Purpose of Distinction
Distinguishing between typical and maximum performance can have both theoretical implications for researchers and practical purposes for organizations.
Academic implications
Conceptually, the different types of performance could have different predictors, which will affect research in this domain. For example, many studies have found differences in performance ratings depending on whether the rater is a supervisor or a peer. The typical/maximum distinction could explain this difference if, for instance, supervisors observe more maximum performance while peers observe more typical performance.
Practical implications
On the practical side, the typical/maximum distinction can be important when organizations hire new employees. For instance, even though many companies intend to evaluate what an individual’s typical performance would be when making a hiring decision, often organizations use measures that should be associated with maximum performance. These common evaluations include assessment centers, intelligence tests, and situational interviews.
Very little research has attempted to look at how various selection tools can predict an employee’s behavior with regard to typical and maximum performance; however, one recent study did focus on behavior description interviews and situational interviews. Behavior description interviews ask applicants to describe past behavior related to specific aspects of the job, while situational interviews have applicants respond to hypothetical job-related dilemmas. Klehe and Latham found that both the behavior description interview and the situational interview predicted typical performance, and the situational interview also predicted maximum performance. While many researchers have expressed concerns about using these tools to predict typical performance, this study suggests that they may actually be quite useful.
Another practical implication of this distinction is the effect it has on employee compensation. Managers may value typical and maximum performance differently, resulting in different rewards. Research suggests that both typical and maximum predict compensation levels, but organizations should ensure that this is the practice they wish to employ.
Read more about this topic: Typical Versus Maximum Performance
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