Business Finance
Saudi Electronic University Implementing a New Performance Management System Paper

Saudi electronic university

Question Description

I’m studying and need help with a Management question to help me learn.

As senior HR manager of a large Saudi Arabian Company, you have been assigner the task of monitoring and evaluating the organization`s current performance management system. you have also been receiving complaints from the customer service employees that their rafting seems inaccurate and inconsistent. These employees feel the criteria of assessing the performance are not fully aligned to their goals. you are worried that this may lead to the issue of higher turnover of the customer service employees and the organization may lose quality employees if these issues are not addresses. Therefore, you have been assigner with tank of designing and implementing a new rater-training program for your supervisors in order to rectify these issues.

Using the previous scenario, provide a critical discussion for reasons why rater errors may be occurring while evaluating customer service employees. critically analyze the need for the alignment of organizational goals with employees goals and the performance management system. Recommend a suitable rater training program for your supervisors. Include the benefit of the recommended method in order to justify this choice and to highlight the importance of aligning organizational goals with an appropriate strategic measuring method.

Your well-written paper should meet the following requirements:

Be 4-5 pages in length, which does not include the title page, abstract, or required reference page, which are never part of the content minimum requirements. Use Saudi Electronic University standards and APA style guidelines. Support joue submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.

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chapter 4 Defining Performance and Choosing a Measurement Approach You have to measure to understand - Ginni Rometty Learning Objectives By the end of this chapter, you will be able to do the following: 1. Argue that perfo rmance invo lves both behavio rs and results and that perfo rmance is evaluative and multidimensional in nature. 2. Prepare a list of the factors that determine performance, including abilities and other t raits. knowledge and skills (including declarative knowledge and procedural knowl· edge). and context. 3. Propose a list of contextual factors (e.g .. HR pol icies. organizational and national culture) that have a d irect impact on performance. 4. Plan interventions involving deliberate practice and extreme ownership with the goal of improving performance. 5. Propose how to address and anticipate performance problems. 6. Create a performance management system that includes key performance indicators (KPis) of each of the four types or dimensions of performance: (a) task. (b) contextual. (c) counterproductive, and (d) adaptive. 7. Set up a behavior approach to measuring performance (e.g .• competency modeling). which basically focuses on how the job is done. as opposed to the results produced. 8. Set up a results approach to measuring performance, which basically focuses on the outcomes of work, as opposed to the manner in which the work is done. 99 100 Part II System Implementation This chapter marks the beginning of Part II of this text, which describes how to implement a performance management system. Whereas Part I addressed strategic and organizational and other macro-level issues, Part II addresses operational concerns. In this chapter, we begin with an issue that, at first glance, may seem simple, but it is not: What exactly is performance and how can we measure it? Answering this question is absolutely key if we want to implement a successful performance management system, because if we do not have a good artSwer, we will not be able to craft actual measuresa topic that will be addressed in Chapter 5. Let us begin by defining performance. 4-1 DEFINING PERFORMANCE: BEHAVIORS AN D RESULTS As shown in Figure 4-1, performance includes (a) behaviors and actions (what an employee does) and (b) results and products (the outcomes of an employee's behavior).1 Both of these components are important and they influence each other. For example, if a student allocates a sufficient amount of efficient time to preparing for an exam (behavior), it is likely that he will receive a good grade (result). In turn, receiving a good grade (result) will serve as a motivating factor for continuing to allocate sufficient time to studying in the future (behavior). So behaviors and results create a virtuous and self-reinforcing cycle that together constitute performance. There are two characteristics of the behaviors and results we label "performance.''2 First, they are evaluative. This means that they can be judged as negative, neutral, or positive for individual and organizational effectiveness. In other words, the value of these behaviors and results can vary depending on the extent to which they make a contribution toward the accomplishment of individual, unit, and organizational goals. Second, performance is multidimensionnf.l This means that there are many different types of behaviors and results that have the capacity to advance (or hinder) organizational goals. As an example, consider a set of behaviors that can be grouped under the general label "contribution to effectiveness of others in the work unit." This set of behaviors can be defined as follows: Works with others within and outside the unit in a manner that improves their effectiveness; shares information and resources; develops effective working relationships; builds consensus; constructively manages conflict. Contribution to the effectiveness of others in the work unit could be assessed by using a scale that includes anchors demonstrating various levels of