Psychological Managementof Individual Performance

Edited by

Sabine SonnentagTechnical University of Braunschweig, Germany

Innodata0470853034.jpg

Psychological Managementof Individual Performance

Wiley Handbooks in the Psychologyof Management in Organizations

Series Editor Peter Herriot

Psychological Management of Individual PerformanceEdited by Sabine Sonnentag

Further titles in preparation

Psychological Managementof Individual Performance

Edited by

Sabine SonnentagTechnical University of Braunschweig, Germany

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Contents

About the Editor viiAbout the Contributors ixSeries Preface xviiPreface xix

PART I PERFORMANCE: CONCEPT, THEORY, AND PREDICTORS

1 Performance Concepts and Performance Theory 3Sabine Sonnentag and Michael Frese

2 Ability and Non-ability Predictors of Job Performance 27Ruth Kanfer and Tracy M. Kantrowitz

3 PRACTICE CHAPTERdebis Career Development Center: Personality Scaleswithin a Process-Oriented Development Instrument for ManagementHigh Potentials 51Jurgen Deller, Frederik L. Oswald, and Ulrich S. Schoop

4 Work Design and Individual Work Performance: Research Findingsand an Agenda for Future Inquiry 69Sharon K. Parker and Nick Turner

5 PRACTICE CHAPTEROrganizational Design and OrganizationalDevelopment as a Precondition for Good Job Design and HighJob Performance 95Oliver Strohm

PART II ASSESSING PERFORMANCE

6 Appraisal: An Individual Psychological Perspective 115Clive Fletcher

7 PRACTICE CHAPTERPerformance Appraisal 137Gesa Drewes and Bernd Runde

8 Analysis of Performance Potential 155Daniela Lohaus and Martin Kleinmann

9 PRACTICE CHAPTERAssessing Potential and Future Performance 179Wieby Altink and Helma Verhagen

PART III ENHANCING PERFORMANCE

10 The High Performance Cycle: Standing the Test of Time 201Gary P. Latham, Edwin A. Locke, and Neil E. Fassina

vi Contents

11 PRACTICE CHAPTEREnhancing Performance through Goal-Settingand Feedback Interventions 229Jen A. Algera, Ad Kleingeld, and Harrie van Tuijl

12 Enhancing Performance through Training 249Beryl Hesketh and Karolina Ivancic

13 PRACTICE CHAPTEREnhancing Performance through Training 267Brigitte Winkler

14 Enhancing Performance through Mentoring 293Terri A. Scandura and Betti A. Hamilton

15 PRACTICE CHAPTERMentoring for World-Class Performance 309James G. Clawson and Douglas S. Newburg

16 Enhancing Performance through Pay and Reward Systems 325Henk Thierry

17 PRACTICE CHAPTERPerformance Measurement andPay for Performance 349Harrie F. J. M. van Tuijl, Ad Kleingeld, Jen A. Algera, and Marielle L. Rutten

18 Managing Individual Performance: A Strategic Perspective 371Susan E. Jackson and Randall S. Schuler

19 PRACTICE CHAPTERPerformance Improvement through HumanResource Management 391Sabine Remdisch

PART IV ENSURING PERFORMANCE IN A WIDER CONTEXT

20 Performance, Well-being and Self-Regulation 405Sabine Sonnentag

21 PRACTICE CHAPTERWell-being, Stress Management and Performance:From Analysis to Intervention 425Rendel D. de Jong

22 Integrating the Linkages between Organizational Culture and IndividualOutcomes at Work 441Paul Tesluk, David Hofmann, and Narda Quigley

23 PRACTICE CHAPTEROrganizational Culture: A Case Study 471Jaap J. van Muijen

Author Index 487Subject Index 505

About the Editor

Professor Dr Sabine Sonnentag, Institute of Psychology, Technical University of Braunschweig,Spielmannstrasse 19, D-38092 Braunschweig, Germany.

Sabine Sonnentag is a Professor of Work and Organizational Psychology at the TechnicalUniversity of Braunschweig, Germany. She studied psychology at the Free University Berlin andreceived her Ph.D. from the Technical University of Braunschweig. Subsequently she worked atthe University of Giessen the University of Amsterdam and the University of Konstanz.

One of her major research areas refers to expertise and excellent performance at work. In sev-eral studies in the fields of software design and engineering she examined how high and moderateperformers differ with respect to problem solving and communication processes. Her other re-search interests include learning at work, teamwork and individual well-being, and recovery andunwinding processes. Currently, she serves as an Associate Editor of the Journal of Occupationaland Organizational Psychology. She is a member of the Editorial Boards of Applied Psychology:An International Review and the European Journal of Work and Organizational Psychology.

About the Contributors

Prof. Dr Jen Algera, Department of Technology and Work, Faculty of Technology Management,Eindhoven University of Technology, P.O. Box 513, NL-5600 MB Eindhoven, The Netherlands.

Jen A. Algera is a part-time Professor of Personnel Management at Eindhoven University ofTechnology, the Netherlands. In addition, he is managing director of HRAdviesNed, a HRM con-sultancy group. In both jobs he focuses his research and consultancy on performance managementat the individual level, the group level, as well as the organization level.

Dr Wieby Altink, SHL Nederland B.V., Arthur van Schendelstraat 612, postbus 1047, NL-3500BAUtrecht, The Netherlands.

Wieby Altink is program manager consultant at SHL Nederland BV. She is responsible for theinnovation of consultancy services (assessment, development and HR advice) as well as all clientprojects that integrate consultancy, training, and product (instrument) activities. She studied workand Organizational psychology and worked as an assistant professor and an associate professor withthe Department of Work and Organizational Psychology at the Vrije Universiteit van Amsterdam.

In addition, she performed the job of business unit manager with the SHL organization; togetherwith approximately 20 colleagues she supplied consultancy, training, and products to many clientorganizations in the Netherlands and in an international context. Her current interests are: Howcan people and organisations develop themselves together in their work, tasks and goals?

Dr James G. Clawson, Darden Graduate School of Business Administration, University ofVirginia, Box 6550, Charlottesville, Virginia, VA 22906, U.S.A.

James G. Clawson is a Professor of Business Administration at the Darden Graduate School ofBusiness Administration at the University of Virginia. He has authored Level Three Leadership,and co-authored Self Assessment and Career Development and An MBAs Guide to Self Assess-ment and Career Development. His research interests include leadership, mentoring, and careermanagement. He has written dozens of articles and hundreds of cases and consulted with a varietyof Fortune 100 firms on these issues.

Dr Rendel D. de Jong, Utrecht University, Faculteit Sociale Wetenschappen, Heidelberglaan,13584 CS, Utrecht, The Netherlands.

Rendel de Jong teaches Psychology of Work and Health and Personnel Psychology at UtrechtUniversity, Department of Social and Organizational Psychology. His research interests includeleadership, personality, team functioning, mental health, and performance. As a consultant, Rendelde Jong is engaged in coaching and counseling managers and management teams.

