7 - Performance Appraisal

Question 1

performance appraisal applications: performance level

Answer 1

identify training needs
check if adapted to their jobs
give feedback
pay + promotions = stimulate productivity
obtain info for HRM

Question 2

performance appraisal applications: potential level

Answer 2

identify growth potential
identify possible career paths
opportunities for self-development
improving relationships b/w superior + subordinate
support HR decisions

Question 3

performance appraisal goals

Answer 3

objective: evaluate performance
cycle: annual
focus: past
performance under analysis: individual
process: top down
result: grade + variable reward
responsible: HR

Question 4

performance management goals

Answer 4

objective: align + improve performance
cycle: continuous
focus: future
performance under analysis: individual + team
process: top down/bottom up/360
result: grade + ind dev + plan + variable reward
responsible: leaders + employees

Question 5

starting point for designing performance management system

Answer 5

vision + mission + values
culture
strategy
organizational objectives

Question 6

stages of performance management system

Answer 6

1. role definition (description + department objectives)
2. plan performance (individual objectives + development plans)
3. support + monitor (continuous)
4. formal assessment + rewards

Question 7

different levels from organization strategy to individual objectives and performance

Answer 7

board level
functional level
department level
team level
individual levels

Question 8

smart objectives

Answer 8

specific
measurable
achievable
relevant 
timed

Question 9

direct superior’s role

Answer 9

organize resources
provide training
help in problem resolution
give support + guidance
facilitate employee's effort

Question 10

steps in setting up a PA system

Answer 10

1. analyze context
2. performance appraisal choices
3. implement process

Question 11

1. analyzing the context

Answer 11

environmental context (legal requirements, competition…)

organizational context (culture, resources available…)

the job (job description)

the PM approach (focus on identifying reward + development)

Question 12

2. performance appraisal choices

Answer 12

PA appraisers (who?)
PA object (what?)
PA timing (when?)
PA instruments/methods (how)

Question 13

pros and cons of 360 feedback

Answer 13

+ greater breadth
+ captures complexities
+ validity
+ powerful info for self awareness

• confidentiality is difficult to maintain
• evaluation may be biased

Question 14

appraiser needs to have the necessary knowledge on

Answer 14

performance required by job
job objectives
relationship b/w job objectives + department/org objectives

Question 15

PA object

Answer 15

evolution from individual assessment to team performance

quantitative objectives (sales, profit...)
qualitative objectives (skills, attitudes, values...)

Question 16

PA timing

Answer 16

decide on cycle (annual, quarterly…)

depends on:

• business functions + cycles
• time spent in the process
• need for feedback
• value of feedback

Question 17

criteria for choosing instruments/methods

Answer 17

validity
reliability
sensitiveness
bias-free
relevance
acceptance
cost
administrative ease

Question 18

PA instruments/methods

Answer 18

descriptive method
graphic scales (by degrees, points)
behaviour scales (BOS + BARS)
critical incidents
management by objectives
forced distribution/ranking

Question 19

3. implementing the process

Answer 19

1. collect + register information

2. performance appraisal interview

Question 20

collect + register information

Answer 20

quality of appraisal depends on depth + objectivity of the information collected

• maintain a file
• periodically verify appraisal register
• describe objective facts as they occur

Question 21

performance appraisal interview goals

Answer 21

communicate expected performance

give subordinate feedback on current performance

build relationships b/w subordinate + superior

reduce anxiety + tension

Question 22

key for effective interview

Answer 22

effective communication

• openness + empathy
• avoid evaluations
• know to listen

careful planning

• present purpose of interview
• give specific feedback
• promote self-appraisal

Question 23

performance appraisal problems

Answer 23

halo effect
recency effect
contrast errors
leniency, central + severity tendencies
favoritism
stereotyping

Question 24

conditions for good performance appraisal

Answer 24

choose instruments + methods less liable to distortions

integrate PM w/ other HR functions

promote dialogue b/w superiors + subordinates

support self-effort through development, not sanctions