05-Topic5-Shaping Behaviour

Managing Employee Performance
and Reward
Concepts, Practices, Strategies
2nd edition
BMO 6625 – Semester 1-2020
Week 5: Shaping Behaviour

Three approaches to performance
measurement and management
Inputs: Activities: Outcomes:

Competencies Work behaviours Results
(individual (individual) (individual, group and
knowledge, skills organisational)
and abilities)
Competency Behavioural Results-based

assessment appraisal/ assessment
assessment
Behavioural observation sources
• ‘360-degree’ (supervisor, peers, subordinates, customers)
• ‘180-degree’ (supervisor, peers, customers)
SUPERVISOR/
S
PEERS CUSTOMER
SELF
(including S
team (including
members) mystery
customers/
shoppers)
SUBORDINATE
S
Causes of error/unreliability in behavioural
assessment
Judgement error (unintentional; perceptual-cognitive):
Halo/Horn
First impression
Recency : is an inaccuracy or flaw in performance appraisal or job interview, caused by the
evaluator's or the interviewer's reliance on the most recent occurrences of the employee's or the
applicant's behaviour.
Similarity : is a negative tendency of the evaluator at the time of interview, assessment
and performance appraisal. Here in, the evaluator's rating is biased towards the employees whom
he or she perceives to be similar to himself or herself personally or professionally.
Attribution: attribution effect, is the tendency for people to under-emphasize situational
explanations for an individual's observed behavior while over-emphasizing dispositional and
personality-based explanations for their behavior.
Classification error (intentional; political):

Leniency error
Harshness error
Central tendency error
Are the Workaholics You Know
Just Faking It? – Video
• https://hbr.org/video/4578695106001/are-the-work
aholics-you-know-just-faking-it
• Question:
What type of rating error would the above video relate
to?
= Judgement error (Halo, Recency, Similarity)
Rating methods: graphic rating scale
AN EXAMPLE OF A GRAPHIC
RATING FORM
Rating methods: behavioural anchors
1. Positive anchors only
Communication
 Persuasively communicates in a way that produces positive results
 Listens well and understands the needs of the customer and others
 Conveys confidence when communicating
 Expresses ideas clearly and directly
2. Positive and negative anchors
Communication
1. Persuasively communicates in a way that produces positive results
2. Listens well and understands the needs of the customer and others
3. Conveys confidence when communicating
4. Expresses ideas clearly and directly
5. Misunderstands customer needs
6. Fails to liaise with other team members regarding customer service issues
7. Provides insufficient or inaccurate information to customers and team
members
8. Customers complain about communication style
Rating methods: behaviourally anchored
rating scales
Rating methods: behavioural observation
scale
Rating methods: section of a weighted
checklist
Combating classification error: section of a forced
choice instrument
Competency-based performance management
Competencies are sets of skills, knowledge, abilities, behavioural characteristics, and other attributes
that, in the right combination and for the right set of circumstances, predict superior performance .
Flannery, Hofrichter & Platten, 1996
The ‘iceberg’ model
(Spencer & Spencer) Skill
Visible Knowledge
Self-concept
Hidden
Social role and values
Motives
Personality traits
Self-concept Self-knowledge
Self-confidence
Managing self/composure
Social Communication
Influencing/motivating others
role/values Persuasiveness
Interpersonal
awareness/empathy/others
orientation (= emotional
intelligence)
Political acuity
Managerial Integrity and trust
competencies Motives Achievement orientation
Composure/conflict
Creativity/innovation
management
Energy and initiative

Strategic/business focus (cf.
narcissism)
Passion
Traits Conscientiousness
Assertiveness
Decisiveness
Perseverance/resilience
Adaptability
Openness to new ideas and
experiences
Matching personality
traits and roles
1. Extraversion 2. Conscientiousness 3. Agreeableness 4. Emotional 5. Openness to
stability experience
CSO/Salesperson
*
Accountant
*
Pilot
*
Intensive care
nurse *
Research scientist
*
Competency categories
‘Role’ competencies: whatever is needed to perform the job
Threshold competencies:
• Visible
• Knowledge and skills needed for job proficiency
Differentiating competencies:
• Hidden
• Needed for high performance in specific jobs, roles or functions
• Distinguish between superior performance and standard performance in
specific jobs/roles; ‘raise the bar’ competencies
• Those competencies necessary for high performance in one role will differ
from those necessary in another
Competency categories
‘Core’ competencies: what is with the organisation (not indv)
• Organisation-wide and common to all roles; e.g. ‘customer