Prof. Dr Jurgen Deller, Department of Business Psychology, University of Applied Sciences,Wilschenbrucher Weg 84A, D-21335 Lueneburg, Germany.

Jurgen Deller started his career 1979 with Commerzbank AG as an apprentice, and later asinvestment adviser. In 19821983 he studied economics, history, and political science at JudsonCollege, Elgin, Illinois, followed by studies of economics and psychology at Kiel University; hesubmitted his Masters thesis in Psychology on Situational Interviews in 1991, and completed hisPh.D. on Intercultural Aptitude Testing at the University of the Armed Forces Hamburg in 1998.In 1991 he joined the corporate headquarters of Daimler-Benz group, Stuttgart, as internationalmanagement trainee, later HR manager, and worked with DaimlerChrysler Services (debis) AG,Berlin, from 1996 to 1999 as senior manager in the HR board members office and as head ofCorporate Leadership Development IT Services. Since 2000 he has been a Professor of Organiza-tional Psychology in the Department of business psychology at the University of Applied Sciencesin Lueneburg, and since September 2000 the department head. He has written many articleson personnel selection, management development, international HR management and businessethics.

x About the Contributors

Gesa Drewes, Dieter Strametz & Partner, Villa im Park, D-65835 Liederbach, Germany.Gesa Drewes is a consultant and project manager with Dieter Strametz & Partner (DSP), a

human resources consultancy in Frankfurt, Germany. She received a degree in Psychology fromthe Justus-Liebig University in Giessen, Germany. At DSP she is responsible for projects in theareas of training, organizational development, as well as personnel selection. Her work focuseson issues such as performance appraisal management, assessment centers, customer satisfaction,communication and leadership skills and behavior.

Neil E. Fassina, Joseph L. Rotman School of Management, University of Toronto, 105 St. GeorgeSt.,Toronto, Ontario, Canada M5S 3E6.

Neil Fassina received his B.Sc. in Psychology from the University of Calgary. He is currently adoctoral student of organizational behavior and human resource management at the University ofToronto. A student member of the Canadian and American Psychological Associations, Societyfor Industrial and Organizational Psychology, Center for the Advancement of Research Method-ology and Analysis, and the Academy of Management, and his primary research focus is on theapplication of social cognitive theory, justice theory, and goal setting to organizational issues.

Prof. Dr Clive Fletcher, Department of Psychology, Goldsmiths College, University of London,New Cross, London SE 14 6NW, UK.

Clive Fletcher is professor of psychology at Goldsmiths College, University of London. He is aFellow of the British Psychological Society and a former chairman of its occupational psychologysection. After completing his Ph.D., he worked for more than six years in the Behavioural SciencesResearch Division of the Civil Service Department, then moved back into an academic position. Hehas authored well over one hundred publications and conference papers, nearly all of which havefocused on assessment centers, psychometrics, the selection interview, performance appraisal,and performance management. His current research interests include candidate perspectives inassessment situations, self-assessment and self-awareness, and multi-source feedback. In his roleas a consultant, he has advised many major organizations in both public and private sectors.

Prof. Dr Michael Frese, Department of Psychology, University of Giessen, Otto-Behaghel-Strasse10 D-35394 Giessen, Germany.

Michael Frese is professor and chair of the Unit Work and Organizational Psychology at theUniversity of Giessen. He is also adjunct professor at the University of Pennsylvania and part-timeprofessor at the University of Amsterdam.

Michael Frese is the president elect of the International Association of Applied Psychology andis internationally well known; he was the editor of Applied Psychology: An International Reviewfor six years and serves on several editorial boards. He has written and edited about 20 books andmore than 200 journal and book articles. Michael Frese has lectured extensively and is also anadviser and lecturer to the management of many companies in various European countries. Hehas worked, and is still working, in the areas of entrepreneurship, errors and mistakes at work,motivation (particularly self-starting motivation as in the example of initiative), training, stress atwork, humancomputer interaction, occupational socialization, and performance.

Betti Hamilton, Management Department, School of Business Administration, University ofMiami, 414D Jenkins Building, Coral Gables, FL 33124-9145, U.S.A.

Betti Hamilton is a third-year doctoral student at the University of Miami, Coral Gables, Florida.She received her masters in business administration from the Department of Management at WrightState University in 1993. Her research interests include mentorship, leadership, and team manage-ment. She is a member of the Academy of Management, Southern Management Association, andthe American Psychological Association (APA) Division 14 (the Society of Industrial and Orga-nizational Psychology). She has presented papers at the Academy of Management and SouthernManagement annual meetings. She has served on the New Doctoral Student Consortium Com-mittee, the Academy Placement Committee, and is a Graduate Student Senate Representative.Ms. Hamilton has taught Organizational Behavior courses at undergraduate level. She has alsoserved as teaching assistant for masters level courses at the University of Miami.

Prof. Dr Beryl Hesketh, Faculty of Science, The University of Sydney, Carslaw Building F07,NSW 2006, Australia.

About the Contributors xi

Beryl Hesketh completed her Ph.D. at Massey University in New Zealand, and has taught I/OPsychology at several universities in New Zealand and Australia, having introduced graduateprograms at the University of New South Wales and at Macquarie University. In 1995 she chairedthe Inaugural Australian Industrial and Organizational Psychology Conference, and received theElton Mayo Award in 1997 for her contributions to I/O research and training in Australia andinternationally. She has published widely in the areas of career decision making, selection andtraining, with a current project on developing adaptive expertise in fire fighters. She is Dean of theFaculty of Science at the University of Sydney.

Dr David A. Hofmann, Department of Management, Eli Broad School of Management, MichiganState University, East Lansing, Michigan 48824-1122, U.S.A.

David A. Hofmann is an associate professor of management at Michigan State University. Hereceived his B.A. degree from Furman University (1986) in Business Administration, his M.S.degree from the University of Central Florida (1988) in Industrial/Organizational Psychology, andhis Ph.D. from the Pennsylvania State University (1992) in Industrial/Organizational Psychology.His primary research interests include how individual, group/team, leadership, and organizationalfactors relate to safety problems, the interpretation of accident causes, and the occurrence ofaccidents as well as perceptions of commitment and accountability for both safety and qualityperformance. Other interests include multi-level modeling, organizational surveys and assessmentmethodologies, and organizational change. In 1992 he was awarded the YoderHenemen PersonnelResearch Award from the Society of Human Resource Management.

Dr Karolina Ivancic, Faculty of Science, The University of Sydney, Carslaw Building F07,NSW 2006, Australia.

Karolina Ivancic completed her Ph.D. at the University of New South Wales where she inves-tigated whether exposure to errors during training promoted the transfer of cognitive skills. Shehas since been involved in designing a training manual and video for the field supervisors of post-graduate students. Her most recent research project involved examining the effects of exposure toerrors on driver skill and self-confidence using a driving simulator undertaken while employed bythe University of Sydney as a post-doctoral research officer. Karolina Ivancic died in 2001.

