7.5: Explain possible reasons why performance management systems can fail. Flashcards
What is a key requirement for a performance management system to be successful?
The system must align with organizational outcomes so that employee work supports the organization’s goals.
How does organizational culture affect the success of a performance management system?
Employees must buy into the system, and top management must support it to ensure its effectiveness.
Why is employee involvement important in performance management?
Employees who help develop the system and set performance goals are more likely to accept and engage with it.
What are the eight common reasons why performance management systems fail (according to Figure 7.3)?
The benefits of performance management are not understood by managers and employees.
Too many objectives are assigned to employees.
The process is complex, time-consuming, and not linked to company strategy.
Employees are not involved in developing the system, making it seem unfair or useless.
Managers are not properly trained and make errors in assessing employees.
Too much focus on criticism and not enough on coaching.
The system relies too much on one-time annual reviews instead of ongoing evaluation.
Too much focus on past behaviors without planning for future objectives.
Why can overly complex performance management systems lead to failure?
Employees and managers may find the process unclear, too long, or disconnected from meaningful outcomes, making it seem like a waste of time.
What happens when performance management lacks integration with training and total rewards?
Employees may not see how performance reviews lead to tangible improvements or career growth.
How can poor managerial training impact performance management?
Managers who lack the necessary skills to manage performance may avoid the process or make errors in assessment.
Why is coaching more effective than excessive criticism in performance management?
Coaching helps employees improve, while criticism alone can be demotivating.
How can managers ensure performance management is a continuous process rather than a one-time event?
By providing regular feedback and coaching, rather than relying solely on an annual review.
What challenges do remote employees present for performance management?
Managers struggle to keep them motivated, engaged, and on track without direct supervision.
How can managers effectively conduct performance management for remote workers?
Frequently check in with employees.
Focus on contributions rather than just results.
Allow flexible goal setting to adapt to changing work environments.
What is one key finding from Gartner regarding performance reviews during a pandemic?
net73% of organizations that normally conduct formal reviews continued to do so despite disruptions.
Why is feedback critical for remote employees?
It helps maintain focus, engagement, and motivation when working from home.
What is a performance review in the context of HRM?
It is the process of providing employees with feedback regarding their performance, either informally (e.g., coaching) or formally during a performance interview.
Why is feedback a critical step in performance management?
It helps employees understand how they are doing and supports performance improvement, development, and alignment with goals.
How can employees help ensure their performance review is fair?
By being well prepared—tracking feedback, training, and performance, and completing a self-assessment prior to the review.
Why should employees be active participants in reviews?
It encourages open communication and gives them the chance to share their views and contribute to the review process.
What should managers understand about their role in performance reviews?
That performance management is an integrated system and they must actively support employee development and provide fair, unbiased evaluations.
What are common types of rater errors managers should avoid?
Recency error – judging based only on recent events.
Halo error – focusing on one trait to assess overall performance.
Central tendency – rating everyone as “average.”
Contrast error – comparing employees to one another rather than to standards.
How can organizational politics influence performance reviews?
Managers may rate based on personal feelings or political motives (e.g., to avoid conflict or make themselves look good).
Why is it important for managers to receive training on giving feedback?
To avoid bias and errors, improve communication, overcome interpersonal barriers, and focus on behavior—not the person.
What are key elements of effective feedback delivery?
Use private settings
Focus on behaviors
Encourage employee participation
What three legal criteria must performance feedback meet?
Reliability – consistent measurement across employees.
Fairness – free of bias.
Validity – job-related and accurate.
What Canadian law protects employee rights in performance assessments?
The Canadian Charter of Rights and Freedoms, along with other federal/provincial human rights laws.
What legal risk can arise from vague performance criteria like “dependability”?
Subjectivity and lack of clarity, which can weaken the review process and increase risk of legal challenge.
What are the 5 key guidelines for effective formal performance reviews?
Employees must be given performance expectations.
Employees should contribute to review discussions.
Employees must have a chance to appeal or disagree.
Ratings must be job-related and measurable.
Managers must be trained on how to evaluate and give feedback.
