Defining Performance and Choosing a Measurement Approach

CASE STUDY 4-1

Differentiating Task from Contextual Performance at Pharma Co. Company

Consider the following adaptation of a job description for the position of a district busi-ness manager for a sales organization in a pharmaceutical company (Pharma Co.). Pharma Co. prod uces pharmaceuticals, infant formulas and nutritional products, ostomy and advanced wound care products, cardiovascular imaging supplies, and over-the-counter products. Their stated mission is to “extend and enhance human life by providing the highest-quality pharmaceutical and related health care products.” In addition, all employees live by the Pharma Co. pledge: “We pledge-to our patients and customers, to our employees and partners, to our shareholders and neighbors, and to the world we serve-to act on our belief that the priceless ingredient of every product is the honor and integrity of its maker.”

Job Responsibilities of the District Business Manager The following are the core performance objectives for the district business manager (DBM) position: Create the environment to build an innovative

CASE STUDY 4-2

culture, create and articulate a vision, drive innov- ation by embracing diversity and change, set the example, and thereby shape the culture. Develop and communicate the business plan, understand and explain Pharma Co. strategies, translate national plan to business plans for districts and territories, set goals and expectations of performance, set priorities, and allocate resources. Execute and implement the business plan, maximize rank order lists of med- ical education professional relationships, achieve optimum coverage frequency of highest potential physicians, take accountability, and achieve results. Build relationships focused on customer retention, develop relationships (i.e., networks), influence others (i.e., internal and external), and develop self and others. Strong skills are acquired in the following areas: written and oral communication, negotiation, strategic analysis, leadership, team building, and coaching. (Source: Pharma Co.)

1. Based on the DBM job description, extract a list of KPis in each of the following four dimensions (a) task, (b) contextual, (c) counterproductive, and (d) adaptive.

Choosing a Performance Measurement Approach at Show Me the Money

T he following job description is for an account executive at Show Me the Money, a payroll and HR solution providers similar to ADP, AmCheck, BenefitMall, Big Fish Payroll Services, Fuse Workforce Management, GetPayroll, Gusto, and others. Show Me the Money offers payroll, human resources, and benefits outsourcing solutions for small- to medium-sized businesses. Because account

executives often make sales calls individually, their managers do not always directly observe their be- havior. Furthermore, managers are also responsible for sales in their markets and for staying up-to-date on payroll Jaws. However, account executives are responsible for training new account executives and networking in the industries in which they sell products. For example, if an account manager

120 Part II System lm plementation

is responsible for retail companies, then that account executive is expected to attend retail trade shows and professional meetings to identify potential clients and to stay current with the issues facing the retail industry.

Account Executive Job Responsibilities • Performing client needs analysis to ensure that the major market services

product can meet a client’s requirements and expectations • Establishing clients on the host processing system • Acting as primary contact for the client during the conversion process • Supporting clients during the first few payrolls • Completing the required documentation to turn the client over to

customer service for ongoing support • Scheduling and making client calls, and when necessary, supporting sales

representatives in presales efforts • Keeping abreast of the major market services system and software

changes, major changes and trends in the PC industry, and changes in wage and tax Jaw. 1. Based on the above description, assess whether Show Me the Money

should use a behavior approach, a results approach, or a combination of both to measure performance.

2. Using the accompanying tables as a guide, place check marks next to the descriptions that apply to the job of account executive. Explain why you chose the approach you did.

Behavior approach to measuring performance is most appropriate when

the l1nk between behaviors and results is not obvious

outcomes occur in the distant future

poor results are due to causes beyond the performer’s control

Results approach to measuring performance is most appropriate when

workers are sk1lled 1n the necessary behaviors

behaViors and results are obviously related

results show consistent improvement over t1me

there are many ways to do the job right

Chapter 4 Defining Performance and Choosing a Measurement Approach 121

– ———

ENDNOTES

1. Cascio, W. F., & Aguinis, H. (2019). Applied psychology itz taletzt matzagemetzt (8th ed.). Thousands Oaks, CA: SAGE Publications.

2. Motowidlo, S. )., Borman, W. C., & Schmit, M. J. (1997). A theory of individual differences in task and contextual performance. Humatz Perfomrance, 10, 71-83.

3. Borman, W. C., Brantley, L. B., & Hanson, M.A. (2014). Progress toward understanding the structure and determinants of job performance: A focus on task and citizenship performance. ltzternatiotzal journal of Selectiotz & Assessment, 22, 422-431.

4. Campbell, f. P., & Wiernik, B. M. (2015). The modeling and assessment of work performance. Atztzual Review of Orgatzizational Psychology atzd Orgatzizational Behavior, 2, 47-74.

5. Van lddekinge, C. H., Aguinis, H., Mackey, J. D., & DeOrtentiis, P. S. (2017). A meta-analysis of the interactive, additive, and relative effects of cognitive ability and motivation on performance. journal of Matzagemetzt, 44(1), 249-279. doi:10.1l77 /0149206317702220

6. Berghuis, J ., Denissen, J. A., Oberski, D., Sijtsma, K., Meeus, W. J ., Branje, S., & . . . Bleidom, W. (2017). Big five personality stability, change, and codevelopment across adolescence and early adulthood. Joumal of Personality and Social Psychology, 113,641-657.