Prof. Dr Susan E. Jackson, 94 Rockafeller Road, Room 216, School of Management and LaborRelations, Rutgers University, Piscataway, NJ 08854-8054, U.S.A.

Susan E. Jackson is professor of human resource management in the School of Managementand Labor Relations at Rutgers University, where she serves as graduate director for the DoctoralProgram in Industrial Relations and Human Resources. She received her B.A. in Psychology andSociology from the University of Minnesota, and her M.A. and Ph.D. in Organizational Psychol-ogy from the University of California, Berkeley. Her primary area of expertise is the strategicmanagement of human resources; special interests include managing team effectiveness, work-force diversity, and knowledge management. She has authored or co-authored over 100 articles onthese and related topics. Her books include Managing Human Resources: A Partnership Perspec-tive (with Randall S. Schuler), Strategic Human Resource Management (with Randall S. Schuler),Creating Tomorrows Organizations: A Handbook for Future Research in Organizational Behav-ior (with Cary L. Cooper), and Diversity in Work Teams: Research Paradigms for a Chang-ing Workplace (with M. N. Ruderman). An active member of the International Association ofApplied Psychology, the Society for Industrial and Organizational Psychology, and the Academyof Management, she currently serves on the editorial boards of Applied Psychology: An Inter-national Review; Journal of Applied Psychology; Journal of Occupational and OrganizationalPsychology; Organizational Dynamics; and Human Resource Management Journal.

Prof. Dr Ruth Kanfer, School of Psychology, 274 5th St., MC 0170, Georgia Institute of Tech-nology, Atlanta, GA 30332-0170, U.S.A.

Ruth Kanfer is a professor of psychology at the Georgia Institute of Technology in Atlanta,Georgia, U.S.A. She has written extensively on work motivation/self-regulatory processes in adultskill training, job search, and job performance. Dr. Kanfer has served on the editorial boardsof several scientific journals, including Journal of Applied Psychology; Applied Psychology: AnInternational Review; Organizational Behavior and Human Decision Processes; Human Perfor-mance, and Basic and Applied Social Psychology. She is a Fellow of the American Psychological

xii About the Contributors

Association, the American Psychological Society, and the Society of Industrial and Organiza-tional Psychology, and served as chair of the Organizational Behavior Division of the Academyof Management in 19992000.

Tracy M. Kantrowitz, School of Psychology, 274 5th St., MC 0170, Georgia Institute of Tech-nology, Atlanta, GA 30332-0170, U.S.A.

Tracy M. Kantrowitz is a graduate student in the industrial/organizational psychology programat Georgia Institute of Technology, Atlanta, Georgia, U.S.A. Her research interests include per-sonality and motivational influences on job search behavior and employment outcomes, and therole of general cognitive ability, personality traits, and motivational processes in work behaviorand job performance.

Dr P.A.M. Kleingeld, Department of Technology and Work, Faculty of Technology Management,Eindhoven University of Technology, P.O. Box 513, NL-5600 MB Eindhoven, The Netherlands.

Ad Kleingeld has a Ph.D. in Industrial Engineering and Management Science. He currentlyholds a research position at the faculty of Technology Management of Eindhoven University ofTechnology, the Netherlands. His Ph.D. research compared participatory design and implemen-tation of a performance measurement and feedback system to non-participatory implementationwith respect to improvement of employee performance and attitudes toward the system. His cur-rent research focuses on tools for supporting problem solving and task strategy development ofindividuals and groups and on the design of reward systems which fit with existing task and goalinterdependencies.

Prof. Dr Martin Kleinmann, University of Marburg, Department of Psychology, Work- andOrganizational Psychology, Gutenbergstrasse 18, 35032 Marburg, Germany.

Martin Kleinmann studied psychology and computer science at the University of Kiel and theUniversity of Konstanz, Germany (19811987), Henkel KgaA: Personnel affairs (19881989), aPh.D. in Psychology from the University of Kiel (1991), and scientific assistant at the Universityof Kiel (19911997). Since 1997, he has been a full professor for industrial and organizationalpsychology at the University of Marburg, Germany.

Prof. Dr Gary Latham, Joseph L. Rotman School of Management, University of Toronto, 105St. George St., Toronto, Ontario, Canada M5S 3E6.

Gary P. Latham is the Secretary of State Professor of Organizational Effectiveness in the Facultyof Management at the University of Toronto. He has been awarded Fellow status by both theAmerican and Canadian Psychological Associations, the American Psychological Society, andthe Academy of Management. In 1996, he was made a Fellow of the Royal Society of Canada.He is the past president of the Canadian Psychological Association. Dr. Lathams contributionsto the field of human resources has been in the areas of performance management, selection andtraining and development. He is the co-developer of the Behavioral Observation Scales (withK. Wexley) and the Situational Interview (with L. M. Saari, E. D. Pursell, and M. Campion).

Prof. Dr Edwin A. Locke, Robert H. Smith School of Business, University of Maryland, 3331Van Munching Hall, College Park, MD 20742, U.S.A.

Edwin Locke is Deans Professor of Leadership and Motivation at the R.H. Smith Schoolof Business at the University of Maryland, College Park. He received his Ph.D. in IndustrialPsychology from Cornell University in 1964. He has published over 210 chapters and articlesin professional journals. He is the author or editor of nine books, including A Theory of GoalSetting and Task Performance (Prentice Hall, 1990, with G. Latham), and The Prime Movers:Traits of the Great Wealth Creators (AMACOM, 2000). Dr. Locke has been elected a Fellowof the American Psychological Association, of the American Psychological Society, and of theAcademy of Management. He received the Distinguished Scientific Contribution Award of theSociety for Industrial and Organizational Psychology, and the Career Contribution Award fromthe Academy of Management (Human Resource Division). He is a member of the Board ofAdvisers of the Ayn Rand Institute.

Dr Daniela Lohaus, CMG Industrie GmbH, Kolner Strae 6, D-65760 Eschborn, Germany.Daniela Lohaus, has been marketing manager with Hoechst AG (19881990), studied Psychol-

ogy and Business Administration, gained on M.Sc. in Occupational Psychology from the University

About the Contributors xiii

of Nottingham (1993) and Ph.D. in Psychology from the University of Marburg (1998), and,since 1999, is the human resources manager for personnel development and recruitment withPASS Consulting Group. She was a lecturer at the University of Marburg (19961999) and at theUniversity of Applied Sciences in Frankfurt since 1999.

Dr Douglas S. Newburg, Thoracic Surgery Department, Medical School, University of Virginia,Charlottesville, Virginia, 229080395, U.S.A.

Doug Newburg is the associate director of education for the General Surgery Department atthe University of Virginia Medical Center. He has a doctorate in sports psychology and works asa performance counselor for high-level performers. Doug Newburgs experience in Final Fourlevel NCAA basketball and his interest in healthy life styles led him to the research presented inthe chapter written for this volume. He currently works at the medical center and manages hisown firm, giving seminars and workshops on the resonance principle. He has written Resonance:Desire Over Fear and co-authored several articles on this topic.

