Week 9 - Performance Management

Question 1

What is performance management?

Answer 1

The continuing process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.

Question 2

Without performance systems…

Answer 2

Nothing to tell the pay differentiation

Conversation quality declines, hard to explain how employees perform and steps to improve

Informal conversations decrease: time saved used elsewhere

Performance and employee engagement drop

Question 3

What is Performance Appraisal?

Answer 3

The process by which organizations evaluate employee job performance over a period of time

Question 4

What are the uses of performance appraisal

Answer 4

1. Job redesign
2. Administrative decisions (pay raises, promotions)
3. Feedback and performance improvement
4. Employee development and career planning
5. Criteria for test validation
6. Training program objectives

Question 4

Performance appraisal process

Answer 4

1. Performance Objectives
2. Measure Performance
3. Communicate Feedback
4. HR Records and Decisions

Question 4

Performance objectives are targets that should be…

Answer 4

1. job related
2. practical
3. based on performance standards

Question 4

Performance standards are measurable benchmarks that relate to…

Answer 4

1. Quality
2. Quantity
3. Time

Question 4

Measuring performance: Comparative Evaluations

Answer 4

1. ranking method
2. forced distribution (bell curve)

Question 4

Measuring Performance: Non comparative evaluations

Answer 4

Rating scale
BARS - behavioural rank
Tests and Observations
M.B.O (management by objectives) - goal setting

Question 4

Where can managers get performance ratings

Answer 4

Peers
Customers/Clients
Self Appraisals
Supervisors
Direct Reports

Question 5

Why performance mangement systems fail?

Answer 5

Halo Effect
Central tendency (middle rating does not improve anything - even number only)
Strictness
Leniency
Personal Prejudice
Similar-to-me bias
Contrast Errors

Question 6

Why is feedback important

Answer 6

1. for improvement and development
2. if poor performance is widespread, it might be due to the effectiveness of HRM

Question 7

What are some Legal Considerations?

Answer 7

Employees are entitled to fair treatment from employers as well as due process (right to be heard)

Discipline should follow clear policies and guidelines and be based on justifiable reasons

Poor performance rarely constitutes just cause first and as such, should be dealt with through progressive discipline

Question 8

Types of Performance Measures

Answer 8

Direct Observation - see the performance firsthand
Indirect Observation - see performance second hand

Objective - those indications of job performance that can be verifiable by others
Subjective - Measures are those ratings that are based on opinion or perception