Chapter 8 - Performance Management

Question 1

Performance management

Answer 1

the process of creating a work environment in which people can perform to the best of their abilities

Question 2

Performance management steps

Answer 2

1. Goals set to align with higher level goals
2. Behavioural expectations and standards set and then aligned with employee and organizational goals
3. Ongoing performance feedback provided during cycle
4. Performance appraised by manager
5. Formal review session conducted
6. HR decision making (pay, promotion)

Question 3

Performance review -

Answer 3

a process in which a manager evaluates an employee’s performance relative to the requirements of the job and uses the information to show the person where and how improvements can be made

Question 4

Performance Standards -

Answer 4

The accepted level of performance to be achieved by an employee, should be based on job-related requirements derived from a job analysis and reflected in an employees job description and specifications

Question 5

Strategic relevance

Answer 5

refers to the extent to which performance standards relate to or serve the strategic objectives of the organization in which they are applied

Question 6

Criterion deficiency

Answer 6

the performance standards should capture the entire range of an employee’s performance not just one part,

Criterion Deficiency: when they focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions,

Question 7

Criterion contamination

Answer 7

factors outside an employees control that can influence their performance

Question 8

Reliability

Answer 8

refers to the stability or consistency of a standard or the extent to which individuals tend to maintain a certain level of performance over time

Question 9

Calibration

Answer 9

a process whereby managers meet to discuss the performance of individual employees to ensure that their employee evaluations are in line with one another

Question 10

Fairness and Acceptability

Answer 10

managers, organizational politics, firms culture, current competitive conditions can all affect how managers rate and view how well employees are doing on a job, can inflate reviews

Question 11

Legal Issues

Answer 11

• relevance
• timeliness
• avoid subjectivity
• transperency
• Fairness

Question 12

Relevance

Answer 12

must be job related with performance standards developed through a job analysis. Only evaluate those areas that are necessary for effective job performance.

Question 13

Timeliness

Answer 13

Employees must be provided with clear, written job standards in advance of their evaluations so they understand what they need to do to get top ratings

Question 14

Avoid subjectivity

Answer 14

Managers who conduct the reviews must be able to observe the behaviour they are rating. This implies having measurable standards with which to compare employee behaviour.

Question 15

Transparency

Answer 15

The reviews should be discussed openly with employees and counselling, or corrective guidance offered to help poor performers improve their performance.

Question 16

Fairness

Answer 16

An appeals procedure should be established to enable employees to express their disagreement with the reviews.

Question 17

Manager and or supervisor review -

Answer 17

• a performance evaluation done by an employees manager and often reviewed by a manager one level higher

Question 18

The employee - self evaluation

Answer 18

employees are asked to evaluate themselves on a self-review form, get them thinking about what their strengths and weaknesses are

Question 19

Subordinate evaluations

Answer 19

a performance review of a superior by an employee, which is more appropriate for developmental than for administrative purposes

Question 20

Peer evaluations

Answer 20

a performance evaluation done by ones fellow employees, generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employees manager

Question 21

Team members

Answer 21

a performance evaluation that recognizes team accomplishment rather than individual performance

Question 22

Customer evaluations -

Answer 22

• a performance evaluation that includes evaluation from both a firm’s internal and external customers

Question 23

360-degree evaluations -

Answer 23

a performance evaluation done by different people who interact with the employee, generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employees manager

Question 24

Establishing a review plan -

Answer 24

follows a systematic process that begins by explaining the objectives of the firms performance management system

Question 25

Error of central tendency

Answer 25

a performance rating error in which all employees are rated about average

Question 26

Leniency or strictness error

Answer 26

a performance rating error in which the appraiser tends to give employees either unusually high or low ratings

Question 27

Forced distribution -

Answer 27

a performance ranking system whereby rates are required to place a certain percentage of employees into various performance categories

Question 28

Temporal (recency) error -

Answer 28

a performance rating error in which the evaluation is based largely on the employees most recent behaviour rather than on behaviour throughout the evaluation period

Question 29

Contrast error -

Answer 29

a performance error in which an employees evaluation is biased either upward or downward because of comparison with another employee just previously evaluated

Question 30

Similar to me error

Answer 30

- a performance rating error in which an appraiser inflates the evaluation of an employee because of a mutual connection

Question 31

Halo error

Answer 31

focuses on one positive aspect about an employee and generalizes it into an overall positive evaluation