Dr Frederik L. Oswald, Michigan State University, 129 Psychology Research Bldg, East Lansing,MI 48824-1117, U.S.A.

Fred Oswald received his Ph.D. degree (1999) in psychology from the University of Minnesotaand is currently an assistant professor in industrial/organizational psychology at Michigan StateUniversity. His general research interests and current projects are both psychological and statisti-cal/methodological in nature: personnel selection; theory, modeling, and measurement of job per-formance; differential prediction and adverse impact, particularly by racial and gender subgroups;measurement and analysis of ability, personality, and vocational interests; web-based testing inemployment and research settings; meta-analysis and mixed-effects models; and profile-matchingand profile-clustering techniques.

Dr Sharon K. Parker, Australian Graduate School of Management, UNSW Sydney, NSW 2052,Australia.

Sharon K. Parker is a faculty member at the Australian Graduate School of Management, TheUniversity of New South Wales, in Sydney, Australia. She was previously at the Institute of WorkPsychology, the University of Sheffield, U.K. Her current research interests concern how workdesign and related practices affect the development of flexible role orientations, proactivity, rolebreadth self-efficacy, and perspective-taking among employees. Other research interests includestress, safety, performance, and equal opportunities. She has published on these topics in tierone journals such as the Journal of Applied Psychology and Academy of Management Journal.She recently co-authored a book published by Sage on work design called Job and Work Design:Organizing Work To Promote Well-being and Effectiveness.

Narda Quigley, 218C Van Munching Hall, University of Maryland, Department of OrganizationalBehavior College Park, MD 20472, U.S.A.

Narda Quigley is a doctoral student in Management and Organization at the Robert H. SmithSchool of Business at the University of Maryland. As an undergraduate, she double-majored inEconomics and International Relations at the University of Pennsylania. In her doctoral program,she is majoring in Organizational Behavior and minoring in Human Resources Management. Herresearch interests include organizational culture, the effects of incentives on knowledge-sharing,and the effects of personality and individual differences on workplace outcomes.

Prof. Dr Sabine Remdisch, University of Applied Sciences, Department of Business Psychology,Wilschenbrucher Weg 69, D-21335 Lueneburg, Germany.

Sabine Remdisch is professor of business psychology at the University of Applied Sciences inLueneburg, Germany. She received her doctorate in Work and Organizational Psychology fromthe University of Giessen in 1998. From 1996 to 1998 she was guest researcher at the Universityof Amsterdam. Her research has focused on teamwork in the production area, team performancemeasurement, team development, and the aspect of leadership.

Her professional career began in 1994 at General Motors (Opel Germany). There she hasfocused on Human Resource Management and evaluation studies and worked as an organizationalconsultant in that field. Areas of her present work are competency management and feedbackprocesses.

xiv About the Contributors

Bernd Runde, Work and Organizational Psychology, University of Osnabruck, Seminarstrae 20,D-49076 Osnabruck, Germany.

Bernd Runde works at the Department of Work and Organizational Psychology at the Universityof Osnabrueck and is currently completing his Ph.D. thesis on social competencies. He studiedpsychology in Osnabrueck and Goettingen and the main foci of his work are social competencies(diagnosis and training), change management (realization of an international project on relevanteffective and ineffective features of change projects), employee surveys, and follow-up changeprojects.

Marielle L. Rutten, M.A., GITP Consultants, Berg en Dalseweg 127, NL-6522 BE Nijmegen,The Netherlands.

M.L. (Marielle) Rutten studied cultural and religious psychology at the University of Nijmegenin the Netherlands. After her graduation, she spent a year doing research at Eindhoven Universityof Technology. She is currently working as a consultant for GITP International B.V., a consultancyfirm specializing in Human Resource Management.

Prof. Dr Terri A. Scandura, Management Department, School of Business Administration, Uni-versity of Miami, 414D Jenkins Building, Coral Gables, FL 33124-9145, U.S.A.

Terri Scandura (Ph.D., University of Cincinnati) is a professor of management and psychologyat the University of Miami, Florida. Her interests include leadership, mentorship, and researchmethods and she has published in the Journal of Applied Psychology, the Academy of Manage-ment Journal, the Journal of Management, the Journal of Vocational Behavior, the Journal ofInternational Business Studies, and many others. She is a member of the American PsychologicalAssociation and the Academy of Management. She is a Southern Management Association fellowand Program-Chair Elect. She serves on editorial boards for the Academy of Management Journal,the Journal of Management, Leadership Quarterly, Group and Organization Management andthe Journal of Vocational Behavior. Dr Scandura has been a visiting scholar in Japan, the UnitedKingdom, Australia, Hong Kong, and China. She has taught organizational behavior and lead-ership at undergraduate and MBA levels, and Organizational Behavior and Research Methods atdoctoral level.

Ulrich S. Schoop, Department of Psychology, University of Trier, D-54286 Trier, Germany.Ulrich S. Schoop is a student of psychology and philosophy at the University of Trier, Germany,

where he received his undergraduate degree in psychology (1997). He has studied abroad inPoona, India (College for Development Studies and Activities), and particpated in student ex-change with the I/O psychology program at the University of Minnesota, U.S.A. He currentlyworks as a research assistant for Prof. Dr L. Montada and has gained extensive practical expe-rience in consulting, personnel selection, and personnel development for managers. His actualresearch topics of interest include: practical intelligence of managers, diagnostics, and conflictmanagement.

Prof. Dr Randall S. Schuler, 94 Rockafeller Road, Room 216, School of Management and LaborRelations, Rutgers University, Piscataway, NJ 088548054, U.S.A.

Randall S. Schuler is a Professor of Human Resource Strategy and Director of the Center forGlobal Strategic Human Resource Management in the Department of Human Resource Manage-ment. His interests are global human resource management, strategic human resource management,the human resource management function in organizations, and the interface of business strategyand human resource tasks. He has authored or edited over 40 books including Strategic Human Re-source Management: A Reader, International Human Resource Management (3rd edn.), ManagingHuman Resources: A Partnership Perspective (7th edn.), Cases in Managing Organizations andPeople (6th edn.), La gestion de los Recursos Humanos, Managing Human Resources (6th edn.),La gestion des Ressources Humaines au seuil de lan 2000, Internationales Personalmanagement,and Managing Job Stress. In addition, he has contributed over 40 chapters to reading books andhas published over 100 articles in professional journals and academic proceedings. Presently,he is on the editorial boards of Organizational Dynamics, Journal of World Business, Journalof Occupational and Organizational Psychology, Human Resource Planning, Human ResourceManagement, The International Journal of Human Resource Management, Asia Pacific Journalof Human Resources, Journal of Occupational Behavior, Journal of International Management,

About the Contributors xv

Journal of International Management Reviews, and Journal of Market-Focused Management. He isa Fellow of the American Psychological Association and the Society for Industrial/OrganizationalPsychology, a past editor of the Journal of World Business and a past co-editor of the Journal ofOperations Management.

