HOW TO LINK HUMAN

RESOURCE DEVELOPMENT

TO ORGANIZATIONAL

NEEDS

Building an integrated performance

development system

John Keller

Produced and copyrighted by John Keller Associates, © 2008

9705 Waters Meet Drive, Tallahassee, FL 32312, USA

Originally produced by John Keller in collaboration with Zachary Zaharias and

John Douglas, 1994, for the Federal Aviation Administration, Assistant

Administrator for Human Resource Management, Washington, D.C. 20591

FOREWORD

For the human resource development groups within an organization to provide maximum value-added to the

organization’s mission, their work must be integrated with organizational requirements and goals. This

requires that combinations of services and solutions be offered to achieve the highest possible levels of

effectiveness and efficiency.

This booklet contains a process that can help achieve this integration by linking human resource services

directly with organizational needs. This approach, which is called the performance development process, or

in other words, human performance techology, helps you identify the most effective combination of human

resource services to achieve organizational goals. It is a new approach that is based in systems thinking and

it contributes to the development of a learning organization. By following this process you will improve

your effectiveness and do so in less time. The process has several steps and substeps, espeically in the

analysis phase. All of these steps are important. By following all of the early steps in the process, you save a

great deal of time and wasted effort in the solution phase. Keep in mind that the early steps which call for

different levels of needs assessment can often be accomplished in a few hours. We are not talking about

lengthy, large-scale studies unless there is a strong justification for doing so.

Portions of the processes described in the document were adapted from human performance technology

documents produced by the International Society for Performance Improvement and Marc Rosenberg.

CONTENTS

The Performance Development System 1

Elements of the PDS 3

Performance Analysis 3

Causal Analysis 5

HR Solutions 6

Implementation and Evaluation 7

Comparing PDS and traditional HR approaches 8

Benefits of the PDS for the FAA 11

Application of the PDS Model 12

The PDS Model 13

Phase 1 - Performance Analysis 13

Step 1: Identify Organizational Needs 14

Step 2: Assess Performance Needs 17

Phase 2 - Causal Analysis 20

Step 3: Identify the symptoms 20

Step 4: Analyze the causes 22

Phase 3 - Determining HR Solutions 25

Step 5: Develop Solutions 25

Step 6: Implement the Solution 28

Step 7: Evaluate for Continuous Improvement 29

Bibliography 33

1

THE PERFORMANCE DEVELOPMENT SYSTEM

Introduction Competency and productivity are essential for organizational success in the

1990s. A key ingredient for such success is human capital, and investing in our

human capital will be critical for organizational survival.

Today we live in a globally competitive environment and the economic reality

for the FAA is that our budgetary slice will not get bigger. Government

organizations will be required to become more cost efficient with the adoption of

a more “business” oriented approach.

Throughout the world, organizations that are at the forefront of effectiveness and

competitiveness constantly seek to:

• improve the productivity of their people,

• identify their needs in terms of the gap between ideal performance and

current performance,

• focus on results and continuous improvement,

• integrate human resources with new technologies, and

• motivate their workforce to higher levels of quality.

Although training, development, and other human resource (HR) services are

critical to increasing competence, meeting the educational challenge is just part

of the answer. An effective human resource system must focus on the broader

issues of improving performance by integrating human resource solutions with

organizational needs and priorities.

Overview The purpose of this publication is to introduce the concept of a performance

development system (PDS) and the PDS model. This familiarization includes:

• an introductory section on what PDS is and why performance development

is critical to organizational success;

• a comparison of PDS and traditional approaches in HR organizations,

highlighting the benefits of adopting PDS; and

• an outline of the major phases and steps of the PDS model: Performance

Analysis, Causal Analysis, and the provision of HR Solutions.

2

What is it? The performance development system (PDS) is a set of strategies and procedures

for solving problems and realizing opportunities related to the performance of

people. It can be applied to individuals, small groups, and large organizations. It

is a systematic combination of three fundamental processes: performance

analysis, causal analysis, and human resource (HR) solutions. It also includes

evaluation of the HR solutions to provide for continuous improvement, ensuring

that we strive for the quality edge.

IMPLEMENTATION

Performance Development System

PerformanceAnalysis

CausalAnalysis

HR Solutions

Evaluation for ContinuousImprovement

Organizational Mission, Business Goals,Strategy, and Operational Requirements

INPUT

OUTPUT

Enhanced humanperformance

3

ELEMENTS OF THE PDS

Performance Analysis The PDS approach begins with performance analysis based on the organization’s

mission, goals, strategies, and operational require-ments. Performance analysis is

the identification of current or anticipated deficiencies, or “gaps”, in workforce

performance. To define the gaps accurately, you must relate them to

organizational requirements. Therefore, the first step of the PDS process is to

identify these requirements. Normally this is done with existing documents or

personal interviews.

Central to the performance analysis process is the comparison of two specific

descriptions of the workforce. First, the “desired state” describes the

competencies and abilities of the workforce that are necessary to achieve the

organization’s mission. Second, the “actual state” describes the level of

workforce performance as it currently exists. The performance gap is the

difference between these two, and it represents either a current performance

discrepancy to be resolved or an opportunity for new performance. The

ultimate goal is to close this gap in the most cost effective manner.

Current state of

workforce

performance

Desired state of

workforce

performance

Current performance

discrepancy

Opportunities for new

performance

Performance Analysis

PERFORMANCE

GAP

For example, a current performance discrepancy could be as follows:

4

An agency’s strategy calls for managers to use project management software in

planning and carrying out agency projects. This is the desired state. However, a

survey has revealed the actual state of the agency is that only 30% of the

managers use project management software. While all managers have

computers and access to networked project management software, the gap

between the desired and the actual state is that 70% of the managers do not use

the software.

