Chapter 7

Question 1

Performance management

Answer 1

The process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals

Question 2

what are the purposes?

Answer 2

-strategic ( helps organisations achieve strategic objectives)
-administrative (information for day-to-day decisions)
- developmental (basis for developing employees)

Question 3

Steps of performance management

Answer 3

1. Define performance outcomes for company division and department
2. Develop employee goals, behaviour, and actions to achieve outcomes
3. provide support and ongoing performance discussions
4. evaluate performance
5. identify improvements needed
6. provide consequences for performance results

Question 4

criteria for effective performance management

Answer 4

• Fit with strategy: support company’s strategy goals
  -Specific feedback: give specific expectations and methods to achieve goals
• Acceptability: yield consistent results over time
  _interrater reliability
  _test-retest reliability
  -validity: measure all relevant aspects of performance

Question 5

job performance measure

Answer 5

1. contamination
2. validity
3. deficiency => closer to the actual job performance

Question 6

how is performance measured? => making comparisons

Answer 6

-simple ranking: ranks employees
-forced distribution: assigns a certain percentage of employees to each category
-paired-comparison: compares each employee to each other employee

Question 7

how is performance measured? => rating individuals

Answer 7

-attributes (graphic rating scale)
-behaviors (critical-incident method, behavioural observation scale)
-results ( management by objectives)

Question 8

sources of performance information

Answer 8

-360 degree performance evaluation
_managers and supervisors, peers, direct reports, self
-crowdsourcing performance appraisal (variation of 360)
_gathering data from all coworkers and managers
_using online apps

Question 9

errors in performance measurement

Answer 9

-simplifying mechanisms to make decisions about people
-unconscious bias (judgement outside our consciousness that affects decisions based on background)

Question 10

types of rating errors

Answer 10

-strictness
-similar to me error
-contrast error
-halo
-horns
-recency emphasis

Question 11

what can be done to reduce errors

Answer 11

• rate error training
• rater accuracy training
• unconscious bias training
• calibration meeting
• using data analytics
• ratee training

Question 12

effective performance feedback

Answer 12

-feedback should be frequent
-create the right context for the discussion
-ask the employee to rate their performance
-have ongoing collaborative conversations

Question 13

performance improvement

Answer 13

varies according employee’s ability and motivation
-lack of ability
-lack of motivation
-lack of both

Question 14

legal, ethical and privacy issues

Answer 14

-Legal challenges usually relate to allegations of illegal discrimination and unjust or constructive dismissal
-Potential ethical and privacy issues associated with:
_Location and monitoring systems
_Software that analyzes employees’ behaviour
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