Chapter 7 Flashcards
performance management (PM)
employee activities and outputs contribute to the organization’s goals
PM Step 1
define performance outcomes for company, division, and department
PM Step 2
develop employee goals, behavior, and actions to achieve outcomes
PM Step 3
provide support, training, tools and ongoing performance discussions feedback
PM Step 4
evaluate performance, compare goals
PM Step 5
identify improvements needed
PM Step 6
provide consequences for performance results
strategic purpose
- helps org. achieve business objectives
- links behaviour with orgs. goals
- can be achieved only when measurements are truly aligned with goals
administrative purpose
- how information is provided for day-to-day decisions about salary, benefits, and recognition programs
fit with strategy
- aims at achieving employee behaviors and mindsets that support the orgs strategy, goals and culture
validity
extent to which a measurement tool actually measures what it is intended to
information that is gathered but irrelevant is called:
contamination
information that is not gathered but is relevant represents:
a deficiency of performance measure
reliability
the consistency of the results that the performance measure will deliver
interrater reliability
consistency of results when MORE than one person assesses performance
(ex: rate on scale of 1-5 = low IR)
test-retest reliability
consistency of results over time
acceptability
- whether or not a measure is valid or reliable it must meet practical standards of being acceptable
specific feedback
performance measure should specifically tell employees WHAT is expected of them and HOW they can meet expectations
simple ranking
- employees in a group ranked high to low
- variation = alternation ranking
- downside is validity
forced-distribution method
- assigns a certain % of employees to each category in a set of categories
- ex: outstanding - 5%
paired-comparison method
comparing each employee with each other employee to establish rankings
graphic rating scale
- most widely used method for rating attributes
- lists traits and provides rating scale for each
critical-incident method
requires managers to keep a record of specific examples of the employees behavior
behaviourally anchored rating scale (BARS)
- critical incident approach
- define performance using statements of behavior that describe levels of performance
- can improve inter-rater reliability
- can bias the managers memory