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BU 354 > Chp 8: Performance Management > Flashcards

Chp 8: Performance Management Flashcards

1
Q

define performance management

A

continuing process of identifying, measuring, developing performance of individuals and teams and aligning performance with strategic goals of org

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2
Q

what does performance managemetn involve more than

A

Performance management involves much more than just performance appraisal

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3
Q

define performance appraisal

A

process by which organizations evaluate employee job performance over period of time

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4
Q

what does performance appraisal/management require

A

Requires that industry experts be involved in determining indicators of performance

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5
Q

LO1: what do individuals need to do to help org meet goals

A

meet their performance goals

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6
Q

LO1: 3 inputs determine single performance rating for employee

A

1) What employees did during year vs commitments + goals compared to achievements of peers
2) Behaviour used to achieve results provided in feedback
3) Employees proven capabilities based on work inputs + long term performance record

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7
Q

LO1: 4 performance management system goals

A

1) Transform organizational objectives into clearly understood, measurable outcomes
2) Provide instruments for measuring, managing, and improving the success of the organization
3) Include measures of quality, cost, speed to provide an in-depth, predictive system
4) Provide forward-looking strategic partnership between top and middle management and employees

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8
Q

LO1: 2 performance management appraoches

A

1) cascading approach

2) linking up approach

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9
Q

LO1: explain cascading approach

A

Organization -> division -> unit -> team -> individual

Ensure line of sight but can be time consuming and risk being distorted

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10
Q

LO1: explain linking up approach

A

Each employee and unit links goals to objectives
May produce more meaningful and clearer goals
May be faster

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11
Q

LO1: 3 points to balanced scorecard

A

1) Very popular approach to assess performance
2) Performance measures, targets for each area are aligned with org vision and mission
3) Learning + growth perspective, internal perspective, customer perspective, financial, purpose statement
4) combines performance measures of total org

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12
Q

LO1: define balanced scorecard

A

integrated organizational performance measuring approach that looks at org learning + innovation, financial management, internal operations, customer management

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13
Q

LO1: what does HR have direct links to

A

innovation + learning

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14
Q

LO1: 2 variations of balanced scorecard

A

1) HR scorecard

2) leadership scorecard

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15
Q

LO1: 3 points to HR scorecard

A

Identity HR deliverables, align HR systems through high performance work systems, align HR system with org strategy, identify HR efficiency measures
Aligns cost control + value creation
Tracks how well Hr function is meeting org objectives as a whole

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16
Q

LO2: what is HR department concerned with

A

with identify what people in departments must do (behaviour) to be proficient in respective functions

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17
Q

LO2: what may performance appraisals do

A

may make respondents feel valued, meet/exceed expectations

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18
Q

LO2: 6 purposes of performance appraisals

A

1) admin decisions
2) feedback + performance improvement
3) employee development + career planning
4) criteria for test validation
5) training program objectives
6) job redesign

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19
Q

LO2: what is focus if performance appraisal is used for employee development + career planning

A

May not include numeric ratings of performance if development is goal
Focus is on immediate feedback, coaching and support, forward looking direction with goal of employee engagement over control and oversight

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20
Q

LO2: explain performance appraisal purpose of training program objectives

A

Appraisals provide insights into effectiveness of other aspects of HR system

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21
Q

LO2: explain performance appraisal process

A

Performance related criteria identified
Performance against those criteria measured
Feedback given to employee + HR department

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22
Q

LO2: why is it important to have all employees do appraisals

A

ensures uniformity and comparables

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23
Q

LO2: what should performance appraisals be?

A

should be job related, be practical, have standards and use dependable measures

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24
Q

LO2: define performance standards

A

benchmarks against which performance is measured

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25
Q

LO2: what should performance standards be related to

A

desired results of each job

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26
Q

LO2: define performance measures

A

ratings used to evaluate employee performance

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27
Q

LO2: what must performance measures be

A

Must be easy to use, reliable, report on critical behaviours that determine performance

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28
Q

LO2: list 4 performance measures

A

1) direct
2) indirect
3) objective
4) subjective

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29
Q

LO2: explain direct performance measure

A

Rather actually sees employee performance

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30
Q

LO2: explain indirect performance measure

A

Substitutes for direct

Eg. secondhand observations of others, complaints, written test on company procedures

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31
Q

LO2: explain objective performance measure

A

Verifiable by others
Usually quantitative
Not available in all jobs, like in white collar jobs

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32
Q

LO2: explain subjective performance measure

A

Not verifiable by others
Based on rater’s opinions or perception and may be subject to bias
Ex. measurement of phone etiquette

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33
Q

LO2: what should performance measures be?

