Chapter 8: Performance Management

Question 1

What is performance management?

Answer 1

The process of creating a work environment in which people can perform to the best of their abilities

Question 2

What is a performance review?

Answer 2

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

Question 3

What is the 6 step process of performance management?

Answer 3

1. Goals set to align with higher level goals
2. Behavioural expectations and standards set and then aligned with employee and organizational goals
3. Ongoing performance feedback provided during cycle
4. Performance appraised by manager
5. Formal review session conducted
6. HR decision making

Question 4

What are the two most common purposes of performance management besides improving performance and profitability?

Answer 4

Developmental reasons like building on strengths and eliminating weaknesses.
Administrative reasons to use for other HRM activities like promotion

Question 5

What is a legal requirement of performance management?

Answer 5

Maintaining accurate, objective performance records to defend against charges of discrimination for promotions and termination

Question 6

Why do performance management systems sometimes fail?

Answer 6

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

Question 7

What do performance standards describe?

Answer 7

The accepted level of performance to be achieved by an employee

Question 8

What should performance standards be based on?

Answer 8

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

Question 9

What is calibration?

Answer 9

A process where managers meet to discuss the performance of individual employees to ensure their employee evaluations are in line with one another

Question 10

What is strategic relevance?

Answer 10

The extent to which the performance standards relate to or serve the objectives of the organization in which they are applied

Question 11

What is criterion deficiency?

Answer 11

Aspects of performance that are not measured because there is focus on other criteria

Question 12

What is criterion contamination?

Answer 12

Factors outside an employee’s control that can influence their performance

Question 13

How can we avoid legal issues in performance management?

Answer 13

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

Question 14

When should self evaluation be used?

Answer 14

For developmental purposes not for administrative decisions

Question 15

What is a team evaluation?

Answer 15

A performance evaluation that recognizes team accomplishment rather than individual performance

Question 16

What is a customer evaluation?

Answer 16

A performance evaluation the includes evaluations from a firm’s external and internal customers

Question 17

What is a 360-degree evaluation?

Answer 17

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

Question 18

What are safeguards that should be used in a 360-degree evaluation?

Answer 18

1. Ensure anonymity
2. Make respondents accountable
3. Prevent gaming of the system
4. Use statistical procedures
5. Identify and quantify biases

Question 19

What is the error of central tendency?

Answer 19

A performance rating error where all employees are rated about average

Question 20

What is the leniency or strictness error?

Answer 20

A performance rating error where the appraiser gives employees unusually high or low ratings

Question 21

What is forced distribution?

Answer 21

A performance ranking system where raters must place a certain percentage of employees into various categories

Question 22

What is temporal or recency error?

Answer 22

A performance rating error where evaluation is based on most recent behavior instead of behaviour throughout the period

Question 23

What is contrast error?

Answer 23

When an employee’s evaluation is biased upwards or downwards because of another employee’s performance

Question 24

What is the similar to me error?

Answer 24

When’s supervisor inflates the evaluation of people with whom they have something in common

Question 25

What is a graphic rating scale?

Answer 25

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

Question 26

What is the mixed standard scale method?

Answer 26

A trait approach to performance rating based on comparison with a specified standard

Question 27

What is the forced choice method?

Answer 27

A trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance

Question 28

What is the essay method?

Answer 28

A trait approach to performance rating that requires the rater to compose a statement describing employee behaviour

Question 29

What is the critical incident method

Answer 29

A behavioral performance rating method whereby an unusual event occurs that denotes superior or inferior performance in some part of the job

Question 30

What is the behavioural checklist method?

Answer 30

Requires the rater to check statements in a list that describe characteristics of the employee’s behaviour

Question 31

What is the behaviorally anchored rating scale?

Answer 31

A behavioral approach to performance rating that consists of a series of vertical scales, one for each important dimension of job performance

Question 32

What is the behaviour observation scale?

Answer 32

A behavioural approach to performance rating that measures the frequency of observed behaviour

Question 33

What is management by objectives?

Answer 33

A results review process that rates the performance of employees based on their achievement of goals set mutually by then and their manager

Question 34

What is the balanced scorecard?

Answer 34

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

Question 35

What is a tell and sell meeting?

Answer 35

A feedback meeting where a manager must skillfully use motivational and persuasive techniques to change an employee’s behaviour

Question 36

What is a tell and listen model?

Answer 36

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

Question 37

What is a problem solving meeting?

Answer 37

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

Question 38

What is a feed forward interview?

Answer 38

Using an interview protocol that focuses on the positive aspects of employee experiences instead of just what went wrong

Question 39

What are some ways managers can improve the performance evaluation process?

Answer 39

1. Ask for a self evaluation from the employee
2. Invite participation from employees so they speak freely
3. Express appreciation
4. Be supportive and demonstrate that you care
5. Minimize criticism
6. Establish mutual goals
7. Follow up day to day to talk about issues that were discussed

Question 40

What are the 3 primary concerns of performance?

Answer 40

1. Ability
2. Motivation
3. Environment

Question 41

If there is a competency issue what is needed?

Answer 41

Training and development

Question 42

If there is a motivational issue what is needed?

Answer 42

Coaching and reward incentives

Question 43

If there is a situational issue what is needed?

Answer 43

Changing the job context or job design