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    PERFORMANCE

    MANAGEMENTSYSTEM

    Course Instructor: Ms. Hina Shahab

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    Lecture 5 Outline

    Performance Execution Managers Responsibilities in the Performance

    Execution Phase Employees Responsibilities in the Performance

    Execution Phase Track of Employees Performance Others Access to Employee Performance Log Motivating to Deliver Good Performance RecognitionAn Effective Motivational Tool Gap Identification Document Performance Improvement Discussion

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    Performance Execution

    What to execute? Once the performance-planningphase has been completed, its time to get the job

    doneto execute the plan.

    For the Individual: The critical responsibility isgetting the job done i.e. achieving the objectives.

    For the Appraiser: There are two majorresponsibilities:

    1. Creating the conditions that motivate

    2. Confronting and correcting any performance

    problems

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    PM Execution

    In an effective performance managementsystem, performance execution also

    includes a midterm review to ensure thatperformance is on track.

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    Managers Responsibilities in PE

    Phase

    Maintaining performance records

    Updating objectives as conditions change

    Providing feedback and coaching for success

    Providing development experiences andopportunities

    Reinforcing effective behavior

    Conducting a midterm review meeting

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    Employees Responsibilities in PE

    Phase

    Solicit performance feedback and coaching.

    Communicate openly with your appraiser onprogress and problems in achieving

    objectives. Update objectives as conditions change.

    Complete the development plan.

    Keep track of achievements andaccomplishments.

    Actively participate in the midterm review

    meeting.

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    Track of Employees

    Performance

    The best way to make sure that you do keeptrack of your peoples performance is to use

    whatever record-keeping system you are using

    right now. Its easier to adjust an existingprocedure than to create an entirely new one.

    The performance log, in whatever form onekeeps, is private and informal record of howpeople have done their activities on the jobkeep tracks of employee performance

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    Motivation for Performance

    Key Elements

    1. Intensity: how hard a person tries

    2. Direction: toward beneficial goal

    3. Persistence: how long a person tries

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    ec n ques o o va e anIndividual

    Six techniques have a predictable effect onincreasing an individuals motivation:

    1. Create opportunities for achievement andaccomplishment.

    2. Allow people freedom, discretion, and autonomyin doing the job.

    3. Provide opportunities for learning and growth.4. Increase the amount of challenge.

    5. Make sure that the work itself is inherentlycapable of motivation.

    6. Provide recognition.

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    Motivating to

    The first responsibility of a manager in theperformance execution phase is to create theconditions that motivate.

    PayA Real Motivator? is the ringer in themotivation equation. It is the one factor that

    shows up as both a source of satisfaction anda source of dissatisfaction.

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    Intrinsic vs. Extrinsic Motivation

    IntrinsicMotivationbeingdriven by positivefeelingsassociated withdoing well on atask or job

    ExtrinsicMotivationmotivation causedby the desire toattain specificoutcomes

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    A Model of Intrinsic Motivation

    Sense of

    Choice

    Sense of

    Competence

    Sense of

    Meaningfulness

    Sense of

    Progress

    OpportunityRewards

    AccomplishmentRewards

    From Task

    Activities

    From TaskPurpose

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    Ken Thomass Model of Intrinsic

    Motivation

    Employees are intrinsically motivated when rewardsan employee gets from work result from:

    Choice the ability to freely self-select and perform

    task activities. Competence the sense of accomplishment from

    skillfully performing chosen tasks or activities.

    Meaningfulness pursuing a task that matters in

    the larger scheme of things. Progress the feeling of significant advancement

    in achieving the tasks purpose.

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    .

