Week 4; Performance Management and Diversity

Question 1

What is performance management?

Answer 1

Establishing and measuring employee goals to improve individual and organisational performance.
Synonymous with SHRM as both focus on increased organisational performance.

Question 2

Traditional performance management model:

Answer 2

1) Performance plan: Translate organizational goals into individual goals; Determine what will be measured to determine performance.
2) Feedback: Provide feedback about performance.
3) Mid-year evaluation: Discuss incremental goal attainment, redefine goals if needed.
4) Year end performance appraisal: Formal performance rating; Discuss goal attainment and areas for improvement.

Question 3

Performance appraisal:

Answer 3

An interview between employee and their manager to review performance, set future goals and make decisions regarding development and promotion.

Question 4

High-performance work practices (HPWPs):

Answer 4

Also known as advanced HR practices are management practices that are strategic or progressive in nature. For example, pay for performance, information sharing, teamwork and performance management.

Question 5

AMO model:

Answer 5

Ability-Motivation-Opportunity; suggests that HR plays a huge role in defining and increasing each of these categories.

Training improves ability;
Pay performance management improves motivation;
Teamwork and information sharing provide opportunities.

Question 6

Goal-setting theory:

Answer 6

Goals are SMART: Specific, Measurable, Attainable, Realistic, Timed.

Goal setting and performance can be strengthened by:
Goal commitment;
Goal importance;
Self-efficacy (confidence in ability to perform);
Receiving feedback.

Principles -
clarity, challenge, commitment, feedback, complexity.

Question 7

Expectancy theory:

Answer 7

Motivation is based on factors:
Expectancy (E): The probability that effort will be followed by a given level of task performance.
Instrumentality (I): The probability that achieved task performance will be followed by various work outcomes.
Valence (V): the value attached by the individual to various work outcomes.

Limitation: assumes rationality with how individuals think and behave. Thus, hard to define needs to motivate.

Question 8

Equity theory:

Answer 8

Refers to the comparison between inputs (effort, performance by employee) and outputs (rewards and recognition received in return). Focuses on how equally and fairly employees must be treated, as they will try to restore equity either by lowering inputs, disregarding comparable employees or terminating the relationship.

Limitation of this theory: Hard to define employees’ perception of inputs and outputs.

Question 9

Den Hartog, Boselie and Paauwe’s Model of PM:

Answer 9

Suggests that HR practices in alignment with performance management impact employees perceptions and attitudes. By aligning HRM practices with PM consistent messages communicated to employees are ensured. Furthermore, line managers play a central role in implementing these policies.

Question 10

Strategic PM:

Answer 10

Refers to aligning individual goals to organisational goals to achieve competitive advantage.

Question 11

Engagement:

Answer 11

The extent to which employees demonstrate energy, dedication and immersion in their work.

Engagement enhancement and preconditions:
Feedback - creates meaning, and informs of achievements, opportunities for growth;
Trust - important to view assessment as reliable;
Job design;
Leadership;
Coaching;
Supervisor support and training.

Question 12

Fair PM principles:

Answer 12

1) Procedural Justice - PM process is transparent and fair, employees have input in the process.
2) Distributive Justice - outcomes decided upon are fair, particular rating system used for everyone equally.
3) Interactional Justice - how employees are treated and communicated with during the PM process.

Question 13

Rating system:

Answer 13

Appraiser rates employee’s performance on a predetermined scale. Typically BARS used, which is a numerical scale rating linked to behavior at work by assessing the relative amount of activity.

Advantage: Simple, focuses on individual objective performance.
Disadvantage: high degree of subjectivity. Can limit employee development.

Question 14

Ranking system:

Answer 14

Managers rank employees from best to worst, based on specific characteristics or overall job performance.

Advantage: Simple, enables easy comparison between individuals
Disadvantage: criticised on ethical grounds, also performance may not be adequately defined. Does not provide info on what “High performance” means. Promotes aggressive culture.

Question 15

Relative performance appraisal:

Answer 15

People are ranked compared to one another, outcome thus dependent on people:
1) Ranking: comparing one group to another.
2) Pairwise comparison: comparing group 1 to all the groups, then group 2 to all the groups, etc.
3) Forced distribution: rates distributed on a curve.

Question 16

The critical incident technique:

Answer 16

Incidents and behavior are recorded at work, then these recorded observations are the basis of discussion.

Advantage: considered objective
Disadvantage: costly, timely, requires to have excellent observation skills.

Question 17

180-degree feedback:

Answer 17

Form of upward appraisal involves employees rating their manager’s performance. This can be done through anonymous questionnaires.