A gap caused by a new opportunity could be as follows:

An agency will begin next year to use a new video conferencing technology to

conduct meetings and training sessions for geographically dispersed personnel.

The desired state is that managers and specialists reduce travel by 50% by using

the new technology for meetings. Another desired state is that as many training

sessions as possible be held using the new technology. Management wishes to

reduce travel costs for training as much as possible. However, none of the

employees has ever participated in, let alone conducted, video conferencing

sessions. The gap is a lack of expertise in using the new video conferencing

system. It is based on the opportunity provided by the new technology, not on a

failure to perform to current standards.

Causal Analysis Determining the specific factors or “causes” that contribute to the performance

gap is called Causal Analysis. Often solutions to performance gaps fail to

achieve their intended goals because they are selected to treat only visible

symptoms rather than underlying causes. However, when root causes of a

problem are uncovered, the likelihood of significantly reducing or eliminating

problems is greatly enhanced. Thus, causal analysis is the critical link between

identified performance gaps and the appropriate solutions, and is a major

strength of the PDS approach.

In the project management software example above, managers may cite lack of

training, and environmental problems such as lack of time and proper manuals

for not using the software. However, a causal analysis may reveal that the root

cause of the problem is a combination of training and motivation, not training

and environment. The real problem is that even though the managers do not have

all the skills they need, but they are not using the ones they do have because they

feel it is not worth the trouble.

5

?Skills and knowledge

?Environment

?Individual capacity

?Motives and expectations

?Leadership and management

?Consequences, incentives &

rewards

?Motives and expectations

?Information and feedback

?Tools

Causal Analysis

PerformanceAnalysis

HR Solutions

HR Solutions In large organizations like the FAA, performance improvement solutions are

drawn from an extensive array of human resource functions such as training and

development, organizational design, selection, compensation, and benefits.

These functions can be divided into four major areas (based on Rosenberg,

1990):

• Human resources development is concerned with improving the

performance of individuals. It includes training, development, job aids,

career development strategies, and individual feedback systems.

• Organizational development is concerned with improving the

performance of groups. It includes organizational design, group process,

culture change, team building, and group feedback systems.

• Human resources management is concerned with managing the

performance of individuals and groups. It includes leadership,

compensation, benefits, employee relations, succession planning, job design,

incentives and rewards, and personnel selection.

• Environmental engineering attempts to provide the tools and facilities

that support improved performance. It includes ergonomics, facilities

design, sociotechnical systems design, documentation, technology, and

information systems.

6

Human Resources

Management

Organizational

Development

Environmental

Engineering

Human Resources

Development

HR Solutions

CausalAnalysis

In a PDS approach, the focus is on systematic, comprehensive, and integrated

responses to current performance discrepancies and their causes, as well as to

new performance opportunities. More often than not, the response is a

combination of solutions representing a multifaceted approach to improving

performance. Solution selection is based on effectiveness, cost-efficiency, and

overall benefit to the organization. Evaluation of success is directly tied to

reduction of the original performance gap, which is measured in terms of

performance improvement and organizational results.

7

Implementation and Often, comprehensive solutions are required to make significant

Evaluation changes throughout the organization. For example, the adoption of a new

process, such as the systems approach to training development, typically requires

training in new skills, motivation to support the adoption of the new process, and

job redesign to modify roles in support of the new process. Thus, the

implementation strategy of any performance intervention must pay careful

consideration to change management issues to assure acceptance at all

organizational levels. Evaluation of these changes provides new data for the

ongoing performance analysis process.

IMPLEMENTATION

PerformanceAnalysis Causal Analysis HR Solutions

Evaluation for ContinuousImprovement

Three Principles There are three underlying principles of performance development:

• Performance rarely improves by itself.

• Once deteriorated, performance becomes increasingly resistant to

improvement.

• Performance will only stay improved if there is support from the

performance development system.

Since the organization must work at improving and maintaining performance, a

performance development system must be the centerpiece of an organization’s

human resource effort if it is to maintain its effectiveness in the long run.

8

COMPARING PDS AND TRADITIONAL HR APPROACHES

As mentioned earlier, many organizations maintain extensive human resource

functions that are essential to their successful operation. The adoption of a

systematic PDS across the organization will provide a value-added benefit to

each of the various HR services. This will result from the development of

integrated solutions in response to real needs.

A comparison of traditional human resource functions and the PDS is

illuminating. Some of the characteristic differences are:

TRADITIONAL HR PD SYSTEM

A

P

P

R

O

A

C

H

• Internally derived business plans drive HR

activities.

• Compartmentalized HR functions work in

isolation from each other and have minimal

impact on the organization.

• Often inwardly focused on their narrow area of

responsibility.

• Priority is placed on process improvement (by

doing the thing right) .

• Organizational missions provide PDS strategy.

• Promotes alignment of people, programs, and

policies.

• Highlights integrated links within HR and

provides an organizational focus for greater

effectiveness.

• In taking a holistic approach PDS promotes

interservice cooperation in tackling

performance challenges.

• Priority is placed on organizational results and

impact by doing the right things before trying

to do things better.

P

R

O

B

L

E

M

S

O

L

V

I

N

G

• HR functions reacting to organizational

problems in isolation, often provide piecemeal

"quick fix" solutions.

• The approach to solving problems is often

superficial (aimed at the symptoms) and based

on "gut feeling".

