Performance Measures Criteria

A. Strategic congruence is the extent to which the performance management system elicits job performance that is congruent with the organization's strategy, goals, and culture.

Example: If a regional bank decides to become known as the hallmark of customer service, then the branch managers and tellers should have performance measurements focused on customer relations. . Validity is the extent to which the performance measure assesses all the relevant—and only the relevant—aspects of job performance. It is also called "content validity."

1. Validity is concerned with maximizing the overlap between actual job performance and the measure of job performance (Figure 8.3).

2. A performance measure is deficient if it does not measure all aspects of performance.

Example: A company's performance measure for managers is deficient because it does not measure such aspects of managerial performance as developing others or social responsibility.

3. A contaminated measure evaluates irrelevant aspects of performance or aspects that are not job related.

Example: A company's performance measure would be contaminated if it evaluated its managerial employees based on how physically attractive they were.

C. Reliability refers to the consistency of the performance measure.

1. Interrater reliability is the consistency among the individuals who evaluate the employee's performance.

Example: Professor Wagner's teaching evaluations have interrater reliability since both her students and her peers who visited her classes rated her above average.

2. With some measures, the extent to which all the items rated are internally consistent is important (internal consistency reliability).