6 Performance management & career development Flashcards
Performance Management
Definition 🏎
- process
- of
Continuous process of, ..
- identifying,
- measuring,
- developing
.. performance of individuals and teams, aligning it with organizational goals
Performance Management
Management by Objectives (MbO) Framework (2)
- Cascading strategic goals down to all levels. Participative agreement on SMART goals
- Objective feedback and performance appraisal. Linking goal attainment with pay and development
Performance Management
How do performance management practices explain performance variance of manufacturing plants?
- Benefits (3)
not clear
- Top 10% vs. bottom 10% manufacturing plants, showed 18% performance variance
- explained by performance management practices like monitoring, targets incentives
Performance Reviews
Purpose (4)
- Provide feedback on performance
- Formally record (un)satisfactory performance
- Basis for reward and development decisions
- Motivate future performance
Performance Reviews
Biases (3)
Stereotypes and implicit biases, ..
- Halo effect
- Primacy/recency effect
- Persistence of impressions
Performance Reviews
Reducing Biases
🏍️
- R eflect on potential errors
- O pen communication
- S tructured assessment scales
- S ystematic preparation
- I mplicit bias training
Pay Systems
Components (2)
-
Base/fixed pay
(task-related) -
Variable pay
(person-related e.g. performance, experience)
Pay Systems
Job Evaluation Methods (2)
-
Analytic
(criteria and weights) -
Summative
(global assessment)
Pay Systems
Performance-Related Pay (2)
- Links part of ..
- Issues ..
Links part of pay to individual/team/company performance
Potential issues:
- Criteria,
- reduced motivation,
- individual vs team conflict
Career Development
Approaches
- based on ..
- types
Based on strategic needs and individual interests
- Education, training, coaching
- Job design
Career Development
Career Interests
- anchors (3)
- orientation (3)
Career anchors e.g.
- managerial,
- technical,
- autonomy
Career orientations e.g.
- loyalty,
- promotion,
- independent,
- disengaged
Important Functions of Pay (3)
Attraction and Retention
Helps attract skilled candidates and retain employees.
- Competitive salaries,
- benefits packages.
Equity and Fairness
Reflects commitment to fairness and justice. Equitable pay based on, ..
- role,
- experience,
- performance.
Motivation and Performance
Encourages higher performance and productivity.
- Bonuses,
- commissions.
How can performance be measured?
- Name good indicators. (4)
- Key Performance Indicators (KPIs)
- 360-Degree Feedback
- Management by Objectives (MBO)
Zielvereinbarungen - Self-Evaluations
What can bias social perception?
- Describe the halo effect.
- Name positive aspects of stereotypes (3)
Bias in Social Perception:
-
Halo Effect:
A cognitive bias where positive impressions of a person, brand, or product in one area positively influence one’s opinion in other areas. -
Stereotypes:
Generalizations about a group that can influence how individuals within that group are perceived
Positive Aspects of Stereotypes:
- Efficiency in Social Interactions
- Positive Stereotypes
- Group Identity
Explain the benefit of continuous performance measurement compared to a yearly MBO cycle.
- Are there any contrasting drawbacks?
Benefits of Continuous Performance Measurement:
- Improved Learning and Development
(eg. doc. review, ..) - Better Goal Alignment
(understand scope) - Increased Agility
(Allows to quickly adapt and address issues) - Real-Time Feedback
- Enhanced Employee Engagement
Drawbacks of Continuous Performance Measurement:
- increased workload
(Integration Issues) - Potential for Relationship Strain
(if not managed skillfully) - Too much feedback can overwhelm
(Feedback Oversaturation) - Implementation Challenges
- Compensation Complexity