Dr Oliver Strohm, Institute for Work Research and Organizational Consultancy, Obere Zaune14, CH-8001 Zurich, Switzerland.

Oliver Strohm, studied in psychology at the University of Konstanz, Germany and received hisPh.D. in Work and Organizational Psychology at the University of Berne, Switzerland (1995). Heworked as a Research Assistant at the Institute of Work Psychology at the Swiss Federal Instituteof Technology in Zurich, Switzerland, and was head of the department Enterprise Strategies andConcepts of the CIM-Center of the region of Zurich. He was the Coordinator of a Quality andChange Program at the Swiss Federal Institute of Technology in Zurich. Since 1998 Oliver Strohmhas been a partner and CEO of the Institute for Work Research and Organizational Consultancyin Zurich. His current activities include research in the field of Change Management and Micro-politics in Change Processes, as well as consulting activities for diverse companies of differentsizes and branches in the field of organizational and leadership development and human resourcemanagement.

Dr Paul E. Tesluk, University of Maryland, U.S.A, Robert H. Smith School of Business,Department of Management & Organization, 3346 Van Munching Hall, University of Maryland,College Park, MD 20742-1815, U.S.A.

Paul Tesluk is an Assistant Professor in Management and Organization in the Robert H. SmithSchool of Business at the University of Maryland. Previously, he was an Assistant Professor atTulane University. He received his Ph.D. in Industrial/Organizational Psychology from Penn StateUniversity. His research interests include the design and implementation of high-involvementworkplace systems, work team performance, and work experience and managerial development.His work has been published in such journals as Personnel Psychology, Academy of ManagementJournal, and Journal of Applied Psychology. He has received awards for his research on teameffectiveness (S. Rains Wallace Dissertation Award) and work experience (William A. OwensScholarly Achievement Award) from the Society for Industrial/Organizational Psychology.

Prof. Dr Henk Thierry, University of Tilburg, Dept. of Human Resource Science, P.O. Box90153, 5000 LE Tilburg, The Netherlands.

Henk Thierry studied Psychology at the Free University in Amsterdam. In 1971 he was appointedas Associate Professor, since late 1975 as Full Professor in Work and Organizational Psychologyat the University of Amsterdam. In 1993 he got a new chair in Human Resource Science at TilburgUniversity. Since 2000 he is Professor in Work and Organizational Psychology at that University.In 19721973 he worked at the Institute for Social Research of the University of Michigan, AnnArbor. In 19821983 he was engaged as research fellow at the Netherlands Institute for AdvancedStudies in Social and Behavioral Sciences (NIAS) in Wassenaar. In 1989 he taught a spring termat the Graduate School of Business Administration of the University of Washington, Seattle. Hehas lectured at Universities in many other countries.

His research domain covers pay and compensation at work, work time arrangements and be-havioral effects, work motivation, and strategic Human Resource Management. Recently, he co-authored (with Pieter J.D. Drenth and Charles J. De Wolff) the second edition of the Handbook ofWork and Organizational Psychology (Psychology Press, 1998). He is engaged in cross-nationalresearch on meanings of pay, performance measurement (Pritchard), and leadership and organi-zation culture (House). He is member of various editorial boards, e.g. associate editor of AppliedPsychology: An International Review.

Nick Turner, The Institute of Work Psychology, The University of Sheffield, Mushroom Lane,Sheffield S10 2TN, U.K.

Nick Turner is a Ph.D. student at the Institute of Work Psychology, The University of Sheffield,U.K. He studied previously at Queens University, Canada, and WHU-Koblenz, Germany. As amember of Sharon Parkers UK research team, Nick is investigating how changes in work designaffect employee safety. In addition, he is learning how to teach, and is collaborating on projects todo with positive organizational psychology; the links between organizational practices, company

xvi About the Contributors

safety performance, and financial performance; the concept of safety role breadth; and relationshipsbetween moral development, perspective-taking, and transformational leadership

Prof. Dr Jaap J. van Muijen, LTP, Jozef Israelskade 46, NL-1072 SB Amsterdam, TheNetherlands.

Jaap van Muijen is senior consultant and member of the board at LTP (a middle-large con-sultancy firm in the Netherlands) and Lecturer at the Institute for Business Education, CastleZeist. He is an active researcher and consultant in the fields of organizational culture, leader-ship, commitment and motivation, team development, group performance, and, Human ResourceManagement. He is a member of the international research group FOCUS. This group consistsof researchers from twelve countries and the research topic concerns the influence of nationalcontext on organizational culture and management. He received his Ph.D. at the Vrije UniversiteitAmsterdam in 1994. He published several articles and books about organizational culture, leader-ship, Human Resource Management and psychological contract.

Dr Harrie F. J.M. van Tuijl, Department of Technology and Work, Faculty of Technology Man-agement, Eindhoven University of Technology, P.O. Box 513, NL-5600 MB Eindhoven, TheNetherlands.

Harrie van Tuijl has a Ph.D. in experimental psychology from Nijmegen University, TheNetherlands. He is an Associate professor in personnel management at Eindhoven Universityof Technology, Faculty of Technology Management, Department of Technology and Work. Dur-ing the past decade he has been involved in a number of applied research projects, both in profitand in not for profit organizations, on the design and implementation of feedback and goal settingsystems, based on the ProMES method. Implementing such productivity enhancement systemsoften requires a long term involvement of the researcher in the organization concerned, becausesupport has to be given in, among others, the areas of training and reward systems.

His main research interests are: productivity enhancement, organizational learning, groupproblem solving strategies, self managing teams, self-regulation, consistency between controlsystems. He has published several articles and book chapters on these topics.

Helma Verhagen, Fuji Photo Film B.V., Oudenstaart 1, P.O. box 90156, NL-5000 LJ Tilburg, TheNetherlands.

Helma Verhagen is senior staff officer Human Development within the department for personneland environmental affairs at Fuji Photo Film b.v. in Tilburg (The Netherlands). In this functionshe is responsible for activities and policy on the area of management development and com-munication. Before this she was senior consultant at the management consultancy firm SHL inthe Netherlands, specializing in assessment and development projects within organizations. Shestudied Work and Organizational Psychology at the Katholieke Universiteit Brabant (KUB) andgraduated in Personnel Psychology.

Brigitte Winkler, A47 Consulting, Corporate Development and Management Diagnostic,Agnesstrasse 47, D-80798 Munchen, Germany.

Brigitte Winkler is an international consultant for organizational development and managementdiagnostic in Munich, Germany. She studied psychology at the Technical University of Berlin andat the Ludwig-Maximilians-Universitat in Munich and subsequently worked at HypoVereinsbankin various Human Resources Management positions in Germany and the United Kingdom. In1998 she was promoted to Director of Human Resources Development, with responsibility forManagement Diagnostic and Management Development for the bank in Germany and its branchesand subsidiaries abroad. In this senior management function she was actively involved in themerger between Hypo-Bank and Vereinsbank and was responsible for designing and implementingnew procedures and tools for the selection and development of managers. At the end of 1999,together with two business partners, she set up her own consultancy firm-A47 consulting, corporatedevelopment and management diagnostic in Munich.

