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Chapter 14
Implementing Situational Leadership®: Managing Performance
Chapter Overview
This chapter builds upon significant aspects of Situational Leadership® and bottom-line
approaches to managing people to perform. The focus of these final chapters is to review
Chapter Learning Objectives
After studying this chapter, each student should be able to:
1. Discuss the factors that create organizational performance
Key Terms and Concepts
Organizational Performance
Organizational performance is a product of many factors identified by the Satellite
Model, which include: organizational structure, knowledge, nonhuman resources,
strategic positioning, and human process. Key to the model is an understanding of the
terms strategy and performance.
• Strategy is a broad, integrated plan of action to accomplish organizational goals.
• Performance is defined as achieving or surpassing business and social objectives
and responsibilities from the perspective of the judging party.
All of the factors are interrelated because the strategy is an integrative plan, and they all
contribute to performance. The primary focus of this book is the human resources, both in
goal that is defined by standards.
• Means: Having the necessary resources to accomplish the goal successfully.
Improving Productivity (and Quality)
Productivity is the ratio of the output of goods and services divided by the input or
resources used to produce those goods and services. Productivity can be improved by
increasing the output, decreasing the input, or both.
360-Degree Assessment Process
Also referred to as a multi-source or multi-rater tool, the 360-degree assessment is a full-
The ACHIEVE Model
Presented in Chapter 4, the ACHIEVE model was designed to assist managers to do more
than just identify what performance problems exist. The model isolates seven factors that
influence the effectiveness of the follower’s performance: ability, clarity, help, incentive,
evaluation, validity, and environment.
Ability (Knowledge and Skills)
Performance Management
Performance management integrates the ACHIEVE model and the Situational
Leadership® concept. The three steps to implementing performance management are
performance planning, coaching to both reinforce performance plans and develop
followers, and conducting the formal performance review.
Performance planning involves setting objectives and directions for followers at
the beginning of a planning period and developing plans for achieving those
objectives. Situational Leadership® contends that managers should involve
Suggested Teaching Approaches
Upon completion of this chapter, students should have a good understanding of what
drives performance. As an in-class exercise, discuss how the seven factors of
performance have either promoted or stunted performance in their own experiences.
Activities
The written case study for this chapter focuses on how to get employees to comply with
Exam Questions
1. Discuss the seven factors of performance.
Answer:
The seven factors of performance are: goals, standards, feedback, means,
competence, motive, and opportunity.
2. Explain the three steps to implementing performance management.
Answer:
The three steps to implementing performance management are performance
planning, coaching to both reinforce performance plans and develop followers,
3. What are some pros and cons to 360-degree feedback?
Answer:
Pros:
• Feedback lessons discrimination
• Bias in evaluations is decreased
