Performance Evaluation

The process of evaluating job performance by objective or subjective measures.

Objective Measures of Performance Evaluation

-Direct, quantitative measures of performance (Sales, number of cases won, etc)

- Limitation: do not measure many important facets of job performance such as employee motivation or ability to cooperate with workers, etc.

Subjective Measures of Performance Evaluation

- Relies on judgment of rater

- Useful for assessing complex aspects of job performance such as motivation, ability to supervise, etc.

- Limitation: subject to rater bias (halo, central tendency, etc); raters not motivated to provide accurate ratings.

Halo Effect

Tendency to judge all aspects of a person's behavior on the basis of a single attribute of characteristic. 

- Can be positive or negative.

 Conscientiousness as a personality measure

An accurate predictor of job performance and training success across a wide range of settings.

Three Steps in Training Development

1) Needs analysis: what kind of training is needed?

2) Program design: what program is most similar to the job?

3) Program evaluation: rarely done. Effectiveness, internal variables, cost effectiveness.

Bloom's 4 Steps of Program Evaluation

1. Specify objectives

 2. Define Parameters

3. Specify techniques use to achieve goals

4. Collect relevant data.

Holland's Personality & Environment Typology

Realistic

Investigative

Artistic

Social

Enterprising

Conventional

Roe's Fields & Levels Theory

- Theory of vocational choice that links children's experiences with their parents to both field and level of occupational achievement

- Three parenting orientations: overprotective, avoidant and acceptant

-Parenting orientation affects the needs and personality traits of children, which, in turn, affect their occupational choices.

Super's Career & Life Development Theory

Follows stages and each stage has a task that must be completed to progress to next stage.

Key Concepts:

- self-concept and career maturity

- Self concept is individual's abilities, etc.

-Career maturity is how the individual has mastered each task.

Tiedeman & O'Hare's Decision Making Model

Added Erikson's psychosocial theory of ego development to Super's theory.

Defined personal reality and common reality

Assumptions about workers

1. Worker motivation affects performance.

2. Typical worker is motivated exclusively by economic incentives.

3. Average worker needs constant supervision.

Weber's Bureaucracy

Organizational effectiveness is maximized when the organization adopts a bureaucratic structure with formal rules, impersonal treatment of employees, division of labor, a hierarchy and a rational, efficient approach.

Human Relations Approach

 Worker performance is affected by social factors including attitudes towards management and formal and informal norms.

It is the special treatment and attention workers received that made the difference in productivity.

Systems Approach

Organization is an open system that receives input from within and outside the organization.

A change in one part of the system effects the entire system.

American Theory (Theory A)

- Short term employment duration

- Individual decision making

- Individual responsibility

- Rapid evaluation and promotion

- Specialized career path

- Employee knowledge of organization is segmented.

Japanese Theory (Theory J)

- Long term employment duration

- Consentual decision making

- Collective responsibility

- Slow evaluation and promotion

- Nonspecialized career path

- Employee knowledge of organization is holistic.

Theory Z

- Best practices of Theory A and J

- Consensual decision making

 - Slow Promotion

- Holistic knowledge

- Individual responsibility

Long term employment and moderately specialized career path.

Total Quality Management

- Changes in organizational structure and job characteristics.

- Flattening of hierarchy, increased teamwork, reduced ratio of managers ot non-managers

- Increased emphasis on cooperation and fairness in the treatment of employees.

 Autocratic Leaders

Make decisions alone and instruct subordinates what to do.

Democratic Leaders

Involve subordinates in decision making.

Laissez-Faire leaders

Allow subordinates to make decisions on their own with little guidance or help

What type of leader produces highest productivity?

Autocratic leaders.

- when work is routine

-Subordinates are more satisfied and more creative and have beter relations with leaders who adapt a democratic style

Consideration vs. Initiating Structure

- Leaders who are high in consideration are person-oriented and focused on the human relations aspect of supervision.

- Leaders who are high on initiating structures are more task oriented and focused on goal setting.  They insure that subordiantes follow rules

Fiedler's Contingency Model

A leader's effectiveness is determined by a combination of the leader's style and the characteristics of the situation.

House's Path-Goal Theory of Leadership

Predicts that subordinates satisfaction and motivation are maximized when they perceive the leader as helping them to achieve goals.

Transformational Leaders

Change focused.

Recognize the need for and are able to create a vision of organizational change.

Activate higher order needs, encourage self-sacrifice, clarify what is needed to accomplish change

Transactional Leaders

Focused on status quo.

