Chapter 10: Performance Management

Question 1

Performance appraisal

Answer 1

evaluating an employee’s current and/or past performance relative to his or her performance standards.

Question 2

Performance management

Answer 2

The process encompassing all activities related to improving employee performance, productivity, and effectiveness

Question 3

Performance management includes:

Answer 3

goal setting, pay for performance, training and development, career management, and disciplinary action

Question 4

There are three major purposes of performance management:

Answer 4

1) it aligns employee actions with strategic goals,
2) it is a vehicle for culture change,
3) it provides input into other HR systems such as development and remuneration

Question 5

Which elements of performance appraisals are used most by Canadian organizations?

Premature,
QUIZ QUESTION

Answer 5

Individual objectives and goals.

Question 6

The performance management process contains five steps: what are they?

Answer 6

1) Defining performance expectations and goals
2) Providing ongoing feedback and coaching
3) Conducting performance appraisals and evaluation discussions
4) Determining performance rewards and / consequences
5) Conducting development and career opportunities discussions

Question 7

There are five reasons to appraise subordinates’ performance. what are they?

Answer 7

First, most employers base pay, promotion, and retention decisions on the employee’s appraisal

Appraisals play a central role in the employer’s performance management process

The appraisal lets the manager and subordinate develop a plan for correcting any deficiencies, and to reinforce the subordinate’s strengths.

Appraisals provide an opportunity to review the employee’s career plans in light of his or her exhibited strengths and weaknesses.

Finally, appraisals enable the supervisor to identify if there is a training need and the remedial steps required.

Question 8

Over the last 30 years there has been more recognition that job performance is a multidimensional construct which can be split into what has become widely acknowledged as ______ versus ______performance

Answer 8

task

contextual

Question 9

Task performance

Answer 9

An individual’s direct contribution to their job-related processes

Question 10

Contextual performance

Answer 10

An individual’s indirect contribution to the organization by improving the organizational, social, and psychological behaviours that contribute to organizational effectiveness beyond those specified for the job

Question 11

Coaching

Answer 11

defined as a process for improving work performance in a frequent contact, hands-on process aimed at helping employees improve performance and capabilities.

Question 12

Electronic performance monitoring (EPM)

Answer 12

Having supervisors electronically monitor the amount of computerized data an employee is processing per day and thereby his performance

Question 13

Formal Appraisal Discussions

Answer 13

An interview in which the supervisor and employee review the appraisal and make plans to remedy deficiencies and reinforce strengths

Question 14

There are three basic types of formal appraisal discussions, each with its own objectives: what are they?

Answer 14

1) Satisfactory - promotable
2) Satisfactory - not promotable
3) Unsatisfactory - correctable versus uncorrectable

Question 15

1) Satisfactory - promotable

Answer 15

Here, the person’s performance is satisfactory and there is a promotion ahead

The objective is to discuss the person’s career plans and to develop a specific action plan for the educational and professional development that the person needs to move to the next job

Question 16

2) Satisfactory - not promotable

Answer 16

This interview is for employees whose performance is satisfactory but for whom promotion is not possible

The objective here is not to improve or develop the person but to maintain satisfactory performance.

Question 17

3) Unsatisfactory - correctable versus uncorrectable

Answer 17

When the person’s performance is unsatisfactory but correctable, the interview objective is to lay out an action plan for correcting the unsatisfactory performance

If unsatisfactory and the situation uncorrectable, there is usually no need for any formal appraisal discussion because the person’s performance is not correctable anyway

Question 18

There are three things to do in preparation for the interview what are they?

Answer 18

1) First, assemble the data
2) Next, prepare the employee
3) Finally, find a mutually agreeable time and place, and allow plenty of time for the interview

Question 19

How to Conduct the Interview:

There are four things to keep in mind when conducting a formal appraisal discussion to ensure the feedback is constructive

Answer 19

Be direct and specific

Do not get personal

Encourage the person to talk

Develop an action plan

Question 20

When a supervisor tells someone his or her performance is poor, the first reaction is often

Answer 20

Denial

Question 21

The Performance Management Process

Answer 21

STEP 1: DEFINING PERFORMANCE EXPECTATIONS

STEP 2: PROVIDING ONGOING COACHING AND FEEDBACK

STEP 3: CONDUCT PERFORMANCE APPRAISAL AND EVALUATION DISCUSSION

STEP 4: DETERMINE PERFORMANCE REWARDS/CONSEQUENCES

STEP 5: CAREER DEVELOPMENT DISCUSSION

Question 22

Graphic Rating Scale

Answer 22

Simplest and most popular technique for appraising performance.

