If you can’t defi ne performance you can’t measure or manage it. It has been pointed out by Bates and Holton (1995) that: ‘Performance is a multi-dimensional construct, the measure- ment of which varies depending on a variety of factors.’ They also state that it is important to determine whether the measurement objective is to assess performance outcomes or behav- iour.
Latham, Sulsky and Macdonald (2007) emphasize that an appropriate defi nition of perform- ance is a prerequisite for feedback and goal setting processes. They state that a performance theory is needed that stipulates:
the relevant performance dimensions;
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the performance standards or expectations associated with different performance levels;
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how situational constraints should be weighed (if at all) when evaluating performance;
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the number of performance levels or gradients;
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the extent to which performance should be based on absolute or comparative stand-
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The Conceptual Framework 31 There are different views on what performance is. It can be regarded as simply the record of outcomes achieved. On an individual basis, it can be a record of the person’s accomplish- ments. Kane (1996) argues that performance ‘is something that the person leaves behind and that exists apart from the purpose’. Bernardin et al (1995) are concerned that: ‘Performance should be defi ned as the outcomes of work because they provide the strongest linkage to the strategic goals of the organization, customer satisfaction, and economic contributions.’
Guest (1996) also believes that performance is about outcomes but that the concept should be linked to the idea of a balanced scorecard.
Borman and Motowidlo (1993) put forward the notion of contextual performance that covers non-job-specifi c behaviours such as cooperation, dedication, enthusiasm and persistence and is differentiated from task performance covering job-specifi c behaviours. As Fletcher (2001) mentions, contextual performance deals with attributes that go beyond task competence and that foster behaviours that enhance the climate and effectiveness of the organization.
The Oxford English Dictionary defi nes performance as: ‘The accomplishment, execution, car- rying out, working out of anything ordered or undertaken.’ This refers to outputs/outcomes (accomplishment) but also states that performance is about doing the work as well as being about the results achieved. Performance could therefore be regarded as behaviour – the way in which organizations, teams and individuals get work done. Campbell (1990) believes that:
‘Performance is behaviour and should be distinguished from the outcomes because they can be contaminated by systems factors.’ A more comprehensive view of performance is achieved if it is defi ned as embracing both behaviour and outcomes. This was well put by Brumbach (1988).
Brumbach on performance
Performance means both behaviours and results. Behaviours emanate from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviours are also outcomes in their own right – the product of mental and physical effort applied to tasks – and can be judged apart from results.
This defi nition of performance leads to the conclusion that when managing the performance of teams and individuals both inputs (behaviour) and outputs (results) need to be considered.
This is the mixed model of performance management that covers competency levels and achievements as well as objective setting and review. And it is this model that research (eg Armstrong and Baron, 2004) has shown to be the one that is now interesting many organiza- tions.
Campbell et al (1993) are more concerned with measuring performance. They defi ne it as behaviour or action relevant to the attainment of the organization’s goals that can be scaled,
that is, measured. Their theory states that performance is multidimensional and that each dimension is characterized by a category of similar behaviour or actions. The components consist of: 1) job-specifi c task profi ciency; 2) non-job-specifi c profi ciency (eg organizational citizenship behaviour); 3) written and oral communication profi ciency; 4) demonstration of effort; 5) maintenance of personal discipline; 6) facilitation of personal and team perform- ance; 7) supervision/leadership; and 8) management/administration.
Levels of individual performance are affected by a number of infl uences and factors as dis- cussed below.
Infl uences on performance
Four major infl uences on performance were identifi ed by Harrison (1997):
the learner, who needs the right level of competence, motivation, support and incen-
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tives in order to perform effectively;
the learner’s work group, whose members will exercise a strong positive or negative
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infl uence on the attitudes, behaviour and performance of the learner;
the learner’s manager, who needs to provide continuing support and act as a role
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model, coach and stimulator related to performance;
the organization, which may produce barriers to effective performance if there is no
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powerful, cohering vision; ineffective structure, culture or work systems; unsupportive employee relations policy and systems, or inappropriate leadership and management style.
