Summary Psychology in the workplace Chapter 5

Chapter 5 -Performance Measurement


Chapter 5 -Performance Measurement

MODULE 5.1 Basic Concepts in Performance Measurement

Uses for Performance Information

-Why is performance measurement important?
-What are the most common performance measurements?
-What are three different types of data can be used to represent performance? (chapter 4)
-performance measurement is important as it helps managers to make evidence‐based decisionsbased decisions
about important issues like promotions and raises


 Criterion data In a criterion‐based decisionsrelated validation study of a selection device, the work
psychologist can correlate an individual’s performance data with test data to determine if
the test predicts successful performance
 Employee development A worker is given information about strengths and weaknesses
and works with a supervisor to develop a plan to improve weaknesses and build upon
strengths. Based on the profile of performance strengths and weaknesses, employers may
design a series of training modules or experiences for an employee.
 Motivation/satisfaction By setting appropriate performance standards, evaluating
employees’ success in meeting those standards, and giving employees feedback regarding
the extent to which they are meeting or exceeding those standards, an organization can
increase the motivation and satisfaction of those employees
 RewardsEmployers compare workers to one another to determine how to distribute
rewards such as salary increases and bonuses.
 Transfer Employers can use a profile of performance capabilities to determine which
employees are best suited for a transfer from one job family or job title to another
 Promotion To the extent that documented performance capabilities are part of a
higher‐based decisionslevel job, employers can use performance information as part of the assessment
procedure that determines promotions
 Layoff (entlassen) If an organization finds it necessary to downsize, an important factor
that might be used to guide the selection of those to be laid off could be performance;
employees with the lowest performance would be the most likely candidates for layoff

-objective, personnel, and judgmental data


 Relationships among Performance Measures

-Define objective and judgemental performance
-How is the relationship between different performance measures?
-What can be concluded regarding the weak relationship between these measurements?
Objective performance measures usually a quantitative count of the results of work such as
sales volume, complaint letters, and output
Judgmental performance measures evaluation made of the effectiveness of an individual’s work
behavior, most often by supervisors in the context of a yearly performance evaluation

we might assume that there should be a relationship between the objective indicators of an
employee’s performance and the ratings a supervisor assigns to that employeeBut research
indicates that the relationships among the different types of performance measures are weak
found low correlations between supervisory ratings

 each type of performance measure gives us a different perspective on performance

, Chapter 5 -Performance Measurement


 we cannot simply substitute an objective measure for a performance rating
 objective measures are not necessarily more reliabletend to be more narrow in scope
than judgmental measures


 Hands-on performance measures

Hands-on performance measurement Type of measurement that requires an employee to
engage in work-related tasks; usually includes carefully constructed simulations of central or
critical pieces of work that involve single workers
 Work samples measure job skills by taking a sample of behavior in standardized conditions

An extension of the hands‐based decisionson methodology is known as walk‐through testing through testing  Type of
measurement that requires an employee to describe to an interviewer in detail how to complete a
task or job-related behavior; employee may literally walk through the facility (e.g., a nuclear power
plant), answering questions as he or she actually sees the displays or controls in question


 Electronic performance monitoring

-What is EPM
-Why is EPM used?
-Why is it so debatable?
-What are the cautions?
-What is the concern of the employees opposed to the concern of their managers?
Electronic performance monitoring Monitoring work processes with electronic devices; can be
very cost effective and has the potential for providing detailed and accurate work logs.

Because there are:
-nonproductive purposes (e.g., online banking, shopping or selling goods, downloading songs) and
-counterproductive purposes ((e.g., viewing pornography, harassing co ‐based decisionsworkers)

-is clearly objective and job related, some claim it is more “fair” than other forms of performance
measurement.
-opponents argue that it is “an invasion of privacy and disregards human rights, undermines trust,
reduces autonomy and emphasizes quantity at the exclusion of quality . . . causes stress . . . and
leads to declines in employee morale and productivity” employees and unions often resist the
introduction or widespread use of performance monitoring procedures

-The research data on electronic performance monitoring (EPM) from actual work situations are
sparse and are usually related to attitudes rather than performance

-more frequent supervisory use of EPM was associated with higher task performance and higher
OCBs on the part of call center employees.

electronic performance monitoring must be used carefully to avoid reducing motivation and
satisfaction while improving performance most effective use might be for employee
development, as a way of providing feedback c oncerning effective and ineffective work behaviors

resistance from nonmanagerial employees many respondents reported that they would try to
avoid or escape monitoring if it were instituted or, alternatively, alter or manipulate the
monitoring system to their advantage

Managers fear decision to monitor was closely related to managers’ fears of poor future