It lists traits (such as reliability) and a range of performance values (from unsatisfactory to outstanding) for each one

Question 23

Alternation Ranking Method

Answer 23

Ranking employees from best to worst on a particular trait

Question 24

Paired Comparison Method

Answer 24

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

Question 25

Forced Distribution Method

Answer 25

Predetermined percentages of ratees are placed in various performance categories

Question 26

Critical Incident Method

Answer 26

the supervisor keeps a log of desirable or undesirable examples or incidents of each employee’s work-related behaviour. Then, every six months or so, the supervisor and employee meet to discuss the latter’s performance by using the specific incidents as examples.

Question 27

PIP

Answer 27

Performance improvement plan

Question 28

Behaviourally Anchored Rating Scales (BARS)

Answer 28

combines the benefits of narratives, critical incidents, and quantified ratings by anchoring a series of quantified scales, one for each performance dimension, with specific behavioural examples of good or poor performance

Question 29

But BARS may also have important advantages

Answer 29

1) A more accurate measure 2) Clearer standards. 3) Feedback 4) Independent dimensions 5) Consistency

Question 30

Management by Objectives (MBO)

Answer 30

Involves setting specific goals with each employee and then periodically reviewing the progress made

Question 31

Using MBO has three potential problems

Answer 31

Setting unclear, unmeasurable objectives is the main one time-consuming tug of war (managers push for higher goals and employees push for lower ones)

Question 32

Seven main problems can undermine such appraisal tools as graphic rating scales:

