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Performance Management > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

What is Performance Management?

A

Continuous process of …

  • Identifying
  • Measuring
  • Developing… the performance of individuals and teams
  • Aligning performance with the strategic goals of the organization
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2
Q

Performance Management is the same as Performance Appraisal? (T/F)

A

False

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3
Q

What are the differences between PM and PA?

A

PM

  • Strategic business considerations
  • Driven by line manager
  • Ongoing feedback
  • So employee can improve performance

PA

  • Driven by HR
  • Assesses employee
  • Strengths
  • Weaknesses
  • Once a year
  • Lacks ongoing feedback
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4
Q

What are the Contributions of Performance Management for Employees?

A

Clarify definitions of:

  • Job
  • Success criteria
  • Increase motivation to perform
  • Increase self-esteem
  • Enhance self-insight and development
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5
Q

What are the Contributions of Performance Management for Managers?

A
  • Communicate supervisors’ views of performance more clearly
  • Managers gain insight about subordinates
  • Better and more timely differentiation between good and poor performers
  • Employees become more competent
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6
Q

What are the Contributions of Performance Management for Organization/HR Function?

A
  • Clarify organizational goals
  • Facilitate organizational change
  • Fairer, more appropriate administrative actions
  • Better protection from lawsuits
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7
Q

What are the Disadvantages/Dangers of Poorly Implemented PM Systems for Employees?

A
  • Lowered self-esteem
  • Employee burnout and job dissatisfaction
  • Damaged relationships
  • Use of false or misleading information
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8
Q

What are the Disadvantages/Dangers of Poorly Implemented PM Systems for Managers?

A
  • Increased turnover
  • Decreased motivation to perform
  • Unjustified demands on managers’ resources
  • Varying and unfair standards and ratings
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9
Q

What are the Disadvantages/Dangers of Poorly Implemented PM Systems for Organization/HR Function?

A
  • Wasted time and money
  • Unclear ratings system
  • Emerging biases
  • Increased risk of litigation
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10
Q

Define Reward Systems.

A

Set of mechanisms for distributing…
- Tangible returns
- Intangible or relational returns
… as part of an employment relationship

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11
Q

What are tangible returns in the reward system?

A
  • Cash compensation
  • Base pay
  • Cost-of-Living and Contingent Pay
  • Incentives (short- and long-term)
    Benefits such as:
  • Income Protection
  • Allowances
  • Work/life focus
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12
Q

What are Intangible Returns in the reward system?

A

Relational returns such as

  • Recognition and status
  • Employment security
  • Challenging work
  • Learning opportunities
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13
Q

What are the Returns and Their Degrees of Dependency on the Performance Management System?

A
  • Low Dependency
  • Cost of Living Adjustment
  • Income Protection
  • Moderate Dependency
  • High Dependency
  • Work/Life Focus
  • Allowances
  • Relational Returns
  • Base Pay
  • Contingent Pay
  • Short-Term Incentives
  • Long-Term Incentives
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14
Q

What are the 6 Purposes of PM Systems?

A
  • Strategic
  • Administrative
  • Informational
  • Developmental
  • Organizational maintenance
  • Documentation
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15
Q

What is the Strategic Purpose?

A
  • Link individual goals with organization’s goals

- Communicate most crucial business strategic initiatives

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16
Q

What is the Administrative Purpose?

A
  • Provide information for making decisions regarding:
  • Salary adjustments
  • Promotions
  • Retention or termination
  • Recognition of individual performance
  • Layoffs
17
Q

What is the Informational Purpose?

A

Communicate to employees:

  • Expectations
  • What is important
  • How they are doing
  • How to improve
18
Q

What is the Developmental Purpose?

A
  • Performance feedback/coaching
  • Identification of individual strengths and weaknesses
  • Identification of causes of performance deficiencies
  • Tailor development of individual career path
19
Q

What is the Organizational Maintenance Purpose?

A
  • Plan effective workforce
  • Assess future training needs
  • Evaluate performance at organizational level
  • Evaluate effectiveness of HR interventions
20
Q

What is the Documentation Purpose?