• Through fixed thinking, solutions tend to

predictably follow a single track, e.g. training.

• Solutions are often poorly implemented and

their effectiveness is rarely measured.

• The PDS is both responsive to organizational

problems and proactive in seeking

opportunities to improve performance.

• A systematic process for identifying root

causes of gaps is conducted before identifying

solutions.

• Generates multiple solutions (integrates

training and non-training solutions).

• Solutions follow an implementation plan and

being result-driven, are evaluated and

continuously improved.

Historically, functions within organizations that influence human performance

have operated rather independently, each providing its own set of solutions to its

perception of the organization's performance challenges. Traditionally, the HR

9

organizations tend to be wrongly viewed as support functions that are separate

and subordinate entities from the higher profile operations side of an

organization.

For HR to maximally contribute to an organization’s mission, it must be a true

partner with operations. For example, HR programs that provide the greatest

return on investment are those that are linked with organizational requirements.

The PDS provides this link between HR functions and the organizational

mission, business goals, strategy, and operational requirements through an

integrated approach to workers, work, and the workplace.

The following diagram illustrates how the various HR functions can be

integrated in support of both individual and organizational performance.

10

? Educat ion & t raining

? Development

? Job aids

? Career sys tems

? Individual feedback syst ems

Hum an Resources

Development

? Organizat ional des ign

? Group process

? Culture change

? Team building

? Group feedback syst ems

Organizational

Development

? Ergonomics

? Faci li ti es des ign

? Expert sys t ems

? Documentation

? Technology

? Informat ion sys tems

Environmental

Engineering

? Supervis ion & l eadership

? Compensation pl anning

? Employee l abor & rel at ions

? Succession planning

? Benefit s

? P ersonnel selection

? Incentives & rew ards

Hum an Resources

Management

PDS

?Organizational Mission ?Business Goals?Strategy ?Operational Requirements

11

BENEFITS OF THE PDS FOR THE FAA

A primary benefit of PDS is that it helps integrate HR more strongly into the

organization’s mission and strategic plan. Traditional HR practices are

sometimes fragmented and not sufficiently related to mission accomplishment.

PDS can provide the means to better integrate operational and organizational

goals.

However, even though PDS seems to many people to be a good idea, they

wonder about its feasibility. As Pogo said:

"We seem to be faced with an insurmountableopportunity."

- quote from a "Pogo" comic strip.

In the FAA, the opportunity for performance improvement through PDS is not

insurmountable. Adopting the PDS approach in any organization will provide

greater efficiencies and effectiveness by:

• focusing effort and planning on organizational needs and goals,

• aligning and prioritizing all activities based on the organization's critical

requirements,

• emphasizing doing the right job before doing the job right,

• insisting on measurable results and continuous improvement in performance

to meet the needs, and

• increasing responsiveness to challenges and recognizing opportunities for

further improvement.

"Flawless execution cannot compensate forimplementing the wrong solution."

- Daryl Conner, Pres. of ODR, Atlanta.

12

APPLICATION OF THE PDS MODEL

The PDS model includes three major phases: Performance Analysis, Causal

Analysis, and application of HR Solutions. Within each phase there are a number

of steps to accomplishment as outlined below:

Phase One - Performance Analysis

STEP 1: Identify organizational needs

STEP 2: Assess performance needs

Phase Two - Causal Analysis

STEP 3: Identify the symptom(s)

STEP 4: Analyze the cause(s)

Phase Three - HR Solutions

STEP 5: Generate solutions

STEP 6: Implement solutions

STEP 7: Evaluate for continuous

improvement

These stages are further illustrated in the diagram on the next page.

13

PHASE 1 - PERFORMANCE ANALYSIS

PHASE 1 - Performance Analysis

Step 1 - Identify Organizational Needs

1.1 - Identify the desired organizational state

1.2 - Identify the actual state of the organization

1.3 - Identify the gaps (needs)

1.4 - Sort and prioritize the gaps (needs)

Step 2 - Assess Performance Needs

2.1 - Determ ine the ideal workforce perform ance

2.2 - Determ ine the actual workforce performance

2.3 - Identify the performance gaps

2.4 - Prioritize the performance gaps

Both Steps 1 and 2 use needs assessment techniques, but at different levels of

application. A needs assessment is the process of identifying needs based on the

gaps between where the organization is now and where it would like to be. It is a

powerful tool that not only allows an organization to reduce or eliminate

performance problems, but also to identify opportunities for ways to move

closer to its vision.

Performance analysis consists primarily of needs assessment conducted at one or

both of two levels: the organizational performance level (Step 1) and the

individual performance level (Step 2).

Analysis at the organizational level (Step 1) usually consists of identifying

organizational requirements by reviewing documents or interviewing one or two

key people. If this information is not available, then you have two choices:

propose that an organizational analysis be conducted, or make a “best guess”

based on the information that is available.

If gaps in workforce performance are closed without first considering desired

organizational goals, then the organization may make only superficial short-term

gains. Real gains will be made only when performance improves in line with

desired organizational goals. In other words, the primary concern is, Are we

doing the right things?, and the secondary concern is, Are we doing things

right?

14

Because the results of this step influence all subsequent steps, it is critical to get

the best information you can in the time you have.

STEP 1 Identify Organizational Needs

Typically organizational problems are presented by management as an

undesirable performance currently occurring in the workplace, and the statement

of the problem will be accompanied by a request for a given solution.

