Chapter 10

Question 1

What is performance management?

Answer 1

Process encompassing all activities related to improving employee performance, productivity, and effectiveness
 Includes goal setting, pay for performance, training and development, career management, and disciplinary action

Question 2

What are the steps in performance management?

Answer 2

1. defining performance expectations
2. providing ongoing feedback and coaching
3. conducting a performance appraisal and evaluation discussions
4. determining performance rewards/consequences such as promotions, salary, increases and bonuses
5. conducting development and career opportunities discussions

Question 3

What are the activities in defining performance expectations?

Answer 3

Job description often insufficient to clarify
specific performance expectations
 Measurable standards related to strategic
objectives should be developed for each position
 Performance goals should be quantifiable,
measurable, challenging and time defined.

Question 4

What are the characteristics of the ongoing feedback and coaching?

Answer 4

Important to have open two-way communication
 employee responsible for monitoring own
performance and asking for help
 manager responsible for communicating
changing strategies and objectives if
applicable

Question 5

What is performance appraisal?

Answer 5

A process, typically performed annually by a
supervisor for a subordinate, designed to help
employees understand their roles, objectives,
expectations, and performance success.
Administrative versus developmental

Question 6

What methods of performance appraisal are there?

Answer 6

graphic rating scale
alternation ranking method
paired comparison method
forced distribution method
critical incident method
narrative forms
behaviourally anchored rating scales (BARS)
management by objectives

Question 7

What is graphic rating scale?

Answer 7

A scale that lists a number of traits (dependability,
friendliness, creativity, loyalty, etc.) and a range of
performance for each
 The employee is then rated by identifying the score that
best describes his or her level of performance for each
trait
 It is often criticized as being very subjective and vague
 Example: what constitutes a low friendliness or high creativity rating?

Question 8

What is alternation ranking method?

Answer 8

Ranking employees from best to worst on a particular trait
Start with the best employee followed by the worst employee. Then identify the second best employee followed by the second worst employee.
Process continues until all employees are ranked.

Question 9

What is paired comparison method?

Answer 9

Ranking employees by making a chart of all possible pairs of employees for each trait and indicating the better employee of the pair.

Question 10

What is forced distribution method?

Answer 10

Predetermined percentages of rates are placed in

various performance categories.

Question 11

What is critical incidence method?

Answer 11

Keeping a record of uncommonly good or undesirable
examples of an employee’s work-related behavior and
reviewing the list with the employee at predetermined
times.
 If the behavior is subpar, it is important to discuss as
soon as possible
 May be reviewed at a performance meeting with the
employee.

Question 12

What are behaviourally anchored rating scales?

Answer 12

An appraisal method that aims to combine the benefits of
critical incidents and quantified ratings by anchoring a
quantified scale with specific examples of good and poor
performance.
 Less subjective than graphic rating scale since each
value has a corresponding description.
 Should be developed with input from those doing the job
and supervisors.
 Advantages: less subjective, and
consistent.
 Disadvantages: time-consuming and hard to develop

Question 13

What is management by objectives?

Answer 13

1. Employee and supervisor jointly define expected employee results (individual goals). Goals are quantifiable, challenging and time-specific.
2. Employee and supervisor regularly meet to check on progress
3. Final meeting to recap planned goals and compare to actual results.

Question 14

What are some of the advantages of using technology for performance appraisals?

Answer 14

 enables managers to automate record keeping
and report writing
 provides overall performance management
process
 provides employees with clear development
path
 advanced reporting capabilities
 electronic performance monitoring (EPM)

Question 15

What are some of the performance appraisal problems?

Answer 15

Validity and reliability
Rating scale problems
 unclear performance standards
 halo effect / stereotyping
 central tendency effect
 leniency or strictness bias
 recency effect
 similar-to-me bias

Question 16

What are the guidelines for effective appraisals?

Answer 16

Performance ratings must be job-related.
Employees must be given a written copy of their job
standards of appraisals.
Managers who conduct the appraisal must be able to
observe the behavior they are rating.
Supervisors must be trained to use the appraisal form
correctly.
Appraisals should be discussed openly with employees in
private and counseling or corrective guidance offered.
An appeal procedure should be established to enable
employees to express disagreement with the appraisal.
Avoid sending mixed messages, such as a warning letter
together with a “satisfactory” performance review.
Provide the employee with a reasonable amount of time
to improve performance.
Ensure that your expectations are clear.

Question 17

Who should do the appraising?

Answer 17

1. Supervisors
2. Peers/team members
3. Self
4. Subordinates
5. Customers
   Using all of these constitutes 360-degree appraisal.

Question 18

What is a manager and/or supervisor appraisal?

Answer 18

Appraisal done by an employee’s manager and reviewed

by a manager one level higher.

Question 19

What is self-appraisal?

Answer 19

Appraisal done by the employee being evaluated,
generally on an appraisal form completed by the
employee prior to the performance interview.

Question 20

What is subordinate appraisal?

Answer 20

Appraisal of a superior by an employee, which is more
appropriate for developmental than for administrative
purposes.

Question 21

What are peer/team appraisals?

Answer 21

Peer / Team Appraisal
 Appraisal by fellow employees, usually
supervised by the employee’s manager.
 Why peer appraisals are often not used:
1. Peer ratings are simply a _________________.
2. Managers are reluctant to give up control over the
appraisal process.
3. Those receiving low ratings might retaliate against their peers

Question 22

What is a customer appraisal?

Answer 22

A performance appraisal that, like team
appraisal, is based on TQM concepts and
seeks evaluation from both firm’s internal and
external customers.

Question 23

What is an appraisal interview?

Answer 23

An interview in which the supervisor and employee
review the appraisal and make plans to remedy
deficiencies and reinforce strengths
 three basic types of appraisal interviews include:
1. Satisfactory (promotable) - make development plans
2. Satisfactory (not promotable )
3. Unsatisfactory (correctable)

Question 24

How to conduct the appraisal interview?

Answer 24

1. Be direct and specific
2. Do not get personal
3. Encourage the employee to talk.
4. Develop an action plan.

Question 25

How to handle a defensive employee?

Answer 25

Recognize that defensive behaviour is normal
Never attack a person’s defenses
Postpone action
Recognize human limitations

Question 26

What are the steps for career development discussion?

Answer 26

 Manager and employee discuss opportunities for
development to strengthen or improve the
employee’s knowledge, skills, and abilities
 Business needs must be balanced with the
employee’s preferences