Factors affecting performance
Vroom (1964) suggested that performance is a function of ability and motivation as depicted in the formula: Performance = ƒ (ability × motivation). The effects of ability and motivation on performance are not additive but multiplicative. People need both ability and motivation to perform well, and if either ability or motivation is zero there will be no effective performance.
A formula for performance was originated by Blumberg and Pringle (1982). Their equation was:
Performance = individual attributes × work effort × organizational support
By including organizational support in the formula they brought in the organizational context as a factor affecting performance. This is in accordance with the later views of Deming (1986) who emphasized that differences in performance are largely due to systems variations, a view echoed by Coens and Jenkins (2002).
The Conceptual Framework 33 Research carried out by Bailey, Berg and Sandy (2001) in 45 establishments focused on another factor affecting performance – the opportunity to participate. They noted that: ‘organizing the work process so that non-managerial employees have the opportunity to contribute discre- tionary effort is the central feature of a high performance work system.’ (This was one of the earlier uses of the term discretionary effort.)
The ‘AMO’ formula put forward by Boxall and Purcell (2003) is a combination of the Vroom and Bailey et al ideas. This model asserts that performance is a function of Ability + Motiva- tion + Opportunity to Participate (note that the relationship is additive not multiplicative).
All these formulas focus on individual performance but they neglect the effect of systems as discussed below.
Systems factors
Systems theory as formulated by Miller and Rice (1967) states that organizations should be treated as open systems that transform inputs into outputs within the environments (external and internal) upon which they are dependent. Systems theory is the basis of the input–proc- ess–output–outcome model of managing performance, which assesses the entire contribution that an individual makes within the system in carrying out his or her allotted tasks, not just the outputs. Inputs – the skills and knowledge that an individual brings to a job – together with process – which is how people actually perform their jobs – are measured to assess develop- ment and learning needs. Outcomes measure the scale of the individual’s contribution to overall team, department and corporate performance, and are central to performance man- agement. This method of managing performance is important because all the factors that infl uence performance, including the system and the context, can be taken into account when assessing it.
Individual performance is infl uenced by systems factors as well as person factors (Cardy and Dobbins, 1994). These will include the support they get from the organization and other factors outside the control of individuals. Jones (1995) proposes that the aim should be to
‘manage context not performance’ and goes on to explain that:
In this equation, the role of management focuses on clear, coherent support for employees by providing information about organization goals, resources, technology, structure, and policy, thus creating a context that has multiplicative impact on the employees, their individual attributes (competency to perform), and their work effort (willingness to perform). In short, managing context is entirely about helping people understand; it is about turning on the lights.
It was emphasized by Deming (1986) that differences in performance are largely due to systems variations. Gladwell (2008) also argues that success isn’t primarily down to the individual, but to his or her context. Coens and Jenkins (2002) made the following comments on the impact of systems:
The impact of systems
An organizational system is composed of the people who do the work but far more than that. It also includes the organization’s methods, structure, support, materials, equipment, customers, work culture, internal and external environments (such as markets, the community, governments), and the interaction of these components.
Each part of the system has its own purpose but at the same time is dependent on the other parts…
Because of the interdependency of the parts, improvement strategies aimed at the parts, such as appraisal, do little or nothing to improve the system… Individual performance is mostly determined by the system in which the work is done rather than by the individual’s initiative, abilities and efforts…
Because of these effects and the low yield benefi t of improving the parts, it makes little sense to design organizational improvement systems around appraisal while the leveraging power of improving the system is ignored… The myopic focus on individual improvement equates to a religious dogma that is manifested through the rituals and rites of ranking and rating.
However, Coens and Jenkins also stated that: ‘We do not advocate abandoning all strategies aimed at individual improvement, personal development and goal attainment. When com- bined with serious efforts toward improving the system and work environment, such initia- tives can signifi cantly bolster organizational transformation.’