Example. You receive a request for a course for employees that covers personal

motivation in conjunction with the organization’s expectations concerning

attendance at work, adherence to personnel policies and procedures pertaining to

career planning, vacation planning, and other aspects of employee behavior. The

rationale provided for the request is that employee morale is low as evidenced by

the increasing rate of absenteeism and a growing number of grievances that are

being filed. As you read this request, you wonder if it is an employee problem, or

if it is more likely to be a supervisory problem resulting from deficiencies in

supervisory performance.

Therefore, you decide to use the PDS process to identify the real problem and

best solution. This will allow you to confirm the correctness of the request you

received, or to recommend a different solution. You will begin with a brief

organizational analysis to put this situation into the appropriate perspective.

You have to verify that

• this is an organizational problem,

• whose problem it is (e.g., supervisors or employees), and

• what the gap is, relative to the organizational goals and operational

requirements.

You do this by identifying relevant organizational goals and aligning them with

the specific workforce performance requirements that relate to the problem as

identified.

The elements of Step 1, Organizational Analysis, and an example of how they

apply to the above situation are as follows:

Step 1.1 Desired state Determine the desired organizational state. This step could potentially require

building an organizational vision, strategic planning, and operational planning.

This sometimes happens within the context of PDS planning, but more often the

process is much simpler. It requires that you examine existing documents to

15

determine how the organization’s mission and strategy relate to your situation.

This might require you to compose some statements that describe the

organization’s goals and operational requirements at a level of detail that gives

you specific guidance. You would then obtain approval, unless you are

responsible for these policy decisions, from your manager. After you have

defined the desired state, you have a basis for assessing the actual state and

defining the gaps.

Example. You review job descriptions and talk to a few managers and senior

supervisors. It takes only a couple of hours and you verify that supervisors are

responsible for stimulating positive morale, implementing personnel

management policies and procedures, and maintaining satisfactory workforce

performance.

Step 1.2 Actual state Determine the actual state of the organization. To complete this step you have to

obtain information about the actual performance indicators that apply in your

situation. Do not use global indicators that apply only at the highest level of the

organization. For example, national airway safety statistics are an important

organizational indicator for FAA, but these statistics are not going to be helpful

in solving a problem with absenteeism in one particular region.

Instead, identify actual organizational performance measures that apply to the

problem you are trying to solve. These can include such things as productivity

indicators (number of forms completed, number of projects completed in a given

time), quality improvement (less rework, on-time completion dates), work habits

and procedures (absenteeism, improved safety record), and time or money

savings (less downtime, quicker repair time).

Example. At the same time that you talked to people about the desired state of

supervisor performance, you also verified that there are too many reports of

absenteeism, too many grievances being filed, and lower than normal levels of

productivity.

Step 1.3 Organizational Identify the gaps. During this step, you identify the difference

gaps between performance expectations and actual performance, and identify the gaps

in performance. It is helpful to list the actual level of performance next to the

ideal organizational state to make it easy to see a direct comparison between

what should be and what is. When specific performance problems are identified,

often a single gap in organizational needs may result.

16

Example. The gaps resulting form this analysis are primarily in the areas of

absenteeism and grievances. Lower than normal levels of productivity seem to

be a result of the above, and not a separate problem.

Step 1.4 Organizational Sort and rank the gaps. If you have several needs or gaps, then

priorities rank order them to identify which ones to solve first. The criteria for ranking are

criticality, cost, and ease of solving. Criticality refers to those gaps which are

most important based on the organization’s primary goals, and on the

consequences of not solving the problem. Problems which have serious negative

consequences will have a higher priority.

Also consider costs of solving the problem. With limited resources you have to

determine whether it would cost more to solve the problem than to live with it,

assuming that the results of the problem are acceptable. And, you have to devote

your resources to the most serious problems.

A third consideration is ease of solving the problem. Other things being equal,

work on the easiest problems first. The success and experience you gain from

solving these problems will help you with the more difficult ones.

The identified needs or gaps are prioritized in terms of their criticality and cost

benefit which results from examining what it costs to close the gap versus what it

costs to ignore it.

The prioritization is helpful because it is highly likely that there will be

insufficient time, money, and opportunity to close all gaps. In cases where a

specific performance problem yields only one gap, this prioritization procedure

is not required.

Consequently, it is important to identify specific organizational needs that apply

to your situation. The primary reason for conducting this step is to identify the

organizational needs that will benefit from the performance improvement

requirements that you identify in the next phase of the PDS process.

Example. In the example that was introduced above, unacceptable employee

performance due to poor morale was presented as the problem. After conducting

a quick organizational analysis you are able to list the desired and actual

organizational performance. Based on these results, it is clear that the problem is

at the supervisory level. Following is a summary of the desired and actual states.

17

Desired Organizational State Current Organizational State

A workforce that is motivated to

achieve the FAA’s mission and goals.

At the organizational level this implies

high morale resulting from

management and supervisory practices

that include positive recognition of

individual contributions, equitable

treatment of employees, and agency

loyalty.

At the operational level some

indicators of success based on effective

management practices are that

employees:

• show up for work on time;

• are positive about their jobs; and,

• agree with established policies and

practices.

Current performance reports indicate

organizational goals are not being

met.

At the operational level, absentee

rates are excessively high .

Also, there has been an increase in the

number of grievances being filed by

employees.

These indicators suggest that at the

organizational level, morale is down

and that supervisory practices are

resulting in inequitable treatment of

employees.

There is clearly a gap in results based on absenteeism and grievances, and you

decide to examine the performance of supervisors to identify the specific gaps in

their performance.

STEP 2 Assess Performance Needs

Based on the needs that you just identified at the organizational level, you are

ready to find out how the employees should perform to achieve these goals.