One of her main fields of interest is the practical application of theory. She teaches students ofPsychology how to apply this in a professional setting and regularly teaches industrial and organi-zational psychology at the Justus von Liebig University of Giessen, at the Ludwig-Maximilians-Universitat in Munich and at the Technical University in Munich. She is a certified supervisor andhas post-graduate qualifications in organisational development and behaviour therapy. Since 1993she has been a member of the Academy of Management.

Series Preface

Peter HerriotThe Empower Group

The dictionary definition of handbook runs as follows: A book of instruction or guidance, as for an occupation; a manual A guidebook for travellers A reference book in a particular field A scholarly book on a particular subject, often consisting of separate essays or articles.

These definitions are placed in the historical order of their appearance in the language.So the earliest use of a handbook was as a set of instructions which members of particularoccupations kept at hand in order to be able to refer to them when they were uncertain ofhow to tackle a problem at work. The most recent definition, by way of contrast, refersto a scholarly book consisting of separate essays or articles.

It is the modest ambition of the Wiley Handbooks in the Psychology of Managementin Organizations to reverse the course of (linguistic) history! We want to get back tothe idea of handbooks as resources to which members of occupations can refer in orderto get help in addressing the problems they face. The occupational members primarilyinvolved here are work and organizational psychologists, human resource managers andprofessionals, and organizational managers in general. And the problems they face arethose that force themselves with ever greater urgency upon public and private sectororganizations alike: issues such as how to manage employees performance effectively;how to facilitate learning in organizations; how to benefit from a diversity of employees;and how to manage organizational change so that staff are engaged and supported.

Now the claim to provide something useful for professionals, rather than a set ofscholarly articles, is a bold one. What is required if such a claim is to be justified? First,practising professionals need a clear theoretical basis from which to analyse the issuesthey face, and upon which to base their solutions. Practice without underpinning theoryis merely applying what has worked in some situations to other ones without knowingwhy, and hoping they will work there too. This is blind empiricism.

Theory without practice, on the other hand, is mere indulgence. It is indulgent becausetheories in applied science can never be properly tested except by application, that is,their attempted use in solving problems in the real world. A handbook in the originalsense of the word will therefore contain elements of practice as well as statements oftheory. The Wiley Handbooks in the Psychology of Management in Organizations seek todemonstrate by descriptions of case studies, methods of intervention, and instruments ofassessment, how theory may be applied in practice to address real organizational issues.

It is clear that Work and Organizational Psychology is a core discipline for addressingsuch issues as those listed above, for they all depend for their solution upon an understand-ing of individuals behaviour at work, and of the likely effects of various organisational

xviii Series Preface

interventions upon the stakeholders involved. These latter include employees, customers,shareholders, suppliers, and the wider community (2).

The success criterion for these handbooks, then, is a simple one: Will professionalsfind them useful in their practice? If they also help in the development of apprenticeprofessionals-for example, by being used on training courses-then so much the better.The field of Work and Organisational Psychology is currently at risk from a failure tointegrate theory and practice (3). Theory and research often seem to practitioners toaddress issues of interest only to academics; and practice appears to academics to lackcareful empirical, let alone theoretical, underpinning. These handbooks will help tobridge this divide, and thereby justify the title of Handbook.

What is clear is that if we psychologists fail to impact upon the urgent issues whichcurrently crowd in upon organisations, then those who claim to address them better orfaster will gain power and influence. This will happen even if their solutions offer littlelonger-term benefit to clients. The Wiley Handbooks in the Psychology of Management inOrganisations provide a resource to help professionals serve their clients more effectively.

This first handbook first in the series is edited by Sabine Sonnentag, and addresses apressing management issue. When commercial competitiveness or government fundingdepend upon continuous improvements in efficiency and productivity, how can Workand Organisational Psychology help manage employees performance so as to achievethem? The international contributors tackle such knotty problems as how to maximiseindividuals capabilities by designing work in appropriate ways; how best to assess andreview performance; how to utilise training and mentoring to enhance performance;how to design reward systems which lead to improved performance; how to persuadeeveryone in an organisation that performance is a fundamentally important issue; andhow to help employees to better manage their own performance. These are the keyquestions in the field; and academics and practitioners have collaborated to provide acontemporary, stimulating, and above all useful set of answers.

REFERENCES

1. The Random House Dictionary of the English Language (2nd edn.) (1987). New York: RandomHouse.

2. Hodgkinson, G. P., & Herriot, P. (2002) The role of psychologists in enhancing organisationaleffectiveness. In I. Robertson, M. Callinan, & D. Bartram (Eds.), The Role of IndividualPerformance in Organisational Effectiveness. Chichester: Wiley.

3. Anderson, N., Herriot, P., & Hodgkinson, G. P. (2001) The practitionerresearcher divide inIndustrial, Work, and Organisational (IWO) Psychology: Where are we now, and where dowe go from here? Journal of Occupational and Organisational Psychology (in press).

Preface

Individual performance is one of the key variables that work and organizational psy-chologists want to explain and predict in their research. Similarly, many interventiontechniques and programs implemented within organizations aim at the improvementof individual performance. Unfortunately, topics and interventions that are relevant forindividual performance are often scattered in various domains and discussed in isola-tion. This volume aims at an overview of issues relevant for individual performance intodays work organizations and summarizes psychological knowledge about individualperformance at work. The book presents both research findings and practical applicationswithin organizations and covers topics such as performance concepts and predictors forwork performance, performance assessment methods, interventions for enhancing per-formance, and approaches for ensuring performance in a wider organizational context.

To compete in a global economy, organizations continue to undergo fundamentalchanges. We are witnessing developments toward learning organizations characterizedby constant change processes and high degrees of flexibility. As illustrated by many ofthe chapters in this volume, these developments have implications for the management ofindividual performance. For example, broader role definitions emerging from these recentdevelopments cause changes in what is meant by good performance. The predictionof an individuals future performance in a job he or she has never done before becomesa major challenge. To help individuals to cope with the changing work requirements, itbecomes increasingly important that organizations invest in training and comprehensiveapproaches to human resource management.

This volumes aims at a close link between academic research and practical imple-mentation. Therefore, it follows a specific design: with the exception of the first chap-ter, which discusses performance concepts and theory, two chapters are devoted to eachtopic. In this dyadic design, one chapter adopts the more academic perspective, while theother addresses the topic from a practitioners point of view. More specifically, the authorsof the academic chapters clarify concepts, describe models and theories; they summarizeevidence from empirical research, develop and refine models on individual performancealso suggest directions for future research. The authors who focus on the practitionersperspective describe how todays organizations address the performance issue; presentconcepts and programs pursued in organizations, illustrate approaches in case studies,report from implementation experiences in organizations, and give guidelines on howto put specific approaches into practice. Although, the two perspectives often comple-ment each other, the readers may occasionally detect some friction or even contradictorystatements, which clearly shows that there is a need for an intensification of the de-bate between the academics and the practitioners. I hope, therefore, that this volumeprovides valuable input for this debate.

