HR 5 Performance management

Question 1

The 7 elements of effective performance management

Answer 1

Performance target setting
Continuous feedback
Evaluation and feedback
Competency Evaluation and development
Career planning and development
Outcomes management
Culture, process and systems

Question 2

4 reasons for a formal performance evaluation system

Answer 2

1. Encourages positive performance and behaviour
2. Satisfies employee curiosity
3. Tool to develop employees
4. A basis for pay raises

Question 3

Develop a performance review system

Answer 3

How often? what is the goal? what forms will be used to administer the process? who will be the source of information (360 degree) ?

Question 4

Potential errors in performance review system

Answer 4

Halo effect, validity issues, reliability issues, specificity, acceptability

Question 5

Appraisal method: Graphic rating scale

Answer 5

Employees are rated on certain desirable attributes

Advantages: inexpensive, easily understood by employees and managers
Disadvantages: subjectivity, difficult in making compensation and promotion decisions

Question 6

Appraisal method: Essay

Answer 6

Trait and/or behavioural method

Advantage: The manager will provide commentary on specific aspects of the employees job performance
Disadvantage: writing ability of reviewer impacts validity, subjectivity, time consuming if not combined with other method

Question 7

Appraisal method: Critical incidents

Answer 7

Behavioural category

Advantages: Records examples of the employee’s effective and ineffective behaviour during the time period between evaluations
Disadvantages: Tendency to record negative incidents, time consuming

Question 8

Appraisal method: Work standards

Answer 8

Advantage: Ability to measure specific components of the job > basic result

Disadvantage: No deviation

Question 9

Appraisal method: Ranking

Answer 9

Manager ranks each employee from most valuable to least valuable = comparative method

Advantage: high-performance work culture, validity depends on interaction beween employees

Disadvantage: morale issues within the workplace, bias

Question 10

Appraisal method: MBO’s

Answer 10

Management by objectives

Advantage: Great development opportunities for the employee and a good working relationship between the employee and manager. - MBO’s objectives should be SMART > more higher scaled job > not basic

Disadvantage: Many only work for some types of job titles

Question 11

Appraisal method: BARS

Answer 11

Behaviorally anchored rating scale

Advantage: Rating scale but provides specific narratives on what constitutes good or poor performance

Disadvantage: time consuming

Question 12

Appraisal method: Checklist scale

Answer 12

yes or no rating

Advantage: measurable traits can point out specific behavioural expectations

Disadvantage: No detailed answers or explanation

Question 13

4 steps of performance review systems

Answer 13

1. Set goals and expectations with employees
2. Performance monitoring (providing: resources, regular feedback, coaching, training)
3. Performance appraisal
4. Reward - improvement plan / reward

Question 14

What are the advantages and disadvantages from a performance management system?

Answer 14

Advantages: improves performance, encourages positive performance and behaviour, satisfy employee curiosity how well they are performing, basis for pay raises, promotions and legal disciplinary actions

Disadvantages: could be bias > misleading information
Unfair results > employees unhappy