competence. For example, anchors could be words and phrases such as "outstanding," "significantly exceeds standards," "fully meets standards,""does not fully meet standards," and "unacceptable." This FIGURE 4-1 illustrates the evaluative nature of performance Performance: Combination of Behaviors and Actions. and Results because this set of behaviors is judged as positive, and Products neutral, or negative. In addition, this example illustrates the multidimensional nature of performance because there are several behaviors that, combined, affect the overall perceived contribution that an Results & Behaviors & Performance employee makes to the effectiveness of others in the Products Actions work unit. In other words, we would be missing important information if we only considered, for example, ''shares information and resources" and did not consider the additional behaviors listed earlier. Chapter 4 Defining Performance and Choosing a Measurement Approach Performance management systems also include measures of results or products that we infer are the direct result of employees' behaviors. Take the case of a salesperson whose job consists of visiting clients to offer them new products or services. The salesperson's supervisor is back in the home office and does not have an opportunity to observe the salesperson's behaviors firsthand. In this case, sales volume may be used as a performance measure. In other words, the supervisor makes the assumption that if the salesperson is able to produce high sales figures, then she is probably engaging in the right behaviors. 4-2 DETERMINANTS OF PERFORMANCE: ABILITIES AND OTHER TRAITS, KNOWLEDGE AND SKILLS, AND CONTEXT Why do certain individuals perform better than others? What factors cause an employee to perform at a certain level? A combination of three factors allows some people to perform at higher levels than others: (1) abilities and other traits, (2) knowledge and skills, and (3) context.4 Abilities and other traits include such things as cognitive abilities (i.e., intelligence), personality, stable motivational dispositions, and physical characteristics and abilities. Also, knowledge and skills include job-related knowledge and skills, attitudes, and malleable motivational states. Knowledge and skills can be divided into declarative J,:nowledge, which is information about facts and things, including information regarding a given task's requirements, labels, principles, and goals; and procedural knowledge, which is a combination of knowing what to do and how to do it and includes cognitive, physical, perceptual, motor, and interpersonal skills. Finally, contextual issues include HR policies and procedures (e.g., compensation system), managerial and peer leadership, organizational and national culture, issues about time and timing of performance, and resources and opportunities given to employees to perform. As shown in Figure 4-2, performance results from a combination of all three factors. Also, the three factors have an additive relationship. This means that two employees can achieve the same level of performance by having different combinations of factors. For example, one employee can be more motivated and spend more hours at work, whereas another can work fewer hours, but have higher levels of skill.5 In addition, however, if any of the determinants has a value of 0, then overall performance is unlikely to be satisfactory. For example, consider the case of Jane, a sales associate who works in a national clothing retail chain. Jane has excellent declarative knowledge regarding the merchandise. In particular, she knows the names of all of the brands; the prices for all products; sizing charts for clothes for women, men, and children; and sales promotions. So her declarative knowledge is very high. Jane is also intelligent and physically able to conduct all of the necessary tasks- both considered important traits for the job. However, her interactions with customers are not so good (i.e., procedural knowledge regarding interpersonal skills). She does not pay much attention to them because she is busy restocking clothes on shelves and hangers. She does not greet customers and is also not good at providing answers to their questions. Her overall performance, therefore, is likely to be poor because although she has the declarative knowledge necessary to do the job, as well as cognitive and physical traits, she Jacks procedural knowledge. In short, it is necessary to have at least some level of each of the determinants of performance. 101 102 Part II System Implementation FIGURE 4-2 Determinants of Performance: Abilities and Other Tr8lls, Know1edge and Skills. and Context --....... KNOWLEDGE AND SKILLS: Dedaraliw (lr1om'lalion about facts and lhir'w;)S, inctuding lnfonnation regarding a fjlten taSk's labels. pti...:ipleS, and goats). procedl.l'al knOWledge (know;ng what to do and MwtoCIOn). Chapter 4 Defining Performance and Choosing a Measurement Approach 4·2·1 Abilities and Other Traits, and Knowledge and Skills An important d ifference between abilities and other traits and knowledge and skills is that knowledge and skills are more malleable-meaning that they are easier to change. For example, cognitive abilities and personality traits are fairll stable.6 For example, the following personality traits are called the "Big Five" : 1. Extroversion: being sociable, gregarious, assertive, talkative, and active (the opposite end of extroversion is labeled introversion) 2. Neuroticism: being anxious, depressed, angry, embarrassed, emotional, worried, and insecure (the opposite pole of neuroticism is labeled emotional stability) 3. Agreeableness: being curious, flexible, trusting, good-natured, cooperative, forgiving, and tolerant 4. Conscientiousness: being dependable (i.e., being careful, thorough, responsible, and organized), as well as hardworking, achievementoriented, and persevering 