The volume comprises four parts. Each part addresses specific questions that aca-demics and practitioners will face when dealing with individual performance at work.

xx Preface

Part I refers to such questions as What do we mean by performance? and What are thefactors contributing to good individual performance?. Chapters in Part I focus on per-formance concepts and theory, and discuss major predictors of performance, particularlyperson predictors and workplace predictors. The academic chapter by Sabine Sonnentagand Michael Frese offers an introduction into contemporary performance research. Itpresents core performance concepts, distinguishes three major research perspectives onperformance (namely an individual differences perspective, a situational perspective,and a performance regulation perspective) and discusses how recent developments inorganizations may affect performance concepts and performance-related research.

In their academic chapter on person predictors of performance, Ruth Kanfer and TracyKantrowitz provide a review on ability and non-ability predictors of performance. The au-thors summarize empirical evidence from research which shows that both general cogni-tive ability and personality variablesparticularly conscientiousness and extraversioncontribute to the prediction of job performance. They evaluate progress and problemsof this research area and discuss prospects for future research. Particularly, they arguethat more theoretical work is highly needed in order to improve our understanding ofthe relationship between the examined predictor variables and job performance. JurgenDeller, Fred Oswald, and Ulrich Schoop discuss person predictors of performance froma practitioners perspective. They adopt a broader view and describe the selection pro-cedure for a management development program of a large information service division.In their chapter, they illustrate the use of a personality questionnaire within a broader,multi-method selection and development procedure.

Sharon Parker and Nick Turner present an academic view on the importance of workdesign for individual performance. They summarize past research findings and propose amodel on the linkages between work design and individual performance. They describevarious mechanisms by which work design may affect performance and argue that bothindividual-level and organization-level factors might have a moderating effect on thework designperformance relationship. Oliver Strohm turns to the practical side of workdesign and describes job design principles based on the sociotechnical systems approachand action theory. He argues that the job (re-)design process is crucial for the successof any job design intervention. In two case studies, Oliver Strohm illustrates how toredesign jobs and how to conduct the change process.

Part II of this volume is devoted to the question: How can we measure performance?It presents perspectives on how to assess individual performance within a performance ap-praisal procedure and how to assess potential in order to predict future performance. CliveFletcher approaches performance appraisal from an academic perspective and focuses onthe role of motivation, personality, and interpersonal relationships in appraisalissuesthat have been neglected in past performance appraisal research. Specifically, he exam-ines how the appraiser, the appraisee, and their relationship impact the appraisal processinteraction and ultimately the appraisal outcome. Gesa Drewes and Bernd Runde offerpractical advice of how to design performance appraisal procedures within organizations.They discuss the various goals of performance appraisal systems, describe appraisalmethods, and give suggestions on how to implement a performance appraisal systemwithin an organization. They pay particular attention to 360-degree feedback and high-light specific success factors for both the 360-degree feedback approach and performanceappraisal systems in general.

Preface xxi

Besides the assessment of past and present performance, organizations are highlyinterested in measuring performance potential and in predicting future performance.Daniela Lohaus and Martin Kleinmanns chapter deals with the assessment of perfor-mance potential from an academic perspective, putting great emphasis on conceptualand methodological issues. Additionally, they provide an overview of potential analy-sis methods and particularly focus on assessment centers. Wieby Altink and HelmaVerhagen approach the issues of potential assessment from a more practice-orientedperspective. They link their description of what constitutes potential to a broader dis-cussion of recent and future developments in work and organizational contexts. Theypresent methods of how to measure potential and give an overview of approaches thataim at the development of potential. They illustrate the implementation of potentialassessment and development with a case study of a large production company.

Part III centers around the crucial question. How can we improve performance?Contributors to this part suggest answers in five areas: goal setting and feedback inter-ventions; training; mentoring; pay and reward systems; and a broader human researchmanagement. For many years goal-setting theory has been one of the most powerfulapproaches for improving performance. In their academic chapter Gary Latham, EdwinLocke, and Neil Fassina examine whether the High Performance Cycle developed ear-lier by Locke and Latham is standing the test of time. Their review of recent empiricalresearch on goal setting shows substantial support for the High Performance Cycle.Moreover, this chapter demonstrates how goal-setting research has made progress duringthe last decade. Jen Algera, Ad Kleingeld, and Harrie van Tuijl discuss how goal settingand feedback intervention can be put into practice. Basically, they argue that long-termimplementation of goal setting in organizational practice creates specific difficulties thatare often overlooked in goal-setting research. By referring to case experiences they de-velop specific guidelines on how to introduce goal setting and feedback interventions inorganizations and how to make them a sustained success.

In their academic chapter on training, Beryl Hesketh and Karolina Ivancic addressthe question of how to design training interventions that meet organizations need for ahighly skilled, expert-like workforce. By drawing on literature from expertise research,and cognitive and organizational psychology, they describe (transfer of) training needsanalysis, training design principles, training methods, and organizational issues whichimpact training as well as evaluation issues. Brigitte Winkler approaches the trainingprocess from a practitioners perspective and describes the core steps within the de-velopment and implementation of training programs. She presents detailed examplesfrom an introductory-level leadership training within a large organization and providesspecific guidelines for putting training programs into practice.

Terri Scandura and Betti Hamilton, as well as Jim Clawson and Douglas Newburg,focus on mentoring and its relationship to individual performance. In their academicchapter, Terri Scandura and Betti Hamilton provide a review of the empirical litera-ture on mentoring and describe the benefits that mentoring can have for the protege,the mentor, and the organization. They suggest that mentoring has a positive effect onvarious performance indicators, including learning and innovation. Jim Clawson andDouglas Newburg continue on the practical side of mentoring, specifically describinghow to design a mentoring program and commenting on some typical problems thatone might confront when putting such a program into practice. They describe a specific

xxii Preface

non-traditional approach to mentoring which was successfully implemented in thesurgery department of a university medical center.

In his academic chapter, Henk Thierry adresses the question whether and how payand rewards systems enhance individual performance. He gives an extensive overview ofvarious theoretical approaches and subsequently summarizes empirical evidence fromolder and more recent studies. His review of the literature shows that somebut notalltypes of pay-for-performance implementations have a positive effect on individualperformance. Harrie van Tuijl, Ad Kleingeld, Jen Algera, and Marielle Rutten present twocase studies on performance improvement through pay and reward systems. Specifically,they provide a detailed description of the Productivity Measurement and EnhancementSystem (ProMES). On the basis of two case studies, they illustrate how this systemworks in organizational practice. They demonstrate how to design and implement sucha system and how to overcome its potential pitfalls.