Once again, you will follow the needs assessment process to compare ideal to

actual employee performance. This type of needs assessment can often be done

in a very short time - less than a day. It requires that you identify the desired

level of performance based on interviews, direct observations of “ideal”

performers, or a review documents such as job descriptions. You then obtain

information about the desired level of performance for the comparison. If this is

a new job or if the problem is severe, then it will take longer to do the

performance needs assessment.

The important point is that you should never skip this step. Even a little

analysis will go a long way in helping you create the best possible solution. As

Joe Harless said, “An ounce of analysis is worth a pound of objectives.”

18

Step 2.1 Ideal Determine the ideal workforce performance. The aim here

performance is to identify desired workforce performance expectations. As in Step 1, your

vision should not be limited because many opportunities can be created if you

are prepared to go beyond current expectations. Desired workforce performance

can be derived from job-task analysis and competency analysis of existing or

future job requirements. Direct observation of employees and interviews with

people performing the job, their managers, and their co-workers are useful ways

to find out how the job should be done.

Example. When you look at specific job performance requirements, you find

that the organizational goals translate into measurable performance criteria.

These include a list of specific expectations such as using appropriate priorities

for assigning vacation schedules, equitable distribution of work assignments, and

use of conflict resolution procedures. A list of some of the most pertinant

requirements is included in the example for Step 2.4.

Step 2.2 Actual Determine the actual workforce performance. Actual

performance workforce performance is based on observations of how the workforce is

currently performing and is described in terms of measurable results. Often you

can obtain “ideal” and “actual” information at the same time. By combining

interviews with observations, you can learn how the job should be done at the

same time that you are identifying the current performance levels.

Example. When you examine actual performance records, you find that many

employees complain of favoritism in assigning vacation opportunities and in

work assignments. You find that people do not always receive pertinant

information about their jobs, and that conflicts are not resolved in a timely or

correct manner.

Step 2.3 Performance Identify the performance gaps. Based on the results of

gaps Steps 2.1 and 2.2, you compare the actual and desired states of workforce

performance and express the results in objective and measurable terms. It is

often helpful to list the “ideal” and “actual” side-by-side in a table, as in Step

1.3. This helps you make a direct comparison as you identify the gaps.

Example. In this situation, the gaps are well-defined because of the specific

nature of the problem. You decide to go directly to the next step instead of

preparing a separate list of gaps at this step. [Note: This is an example of how

19

you should modify this process to fit the situation. You decide not to do this sub-

step, but you are not actually skipping it. You are simply combining it with the

next one.]

Step 2.4 Prioritize Rank order the performance gaps. The resulting gaps are

gaps expressed in terms of the tasks and outcomes that represent the job performance

requirements. If there are too many to solve at once, they should be prioritized

according to their criticality, as in Step 1.4. The magnitude of the problem has to

be examined in terms of cost and benefit. You should consider what would

happen if you left the problem alone, what it would cost to close the gap, and

what it would cost if you do not close the gap. After you finish the prioritization,

you select the most important gaps to solve in

Phases 2 and 3.

Example. For the morale example, you were able to identify a set of specific job

performance requirements for supervisors that are supposed to achieve the

organizational goals. A sample of these is listed in the left column of the

following diagram. You also determined that the supervisors, as a group, are not

achieving these performance levels. A corresponding sample of their actual

performance is summarized in the right column.

Sampling of Desired Supervisor

Performance

Sampling of Current Supervisor

Performance

Vacation time awarded in accordance

with established policy and procedures

which accounts for seniority, work

schedule (i.e. don’t give vacation to

someone when a major report is due, or

when other people depend on that

person’s inputs), etc.

Work assignments are distributed

equitably.

All employees are given timely

information about career development

opportunities.

Conflicts are managed promptly and in

accordance with established

procedures.

Many employees complain of

favoritism being shown in assigning

vacation schedules, overtime, and

dissemination of information about

career opportunities.

Policies and procedures for approving

vacation schedules are frequently

violated.

Overtime records are not up-to-date

and accurate.

Conflicts are sometimes allowed to

grow until uninvolved employees

“takes sides” before the problem is

resolved.

20

There are numerous gaps in this example. You start to prioritize them, and then

you decide that they are all related. All of them revolve around the supervisor’s

willingness or ability to perform specific employee management skills

effectively. You decide to do a causal analysis before attempting to rank order

these problems.

PHASE 2 - CAUSAL ANALYSIS

PHASE 2 - C ausal Analys is

Step 3 - Identi f y the Symptom (s)

Collect i nformat ion by:

? Observation

? Interview & survey

? Studying exi st ing data

Step 4 - Analyze the Causes(s)

Is the reason a l ack of:

? Skil l / knowledge?

? Incentive?

? Mot ivation?

? Environment?

STEP 3 Identify the symptoms

During Step 2.2 above, you probably identified some of the more obvious

symptoms of the problem, but you might not have all of the critical ones. In this

step, it is important to identify and quantify the extent of all symptoms through a

more detailed analysis. This step is crucial to the PDS approach because these

symptoms provide the basis for determining what the actual cause of the problem

is.

This detailed data collection phase requires detective work on your part. Become

a sleuth, look for clues and critical incidents. Identify factors which may have

some indirect influence or impact on the less than desirable performance.

Techniques for gathering problem-related information are numerous and include:

21

• observing the workplace,

• interviewing the performers, managers, employees, clients, and vendors or

suppliers,

• using questionnaires and other survey methods, and

• studying existing data such as reports, policy statements, logs, and other

records of performance.