Emphasize normal activity and foster motivation by appealing to motivation (rewards and punishment)

Vroom & Yetton's Normative Model of Leadership

1. A1(autocratic) - do not consult

2. A11(autocractice) - obtain info from subs, make own decision.

3.C1(consultative) - consult with individual subs, make final decision on own.

4.C11(consultative) - consult with group of subs, make final decision on own

5.G11(group decision) - conslut with group and reach group decision.

3 Types of Organizational Change Strategies

1. Empirical-Rational: based on belief that people are rational and will act according to self-interest.

2. Normative-Reeducative: Social norms underly patterns in organization. values and relationships bring about change.

3. Power-Coercive: Use rewards and punishment

Centralized Communication Networks

All communication must pass through a central person - more efficient when tasks are simple and mundane, greater satisfaction only occurs for person who controls the information at the hub

Decentralized Communication Network

Information flows freely between individuals, works best when job tasks are complex, and when cooperation is needed to complete task, results in greater satisfaction overall.

Rational-Economic Model of Decision Making

Attempt to find the most rational decision to provide maximum benefit for the organization.

Administrative Model of Decision Making

Evaluate solutions as they are presented and chose first solution that is minimally acceptable.

- AKA satisficing.

Gender Issues in Organizations

1. Physical Appearance: Less attractive women are seen as more suitable to male executives

2. Leadership Style: Women are more likely to adopt participatory style while men are more autocrative and directive.

3. Evaluations: females are evaluated less favorably than men.

Alderfer's ERG Theory

- Similar to Maslow's hierarchy but it only has three needs: existence, relatedness and growth.

- Needs do not arise in hierarchical order.

McClelland's Need for Achievement

- Primary motivator is the need for achievement

- People with high nACh desire autonomy and recognition for efforts

- High nACh correlated with longer employment and better performance.

- Strongly related to entrepreneurial success

Herzber's Two-Factor Theory

- Theory of motivation and satisfaction.

- Hygiene factors (pay, benefits and relationships).  When hygiene factors are absent, there is dissatisfaction.

- Motivation factors.  When present, worker is satisfied.

In order to increase satisfaction, motivation factors must be included.  Hygiene factors will not increase satisfaction.

Job Characteristics Model for Job Meaningfulness

1. Skill variety - the more skills required the more meaningful it is.

2. Task Identity - Jobs that constitute a whole piece of work are more meaningful than those which consist of just a portion.

3. Task Significance - Jobs that have clear importance are more meaningful than those that don't

4. Autonomy - Jobs are more meaningful if they include worker independency, feedom, and decision making authority

5. Feedback - Jobs that provide built in feedback are more meaningful.

Goal Setting Theory

Goals serve two needs. They are the basis for motivation and direct behavior.

- Goal attainment is maximized when goals are specific and moderately difficult.

- Worker participation in goal-setting increases the chance that goals will be adopted.

Equity Theory

People assess their inputs and their outcomes.

- Individuals compute their input/output ratios.

- If the ratio is comparable, then a state of equity exists - maintain performance

- If the ratio is less or greater than others, inequity exists and employees are motivated to create equity.

Expectancy Theory

 Motivation is a function of three variables:

1) expectancy beliefs - effort will lead to successful performance

2) instrumental beliefs - successful performance will result in certain outcomes.

3) Valence - how desirable are the outcomes.

Intrinsic vs. Extrinsic Motivation

Provide extrinsic rewards to intrinsically motivating tasks.

When rewards are taken away, tasks are no longer interesting and are not completed.

Incentive Theory

Use of extrinsic rewards can raise productivity

Material rewards are considered to offer the most flexibility.

Job Satisfaction - Personal Characteristics

- Age is positively related to satisfaction.

- Level in organization is positively related to satisfaction.

- Non-whites are more liekly to express dissatisfaction with job.

- Job satisfaction is a stable trait over time and across different jobs.

Job Satisfaction - Job Characteristics

- Increased satisfaction may be due to rewards that higher paid workesrs get from job (challenge, autonomy, control)

- Perception that salary is fair may be more important than actual pay.

- Skill utilization is a strong determinant of job success.

Compressed Work Week

Employee works fewer days but more hours per day (4/10)

- productivity is unaffected

- absenteeism decreases and job satisfaction increases

Flextime

- Employees determine hours of work as long as they work the required hours

- Increases satisfaction, improves attitudes toward the job.

- Decreases absenteeism and tardiness.

Work-Family Conflict

- Work-family conflicts are greates for women because they still retain primary responsibility for family.

- Work related expectations are better predictors for work-family conflicts for men.