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Human Resource Management (Exam 2) > Chapter 10 (Performance Management) > Flashcards

Chapter 10 (Performance Management) Flashcards

1
Q

what is performance management

What is performance appraisal

A

managers ensure that employees’ behavior contributes to org goals

dynamic, continuous process

not the technique of performance appraisal, but rather a strategic process done on a daily basis

A performance appraisal is job performance of an employee is documented and evaluated.

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2
Q

steps in a performance management process

A
  1. define performance outcomes for company vision and department
    SWOT
  2. develop employee goals, behavior, and actions to achieve outcomes
    define required behavior and job analysis
  3. provide support and ongoing performance discussions
    implies that it is an ongoing process
    deal with issues and support accomplishments
  4. evaluate performance
    performance appraisal
    compare targeted goals and supporting behavior with actual results
  5. identity improvements needed
    feedback
  6. provide consequences for performance results
    feedback
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3
Q

Purpose of performance management

A
  1. strategic purpose
    link ee behavior with org goals
    help achieve bus objectives
  2. administrative purpose
    can provide justification for firing people
    provides info for day-to-day decisions about salary, benefits, promos, etc.
  3. developmental purpose
    serves as a basis for developing employees’ knowledge and skills
    strengths and weaknesses
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4
Q

What is HR’s role in the performance appraisal process?

A
  1. ensures correct job analysis info
  2. designs and implements the perf review system
  3. ensures managers have required skills to offer timely, unbiased ratings
  4. monitors the process and makes sure documentation is complete and accurate
  5. establishes a due process for ees who disagree with ratings
    ee can settle dispute within the company
    highly recommended so that disputes do not escalate to EEOC
  6. maintains records and ensures privacy
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5
Q

In Performance Management, HR must make sure everything is done:

A

Fairly
Objectively
Can hold up in court

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6
Q

effective performance management

A

contributes to company’s overall competitive advantage

must be given visible support by the CEO and other senior managers

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7
Q

performance managements improves:

A

productivity
ee knowledge about strengths and weaknesses
strategic process
helps orgs strategic initiatives be aligned with ee performance
communication between ee and managers regarding ee’s ability to help or hurt the company be strategic

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8
Q

contamination

A

when performance appraisal measures aspects unrelated to the job

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9
Q

validity

A

actually assessing good performance

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10
Q

deficiency

A

aspects of job performance not being captured by a job appraisal

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11
Q

Methods for measuring performance

A 
Comparative
Forced Distribution
Paired Comparative
Benefits
Problems
Attribute (Graphic rating scale)
Behavior
Critical Incident 
Behaviorally anchored reading scale (Bars)
Behavioral Observation Scale (Bos)
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12
Q

comparative

A

Simple Ranking

required managers to rank ees in their group from highest performer to poorest performer

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13
Q

Forced Distribution

A

assignes a certain percentage of employees to each category in a set of categories

creates a cut-throat environment – certain % gets cut

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14
Q

Paired Comparison

A

compares each employee with each other employee to establish rankings

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15
Q

Benefits of Measure Performance

A

easy to make admin decisions

forces people to rank their best and worst employees

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16
Q

Problems for comparative, forced distribution, and pare comparison

A

can create legal issues (disparate impact)

creates a ‘Fight For It’ / cut-throat culture

generalized people as a good fit or a bad fit with nobody in-between

no individual feedback to why or how the rankings were chosen

17
Q

attribute

A

ex. graphic rating scale
lists traits and provides a rating scale for each trait, used to indicate extent to which employee displays each trait
allows employers to assess multiple people across multiple dimensions
more behavioral-specific on how to improve performance
add up the points from each rank and compare
most commonly used
used for administrative and developmental purposes
issue:
distributel biases/errors - no common ground
not enough behavioral specificity - does not give employee meaning of rank

18
Q

behavior

A

provides narrative or anecdote of effective or ineffective behavior

19
Q

critical-incident method

A

based on managers’ record of specific examples of employees acting in ways that are either effective or ineffective
ees receive feedback about what they do well and what they do poorly as well as how the are helping the org achieve its goals
ex. salesperson at staples selling computers
issue: cannot compare people