A

objective + direct

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34
Q

LO2: 12 effective performance appraisal system requirements

A 
Validity
Reliability
Input into development
Acceptable standards
Acceptable goals
Control of standards
Frequency of feedback
Rater training
Ratee training
Input into interview process
Appraisal consequences
Different sources (Raters)
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35
Q

LO2: 4 other considerations after performance appraisal purpose is established and linked to org objectives

A

1) setting performance targets/goals
2) determining rating method + format
3) determining who raters should be and rater training
4) providing appraisal feedback and following up

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36
Q

LO2: explain performance targets

A

Behaviours and performance standards required for job success

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37
Q

LO2: 6 characteristics of good performance standards

A 
Related to position
Concrete, specific, measurable
Practical to measure
Meaningful
Realistic and achievable
Reviewed regularly
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38
Q

LO3: 2 rating methods

A

1) comparative evaluation

2) non comparative

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39
Q

LO3: define comparative evaluation

A

collection of methods that compare one person’s performance with that of co-workers

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40
Q

LO3: explain comparative evaluation

A

Practical and standardized but offer little job related feedback, can rank employees

41
Q

LO3: 2 types of comparative evaluations

A

1) ranking method

2) forced distributions

42
Q

LO3: define ranking method

A

Employees ranked from best to worst on some trait

43
Q

LO3: 4 points of ranking method

A

Does not know by how much they differ
Subject to halo and recency effects
Rankings by 2+ raters can help reduce bias
Advantage: ease of administration + explanation

44
Q

LO3: define forced distributions

A

Employees sorted into categories

45
Q

LO3: 5 points of forced distirbutions

A

Usually a certain proportion must be put into each category
Typical bell curve
Relative differences unknown but overcomes bias of central tendency, leniency, strictness
Some workers + supervisors don’t like this method because of bell curve forces employees rated low
Famous example is vitality curve

46
Q

LO3: noncomparative evaluation method definition

A

appraisal method that evaluates employee performance according to preset data, not by comparing to others

47
Q

LO3: 4 noncomparative evaluation methods

A

1) rating scale
2) BARS - behaviourally anchored rating scale
3) performance tests + observation
4) management by objectives approach (MBO)

48
Q

LO3: define rating scale

A

Subjective evaluation (i.e. based on the rater’s opinion)

49
Q

LO3: 4 points to rating scale

A

Oldest and most widely used method
Scale from low to high
Inexpensive, little training needed, can be applied to large # employees
Disadvantages: bias, criteria can be omitted, doesn’t apply to everyone, limit specific feedback, standard form not always job related, may rely on personality variables that are irrelevant

50
Q

LO3: what are people moving away from rating scale to

A

More movement to simplified rating scale by limiting number of performance ratings to only those critical to job performance

51
Q

LO3: define BARS

A

rate employees along rating scale by means of specific behaviour examples on scale

52
Q

LO3: 4 points to BARS

A

Attempt to reduce bias + subjectivity
Objective evaluation more likely since job related and provides feedback
Using specific incidents can be more effective, important to maintain records
Limitation: limited # of performance categories, specific behaviours

53
Q

LO3: alternative to BARS

A

Different criteria; BOS behaviour observation scale, uses critical incidents but measured frequency of observed behaviour

54
Q

LO3: explain performance tests + observation

A

May include paper-and-pencil tests or an actual demonstration of skills
Based on knowledge or skills

55
Q

LO3: define MBO approach

A

Employee and supervisor jointly establish performance goals for the future

56
Q

LO3: 2 challenges for MBO approach

A

Objectives that are too ambitious or too narrow

Employees may set objectives that are measured by quantity rather than quality when quality is important too

57
Q

LO3: 4 MBO steps

A

1) define measures of success like customer satisfaction, employees, leadership, culture, financial, markets
2) quarterly MAPS process (my accountability + performance standards)
3) HR analytics
4) leadership audit survey

58
Q

LO4: define 360 performance appraisal

A

combination of self, peer, supervisor, subordinate performance evaluation

59
Q

LO4: 4 points to 360 performance appraisal

A

Used by more than 85% of fortune 500 companies
Advantages: feedback, team development, reduced discrimination risk, improved customer service, enhanced training needs assessment
Better suited for development rather than admin decisions
Can sap morale, motivation, cause sabotage

60
Q

LO4: 5 sources for performance ratings

A

1) managers
2) peers
3) direct reports aka upward feedback
4) clients/customers
5) self appraisal

61
Q

LO4: 3 points to rater training

A

Raters are trained on the purpose of the performance appraisal process, its alignment with the organization’s strategy, and the forms themselves (e.g., rater handbook)
Rater handbook can give guidelines and key term definitions
Raters need to be trained in observation and categorization skills - frame of reference training aims at improving this

62
Q

LO4: 6 rater errors

A

1) halo effect
2) error of central tendency
3) lenience + strictness bias
4) personal prejudice
5) recency effect
6) contrast errors

63
Q

LO4: explain error of central tendency

A

Reluctance to give very poor or excellent ratings

64
Q

LO4: explain leniency + strictness bias

A

Too easy or harsh in evaluations

65
Q

LO4: explain recency effect

A

Strongly affected by most recent actions

66
Q

LO5: define evaluation interviews

A

Evaluation interviews are performance review sessions that give employees feedback about past performance or future potential

67
Q

LO5: 3 evaluation interview types

A

1) tell and sell
2) tell and listen
3) problem solving

68
Q

LO5: explain tell and sell interview

A

Convince employee to perform better

Best used on new employees

69
Q

LO5: explain tell and listen interview

A

Allows employees to explain reasons, excuses, defensive feelings
Counselling employee on how to perform better

70
Q

LO5; explain problem solving interview

A

Identifies problems interfering with employee performance

Goal setting, training, coaching counselling can remove them

71
Q

LO5: what should the interview be?

