Performance Agreements

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• Performance Agreements
• Travor C. Brown, Ph.D.
• Associate Professor,
• Faculty of Business
• Memorial University

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Why are Performance Agreements Needed? (adapted
from Latham Wexley, 1994)

• Facilitate mutual understanding of effective
  performance
• Build trust and confidence between employees and
  managers
• Rectify misunderstandings concerning performance
  expectations
• Create development procedures
• Sustain and improve employee motivation
• Career development and planning
• Encourage communication and feedback
• Allocate rewards

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What should you measure?

• Trait, behavioral, outcome
• (Personality) Trait (e.g. loyal, team-player)
• too ambiguous, people hesitant to give poor
  feedback such as employee is not loyal
• Outcome (e.g., profit, revenue, number of calls
  taken, etc)
• Can be influenced by factors beyond employees
  control
• Can cause wrong behaviors (quantity/quality
  issues)
• Behavioral/Competencies (e.g., works well with
  others)
• helps understand what employee should start,
  stop, continue doing
• Developed using job analysis

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Behavioral Instruments

• Research shows that courts tend to favour
  behavioral feedback as
• Within persons control
• Gives sense of direction
• Based on Job requirements therefore, required
  for all employees
• Minimizes bias

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Who should give feedback?

• Managers
• Peer
• Subordinates
• Customers
• Self
• 360

ALL RATERS MUST BE KNOWLEDGEABLE OF THE PERSON
AND THE ROLE!
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Formal CoachingPerformance Agreements (adapted
from Latham Wexley, 1994)

• Give prior notice
• Explain purposes
• Review job function, provide feedback, and have 2
  way conversation
• Ask employee for input on what they have done
  well and any problems
• Ask what s/he should start/stop/change
• Ask employee how you can help them
• Give your input
• focus on what you want to SEE stop/start/change
• Ask for and Listen to employees concerns
• Come to an agreement
• set SMART goals (Specific, Measurable,
  Attainable, Relevant, Time-based)
• Follow-up and document

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Further Reading

• Bandura, A. (1997). Self-efficacy The exercise
  of control. New York W.H. Freeman and Company.
• Latham, G. P. Wexley, K. N. (1994). Increasing
  productivity through performance appraisal.
  Reading, MA Addison-Wexley.
• Whetten, D. A. Cameron, K. S. (2002).
  Developing Management Skills, 5th Edition.
  Reading, MA Addison-Wesley.