In addition to the chapters that are devoted to specific topics and approaches of perfor-mance enhancement, an academic and a practice chapter on Human Resource Manage-ment (HRM) offer a more detailed picture. More specifically these chapters point out whyand how organizations should aim toward integrating the various specific performanceenhancement approaches. Susan Jackson and Randall Schuler suggest a strategic per-spective for managing individual performance and, in their academic chapter, specifythe conditions HRM systems must meet in order to ensure high individual and organiza-tional performance. They argue that a HRM system must not only address the concernsof multiple stakeholder, but it must also (a) be linked to the organizations businessstrategy, (b) be designed as an integrated and coherent system, and (c) be continuouslymonitored, evaluated, and revised. In her practice chapter, Sabine Remdisch providesa case description of a modern HRM system and its relevance for performance. Shepresents a large automobile manufacturers principles for HRM in a learning organiza-tion. She describes the role of the HRM department, discusses specific HRM productsand services, and suggests some guidelines on how to overcome barriers on the way tobecoming a learning organization.

Part IV broadens the view and provides answers to the question: What contextualfactors affect performance? Specifically, contributors address issues such as individualwell-being and organizational culture. In her academic chapter, Sabine Sonnentag linksresearch on individual performance to research on work-related well-being. She discussesif and how well-being and performance are empirically related and argues, particularly,that self-regulation might account for such a relationship. She suggests some researchquestions to be addressed in the future. Rendel de Jong addresses the practical side ofthe well-beingperformance interface. He presents an overview of individual-level andorganization-level approaches to stress management and their impact on individual well-being and performance. In a short case description Rendel de Jong provides an exampleof how to implement an individually tailored stress management intervention which aimsat the improvement of both well-being and performance.

The academic chapter by Paul Tesluk, David Hofmann, and Narda Quigley dealswith the linkage between organizational culture and individual outcomes. The authorsdevelop a framework in which they integrate macro-level and micro-level organizationalresearch. They describe the mechanisms through which organizational culture is linkedto individual performance and organizational effectiveness. Additionally, they describespecific patterns of cultural dimensions which are related to high performance. Jaap

Preface xxiii

van Muijen approaches organizational culture from a practitioners point of view. Hedescribes a merger situation from his experience as a consultant and discusses howthis merger affected organizational culture. He points out how an organization maywork toward a change in culture and how it may improve performance through thisculture change. More specifically, he explains that the choice for a specific organizationalculture has implications for the approaches through which high individual performanceis achieved.

Sabine Sonnentag

Part I

Performance: Concept, Theory,and Predictors

Chapter 1

Performance Conceptsand Performance Theory

Sabine SonnentagTechnical University of Braunschweig, Braunschweig, Germany, and

Michael FreseUniversity of Giessen, Giessen, Germany

INTRODUCTION 4RELEVANCE OF INDIVIDUAL PERFORMANCE 4DEFINITION OF PERFORMANCE 5PERFORMANCE AS A MULTI-DIMENSIONALCONCEPT 6

TASK PERFORMANCE 6CONTEXTUAL PERFORMANCE 6RELATIONSHIP BETWEEN TASK AND CONTEXTUALPERFORMANCE 7

PERFORMANCE AS A DYNAMIC CONCEPT 7PERSPECTIVES ON PERFORMANCE 8

INDIVIDUAL DIFFERENCES PERSPECTIVE 8SITUATIONAL PERSPECTIVE 11

PERFORMANCE REGULATION PERSPECTIVE 13RELATIONSHIPS AMONG THE VARIOUS PERSPECTIVES 15

PERFORMANCE IN A CHANGING WORLDOF WORK 15

CONTINUOUS LEARNING 15PROACTIVITY 16WORKING IN TEAMS 17GLOBALIZATION 17TECHNOLOGY 18

CONCLUSION 18NOTES 19REFERENCES 19

SUMMARYThis chapter gives an overview of research on individual performance. Individual per-formance is highly important for an organization as a whole and for the individualsworking in it. Performance comprises both a behavioral and an outcome aspect. It is amulti-dimensional and dynamic concept. This chapter presents three perspectives onperformance: an individual differences perspective with a focus on individual charac-teristics as sources for variation in performance; a situational perspective with a focuson situational aspects as facilitators and impediments for performance; and a perfor-mance regulation perspective with a focus on the performance process. The chapterdescribes how current changes in the nature of work such as the focus on continuouslearning and proactivity, increase in team work, improved technology, and trends to-ward globalization have an impact on the performance concept and future performanceresearch.

Psychological Management of Individual Performance. Edited by Sabine Sonnentag.C 2002 John Wiley & Sons, Ltd.

4 performance concepts and performance theory

INTRODUCTION

Individual performance is a core concept within work and organizational psychology.During the past 10 or 15 years, researchers have made progress in clarifying and extend-ing the performance concept (Campbell, 1990). Moreover, advances have been madein specifying major predictors and processes associated with individual performance.With the ongoing changes that we are witnessing within organizations today, the perfor-mance concepts and performance requirements are undergoing changes as well (Ilgen &Pulakos, 1999).

In this chapter, we summarize the major lines within performance-related research.With this overview we want to contribute to an integration of the scattered field ofperformance-related research. First, we briefly discuss the relevance of individual per-formance both for individuals and organizations. We provide a definition of performanceand describe its multi-dimensional and dynamic nature. Subsequently, we present threedifferent perspectives on performance: the individual differences perspective, the situ-ational perspective, and the performance regulation perspective. Finally, we summarizecurrent trends in the nature of work and discuss how these trends may affect the perfor-mance concept as well as broader performance research and management.

RELEVANCE OF INDIVIDUAL PERFORMANCE

Organizations need highly performing individuals in order to meet their goals, to de-liver the products and services they specialized in, and finally to achieve competitiveadvantage. Performance is also important for the individual. Accomplishing tasks andperforming at a high level can be a source of satisfaction, with feelings of mastery andpride. Low performance and not achieving the goals might be experienced as dissatisfy-ing or even as a personal failure. Moreover, performanceif it is recognized by otherswithin the organizationis often rewarded by financial and other benefits. Performance isa majoralthough not the onlyprerequisite for future career development and successin the labor market. Although there might be exceptions, high performers get promotedmore easily within an organization and generally have better career opportunities thanlow performers (VanScotter, Motowidlo, & Cross, 2000).

The high relevance of individual performance is also reflected in work and organiza-tional psychological research. To get a clearer picture about the importance of individualperformance in empirical research we conducted a literature search in the twelve of themajor work and organizational psychology journals.1 These journals cover a broad rangeof individual, group-level and organizational-level phenomena. Based on this literaturesearch we located a total number of 146 meta-analyses within the past 20 years. Amongthese meta-analyses, about a half (54.8%) addressed individual performance as a coreconstruct.2 In the majority of these meta-analyses, individual performance was the de-pendent variable or outcome measure (72.5%). In about 6% of those meta-analyses thatincluded individual performance measures, individual performance was the independentor predictor variable. Twenty-one per cent of the meta-analyses addressed performanceappraisal and performance measurement issues.

The widespread use of individual performance measures in single studies and meta-analyses shows that individual performance is a key variable in work and organizational