Chapter 7

Question 1

What is performance management?

Answer 1

A set of integrated management practices

Question 2

Describe the system approach to performance management

Answer 2

1. Allows organization to integrate the management functions in order to maximize employee potential
2. Helps increasing employees’ satisfaction with their work and with the organization

Question 3

What are 4 purpose of performance reviews?

Answer 3

• Compensation
  (make compensation decisions)
• Administrative
  (promotion decisions, transfer decisions, succession planning)
• Measurement of performance
  (determine accomplishment of goals, influence employee behaviour, improve organizational performance)
• Developmental
  (feedback for discussing strengths and areas to improve, identifying training needs)

Question 4

What are some reasons why performance management systems fail?

Answer 4

• objectives are not prioritized
• The system focus on blame rather than help employees
• The system does not help employee develop skills and abilities

…

Question 5

What are the steps in an effective performance management system?

Answer 5

1. Clarify work/objectives to be accomplished
2. Set goals and plan performance (you only measure what is important)
3. Regular and frequent coaching
4. Review perfomance
5. Recognize and reward performance
6. Creating an action plan

Question 6

What are the 3 criteria (legal requirements) of a performance management system?

Answer 6

• Reliability
• Fairness
• Validity

Question 7

What is a 360 review?

Answer 7

Provide employees with as accurate a view of their performance as possible by getting input from all angles:

• Supervisors
• Peers
• Subornates
• Customers
• Self

Question 8

What are the 3 performance review methods?

Answer 8

• Trait methods
• Behavioural methods
• Results methods

Question 9

Describe the trait method

Answer 9

• Measure the extent employee possesses certain characteristics
• Used largely due to ease in developing lists of traits
• Can be biased and subjectives

Question 10

Describe the result methods

Answer 10

• Productivity measures
  (sale volumes, number of units without defects…)
• Management by objectives
  (philosophy of management, goals established jointly between manager and employee)