Answer 32

``` unclear standards, halo effect, central tendency, leniency or strictness, appraisal bias, recency effect, and similar-to-me bias ```

Question 33

Unclear Performance Standards

Answer 33

An appraisal scale that is too open to interpretation of traits and standards aka everyone's definition of good vs great is different

Question 34

Halo effect

Answer 34

The problem that occurs when a supervisor's rating of an employee on one trait biases the rating of that person on other traits Example: Super nice personality, but always late.

Question 35

Central tendency

Answer 35

A tendency to rate all employees in the middle of the scale Example: Everyone is good but no one is great or phenomenal

Question 36

Strictness/Leniency

Answer 36

The problem that occurs when a supervisor has a tendency to rate all employees either low or high Hard markers vs easy markers

Question 37

Appraisal Bias

Answer 37

The tendency to allow individual differences such as age, race, and sex, to affect the appraisal ratings that these employees receive illegal under Human Rights Legislation

Question 38

Recency effect

Answer 38

Rating error when ratings are based on the employee's most recent performance rather than on performance throughout the appraisal period

Question 39

Similar-to-me bias

Answer 39

The tendency to give higher performance ratings to employees who are perceived to be similar to the rater in some way Example: Rater and employee both Indian

Question 40

How to Avoid Appraisal Problems

Answer 40

First, raters must be familiar with the problems just discussed Second, training supervisors on how to eliminate rating errors, such as the halo effect, leniency, and central tendency, can help them avoid these problems Third, raters must choose the right appraisal tool. Fourth, errors in performance appraisals can be reduced by using multiple raters in the evaluation

Question 41

Who Should Do the Appraising? Several options, such as

Answer 41

Supervisor Self Peers Committees Subordinates

Question 42

Logrolling

Answer 42

all the peers simply get together to rate each other highly

Question 43

Upward feedback

Answer 43

Subordinates evaluating their supervisors / managers

Question 44

360 degree appraisal aka multisource feedback

Answer 44

A performance appraisal technique that uses multiple raters including peers, employees reporting to the appraisee, supervisors, and customers

Question 45

When using management by objectives, how should the goals be set? QUIZ QUESTION

Answer 45

Collaboratively

Question 46

Performance appraisals can be required in courts when assessing wrongful termination cases and are considered to be legal documents in Canada. QUIZ QUESTION

Answer 46

TRUE

Question 47

Using a graphic rating scale can help to avoid the central tendency rating scale problem. QUIZ QUESTION

Answer 47

FALSE

Question 48

A potential problem with peer performance appraisal occurs when all the peers get together to rate each other highly; what is this potential problem referred to as? QUIZ QUESTION

Answer 48

Logrolling

Question 49

A manager wishes to give a new employee a pay increase sooner than scheduled. The new employee has a great positive attitude that has made other workers more positive and productive. What is this employee receiving an earlier pay increase for? QUIZ QUESTION

Answer 49

Contextual performance

Question 50

An interview with the supervisor and the employee to review the appraisal and make plans to remedy deficiencies and reinforce strengths is referred to as which of the following? QUIZ QUESTION

Answer 50

Formal appraisal discussion

Question 51

Many firms today let employees anonymously evaluate the performance of their supervisor; what is this process known as? QUIZ QUESTION

Answer 51

Upward feedback

Question 52

According to the textbook, which of the following is the key success factor for effective performance appraisal that will lead to optimum employee performance? QUIZ QUESTION

Answer 52

DO NOT SELECT The quantity of performance appraisal dialogue between a manager and an employee Next best guess: The quality of the performance appraisal dialogue between a manager and an employee FOCUS ON QUALITY

Question 53

Janice sees a lot of herself in her employee Danielle as they both went to the same school, earned the same degree, and enjoy the same types of hobbies. Danielle often receives a higher appraisal from Janice compared with her fellow workers. What error is Janice likely making? QUIZ QUESTION

Answer 53

Similar-to-me bias

Question 54

Which performance appraisal technique uses a "+" to denote "better than" and a "-" to denote "worse than" and then adds up the number of times that each employee was rated as "better than"? QUIZ QUESTION

Answer 54

Paired comparison method

Question 55

Which performance appraisal method lists a number of traits and a range of performance values for each trait? QUIZ QUESTION

Answer 55

Graphic rating scale

Question 56

What does PIP refer to in the performance management process? QUIZ QUESTION

Answer 56

Performance improvement plan

Question 57

Which of the following is the basis for fostering and managing employee skills and talents? QUIZ QUESTION

Answer 57

Performance management

Question 58

When using the paired comparison method, every employee is paired with and compared with every other employee.

Answer 58

TRUE

Question 59

According to the textbook, rating committees used to evaluate employees are usually composed of the employee's immediate supervisor and who else? QUIZ QUESTION

Answer 59

Three or four other supervisors

Question 60

An interview with the supervisor and the employee to review the appraisal and make plans to remedy deficiencies and reinforce strengths is referred to as which of the following? QUIZ QUESTION

Answer 60

Formal appraisal discussion

Question 61

When an employee's most recent performance biases the evaluation of his or her performance over the entire appraisal period, which performance appraisal problem has occurred? QUIZ QUESTION

Answer 61

Recency effect

Question 62

A manager wishes to give a new employee a pay increase sooner than scheduled. The new employee has a great positive attitude that has made other workers more positive and productive. What is this employee receiving an earlier pay increase for? QUIZ QUESTION

Answer 62

Contextual performance

Question 63

According to the textbook, when a supervisor tells someone that his or her performance is poor, the first reaction is often QUIZ QUESTION

Answer 63

Denial

Question 64

Kai ranks his employees on a scale from 1 to 5. In general, most of his employees receive a rating of around 3 although in reality his employees differ more on their actual performance. Kai's actions seem to indicate which performance appraisal problem? QUIZ QUESTION

Answer 64

Central tendency

Question 65

Step 5 of the performance management process presented in the textbook includes the manager and employee discussing opportunities for development in order to strengthen or improve the employee's knowledge, skills, and abilities; this step is known as the QUIZ QUESTION

Answer 65

career development discussion step.

Question 66

Although the graphic rating scale seems objective, it may result in unfair appraisals because the traits and degrees of merit are QUIZ QUESTION

Answer 66

Open to interpretation

Question 67

What does a summary performance appraisal discussion focus on? QUIZ QUESTION

Answer 67

Problem Solving

Question 68

Which performance appraisal techniques is useful for identifying specific examples of good and poor performance and for planning how deficiencies can be corrected? QUIZ QUESTION

Answer 68

Critical incident method

Question 69

When a performance appraisal scale is too open to interpretation of traits and standards, this rating scale problem is known as which of the following? QUIZ QUESTION

Answer 69

Unclear performance standards

Question 70

The critical incident method is useful by itself for comparing employees and making salary decisions. QUIZ QUESTION

Answer 70

FALSE

Question 71

The inflated/deflated goals due to tug of war was a disadvantage specific to which performance appraisal tool? QUIZ QUESTION

Answer 71

management by objectives MBO

Question 72

Effective performance management begins with defining the job and which of the following? QUIZ QUESTION

Answer 72

Defining its performance standards