7.3: Describe the steps in an effective performance management system. Flashcards
What is the primary role of the HR department in performance management?
The HR department oversees and coordinates the performance management system and may design or select the system.
Why is management involvement critical in performance management?
Managers are ultimately responsible for the process and outcomes, and their involvement helps achieve system objectives.
Why is employee participation important in performance management system development?
Employees are more likely to accept and be satisfied with the system if they participate in its development.
What is the first step in an effective performance management system?
Clarifying the work to be accomplished.
How can job expectations be established?
Through job analysis, job descriptions, and conversations between employees and managers.
Give an example of a measurable expected result in a fast-food restaurant.
“No food wastage,” which can be measured by tracking the kilograms of food wasted or voided customer orders.
What must happen before goals can be set?
The manager and employee must be clear on expected results and how they will be measured.
Why must employee goals be linked to overall business objectives?
To ensure individual performance contributes to organizational success.
What are two types of performance measures, and give examples of each?
Quantitative: Revenue, cost of food.
Qualitative: Customer satisfaction.
Why are ethical standards becoming more common in performance management?
Companies are integrating ethics into performance standards to encourage responsible behavior.
What is the purpose of coaching sessions?
To help employees achieve their goals in a supportive manner.
Why should coaching avoid fault-finding and blaming?
Because employees want to do well and benefit more from encouragement.
How does coaching help reduce hiring costs?
It improves employee performance, reducing the need for termination and hiring replacements.
What are two key elements of effective coaching?
Listening carefully.
Asking open-ended, probing questions to encourage dialogue.
How often do most organizations conduct formal performance reviews?
Annually.
What are the main purposes of a formal performance review?
Evaluate employee accomplishments.
Discuss development areas and future goals.
Provide feedback and make necessary salary adjustments.
Why should there be no surprises during a formal review?
Because employees should receive regular feedback and coaching throughout the year.
Why is recognition important in a performance management system?
Recognition motivates employees and reinforces good performance.
Name three non-monetary rewards for employees.
Consideration for a promotion.
Special project opportunities.
Manager praise.
What should follow a performance review?
An action plan for future training, development, and career discussions.
When should an action plan be developed?
When performance expectations are not met, and improvements are needed.
What must an effective improvement plan include?
Clear identification of deficient areas.
Explicit expectations for improvement.
Unambiguous timelines for changes.
Support available from the manager.