    The Job Characteristics Model

    High work

    effectiveness

    High growth

    satisfaction

    High generaljob satisfaction

    High intrinsic

    workmotivation

    Outcomes

    Knowledge of

    theactual results of

    the workactivities

    Experienced

    responsibilityfor outcomes ofthe work

    Experienced

    meaningfulness

    of work

    Criticalpsychological

    state

    Feedback

    fromjob

    Autonomy

    Skill variety

    Task identity

    Tasksignificance

    Corejob

    characteristics

    Moderators1. Knowledge and skill2. Growth need strength3. Context satisfaction

    8-15Figure 8-5

    McGraw-Hill

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    Theory X and Theory Y (Douglas McGregor)

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    NEED HIERARCHY THEORY

    Physiological needs

    Safety needs

    Social needs

    Esteem needs

    Self-actualization

    needs

    Lower-order

    needs

    Higher-orderneeds

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    David McClellands Theory of Needs

    nAch

    nPow

    nAff

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    Two-Factor Theory (FrederickHerzberg)

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    Comparison ofSatisfiers andDissatisfiers

    Factors characterizing events onthe job that led to extreme jobdissatisfaction

    Factors characterizing events on

    the job that led to extreme jobsatisfaction

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    EXPECTANCY THEORY

    Effort

    Expectancy InstrumentalityValence of

    reward

    Performance Reward

    MOTIVATIONRole perceptionsand opportunities

    Abilitiesand traits

    JOBPERFORMANCE

    X X

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    Expectancy Theory22

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    Equity Theory

    Referent Comparisons:

    Self-inside

    Self-outside

    Other-insideOther-outside

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    Equity Theory (contd)24

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    EQUITY THEORY: A SUMMARY ANDEXAMPLE

    INEQUITABLE RELATIONSHIPAndy is

    overpaidcompared to Bill

    Bill isunderpaid

    compared to Andy

    Bills outcomes

    ($25,000/year)Bills inputs

    (40 hours/week)

    Andys outcomes($30,000/year)Andys inputs(40 hour/week)

    Andy feels guilty Bill feels angry

    EQUITABLE RELATIONSHIP

    Andys outcomes($30,000/year)Andys inputs(40 hour/week)

    Andy is equitably paidcompared to Bill

    Bills outcomes($30,000/year)

    Bills inputs(40 hours/week)

    Bill is equitably paidcompared to Andy

    Bill feelssatisfied

    Andy feelssatisfied

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    Equity Theory (contd)26

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    Equity Theory (contd)

    Propositions relating to inequitable pay:

    1. Overrewarded employees produce more than equitably

    rewarded employees.

    2. Overrewarded employees produce less, but do higher qualitypiece work.

    3. Underrewarded hourly employees produce lower quality work.

    4. Underrewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees

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    Goal-Setting Theory (Edwin Locke)28

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    Goal Setting: Some Impressive Effects

    Per

    centageofMaxim

    umWeight

    CarriedonEachTrip

    Before goal After Goal

    Four-Week Periods

    50

    60

    70

    80

    90

    100

    1 2 4 5 6 7 8 9 10 11 12Seven

    Years Later

    94

    There was a dramaticimprovement in performance

    after a goalwas set

    Performance at the goal levelwas sustained seven years after

    the goal was first set

    Goallevel

    3

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    Matching Achievers and Jobs30

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    Reinforcement Theory

    Concepts:

    Behavior is environmentally caused.

    Behavior can be modified (reinforced) by providing (controlling)consequences.

    Reinforced behavior tends to be repeated.

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    Performance Dimensions32

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    RecognitionA Motivational Tool

    When you recognize something, you are aware of it,you are not ignoring it, youre paying attention to it.That is the heart of recognition -letting people knowthat you are aware that they performed well and that

    you appreciate their good work. Recognition can besymbolized in many ways, but it always starts withAWARENESS

    If we want to make the recognition we provide actuallyhave a motivational stimulus, the recognition that theindividual receives must be contingent on thatpersons having done something that is worthy ofbeing recognized. If we just recognize people as anice human relations tactic, then our recognition

    efforts will have no motivational value at all.

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    Gap Identification

    Identifying the gap between desired and actualperformance is the most difficult part of solvingperformance problems. If the manager doesnt

    clearly define the gap between what he wantsand what he gets, he is not going to besuccessful in bringing about a change in theemployees performance.

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    Document Performance ImprovementDiscussion

    The best way to document a performancediscussion is to send the employee a memosummarizing your conversation and the

    employees agreement to correct the problemas soon as you have completed thediscussions.

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    Quiz36

    Case Study?