A

The interview should be a positive, performance-improving dialogue

72
Q

LO5: explain frequency of feedback for evaluation interviews

A

Appraisals as basis for administrative decisions are typically conducted annually
Appraisals for developmental purposes should be conducted immediately after incidents of good or bad performance, or with regular (e.g., quarterly) frequency

73
Q

LO6: x axis of talent management

A

performance assessment

74
Q

LO6: y axis of talent managment

A

potential assessment

75
Q

LO6: low performance, low potential

A

talent risk

76
Q

LO6: moderate performance, low potential

A

solid professional

77
Q

LO6: high performance, low potential

A

high professional

78
Q

LO6; moderate potential, low performance

A

inconsistent player

79
Q

LO6: moderate performance, moderate potential

A

key player

80
Q

LO6: moderate potential, high performance

A

current star

81
Q

LO6: high potential, low performance

A

rough diamond

82
Q

LO6: high potential, moderate performance

A

future star

83
Q

LO6: high potential, high performance

A

consistent star

84
Q

LO6: in talent management grid, who is targeting for development opportunities

A

future star, consistent star, current star

85
Q

LO7: define performance improvement plan

A

giving employees struggling to meet performance standards opportunity to succeed while holding accountable for past performance

86
Q

LO7: 6 steps in establishing performance improvement plan

A

1) getting started
2) develop action plan
3) review PIP
4) meet with employee
5) follow up
6) PIP conclusion

87
Q

LO7: what happens at PIP conclusion

A

Employer may agree to extend PIP, revise objectives, or terminate employment

88
Q

LO7: 3 points to HRM feedback

A

1) The performance management process also provides insight into effectiveness of HRM
2) If poor performance is widespread, many employees are excluded from promotions and transfers
3) Unacceptably high numbers of poor performance may indicate errors in the HRM function (poor selection process, job analysis info inaccurate)

89
Q

LO7: 5 points to legal aspects of performance appraisal

A

1) A performance appraisal form is a legal document
2) Raters must use only performance criteria that are relevant to the job
3) HR manager needs to prove criteria used were valid and consistent
4) A reasonable time must be set for performance improvement
5) Well-documented performance shortcomings and use of feedback interviews have been viewed favourably in court and with arbitrators

90
Q

Lecture: problems with feedback

A

1) 1/3 of time lead to decreased performance, but generally lead to improved performance
2) feedback interventions decrease as attention moves up hierarchy closer to self and away from task
3) make feedback about task, not person

91
Q

Lecture: 4 points on how to give feedback, stop serving feedback sandwich

A

1) explain why you’re giving feedback
2) take yourself off pedestal
3) ask if person wants feedback
4) have transparent dialogue, not manipulative monologue

92
Q

Lecture: WLU case study problems

A

1) performance evaluated 1x per year
2) no evaluative numbers, self evaluation then manager
2) only 2 most recent are retained
3) managers manage by exception

93
Q

Lecture: WLU case study solution

A

1) more development, forward looking approach
2) one on one check in
3) conduct every 3 weeks
4) real time performance mgmt with documentation to complete annual performance eval

94
Q

Lecture: how does google do it?

A

1) set goals correctly - public and ambitious
2) gather peer feedback (crowdsourcing)
3) calibration process to finalize rankings (increase reliability, same frame of reference, minimize politics)
4) split reward conversation from development conversations (intrinsic vs extrinsic motivation)

95
Q

Lecture: self-other ratings

A

1) consider both self and other ratings
2) performance is highest when both are high and when self ratings are lower than other (severe underestimation)
3) performance low for overestimators when self-ratings moderate and subordinate ratings low
4) performance increases for underestimators and decreases for overestimators

96
Q

Lecture: performance appraisal meeting case

A

1) oliver used rating method
2) exhibits halo (scott is easy going)
3) done evaluation over longer period, don’t attack person, no surprises

97
Q

Lecture: who gets the money?

A

1) decide between karen and and john
2) john is inflexible but got high avg, longer there
3) karen wants to improve
4) bonuses don’t always lead to increase in performance

98
Q

LO2: 7 parts of performance appraisal process

A

1) performance related critiera
2) performance measures
3) performance appraisal interview
4) employee feedback
5) empoyee records
6) HR decisions
7) human performance

BU 354 (11 decks)

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