Advantage: can improve managerial effectiveness and leadership, give employees more voice and empowerment.
Disadvantage: managers might perceive it as threat to their careers.

Question 18

360-degree feedback:

Answer 18

Ratings from peers, subordinates, supervisors, occasionally customers and clients. Increasingly useful as work now is less hierarchical.

Advantages: provides employees with a broad perspective, supports a climate of continuous improvement, and is considered as more reliable feedback.
Disadvantages: is not always honest, may result in action following the feedback, can be a bureaucratic process to implement.

Question 19

Competency-based assessment:

Answer 19

Based on the idea that past behavior is the best predictor of future behavior. Aims to establish skills and behaviors to be successful currently and in the future.
Competencies -> behavior.

Advantage: how well is done and also what is achieved. \
Disadvantage: difficult to define competencies to behavior. Also assists with talent management and succession planning.

Question 20

The contrast effect:

Answer 20

Exaggerations about employee based on the previous employee they assessed.

Question 21

The first impression error:

Answer 21

When an initial judgment is made and subsequent performance is ignored

Question 22

The recency effect:

Answer 22

Only remembers the end of the appraisal, evaluation begin period is ignored.

Question 23

The halo effect:

Answer 23

When the raters overall opinion of employee affects performance review.

Question 24

Similar-to-me effect

Answer 24

When employer gives an favourable rating because they share similar characteristics

Question 25

The central tendency bias:

Answer 25

Appraiser gives everyone a rating in the middle to avoid tough decisions.

Question 26

The skewing bias:

Answer 26

Ratings are scored largely to left or right, therefore, the assessment is distorted.

Question 27

Attribution bias:

Answer 27

systematic errors people make when evaluation or explaining others’ behavior.

Question 28

Stereotyping:

Answer 28

Applying characteristics based on the group of people the individual belongs to.

Question 29

To minimize biases:

Answer 29

Raise awareness - reduce the role of individual judgement that could cloud the conclusion.

Rely on objective criteria, multiple angels (raters and formats), behavioral formats and use standardisation.

Lastly, reduce the conditions that promote biases (fatigue, stress, cognitive load).

Question 30

Feedforward interviews:

Answer 30

Strengths-based approach to performance evaluations. During interviews employees are asked to give positive experiences to identify their strengths. Then they are told the results of their actions. This approach allows for improvement and identify the strengths of an employee.

Question 31

Steps to deal with underperformers and strategies:

Answer 31

1) Identify and agree on the problem
2) Establish the reasons for shortfall
3) Decide and agree on action plan
4) Resource the action
5) Monitor and provide feedback

Job redesign, job rotation, coaching, goal-setting, training

Coaching: can support underperforming employees by providing feedback and instilling confidence. GROW model used: Setting a Goal; Assessing the current Reality/situation; Assessing the available Options; Deciding what you Will do.

Question 32

The Social justice case for equality:

Answer 32

States that the organizations are responsible, regardless of profit, to develop policies to ensure that people are treated fairly and equally across all facets of the business

Question 33

The Diversity Management Perspective:

Answer 33

Holds that organizations should recognize the differences and should foster, value, and utilise these differences for the benefit of the organisation.

Question 34

Positive effects and challenges of a diverse workforce:

Answer 34

Positive: Financial performance,
Innovations,
Ways of viewing problems,
Turnover,
Productivity.

Negative: Possible increase in training costs,
Potential conflicts,
Claims of reverse discrimination.

Question 35

Social Inclusion:

Answer 35

A measure of the extent to which a person or group can participate in aspects of society to the same level as the average population. Measures: access to work, adequate housing, education levels, healthcare, etc.

Question 36

Explanation for inequality:

Answer 36

Human Capital factors: Formal qualifications, Work experience, Formal and informal training.

Socially constructed factors: Accepted social and cultural norms; Prejudice and attitudes; Self-perception as “inferior”; Prevailing political ideology

Institutionally constructed factors: Rules and legislations; Lack of relevant support; Membership of professional associations with restricted entry; Informal customs (“old boys”); Lack of protective legislation.

Question 37

Protected grounds:

Answer 37

Identified grounds by national institutions where discrimination is likely to exist, such as race, sex, orientation, religion, etc. and are thus covered by equality legislation.

Question 38

Key purposes of performance management:

Answer 38

1)Strategic - employee activities should contribute to organizational goals;
2)Administrative - basis to inform employees about salary, benefits, termination, etc.
3)Developmental - identify strengths and areas for improvement and train those.