Possible cognitive responses:

• Rationalise away the felt inequity by altering

perception of the ‘self’s’ own inputs and

outcomes

• Psychologically distort inputs and outcomes of

the ‘comparison other’ to eliminate felt inequity

• Change ‘comparison other’/referent

But:

• Which response?

• Which referents?

Distributive justice:

equity theory (J.S. Adams)

30/08/2016

Factors in individual performance?

• P = ∫ (A x M x O)

• P = ∫ (M x A x C x E)

Factors in individual performance?

• Motivation

– external and internal

• Ability

– innate plus training

• Conditions

– technology, work processes,

org culture etc

• Expectations

– “Pygmalion Effect”

– psychological contract

30/08/2016

Motivation a surrogate for

meaning

• ‘motivation only became an issue – for

management and organization

theories... when meaning either

disappeared or was lost from work;

• … loss of meaning of work is

immediately connected with the

increasing amount of fragmentation

and splitting, with the way work... is

organised in the majority of our

Western enterprises.’

(Sievers, 1986: 338)

Motivation a surrogate for

meaning

• ‘Motivation theories reduce the complexities

of social reality into the exclusive concerns

of satisfaction and effectiveness.’

• Continually increasing work effectiveness

reduces man to a reified factor of production

• Goal: a satisfaction lacking any values,

meaning and fulfilment of life

(Sievers, 1986: 337)

30/08/2016

Content (or needs)

theories of motivation

‘Unmet needs motivate.’

Process (of cognitive)

theories of motivation

‘Perceived pathways and outcomes motivate.’

Seek to explain (and exploit) the cognitive processes by which

individuals decide to pursue particular pathways to reward

attainment and need satisfaction rather than others.

Main process theories:

• Equity theory (See above)

• Expectancy theory

• Goal-setting theory
代写 MGMT949 Performance Management assignment

• Reinforcement theory

30/08/2016

Expectancy theory (Vroom)

Effort/task

behaviour

Reward

Valence

(V)

Is it worth it?

Instrumentality

(I)

Will they

deliver?

Expectancy

(E)

Can I do it?

Motivation

Vroom’s expectancy theory

Motivational

Force (M)

Expectancy

(E)

Instrumentality

(I)

Valence

(V)

Expectancy = perceived probability that effort will lead to good

performance

Instrumentality = perceived probability that good performance will lead to

desired outcome

Valence = value of expected outcome to the individual

X X

30/08/2016

Expectancy Theory

Effort First Level

Outcome

Second Level

Outcome

E.g.,

Performance

E.g., Promotion,

Salary

Increases etc.

Subjective

probability that

effort will lead to a

level of

performance

Expectancy

Probability that a

given level of

performance will

result in a

preferred outcome

Instrumentality

Valance

The value

attached to the

outcome

Agreed

goals

Feedback

Goal

commitment

Goal-

Directed

effort

Goal

achievement

Self-

efficacy

Goal-setting theory

(Locke & Latham)

30/08/2016

• Goal setting theory contends that

individuals are most highly

motivated when;

– 1. they are set specific but

challenging goals,

– 2. they have strong commitments to

these goals and

– 3. they have a high sense of self-

efficacy regarding goal achievement

What is goal setting?

10 Pin Bowling

What makes

bowling so much

fun?

What makes

bowling so much

fun?

30/08/2016

Goals are needed for maximum

performance

So is feedback -

knowledge of results

feedback must be

timely, accurate,

positive

Goals should be public,

clear, communicated,

celebrated

Goal-setting & motivation

• Based on management by objectives

(MBO)

• Participative and self-regulating

• SMART practice

30/08/2016

Goal-setting & motivation:

– c Specific goals increase performance

– t Difficult but attainable goals = higher

performance

– Need sense of ownership

– Progressive feedback

– Self-efficacy

– belief in one’s capabilities – confidence that the goal can be

achieved

Goal-setting

• Advantages

– Objective

– Involved

– Specific

– Strategic focus

– Continuous feedback

– Continuous

improvement

– Future oriented

– Better communication

– Ends vs. means

• Disadvantages

– Means vs. ends

– May ignore some aspects

of work

– Easy goal-setting if linked

to pay

– Still subjectivity in

measures and targets

– Situational constraints

ignored

– Goals may change

– Not for routine jobs

30/08/2016

Key implications for effective

performance management

• Identify performance capabilities (KSAO’s)

(Expectancy theory - Expectancy)

• Encourage task self-efficacy (Expectancy theory,

Goal-setting theory)

• Set SMART tasks (Goal-setting theory)

• Encourage employee ownership of performance

criteria

Encourage employee ownership of performance

criteria (Goal-setting theory)

Key implications for effective

performance management

• Accurate performance measurements (Expectancy theory -

Instrumentality)

• Provide timely and positive feedback (Goal-setting theory)

• Don’t overlook the importance of intrinsic motivation (Two-factor theory).

• Understand individual employee needs and how these differ between

employee groups (content theories)

• Offer individuals valued rewards, i.e. rewards that address high salience

needs (Maslow’s hierarchy of needs; expectancy theory – valence)

• Link rewards clearly and directly to performance in a timely way

(expectancy theory – instrumentality)

• Deliver on the rewards promised (expectancy theory – instrumentality)

• Strike an appropriate balance between financial and other rewards (two-

factor theory)

• Do not overlook the potential of intrinsic rewards (two-factor theory)

• Manage perceptions of work inputs, reward outcomes and comparisons

(equity theory)

30/08/2016

HRM strategy

• An integrated ‘bundle’ of HR

principles and practices

associated with how human

resources can best be utilised

within an organisation to ensure

organisational effectiveness and

to support organisational success

Best practice vs best fit

• Best practice

– One set of superior HR practices that

can be applied in any context (closed

approach)

– Harvard Model

• Best fit

– HR practices are contingent on

situational factors (open approach)

– Michigan Model

30/08/2016

Motivating Yourself Through

Self-Leadership
代写 MGMT949 Performance Management assignment

• Self Leadership

• “The process of influencing oneself to establish

the self direction and self-motivation needed to

perform a task”.

• Based on the views that:

– Employees should manage themselves most of

the time through self-leadership

– Social learning theory and goal setting theories

contribute greatly to regulate behaviour

– Least supervised work has become the pattern

of many new jobs.

Elements of self Leadership

• Personal Goal Setting

– Effective organizations establish norms whereby

employees have a natural tendency to set their own

goals to motivate themselves.

• Constructive Thought Patterns

– Self talk: talking to ourselves about our own

thoughts or actions for the purpose of increasing

our self efficacy and navigating through decisions in

a future event.

• Designing Natural Rewards

– E.g. Adding challenges to the job: try out a new

software program to design an idea, rather than

sketching the image with pencil

30/08/2016

Elements of self Leadership Cont.

• Self-Monitoring

– The process of keeping track of one’s

progress towards a goal

• Self-reinforcement (Ref. Social

Learning Theory)

– Reinforcing our own behaviour with

consequences within our own control

– e.g. Taking a work break is a self-induced

form of positive reinforcement

– E.g. Belief that If I work hard I’ll get good

reward

Tutorial work:

1. What are the main determinants of

organisational citizenship behaviour?

2. How does personality influence

individual performance?

3. How can psychological contracts be

managed?

4. Why is it that employees in low-paid

jobs frequently demonstrate higher

levels of job satisfaction than those in

more highly-paid jobs?

代写 MGMT949 Performance Management assignment