5. Openness to experience: being imaginative, cultured, curious, original, broad-minded, intelligent, and artistically sensitive In general, individual differences that are less malleable are called "traits." Those that are easier to change, for example, through a training program or other organizational interventions, are called "states." For example, consider the fact that employees vary in terms of their motivation: how much energy and effort they allocate. Specifically, consider the following three choices: 1. Choice to expend effort (e.g., "I will go to work today") 2. Choice of level of effort (e.g., "I will put in my best effort at work" vers us "I will not try very hard") 3. Choice to persist in the expenditure of that level of effort (e.g., "I will give up after a little while" versus "I will persist no matter what") The first two are more malleable and therefore considered state motivation. For example, we could influence an employee's choice regarding w hether she shows up at work- and on time-using HR policies regarding absenteeism and tardiness. We could influence the second choice by setting clear goals. But the third is less malleable and more likely to be a stable individual trait (rather than a state). This type of trait motivation is considered a fairly stable personality trait, called "achievement motivation," and is a facet of conscientiousness. What can we do to improve our own knowledge and skills and therefore improve our performance? Let us think about those individuals who have achieved the top level of performance in their fields. Think about Leo Messi and Cristiano Ronaldo as soccer ("football" outside of North America) players, Beyonce as a singer and songwriter, Bill Gates as Microsoft's founder, Magnus Carlsen as a chess player, Thomas Edison as an inventor, Marie Curie as a physicist and chemist, and Socrates as a philosopher. How did they achieve such excellence? What made these individ uals' performance so extraordinary? How were they able to improve their performance constantly even when others would believe they had reached a plateau and could not possibly improve their performance? What these individuals have in common is that they devoted a large number of hours to deliberate practice.8 Deliberate practice is different from regular practice and from simply working many hours a week Professor K. Anders Ericsson of Florida State University gives the following example: "Simply hitting a 103 104 Part II System Implementation bucket of balls is not deliberate practice, which is why most golfers don't get better. Hitting an eight-iron 300 times with a goal of leaving the ball within 20 feet of the pin 80% of the time, continually observing results and making appropriate adjustments, and doing that for hours every day- that's deliberate practice." Top performers in all fields engage in deliberate practice consistently, daily, including weekends. The famous pianist Vladimir Horowitz was quoted as saying: "If I don't practice for a day, I know it; jf I don't practice for two days, my wile knows it; jf I don't practice for three days, the world knows it." Deliberate practice involves the following five steps: 1. Approach performance with the goal of getting better and better. 2. As you are performing, focus on what is happening and why you are doing things the way you do. 3. Once your task is finished, seek performance feedback from expert sources, and the more sources, the better. 4. Build mental models of your job, your situation, and your organization. 5. Repeat steps 1-4 continually and on an ongoing basis. Think about a particular task at which you would like to do better. This could be job-related, school-related, or a hobby (e.g., music, sports, cooking, playing poker). Now, create a deliberate practice program for yourself. Who are the experts from whom you could solicit feedback? How often would you practice? For how long? What would be some of your specific goals you would like to achieve, and by when? 4-2-2 Context The third determinant of performance is context because performance is also determined by what is happening around the employee. For example, HR policies and practices can have an important impact on employee performance. Take the case of IBM. In December 2016, Ginni Rometty, IBM's CEO, said that over the next four years, the company will invest US$1 billion in training and development in the United States.9 In contrast to IBM, working for a company with an HR function that does not offer much in terms of training means that, sooner or later, performance will suffer as skills become obsolete. As a second example, an organizational culture that does not promote excellence will also have negative consequences on performance. Take the case of a compensation system that includes paying everyone the same, regardless of employee performance-this is unlikely to motivate employees to do better. As a third example, time and the timing of performance is another contextual factor that also p lays a role. Specifically, typical performance refers to the average level of an employee's performance, whereas maximum performance refers to the peak level of performance an employee can achieve. Employees are more likely to perform at maximum levels when they understand they are being evaluated, when they accept instructions to maximize performance on the task, and when the task is of short durationw A key issue is that the relationship between typical (i.e., what employees will do) and maximum (i.e., what employees could do) performance is very weak. What this means is that measuring performance during short time intervals may be assessing maximum, and not typical, performance. Most organizations are more interested in what employees will do on a regular basis, rather than what they could do during the short period of time when they are observed and evaluated. In short, the time and timing of performance observation and measurement also affect the observed levels of performance. Chapter 4 Defining Performance and Choosing a Measurement Approach Fourth, resources and opportunities to perform are important contextual issues as well. There is a harsh reality in organizations that involves some employees receiving less resources and opportunities than others. 