20
Q

Behaviorally Anchored Rating Scale (BARS)

A

rated behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
adds critical incidents (example behaviors) to attribute rating approach in order to show the rater what a good and poor performance is
best to group with a graphic rating scale

21
Q

Behavioral Observation Scale (BOS)

A

variation of BARS which uses all behaviors necessary for effective performance to rate performance at a task
asks the manager to rate frequency in which the ee has exhibited the behavior during a rating period

22
Q

BARS and BOS Advantages and disadvantages

A

advantages:
provides a lot of feedback
ees know exactly what they need to improve on
can still rank ees and make administrative decision
legally defensible

differences:
BOS includes frequency in which someone engages in a specific critical incident

23
Q

Management By Objectives (MBO)

A

people at each level of the org set goals in a process that flows from top to bottom
all levels are contributing to the orgs overall goals
goals become the standard for evaluating each ees performance
steps:
set org goals

ex. Applebees
“We need to make this much $ in sales”
set departmental goals
managers decide how to complete headquarters’ goals
defining expected results (setting individual goals)
managers give waitstaff foal to complete for the night i.e. this $ in sales, push desserts, etc.
conducting periodic performance reviews
providing performance feedback
quality

24
Q

Who collects job performance information?

A
  1. 360 degree feedback - multi-dimensional
    Ask different people to reach different aspects of somebody’s performance
    allows ee to be self-aware and accept negative feedback
  2. supervisor
    most familiar with job performance
    direct job authority and decision making
  3. self-ratings
    identify discrepancies
    input, make recommendations and limitations
    voice opinions
    motivates and engages ees
    managers get insight to how someone thinks he/she is doing
    ex. office clip showed in class – “Don’t know”
    customer
    problem: does not know objective of organization, how/what employee was told to do
    policies/product reviews could be unrelated to ee
  4. subordinate appraisal
    only time to use: when anonymous and does not affect administrative decisions
    do not allow disgruntled employees to ‘get back’ at someone
    only for developmental purposes
  5. peer
    helpful for team settings
    can create cut-throat environments
    ex. Amazon & GE
25
Q

What are the different types of rating errors?

A
  1. Contrast Errors
    rater compares an individual, not against an objective standard. but against other employees
    ex. comparing everyone to the star performer when grading papers
    can be fixed with a rubric or objective standard of measurement
2. Distributional errors
rater tends to use only one part of a rating scale
types
leniency
strictness
central tendency
  1. Halo Error
    when bias is in favorable direction
    Can mistakenly tell employees they do not need to improve in any area
    end up generalising performance based on one great trait
    nobody is great at everything and you have to distinguish different performance measures
  2. Horns Error
    when bias involves negative ratings
    can cause ees to feel frustrated and defensive
    end up giving people all poor ratings because you do not like one particular trait about them
26
Q

How should managers prepare for a performance feedback session?

A
  1. purpose
    find what motivates someone
    how to trigger their motivation
    make them a better performer/more valuable employee
  2. scheduling performance feedback
    people should never be surprised – address critical incidents then and there – don’t wait
  3. regular, expected management activity
    annual feedback is not enough
    ees should receive feedback so often they know what the manager will say during the performance review
  4. preparing for a feedback session
    make sure you’re prepared for each formal feedback session
    document specific incidents and examples to back up ratings
  5. meet in a neutral setting and free of distractions
    avoid the power dynamic/ reduce anxiety
27
Q

What are the principles of effective communication? (6)

A
  1. Focus on Goals
  2. Listen as well as talk
    give them a voice
  3. be honest and positive
    back up negative feedback with ways they can improve
  4. prevent surprises and prepare for success
  5. use specific, concrete examples
    identify very explicit examples of critical incidents to back up low ratings
    show what they are currently doing and what they should be doing
    clarify their role
  6. treat employees with respect
Best way:
address issue
give them the opportunity to voice disagreements
identify constraints
offer them training
28
Q

High ability, low ability, high motivation, low motivation

A

Chart (sheet)

29
Q

Amazon

A

reading

Human Resource Management (Exam 2) (4 decks)

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