Question 32

Horn error

Answer 32

focuses on one negative aspect about an employee and generalizes it into an overall negative evaluation

Question 33

Feedback training

Answer 33

raters can provide some pointers managers can use to provide performance feedback to employees on an ongoing basis during formal reviews and feedback sessions

Question 34

Feedback training - Covers three important areas

Answer 34

- Communicating effectively to gain the employees support - diagnosing the root cause of performance problems - Setting goals and objectives for the employee to achieve in conjunction with the feedback

Question 35

Trait Methods

Answer 35

Designed to measure the extent to which an employee possess certain characteristics - such as dependability, reactivity, initiative, and leadership - that are viewed as important for the job and the organization in general - graphic rating scale - mixed standards scale method - Forced choice method - Essay method

Question 36

Graphic rating scale -

Answer 36

a trait approach to performance rating whereby each employee is rated according to a scale of characteristics

Question 37

Mixed standard scale method -

Answer 37

a trait approach to performance rating similar to oter scale methods but based on comparison with (better than, equal to, or worse than) a standard

Question 38

Forced choice method

Answer 38

a trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance

Question 39

Essay method

Answer 39

a trait approach to performance rating that requires the rater to compose a statement describing employee behaviour

Question 40

Behavioural Methods

Answer 40

- critical incident - behavioural checklsit - behaviourally anchored rating scales (BARS) - bheaviour observation scale (BOS)

Question 41

Critical incident

Answer 41

an unusual event that denotes superior or inferior employee performance in some part of the job

Question 42

Behavioural checklist method

Answer 42

rater to check statements on a list that describe characteristics of the employees behaviour

Question 43

Behaviourally anchored rating scale (BARS)

Answer 43

a behavioral approach to performance rating that consists of a series of vertical scales, one for each important dimension of job performance

Question 44

Behvaiour observation scale (BOS) -

Answer 44

a behavioral approach to performance rating that measures the frequency of observed behaviour

Question 45

Results Methods

Answer 45

Evaluate employees accomplishments - productivity measures - managment by objectives (MBO) - balanced scorecard

Question 46

Productivity measures -

Answer 46

sales volume, number of units produced (dependent on the job)

Question 47

Management by objectives (MBO)

Answer 47

a results review process that rates the performance of employees based on their achievement of goals set mutually by them and their manager

Question 48

The balanced scorecard -

Answer 48

financial measures, customer measures, process measures, and learning measures

Question 49

Tell and sell

Answer 49

the skills required in the tell and sell format include the ability to persuade an employee to change their behaviour in a certain way

Question 50

Tell and listen

Answer 50

the appraiser or supervisor communicates the strong and weak points of an employee's job performance during the first part of the session

Question 51

Problem solving

Answer 51

seeks to obtain the employees buy in for a mutually agreed upon way to overcome and improve a persons performance

Question 52

Ask for a self evaluation

Answer 52

can be used to discuss areas in which the manager and the employee have reached different conclusions, ensures that the employee knows what criteria they are being evaluated on

Question 53

Invite participation

Answer 53

employee participation is strongly related to the person satisfaction with the feedback delivered, the extent to which the person believes it is fair and useful and the desire improve their performance

Question 54

Express appreciation

Answer 54

praise is a powerful motivator and employees are seeking positive feedback, it is frequently beneficial to start the session by expressing appreciation for what the employee has done well

Question 55

Be supportive and demonstrate that you care

Answer 55

by the manager being open and supportive, the manager conveys to the employee that they will try to eliminate roadblocks and will work with the employee to achieve a higher standard

Question 56

Minimize criticism

Answer 56

consider whether it is really necessary, consider the person's ability to handle it, be specific and do not exaggerate, what your timing, focus on the problem behaviour, not the person, make improvement your goal

Question 57

Establish mutual goals

Answer 57

emphasize employee strengths, drop unproductive tasks, limit improvement plans to a few important items (SMART goals)

Question 58

Follow up day to day

Answer 58

- informal periodic talks

Question 59

Identifying the sources of ineffective performance -

Answer 59

three primary concerns - ability, motivation, and environment

Question 60

Performance diagnosis

Answer 60

behavioural measures are less affected by external constraints

Question 61

Managing ineffective performance

Answer 61

providing training in areas that would increase the knowledge and skills the employee needs to perform effectively

Question 62

Focus on changing behaviour, not the person

Answer 62

Aceptable ways of performing