Individual and focus group interview techniques can be useful. Methods that get

buy-in from the stakeholders are usually very effective. It is often helpful to use

more than one technique as a way of obtaining different perspectives on

problems.

Example. You decide to use several techniques to identify the potential causes

of the performance gap. You talk to a sample of employees, supervisors, and

managers. You also interview people in personnel who process the outputs from

supervisors and resolve issues that arise from performance problems. Finally,

you examine files to see how forms were processed, how records were kept, and

how information was recorded. Based on these forms of data collection, you

obtain a great deal of opinions and facts. These data indicate that supervisors:

• do not take some of their responsibilities seriously

• “play favorites” when giving vacation assignments

• also “play favorites” when giving information about career opportunities

• do not know how to implement conflict resolution procedures

• do not have enough time to fulfill all of their duties

• lack examples of correctly filled-out forms and correctly-implemented

procedures

• create special opportunities for friends

• lack a personal time-management systems for performing their duties

• cause poor morale

You realize that some of these symptoms are cues to the real problem, and others

are consequences of the problem, not causes of it.

After listing these symptoms, your next step is to identify the actual causes of the

problem and to separate the causes from the rest of the symptoms.

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STEP 4 Analyze the causes

What are the real reasons for the performance gap? After sorting through

symptoms and identifying the problem, you are ready to seek out the root causes

of the discrepancy. Typically, your performance problem will fit into one or

more of four categories: lack of skill or knowledge, lack of environmental

support, lack of appropriate incentives, or a lack of individual motivation. To

help identify the cause(s), examine past remedial efforts and the reasons for their

success or failure. Also, ask the question:

Could they do it if their lives depended on it?

If the answer is "No", then there is either a skill or knowledge deficiency, or an

environmental problem. If the response is "Yes", then other issues such as

incentives or motivational factors are most likely the cause.

Following are several questions that can help you identify which cause or

combination of causes to select.

• A lack of skills or knowledge.

Is it a skill, knowledge or attitude deficiency ?

Have they not been able to learn the skills by watching others?

Did the person once know how to perform the task, but has forgotten what

is required?

Remember Cram's Law - "People don't do things for the darnedest of reasons!"

• A lack of environmental support.

Are there any obstacles to performing as desired?

Are the necessary resources available?

Is there enough time and opportunity to perform as desired?

If the answer to the question, Could poor performers do it if they had to?, is yes,

then a range of other causes might come into play:

• A lack of appropriate incentives.

What are the consequences of performing as desired?

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How great are the consequences of non-performance?

• A lack of individual motivation.

Do employees realize how and why their performance is important?

Are people's needs for achievement and self-determination being met?

By using these questions to review the symptoms and then verifying the results

with your customer, you are more likely to correctly identify the root cause of

the problem.

Example. Of the symptoms identified in Step 3, some will be key indicators of

the problem, whereas others may give a distorted perception of what is really

happening. In the present example, a survey of employees indicated that quite a

few people identified favoritism by supervisors as a problem, and a perception

that supervisors did not fill out forms correctly because they didn’t take them

seriously. However, you learn that almost all of the supervisors are not “playing

favorites.” They give information to whoever is near them because they are so

busy and do not have a good information dissemination plan. This appears to

others as “playing favorites” which is not the intention of the supervisors.

In reality, many of the supervisors had been newly assigned to their positions.

They, in keeping with past practices, received generic supervisory training and

were expected to learn job-specific personnel management skills on the job by

getting advice from managers or asking experienced supervisors. In the present

situation, there were too many new supervisors to do this, and there were several

new regulations that made the job more difficult.

Consequently, the supervisors lack sufficient knowledge of agency policy, and

they lack skills in completing appropriate personnel documentation and

managing subordinates. They are also under extreme time pressures and tend to

take shortcuts to meet deadlines. In this case, their complaints about not having

enough time are legitimate because several new tasks were added to their job

after the new regulations were put in place.

Therefore, the major causes of the problem are lack of supervisory skills and

environmental factors. The environmental factors include a lack of time to do

their job and a lack of coaching support combined with a lack of adequate

models of correct procedures. Based on your analysis, you do not have evidence

to suggest that the real problem is one of supervisor motivation or lack of

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incentives. On the contrary, the supervisors are frustrated because they want to

do a good job.

Based on this identification of causes, you have determined that the problem is

with supervisors, not employees, as was originally presented to you.

Furthermore, it is not a problem with supervisor motivation. Instead, it is a

training and environment problem you are now ready to solve.

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PHASE 3 - DETERMINING HR SOLUTIONS

PHASE 3 - Determining HR Solutions

Step 5 - Developing Solutions and

choosing the "Best"

5.1 - Generate options

5.2 - Select the "best" solution(s)

5.3 - Develop and test solution

Step 6 - Implementing the

Solution

6.1 - Develop an implementation plan

6.2 - Implement new practices

Step 7 - Evaluate for Continuous

Improvement

7.1 - Develop evaluation opportunities

7.2 - Review new practices

7.3 - Revise new practices as required

STEP 5 Develop Solutions and Choose the "Best"

After the real problems have been analyzed it is time to identify a range of

possible solutions and select the best solution or combination of solutions. These

will come from the four major categories of solutions: human resources

development, organizational development, human resources management, and

environmental engineering.

Step 5.1 Generate The first task is to produce a list of potential solutions that are related

options to the causes you identified in Phase 2. Following is a structured process that has

proven to be helpful.

1. Brainstorm to develop as many ideas as possible. Techniques such as

nominal group processes and decision support centers, like the Team

Technology Center, can be helpful.