11 For example, within the same firm, some consultants may have more opportunities to work with important clients than others. This issue is quite obvious in sports: there is a limited amount of playing time during each game. So some athletes have more playing time than others. In both of these cases, although employees may have the same levels of abilities and other traits as well as knowledge and skills, differential levels of opportunities will have a direct impact on their performance. Finally, consider the issues of organizational and national culture. Take the case of World Com, a company that was the second largest long-distance phone company in the United States before it collapsed in 2002. One of the reasons for its collapse was its" cult-like corporate culture" around a charismatic leader, former basketball coach Bernie Ebbersn Ebbers exercised unquestioned authority and demanded unquestioned loyalty from employees. Within this context, it was difficult, if not impossible, for employees to do anything different from what they were told-even if this meant doing things that were clearly unethical. This was an important contextual factor that affected the performance of all employees at WorldCom, regardless of their levels of abilities and traits as well as knowledge and skills. National culture can also affect performance in meaningful ways. For example, cultures that are more hierarchical and power centered are less likely to lead to outstanding performance regarding such issues as creativity and innovation. On the other hand, these types of cultures can result in outstanding performance regarding standardization, speed, and efficiencyn 4-2-3 Implications for Addressing and Anticipating Performance Problems The fact that performance is affected by the combined effect of three different factors has implications for addressing as well as anticipating performance problems. To do so properly, managers must find information that w ill allow them to understand whether the source of the problem is abilities and other traits; knowledge and skills; contextual issues; or some combination of these three factors. If an employee lacks procedural knowledge but the manager believes the source of the problem is declarative knowledge, the manager may give the employee a manual with facts and figures about products so he can acquire the knowledge that is presumably lacking. In the example of Jane discussed earlier, this would obviously be a waste of time and resources for the individual, manager, and organization because it is lack of procedural knowledge, and not lack of declarative knowledge, that is causing her poor performance. This is why performance management systems should not only measure performance, but also be a tool to tmderstand the source of any performance deficiencies. Another issue regarding the identification of performance problems relates to what is called ownership, or what Jocko Willink, retired United States Navy SEAL and former commander in the Battle of Ramadi in Iraq, calls extreme ownership.14 Willink served in SEAL Task Unit Bruiser, the most highly decorated Special Operations unit from the war in Iraq. They faced tremendous difficulties along the way, including being involved in a "blue-on-blue": friendly fire-the worst thing that could happen. One of the American soldiers was wounded, an Iraqi soldier was dead, and others were seriously wounded. This incident led to asking 105 106 Part II System Implementation very difficult questions, and the most critical one was: "Who was responsible for this debacle?" Willink notes that the very first step is to take ownership of poor performance, no matter how painful this ...
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Introduction
Body
Conclusion
Reference


Running Head: IMPLEMENTING A NEW PERFORMANCE MANAGEMENT SYSTEM

Implementing a New Performance Management System
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IMPLEMENTING A NEW PERFORMANCE MANAGEMENT SYSTEM

2

Introduction
The performance management system is one of the vital elements that ensure an
organization succeeds in its various goals. The system should be in a position to bring
corporation between the individual employees’ goals and the business strategy and objective.
As the HR manager of the company, I have noted that over the past our company has not
been doing well when it comes to aligning the performance management system with the
other aspects of the business operations. Several complaints have been reported from our
employees who work at the customers’ service. These complaints were about the employees
claiming that their rafting is relatively inaccurate and inconsistent.

After assessing the

situation, it occurs that as a company, in Saudi Arabia where the competition is so stiff and
the job market is also challenging, there is need to come up with a new rater-training program
that would help fix the current problems in the company. Rater-training program is crucial for
the company success; it ensures that there is consistency in the individual employees’
performance. It also ensures the operations activities and the performance of the various
employees in the company are well evaluated(Knoch, Fairbairn & Huisman, 2016).
Causes of Rater Errors in the Organization
In as much as the rater-training is considered the most effective way of reducing
errors and biases, the current system has not been so effective in achieving the goal. As
indicated, mos...

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