7. Woods, S. A., & Anderson, N. R. (2016). Toward a periodic table of personality: Mapping personality scales between the five-factor model and the circumplex model. journal of Applied Psychology, 101,582-604.

8. Eskreis-Winkler, L., Shulman, E. P., Young, V., Tsukayama, E., Brunwasser, S. M., & Duckworth, A. L. (2016). Using w ise interventions to motivate deliberate practice. Journal of Persotzality arrd Social Psychology, 111,

9. IBM’s $1 Billion Tmining Investment. Retrie\•edJanuary 2, 2018, from https://www

10. Beus, J. M., & Whitman, D. S. (2012). The relationship between typical and maximum performance: A meta-analytic examination. Humatz Performance, 25, 355-376.

11. Huselid, M.A., & Becker, B. E. (2011). Bridging micro and macro domains: Workforce differentiation and strategic human resource management. journal of Matzagement, 37,421-428.

12. Rosenbush, S. (2005). Five lessons of the WorldCom debacle. Retrieved January 2, 2018, from https://www.bloomberg.com/ news/artides/2005-03-15/ five-lessons-of-the-worldcom-debade

13. Eisend, M., Evanschitzky, H., & Gilliland, D. 1. (2016). The influence of organizational and national culture on new product performance. journal of Product Jnuovntiou Management, 33, 260-276.

14. Will ink, J., & Babin, L. (2015). Extreme ownership: How Navy SEALS lead and win. New York, NY: St. Martin’s Press.

15. Kmicinska, M., Zaniboni, S., Truxillo, D. M., Fraccaroli, F., & Wang, M. (2016). Effects of rater conscientiousness on evaluations of task and contextual performance of o lder and younger co-workers. Europeatz journal of Work & Orgatzizatiotzal Psychology, 25,707-721.

16. Ellis, K. (2004). Individual development plans: The building blocks of development. Traitzitzg, 41(12), 2(}-25.

17. Schmitt. N. (2014). Personality and cognitive ability as predictors of effective performance at work. Ammal Revietu of Organizatio11al Psychology and OrganizatiOilal Behavior, 1, 45-65.

18. Ahmed, 1., Mohammad, S. K., & Is lam, T. (2013). The relationship between perceived fairness in performance appraisal and organizational citizenship behavior in the banking sector of Pakistan: The mediating role of organizational commitment. ltztemational Joumal of Management and 5, 75-88.

19. DeNisi, A. S., & Murphy, K. R. (2017). Performance appraisal and performance management: 100 years of p rogress? journal of Applied Psychology, 102,421-433.

20. Liang, S. (2017). Linking leader authentic personality to employee voice behaviour: A multilevel mediation model of authentic leadership development. European Journal of Work & Organizational Psychology, 26, 434-443.

21. Bedeian, A. G., & Armenakis, A. A. (1998). The cesspool syndrome: How dreck floats to the top of declining organizations. Academy of Ma11agement Executive, 12,

22. Aguinis, H., Davis, G. F., Detert, J. R., Glynn, M. A., Jackson, S. E., Kochan, T., . . . Sutcliffe, K. M. (2016). Using organizational science research to address U.S. Federal Agencies’ management and labor needs. Behavioral Science & Policy, 2, 67-76.

122 Part II System Implementation

23. Marcus, B., Taylor, 0 . A., Hastings, S. E., Sturm, A., & Weigelt, 0. {2016). The structure of counterproductive work behavior. joumal of Mnrragement, 42, 203-233.

24. Stewart, S.M., Bing, M. N ., Davison, H. K., Woehr, D. J., & Mdntyre, M.D. (2009). In the eyes of the beholder: A non-self-report measure of workplace deviance. joumal of Applied Psyclrology, 94, 207-215.

25. McLean, B., & Elkind, P. (2004). Tire smarttst guys in the room: Tire amazing rise and scandalous fall of En ron. New York, NY: Penguin.

26. Ols ter, S. (2011). From Harvard success story to accused insider trader. Poets and Quants. Retrieved January 2, 2018, from http:// fortune.com/ 2011 /02/09/ from-harvard-success-story-to-accused -insider-trader I

27. Jund t, D. K., Shoss, M. K., & Huang, J. L. (2015). Individual adaptive performance in organizations: A review. joumal of Organizational Behavior, 36, S53-S71.

28. Pulakos, E. D., Arad, S., Donovan, M. A., & Plamondon, K. E. (2000). Adaptability in the workplace: Development of a taxonomy of adaptive performance. journal of Applied Psychology, 85, 612-<;24. 29. Stone, T. H., Webster, B. D., & Schoonover, S. (2013). What do we know about competency modeling? International joumal of Selection and Assmment, 21, 334-338. 30. Daniels, A. (2005, October). Daniels' scientific method. Workforce Management, 84,44-45. 31. Signal v. Noise. (2017). How we structure our work and teams at Basecamp. Available from https://m.signalvnoise.com/how-we-set-up-our-work-cbce3d3d9cae; Forbes. (2017). Forbes small giants 2017: America's best small companits. Available from https://www.forbes.com/sites/boburlingham/2017 /05/09/ forbes-small-giants-2017-americas-best-smaU-companies/#564b1bd44c32