Capitulo 7 - Performance Management

Question 1

What is performance management?

Answer 1

The process through which managers ensure that employees’ activities and outputs contribute to the organisation’s goals.
An employee’s performance measurement differs from job to job.
Example: a car dealer’s performance is measured by the dollar amount of sales, the number of new customers, and customer satisfaction surveys.

Question 2

What does performance management require?

Answer 2

• Knowing what activities and outputs are desired
• Observing whether they occur
• Providing feedback to help employees meet expectations

Question 3

What are the stages of the performance management process?

Answer 3

step 1: define performance outcomes for company division and department.
step 2: develop employee goals, behaviour, and actions to achieve outcomes.
step 3: provide support and ongoing performance discussions.
step 4: evaluate performance.
step 5: identity improvements needed.
step 6: provide consequences for performance results.

Question 4

What are the three purposes of performance management?

Answer 4

Strategic purpose, administrative purpose, developmental purpose.

Question 5

purposes of performance management

What is strategic purpose?

Answer 5

Means effective performance management helps the organization achieve its business objectives.

Question 6

purposes of performance management

What is administrative purpose?

Answer 6

Refers to the ways in which organisations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs.

Question 7

purposes of performance management

What is developmental purpose?

Answer 7

Means that it serves as basis for developing employees’ knowledge and skills.

Question 8

What is the criteria for effective performance management?

Answer 8

1. Fit with strategy
2. Validity
3. Reliability
4. Acceptability
5. Specific feedback

Question 9

What is Contamination and Deficiency of a Job Performance Measure?

Answer 9

Contamination is present in job performance measure
Deficiency id present in Actual, or “true”, job performance
Validity is present in both

Question 10

How is the measure Job Performance?

Answer 10

A performer (individual or team) - TRAIT (caracteristicas) - Trait Approach Empahsizes individual traits and attributes of employees.
In a given situation
Engages in certain behavior - BEHAVIOR - Behavior Approach Emphasizes how employees do the job.
That produce various results - RESULTS - Results Approach Emphasizes what employees produce.

Question 11

What are the two scales used for measuring performance of traits/attributes?

Answer 11

Graphic rating scale and mixed-standard scale.

Question 12

What is a graphic rating scale?

Answer 12

• Lists traits and provides a rating scale for each trait.
• The employer uses the scale to indicate the extent to which an employee displays each trait.

Question 13

What is a mixed-standard scale?

Answer 13

Uses several statements describing each trait to produce a final score for that trait.

Question 14

Give examples of Graphic Taing Sales

Answer 14

Performance Dimension (Traits):
- Knowledge
- Communication
- Judgement
- Managerial Skill
- Quality performance
- Teamwork
- Interpersonal skills
- Initiative
- Creativity
- Problem solving

Rating:
- Distinguished
- Excellent
- Commendable
- Adequate
- Poor

Question 15

What are the three methods of measuring performance of rating behaviours?

Answer 15

Critical-incident method, behaviourally anchored rating scale (BARS) and behavioural observation scale (BOS).

Question 16

What is the critical-incident method?

Answer 16

• Based on managers’ records of specific examples of the employee acting in ways that are either effective or ineffective.
• Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals.

Question 17

What is the behaviourally anchored rating scale (BARS)?

Answer 17

Rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance.

Question 18

What is behavioural observation scale (BOS)?

Answer 18

• A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task.
• A BOS also asks the manager to rate the frequency with which the employee has exhibited the behavior during the rating period.

Question 19

What is and example of measuring results?

Answer 19

Management by objectives (MBO): people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization’s overall goals.
These goals become the standards for evaluating each employee’s performance.

Question 20

In fixed standards vs comparisons, what are the absolute measures?

Answer 20

Predefined standard:
- compares each employee to predefined standards
- performance of colleagues does not affect individual scores.

Question 21

In fixed standards vs comparisons, what are the relative measures?

Answer 21

Simple ranking: Requires managers to rank employees in their group from the highest performer to the poorest performer.
Forced distribution: Assigns a certain percentage of employees to each category in a set of categories.
Paired comparison: Compares each employee with each other employee to establish rankings.

Question 22

What are the sources of performance information?

Answer 22

360-degree performance appraisal
Performance measurement that combines information
from the employees’:
- Managers
- Peers
- Subordinates
- Self
- Customers

Question 23

Types of Performance Measurement Rating Errors

What are the types of performance measurements rating errors?

Answer 23

Congrats errors, distributional errors, rater bias.

Question 24

Types of Performance Measurement Rating Errors

What are contrast errors?

Answer 24

The rater compares an individual, not against an objective standard, but against other employees.

Question 25

Types of Performance Measurement Rating Errors

What are distributional errors?

Answer 25

The rater tends to use only part of a rating scale.

Question 26

Types of Performance Measurement Rating Errors

What are the three types of distributional errors? Explain each one.

Answer 26

• Leniency: the reviewer rates everyone near the top.
• Strictness: the rater favors lower rankings.
• Central tendency: the rater puts everyone near the middle of the scale.

Question 27

Types of Performance Measurement Rating Errors

What is rater bias?

Answer 27

Raters often let their opinion of one quality color their opinion of others.

Question 28

Types of Performance Measurement Rating Errors

What is one types of rater bias? Explain it.

Answer 28

Halo error: when the bias is in a favorable direction. This can mistakenly tell employees they don ́t need to improve in any area.

Question 29

Summarize ways to produce improvement in unsatisfactory performance.

Improving Performance (4 types of people)

Answer 29

Low Ability | High Motivation
Misdirected effort
High Ability | High Motivation
Solid performes
High Ability | Low Motivation
Underutilizers
Low Ability | Low Motivation
Dreadwood

Question 30

Improving performance

What Misiderected consists of?

Answer 30

• Coaching
• Frequent performance feedback
• Goal setting
• Training or temporary assignment for skill development
• Restructured job assignment

Question 31

What Solid Performers consists of?

Answer 31

• Reward good performance
• Identify development opportunities
• Provide honest, direct feedback

Question 32

What Underutilizers consists of?

Answer 32

• Give honest, direct feedback
• Provide conseling
• Use team building and conflit resolution
• Link rewards to performance outcomes
• Offer training for needed knowledge or skills
• Manage stress levels

Question 33

What Deadwood consists of?

Answer 33

• Withholding (retenção na fonte) pay increases
• Demotion
• Outplacement
• Firing
• Specifi, direct feedback on performance problems