Performance management strategies

Question 1

Performance management meaning?

Answer 1

aims to improve both business and individual employee performance by relating the business performance objectives to employees performance objectives.

Question 2

Management by objectives?

Answer 2

management and employee agree on a set of goals for each employee, these goals contributing to the objectives of the business.
Business objectives defined, individual employee goals, regular monitoring, performance feedback, performance appraisal.

Question 3

Advantages of management by objectives?

Answer 3

• expectations are clearly stated
• productivity increases because employees are involved in setting goals
• improves communication and results in employees being more aware of business objectives

Question 4

Disadvantages of management by objectives

Answer 4

• not useful for all employees
• can be expensive because staff may expect rise or promotion
• failure to meet objectives can become demoralising for some employees

Question 5

Appraisal meaning?

Answer 5

formal assessment of how well an employee is performing their role in the business.

Question 6

Purpose of appraisals?

Answer 6

• provide feedback from management
• act as measurement for promotion and raises
• monitor employee performance
• training, development needs
• identify new objectives for future
• review employee objectives

Question 7

Advantages of appraisals

Answer 7

• feedback helps employees improve their performance
• information can assist mangers when making decisions about pay increase, promotions or dismissals
• allows positive relationships between management and employees

Question 8

disadvantages of appraisals?

Answer 8

• time consuming process
• can be stressful for managers and employees

Question 9

Self evaluation?

Answer 9

self evaluation process where employees are able to assess their contributions to the business, their strengths + weaknesses, and how they can improve their performance

Question 10

Advantages of self evaluation?

Answer 10

• can highlight the need for training and allows employees to request training opportunities
• allows active involvement in process of performance management

Question 11

Disadvantages of self evaluation?

Answer 11

• employee overstate their own performance, leading to dishonest process
• management will need to take responsibility for monitoring performance

Question 12

employee observation?

Answer 12

is used by managers to gain insights on performance on employees, relies on feedback from different parties in order to picture current and past performance.

Question 13

Advantages of employee observation?

Answer 13

• allows manage to gain broad range of observations on an employee
• helps identify strengths and weaknesses and evaluating skills

Question 14

Disadvantages of employee observation?

Answer 14

• staff may feel stressed when being observed
• not valuable in assessing technical skills, or achievements of objectives