7.2: Explain the purposes of managing performance Flashcards
What is the purpose of performance management?
To provide objective, reliable, and valid information that benefits both the organization and employees, supporting decisions related to compensation, planning, documentation, and development.
How does performance management influence compensation?
It helps determine salary increases, bonuses, and pay-for-performance awards by linking pay to performance.
Why is it important to measure performance levels in compensation decisions?
To ensure fair and transparent pay decisions by measuring and communicating differences in performance.
How does performance management support HR planning?
By identifying employee competencies, skills, and abilities, allowing organizations to plan for succession and workforce needs.
What competency gaps does performance management help identify?
Unfilled roles, skill shortages, and areas requiring employee development.
What is the role of documentation in performance management?
It provides a paper trail of performance discussions and HR decisions to support legal compliance and future planning.
Why is documentation critical in performance management?
It serves as evidence in case of legal disputes, grievances, or disciplinary actions, especially in unionized environments.
What should managers do during performance discussions to ensure documentation?
Keep records of both informal and formal discussions.
Have employees sign documents verifying discussions.
Track coaching sessions related to performance improvement.
How does performance management support coaching and employee development?
It provides ongoing feedback to help employees identify strengths and areas for improvement.
What are key activities in performance-based coaching and development?
Providing feedback to improve performance.
Creating formal training programs to enhance skills.
Developing individual career growth plans.
Informing decisions on promotions and transfers.
How does strategic performance management differ from regular performance evaluation?
Strategic performance management aligns employee development with organizational growth goals, ensuring long-term success.
What are the four key purposes of managing performance?
Compensating – Determines salary increases, bonuses, and pay-for-performance rewards.
Planning – Helps with succession planning, skill identification, and competency gap analysis.
Documenting – Maintains HR records for legal protection and performance tracking.
Coaching & Developing – Supports continuous learning, career progression, and transfer/promotion decisions.