A
  • Validate selection instruments
  • Document administrative decisions
  • Help meet legal requirements
21
Q

Name the 15 Characteristics of an ideal PM system.

A
  1. Strategically congruent
  2. Contextually congruent
  3. Thorough
  4. Practical
  5. Meaningful
  6. Specific
  7. Identifies effective and ineffective performance
  8. Reliable
  9. Valid
  10. Acceptable and fair
  11. Inclusive
  12. Open (No Secrets)
  13. Correctable
  14. Standardized
  15. Ethical
22
Q

What is the difference between Strategically Congruent and Contextually Congruent?

A

Strategically Congruent

  • Consistent with organization’s strategy
  • Aligned with unit and organizational goals

Contextually Congruent

  • Congruent with the organization’s culture as well as the broader cultural context of the region or country
  • Example: A 360-degree feedback is not effective where communication is not fluid and hierarchies are rigid
23
Q

What is the difference between Through and Practical?

A

Thorough

  • All employees are evaluated
  • All major job responsibilities are evaluated
  • Evaluations cover performance for entire review period
  • Feedback is given on both positive and negative performance

Practical

  • Available
  • Easy to use
  • Acceptable to decision makers
  • Benefits outweigh costs
24
Q

Define Meaningful and Specific.

A

Meaningful

  • Standards are important and relevant
  • System measures ONLY what employee can control
  • Results have consequences
  • Evaluations occur regularly and at appropriate times
  • System provides for continuing skill development of evaluators

Specific

  • Concrete and detailed guidance to employees
  • What’s expected
  • How to meet the expectations
25
Q

Define Identifies effective and ineffective performance and Reliable.

A

Identifies effective and ineffective performance

  • Distinguish between effective and ineffective:
  • Behaviors
  • Results
  • Provide ability to identify employees with various levels of performance.

Reliable

  • Consistent
  • Free of error
  • Inter-rater reliability
26
Q

What term describes:

  • Relevant (i.e., measures what is important)
  • Not deficient (i.e., doesn’t measure unimportant facets of job)
  • Not contaminated (i.e., only measures what the employee can control)
A

Valid

27
Q

What term describes:

  • Perception of Distributive Justice
  • Work performed  Evaluation received  Reward
  • Perception of Procedural Justice
  • Fairness of procedures used to:
  • Determine ratings
  • Link ratings to rewards
A

Acceptable and Fair

28
Q

What term describes:

  • Represents concerns of all involved
  • When system is created, employees should help with deciding:
  • What should be measured
  • How it should be measured
  • Employee should provide input on performance prior to evaluation meeting.
A

Inclusive

29
Q

What term describes:

  • Frequent, ongoing evaluations and feedback
  • Two-way communications in appraisal meeting
  • Clear standards and ongoing communication
  • Communications are factual, open, and honest
A

Open (No Secrets)

30
Q

What term describes:

  • Recognizes that human judgment is fallible
  • Appeals process provided
A

Correctable

31
Q

Define Standardized and Ethical.

A

Standardized

  • Ongoing training of managers to provide
  • Consistent evaluations across:
  • People
  • Time

Ethical

  • Supervisor suppresses self-interest
  • Supervisor rates only where (s)he has sufficient information about the performance dimension
  • Supervisor respects employee privacy
32
Q

How can PM provide information for the Integration with other Human Resources and Development Activities?

A
  • Development of training to meet organizational needs
  • Workforce planning
  • Recruitment and hiring decisions
  • Development of compensation systems
33
Q

PM around the World?

A
  • PM used in United States, Mexico, Turkey, India, Australia, China, and so on
  • Common across countries: Need to align individual and organizational goals to enhance the performance of individuals and groups
  • Yet, different countries emphasize different components of PM
    EX 1: PMs in Japan tend to emphasize behaviors to the detriment of results
    EX 2: The current challenge among many organizations in South Korea is how to reconcile a merit-based approach with more traditional cultural values

Performance Management (5 decks)

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