focus’, ‘teamworking’, ‘quality commitment’
• Reinforce common set of values and behaviours; ‘organisational
glue’
• Used to facilitate strategic alignment and cultural integration
• Used to drive organisational/cultural change
• Emphasised mainly in recruitment and selection and, to a lesser
extent, in performance management
Competency-based assessment: assessment
centres
• Structured individual and group work simulation exercises
• Behavioural observation techniques
• Typically involve six to 12 people, off-site, one to three days
• Attendees rated by external experts or by managers who are
trained as assessors
• Used mainly for manager selection and succession planning
• Also used for competency-based career development
• Commonly used with psychometric assessment and
performance coaching
• Used by 5–10% of large Australian organisations
centres
Typical exercises:
• Candidates assessed for management role competencies:
organising, planning, problem-solving, decision-making,
communication, etc.
• ‘In-basket exercise’ (for task competency and stress tolerance)
• ‘Leaderless group discussion’ (for teamworking)
• Trust-building exercises
• Strategy simulations
• Individual presentations
• Psychometric assessment
• Interviews
centres
Drawbacks:
• High cost expertise (e.g. $2,000 to $3,000-plus per assessment)
• Labour intensive and time-consuming

Competency-based assessment:
behaviourally anchored rating scale for
mid-level manager role
mid-level manager role
Level Your rating:
Competency 1. Needs development 2. Effective 3. Highly effective 1 2 3
Problem-solving:  Accepts information at  Assures critical  Models critical
Obtain sufficient face value information was thinking skills
data to analyse a  Fails to challenge considered consistently
situation and staff’s thinking or  Assures information  Coaches or rehearses
draw conclusions processes used in the analysis was staff’s presentations to
from which you  Fails to require staff to valid management in terms of
can develop a validate their  Assures two or more their logic and processes
plan of action or assumptions or viable alternatives were  Asks questions in
provide an conclusions considered ways that allow staff to
answer.  Only considers the  Considers the impact think through issues and
immediate impact on other divisions implications
employee role
Level Your rating:

Competency 1. Needs development 2. Effective 3. Highly effective 1 2 3
Problem-solving:  Misses the point  Probes for what is  Begins to grasp the
Obtain sufficient  Fails to seek relevant complexities
data to analyse a information  Obtains enough  Knows when the
situation and  Fails to confirm information to critical information is
draw conclusions accuracy of information understand the point missing
from which you  States opinion without  Summarises and  Points out
can develop a the facts interprets data discrepancies in data
plan of action or  Suggests solutions or
provide an actions based on data
answer.
Results, behaviours or competencies?
Use results where:

• Ends (results) can be more accurately specified and measured than means (e.g.
management work; project teams; targeted research work; foreign exchange
and equity trading)
• Work group performance is more important than individual performance
Use behaviours where:

• Means (behaviours) can be more easily specified than ends (results)
• Work is individualised but routine and it is thus possible to specify a single best
sequence of task behaviours plus desired organisational citizenship behaviour
(OCB; e.g. routine service work; administrative work)
• There is ongoing opportunity to observe individual’s work behaviour (e.g.
constant supervision)
Results, behaviours or competencies?
Use competencies where:
• High performance is based on underlying abilities, values and attitudes
rather than technical knowledge and skill (e.g. high-discretion service work;
emotional labour)
• Work is non-routine and discretionary (e.g. managers, knowledge workers)
• Individual and group results difficult to quantify/attribute (e.g. knowledge
workers; exploratory research; customer service work; teachers; health care
workers)
• Traditional job assignments have been replaced by broad, fluid and largely
self-managing roles
• The organisation wishes to change its culture and employees’ values and
attitudes (and beliefs)
Balance all three where:

• Work inputs, activities and outcomes can all be specified/measured to some
degree and are all important (e.g. routine work requiring high
quality/precision; CSOs/call centres; teaching; general management roles)

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Managing Employee Performance

Week 5: Shaping Behaviour

Inputs: Activities: Outcomes:

Competency Behavioural Results-based

Classification error (intentional; political):

Energy and initiative

‘Core’ competencies: what is with the organisation (not indv)

• Organisation-wide and common to all roles; e.g. ‘customer

• High cost expertise (e.g. $2,000 to $3,000-plus per assessment)

• Labour intensive and time-consuming

Level Your rating:

Use results where:

Use behaviours where:

Balance all three where:

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