MGT 312T Wk 3 - Apply: Employee Performance and Operations

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MGT 312T Wk 3 - Apply: Employee Performance and Operations

Monitoring Performance Through Goal Measurement

Performance management doesn’t stop once effective goals are set for employees. Monitoring performance is an important next step to monitoring progress toward achievement of those goals—and accurate measurement of progress is critical. This activity is important because managers can use information gathered during performance monitoring to identify problems with and find opportunities to enhance employee performance.

The goal of this activity is for you to develop your knowledge of monitoring performance by matching measures of goal progress with their descriptions.

Read the descriptions of measures of goal progress. Match each type of measure to the appropriate description.

1. Timeliness

2. Quantity

3. Financial metrics

4. Quality

In an effort to cut costs, Albuquerque city officials decided to stop paying their garbage collectors for working overtime. This decision had a noticeable impact on the quality of their performance. This exercise is important because managers must consider how decisions about the financial health of a company can impact the quality of performance among its employees.

The goal of this exercise is to draw the connection between consequences and performance outcomes.

Read the case about trash collection crews in Albuquerque getting paid for only eight hours of work, then using the 3-step problem-solving approach, answer the questions that follow.

City officials in Albuquerque, New Mexico, needed to cut costs. Among the targets they identified was overtime pay of trash collectors. The officials decided to pay trash collection crews for eight hours of work no matter how long it actually took them to finish their routes. The hope was that the crews would work more efficiently and quickly, given that they could then go home early and still get paid for eight hours of work.

This PM practice seemed like a success, and overtime costs dropped significantly. However, unintended consequences emerged. Crews overloaded their trucks to reduce the time they spent going to the dump, but strict weight limits resulted in fines when they arrived. So they drove faster, which resulted in more tickets and accidents. Sometimes they skipped trash pickups and truck maintenance, which generated customer complaints and more frequent vehicle breakdowns.1

 Apply the 3-Step Problem Solving Approach

Step 1: Define the problem city officials wanted to fix.

Step 2: Identify the potential causes of this problem. (Consider also the common reasons rewards fail to motivate.)

Step 3: Make your recommendations.

Footnote

What is the key problem in this mini-case?

Multiple Choice

•      Employee productivity
•      Increase in accidents involving trash collecting trucks
•      Low quality performance by trash collectors
•      Customer complaints about trash collectors
•      The need to increase overtime pay from its current levels

If city officials considered the elimination of overtime as a reward—meaning trash collectors could go home early if they finished their work, yet still get paid for eight hours—then, why did it fail to motivate the desired behaviors?

Multiple Choice

•      The reward had a short-lived motivational impact
•      The practices focused only on monetary rewards
•      There was a long delay between the performance and when the reward was provided
•      The trash collectors seemed entitled
•      The reward seemed to be one-size-fits-all

What is one way city officials could have had more success in achieving their cost-cutting goals?

Multiple Choice

•      Quickly terminating trash collectors who were exhibiting counterproductive behavior
•      Allowing for overtime pay to continue
•      Reducing the number of pickups for drivers
•      Including the trash collectors in the process of designing the cost-saving program

••     Upgrading trash trucks

Why Are Some Companies Yanking Forced-Ranking?

Forced ranking is a popular performance management tool for many well-known companies such as Ford Motor Company, 3M, and Intel. For decades, forced-ranking appraisal practices have helped organizations and their managers differentiate among high- to low-performing employees. This exercise is important because it shows how organizations decide to recognize and reward top performers and determine grounds for terminating low performers.

The goal of this exercise is to demonstrate the advantages and disadvantages of forced-ranking systems.