10. Managing Performance

Question 1

Define performance management

Give and define the 3 reasons orgs need performance management

Answer 1

Process through which managers ensure that employees’ activities and outputs contribute to the org’s goals

• Strategic Purpose - Helps org achieve objectives
• Admin Purpose - Provide info for day-to-day decisions about salary, benefits and recognition programs
• Developmental Purpose - Basis for developing employees’ knowledge and skills

Question 2

Give the 6 steps in performance management

Answer 2

1. Define perf outcomes for company division/department
2. Develop employee goals, behavior and actions to achieve outcomes
3. Provide support and ongoing performance discussions
4. Evaluate performance
5. Identify improvements needed
6. Provide consequences for performance results

Question 3

Name the 5 pieces of criteria for effective performance management

Name 5 methods for measuring performance

Give and define 3 methods for making comparisons

Answer 3

Fit with strategy, reliability, validity, acceptability, specific feedback

Results, quality, comparative, attribute, behavior

• Simple Ranking - From highest to lowest performer
• Forced Distribution - Assigns a % of employees to each category in a set of categories
• Paired Comparison - Compares each employee with one another to establish rankings

Question 4

Give and define 2 methods for measuring individuals’ attributes

Give and define 4 methods for measuring individuals’ behavior

Answer 4

• Graphic Rating Scale - Lists traits and provides a rating scale for each trait
• Mixed-Standard Scale - Uses several statements describing each trait to produce a final score for that trait
• Critical-Incident Method - Based on managers’ records of specific examples of employees acting in ways that are either effective or ineffective
• Behaviorally Anchored Rating Scale (BARS) - Rates behavior on a scale showing statements of behavior that describe different levels of performance
• Behavioral Observation Scale (BOS) - A variation of BARS which uses all behaviors necessary for effective performance to rate performance at a task
• OB Modification (OBM) - A formal system of feedback and reinforcement

Question 5

Give and define 2 methods for measuring results

Give 1 method for measuring quality

Answer 5

• Productivity - Getting more done with a small amount of resources (money/people)
• Management by Objectives (MBO) - People at each level of the org set goals, so all levels contribute to the org’s overall goals

Total Quality Management - Employees and customers working together to improve overall customer satisfaction

Question 6

Define 360-degree performance appraisal

Give and define 3 types of rating errors

Answer 6

Performance measurement that combines information from employees’ managers, peers, subordinates, self and customers

• Contrast Errors - Rater compares an individual, not against an objective standard, but against other employees
• Distributional Errors - Rater tends to use only one part of a rating scale (leniency, strictness, central tendency)
• Rater Bias - Raters often let their opinion of one quality influence their opinion of others (Halo Error - favorable. Horns Error - negative)

Question 7

Give and describe the 3 aspects of performance feedback

Answer 7

• Scheduling - Should be a regular, expected management activity
• Preparing - Managers should be prepared for each formal feedback session
• Conducting - Uses three approaches (tell-and-sell - provide ratings and justify. Tell-and-listen - provide ratings then let employees explain view. Problem-solving - Managers and employees work together)

Question 8

Give 5 criteria for legal performance management

Answer 8

• Based on valid job analyses, with requirements for job success clearly communicated to employees
• Evaluates behavior on results, rather than traits
• Multiple raters (including self-appraisals)
• Reviewed by upper-level managers
• Appeals mechanism for employees