2. Classify the ideas according to the four categories of causes. Some typical

types of solutions for each type of cause are listed in the following table.

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3. Apply real organizational constraints (funds, time, resources) to focus on

potentially realistic solutions.

4. Weed out unworkable ideas.

5. Identify advantages and disadvantages of each remaining solution.

The following table provides a guide for linking possible solutions to particular

causes.

SOLUTIONS LINKED TO CAUSES.

Possible Causes - Possible Solutions - Lack of: Look at:

Skills / Knowledge Training - formal or OJTJob aidsComputer-based modules

Environmental Constraints Work redesignImprove workplace factors The right tools

Appropriate Incentives Recognition for excellencePromotion based on performanceAn awards program

Individual Motivation Confidence buildingMore autonomy and responsibility

Step 5.2 Select the From the list of alternative solutions, estimate the costs and benefits

“best” solutions of each to determine where you will get the bigger return on investment. Mager

and Pipe (1984) suggest the following criteria:

• The value of the solution must be positive. (How will it contribute to the

goals and mission of the organization?)

• The solution must be economical. (Will it be at considerably lower cost

than the problem?)

• It must be practical. (Are the means of implementing the solution

available?)

• It must be feasible. (Will it be acceptable to the people affected?)

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In this context the use of cost-benefit analysis, including return on investment

estimates, can be useful for planning. See FAA’s How to Estimate the Cost-

Benefit of Training for further guidance.

Following is another example. Based on the list of symptoms, it lists a set of

potential solutions and the choice of best solutions. This example provides a

brief, “bird’s eye” view of the logic in this process.

SOLUTIONS LINKED TO A PROBLEM'S SYMPTOMS AND CAUSES

An Example of Pay Clerk performance.

Problem: A significant number of complaints received on the backlog of pay and allowances foremployees.

Symptoms Possible Causes Possible Solut ionsThe following were identified: A combination of: Look at:

Errors:No. of errors in pay. Ski lls deficiencies. Poor 1. Refresher training on Inconsistent pay time. transfer of training. automated pay system.Delays in amending pay. 2. Develop a job-aid.

Consequences:No rewards for er ror -free work Lack of incentives. No 3. Reward accuracy.Get extra work if efficient rewards or feedback. 4. Greater supervisor

reinforcementAttitude

"It' s just a dead-end clerk job." Lack of motivation. No 5. Provide career path and "What's their beef? They got relevance to future career guidance. their pay didn't they". opportuni ties. 6. Establish self- inspection."The Boss will fix it anyway! " 7. Emphasize role of reward

on morale.Envi ronmental Condi tions

Bugs in new automated Poor working envi ronment. 8. Iron out bugs in system.pay system. Equipment not working 9. Devise better work flow.Over-worked. proper ly and out-of-date 10. Improve ventilation andHot, stuffy office. systems. l ighting.

Best Solutions: As a consequence of a cost-benefit analysis of the 10 optional solutions, it wasdetermined that Options 2, 4, 7, 8, and 10 would be the best combination of solutions to close the gap inper formance of pay clerks. These would then be developed, tested, implemented, evaluated andcontinuously improved.

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Step 5.3 Develop & After selecting the solutions, a set of interventions has to be

test solution developed. If time and resources permit, the interventions should undergo some

form of evaluation. First, conduct reviews with stakeholders and experts. Then,

attempt to pilot test the interventions with one of the target groups and revise as

required. If a pilot test is not possible, then you will be limited to the expert

review.

Example. In the supervisor example, the solution is relatively straightforward. It

is a combination of training and environmental factors to include job redesign

and supporting tools such as job aids. The training will focus on the “nuts and

bolts” of the supervisor’s responsibilities. The job redesign will require an

analysis of which duties can be shifted to another person, how some of the

responsibilities can be streamlined, and whether there are some job requirements

that are no longer necessary and can be eliminated. Workplace support will

include the development of a supervisor’s handbook that contains examples of

forms and procedures in a “ready reference” format. You have your plan

reviewed by several experienced supervisors and managers.

STEP 6 Implement the Solutions

Having developed the solution or set of solutions, a plan of action to implement

the new practices is essential.

Step 6.1. Develop an Many examples exist of great solutions that were not as effective as

implementation plan they might have been due to a lack of planning. Successful implementation of

new practices requires adequate planning. There are a variety of project

management techniques and software packages that can be used to help in the

planning process.

Remember to keep sight of the people who will be affected by this new practice.

Never get too caught up in "the solution" and forget about "the people". The

implementation plan should identify a strategy for the adoption of the new

practices.

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Step 6.2 Implement Once the plan has been developed, it is time to implement the

new practices new practices. As a general principle, the implementation plan should be

followed; however, when contingencies arise, flexibility is required to adjust the

plan to respond to the new situation.

Example. Implementation of the solutions to the supervisory example requires a

three-pronged approach combined with a coordinated management plan. First is

the development of a training program. This will require application of a

systematic course development process to determine exactly which skills and

knowledge to include in the course, and to design learning activities that are

skill-oriented. A lecture course will not solve this performance problem.

The second task is to assign a team to analyze the job and produce

recommendations for changes. This will require that changes to the supervisor’s

job definition be coordinated with any other jobs that are affected by the

changes.

The third task is to design the supervisor’s handbook. It will be necessary to

conduct analysis to determine what should be in the handbook, and to design the

appropriate contents.

It will be important to manage this process so that the solutions are coordinated

and integrated, which is a key feature of the PDS approach. For example, the

course design team will require input from the job redesign team. Also, it will be

best if the handbook is prepared before the course is taught so that it can be used

in the course.

