Chapter 8: Performance Management Flashcards
What is performance management?
The process of creating a work environment in which people can perform to the best of their abilities
What is a performance review?
A process where a manager evaluates an employee’s performance relative to the requirements of the job and use the information to show the person where and how improvements can be made
What is the 6 step process of performance management?
- Goals set to align with higher level goals
- Behavioural expectations and standards set and then aligned with employee and organizational goals
- Ongoing performance feedback provided during cycle
- Performance appraised by manager
- Formal review session conducted
- HR decision making
What are the two most common purposes of performance management besides improving performance and profitability?
Developmental reasons like building on strengths and eliminating weaknesses.
Administrative reasons to use for other HRM activities like promotion
What is a legal requirement of performance management?
Maintaining accurate, objective performance records to defend against charges of discrimination for promotions and termination
Why do performance management systems sometimes fail?
Many people believe the formal review process discourages teamwork because it focuses on individual achievements.
Some people say evaluations are only useful for highly effective or ineffective employees, not the majority in the middle
What do performance standards describe?
The accepted level of performance to be achieved by an employee
What should performance standards be based on?
Job related requirements derived from a job analysis and reflected in an employee’s job description and specifications. Should be expressed in specific measurable terms because it results in more accurate feedback
What is calibration?
A process where managers meet to discuss the performance of individual employees to ensure their employee evaluations are in line with one another
What is strategic relevance?
The extent to which the performance standards relate to or serve the objectives of the organization in which they are applied
What is criterion deficiency?
Aspects of performance that are not measured because there is focus on other criteria
What is criterion contamination?
Factors outside an employee’s control that can influence their performance
How can we avoid legal issues in performance management?
Ratings just be job related with performance standards developed through job analysis
Performance problems should not be allowed to go unchecked
Need to have measurable standards with which to measure employee behaviour
Look for bias in the process or the outcomes
Counselling or corrective guidance should be offered to help people improve performance
An appeals procedure should be established so people can express their disagreement with the review
When should self evaluation be used?
For developmental purposes not for administrative decisions
What is a team evaluation?
A performance evaluation that recognizes team accomplishment rather than individual performance
What is a customer evaluation?
A performance evaluation the includes evaluations from a firm’s external and internal customers
What is a 360-degree evaluation?
A performance evaluation done by different people who interact with the employee generally compiled into a single profile for use in the evaluation meeting conducted by the manager
What are safeguards that should be used in a 360-degree evaluation?
- Ensure anonymity
- Make respondents accountable
- Prevent gaming of the system
- Use statistical procedures
- Identify and quantify biases
What is the error of central tendency?
A performance rating error where all employees are rated about average
What is the leniency or strictness error?
A performance rating error where the appraiser gives employees unusually high or low ratings
What is forced distribution?
A performance ranking system where raters must place a certain percentage of employees into various categories
What is temporal or recency error?
A performance rating error where evaluation is based on most recent behavior instead of behaviour throughout the period
What is contrast error?
When an employee’s evaluation is biased upwards or downwards because of another employee’s performance
What is the similar to me error?
When’s supervisor inflates the evaluation of people with whom they have something in common
What is a graphic rating scale?
A trait approach to performance rating where each employee is rated according to a scale of characteristics. Subjectivity bias is reduced when the dimensions on the scale and scale points are defined precisely
What is the mixed standard scale method?
A trait approach to performance rating based on comparison with a specified standard
What is the forced choice method?
A trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance
What is the essay method?
A trait approach to performance rating that requires the rater to compose a statement describing employee behaviour
What is the critical incident method
A behavioral performance rating method whereby an unusual event occurs that denotes superior or inferior performance in some part of the job
What is the behavioural checklist method?
Requires the rater to check statements in a list that describe characteristics of the employee’s behaviour
What is the behaviorally anchored rating scale?
A behavioral approach to performance rating that consists of a series of vertical scales, one for each important dimension of job performance
What is the behaviour observation scale?
A behavioural approach to performance rating that measures the frequency of observed behaviour
What is management by objectives?
A results review process that rates the performance of employees based on their achievement of goals set mutually by then and their manager
What is the balanced scorecard?
A results based approach to performance evaluation that can be used to evaluate employees, teams, business units, and the whole corporation. It considered financial measures, customer measures, process measures, and learning measures
What is a tell and sell meeting?
A feedback meeting where a manager must skillfully use motivational and persuasive techniques to change an employee’s behaviour
What is a tell and listen model?
A feedback meeting where the appraiser communicates the strong and weak points of an employee’s job performance and then the employee’s feelings about the evaluation are thoroughly explored
What is a problem solving meeting?
A performance meeting that is most proactive and seeks an employee’s buy in for a mutually agreed upon way to overcome obstacles and improve performance
What is a feed forward interview?
Using an interview protocol that focuses on the positive aspects of employee experiences instead of just what went wrong
What are some ways managers can improve the performance evaluation process?
- Ask for a self evaluation from the employee
- Invite participation from employees so they speak freely
- Express appreciation
- Be supportive and demonstrate that you care
- Minimize criticism
- Establish mutual goals
- Follow up day to day to talk about issues that were discussed
What are the 3 primary concerns of performance?
- Ability
- Motivation
- Environment
If there is a competency issue what is needed?
Training and development
If there is a motivational issue what is needed?
Coaching and reward incentives
If there is a situational issue what is needed?
Changing the job context or job design