At this point, you have an integrated set of solutions that are tied to the real

performance problem and the organizational goal. The next step is to determine

how you will know if your solutions are successful.

STEP 7 Evaluate for Continuous Improvement

Effective evaluation is planned during the early stages of developing and

implementing the solutions to an existing problem or the new practices that lead

toward a future opportunity. When you identify organizational needs and

performance requirements, you are in a position to define the outcomes that you

wish to achieve. These outcomes become the measures that are used in

evaluation and are compared with the status of the organization prior to

implementing the new practices.

30

When evaluation has not been planned ahead of time, then it is necessary to

identify the pre-existing status of the organization and the expected outcomes as

well as possible. This information is used to guide the planning and

implementation of the evaluation.

Step 7.1 Develop It is very important to incorporate evaluation into the PDS process.

an evaluation plan Because it is a system, the PDS is not complete without the evaluation that

occurs throughout the process and during the implementation cycle. The

evaluation plan should include process evaluation with checkpoints for

determining how well each phase of the process has been conducted. This

information is used for process improvement.

The evaluation plan should also include outcomes evaluation for each of the new

practices that are included in the total solution to the problem. For example,

training should be evaluated with as many of the four levels of evaluation

(participant reactions, learning, transfer, and organizational results) as are

appropriate. See FAA’s How to Do Training Evaluation for additional

information.

The evaluation plan should include both process and outcomes evaluation, but as

with every other aspect of the PDS process, the evaluation plan should be

responsive to the situation and cost effective. In other words, the evaluation

should include as many elements as will be of direct benefit to the project, and it

should be simple enough to have useful information in a timely way. Some

projects, due to their size and the criticality of their outcomes, might require

complex evaluations, but in most cases, a fairly simple approach is sufficient.

The important thing is to do it, and to use the results in decision making about

the current project or future ones.

Step 7.2 Implement Once the evaluation plan has been developed it should be followed.

evaluation This review of the new practices is required to determine if the solution fills the

gap in performance and whether there is a need to adjust or modify the solution

or its implementation. Process evaluation will have long-term benefits because it

helps you improve both the current project and your overall development of the

PDS approach. Outcomes evaluation helps you improve the quality of the

solutions that you are implementing, and it will help you design better solutions

in the future.

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Step 7.3 Revise new If the new practices are not producing the desired performance, then

practices as required something has to be done about them. Recognition of the new gap isn't enough -

there has to be remedial action to modify the new practices. Once the cause of

the deficiency has been identified and the new practice modified, the

implementation, evaluation, and review processes are again instituted. Make sure

that the revisions become part of the accepted improved practices. Policies and

procedures should reflect the latest changes.

The cycle of continuous improvement closes the gap between "what is" and

"what should be" and results in performance that accomplishes the organization's

mission. Aligning workforce performance with desired performance

requirements is the goal of the PDS process.

Example. In the supervisor example, you decided to use a combination of

process evaluation and training evaluation methods to provide quality control.

For the job redesign and handbook development projects you use process

evaluation to ensure that each step of each process is being accomplished

acceptably. This evaluation includes expert review of products, your review of

products and accomplishments, and target audience reviews of the feasibility and

applicability of the new job requirements and handbook contents.

For training, you require all four levels of training evaluation (see FAA’s How to

Do Training Evaluation.. This means that you will obtain participant reactions to

the training (Level 1 evaluation), a measure of how well they have learned the

content (Level 2 evaluation), how much they transfer to the job (Level 3

evaluation), and whether training in combination with the other solutions

contributes to solving the organizational problem (Level 4 evaluation).

Following the implementation and evaluation of the package of solutions, it was

found that grievances had been reduced by 66% and procedural complaints had

almost disappeared. Some other consequences flowing from the more equitable

application of scheduling included a more harmonious and cooperative work

environment. The perception that supervisors showed favoritism stopped

altogether. Thus, solving the real problem also removed the extraneous

symptoms of the problem.

Conclusion The PDS process offers an opportunity to provide more integrated, effective, and

cost efficient solutions to developing people and helping the organization

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achieve its goal. This booklet provides a brief overview of the process. A key

point to take from this book is that it is the logic represented by this process that

is critical to human resource development. You might not have time, and it might

not be appropriate, to do a lengthy and expensive needs assessment or job/task

analysis. But, this does not mean that you should skip these steps.

It is always important to find out what the real organizational needs are and what

the critical performance requirements are before expending funds on solutions.

By employing this process, you will strengthen the effectiveness of all of the

human resource programs. It is an aim of AHR to continue implementating this

process.

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BIBLIOGRAPHY

Deterline, W.A., & Rosenberg, M.J. Workplace Productivity: Performance Technology Success Stories.

Washington, DC: National Society for Performance and Instruction, 1992.

Kaufman, R. Strategic Planning Plus: An Organizational Guide. Newbury Park, CA: Sage Publications, 1992.

Mager, R.F., & Pipe P. Analyzing Performance Problems: or You Really Oughta Wanna. Belmont, CA: Lake

Publishing Co., 1984.

Rosenberg, M.J. Performance Technology: Working the System. Training, Feb. 1990, 43-48.

Rossett, A. Training Needs Assessment. Englewood Cliffs, NJ: Educational Technology Publications, 1987.

Zemke, R., & Kramlinger, T. Figuring Things Out: A Trainer's Guide to Needs and Task Analysis. Reading, MA:

Addison-Wesley Publishing Co., 1982.