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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
LO2: what should performance standards be related to
desired results of each job
26
LO2: define performance measures
ratings used to evaluate employee performance
27
LO2: what must performance measures be
Must be easy to use, reliable, report on critical behaviours that determine performance
28
LO2: list 4 performance measures
1) direct 2) indirect 3) objective 4) subjective
29
LO2: explain direct performance measure
Rather actually sees employee performance
30
LO2: explain indirect performance measure
Substitutes for direct | Eg. secondhand observations of others, complaints, written test on company procedures
31
LO2: explain objective performance measure
Verifiable by others Usually quantitative Not available in all jobs, like in white collar jobs
32
LO2: explain subjective performance measure
Not verifiable by others Based on rater’s opinions or perception and may be subject to bias Ex. measurement of phone etiquette
33
LO2: what should performance measures be?
objective + direct
34
LO2: 12 effective performance appraisal system requirements
``` 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) ```
35
LO2: 4 other considerations after performance appraisal purpose is established and linked to org objectives
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
36
LO2: explain performance targets
Behaviours and performance standards required for job success
37
LO2: 6 characteristics of good performance standards
``` Related to position Concrete, specific, measurable Practical to measure Meaningful Realistic and achievable Reviewed regularly ```
38
LO3: 2 rating methods
1) comparative evaluation | 2) non comparative
39
LO3: define comparative evaluation
collection of methods that compare one person’s performance with that of co-workers
40
LO3: explain comparative evaluation
Practical and standardized but offer little job related feedback, can rank employees
41
LO3: 2 types of comparative evaluations
1) ranking method | 2) forced distributions
42
LO3: define ranking method
Employees ranked from best to worst on some trait
43
LO3: 4 points of ranking method
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
LO3: define forced distributions
Employees sorted into categories
45
LO3: 5 points of forced distirbutions
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
LO3: noncomparative evaluation method definition
appraisal method that evaluates employee performance according to preset data, not by comparing to others
47
LO3: 4 noncomparative evaluation methods
1) rating scale 2) BARS - behaviourally anchored rating scale 3) performance tests + observation 4) management by objectives approach (MBO)
48
LO3: define rating scale
Subjective evaluation (i.e. based on the rater’s opinion)
49
LO3: 4 points to rating scale
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
LO3: what are people moving away from rating scale to
More movement to simplified rating scale by limiting number of performance ratings to only those critical to job performance
51
LO3: define BARS
rate employees along rating scale by means of specific behaviour examples on scale
52
LO3: 4 points to BARS
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
LO3: alternative to BARS
Different criteria; BOS behaviour observation scale, uses critical incidents but measured frequency of observed behaviour
54
LO3: explain performance tests + observation
May include paper-and-pencil tests or an actual demonstration of skills Based on knowledge or skills
55
LO3: define MBO approach
Employee and supervisor jointly establish performance goals for the future
56
LO3: 2 challenges for MBO approach
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
LO3: 4 MBO steps
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
LO4: define 360 performance appraisal
combination of self, peer, supervisor, subordinate performance evaluation
59
LO4: 4 points to 360 performance appraisal
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
LO4: 5 sources for performance ratings
1) managers 2) peers 3) direct reports aka upward feedback 4) clients/customers 5) self appraisal
61
LO4: 3 points to rater training
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
LO4: 6 rater errors
1) halo effect 2) error of central tendency 3) lenience + strictness bias 4) personal prejudice 5) recency effect 6) contrast errors
63
LO4: explain error of central tendency
Reluctance to give very poor or excellent ratings
64
LO4: explain leniency + strictness bias
Too easy or harsh in evaluations
65
LO4: explain recency effect
Strongly affected by most recent actions
66
LO5: define evaluation interviews
Evaluation interviews are performance review sessions that give employees feedback about past performance or future potential
67
LO5: 3 evaluation interview types
1) tell and sell 2) tell and listen 3) problem solving
68
LO5: explain tell and sell interview
Convince employee to perform better | Best used on new employees
69
LO5: explain tell and listen interview
Allows employees to explain reasons, excuses, defensive feelings Counselling employee on how to perform better
70
LO5; explain problem solving interview
Identifies problems interfering with employee performance | Goal setting, training, coaching counselling can remove them
71
LO5: what should the interview be?
The interview should be a positive, performance-improving dialogue
72
LO5: explain frequency of feedback for evaluation interviews
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
LO6: x axis of talent management
performance assessment
74
LO6: y axis of talent managment
potential assessment
75
LO6: low performance, low potential
talent risk
76
LO6: moderate performance, low potential
solid professional
77
LO6: high performance, low potential
high professional
78
LO6; moderate potential, low performance
inconsistent player
79
LO6: moderate performance, moderate potential
key player
80
LO6: moderate potential, high performance
current star
81
LO6: high potential, low performance
rough diamond
82
LO6: high potential, moderate performance
future star
83
LO6: high potential, high performance
consistent star
84
LO6: in talent management grid, who is targeting for development opportunities
future star, consistent star, current star
85
LO7: define performance improvement plan
giving employees struggling to meet performance standards opportunity to succeed while holding accountable for past performance
86
LO7: 6 steps in establishing performance improvement plan
1) getting started 2) develop action plan 3) review PIP 4) meet with employee 5) follow up 6) PIP conclusion
87
LO7: what happens at PIP conclusion
Employer may agree to extend PIP, revise objectives, or terminate employment
88
LO7: 3 points to HRM feedback
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
LO7: 5 points to legal aspects of performance appraisal
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
Lecture: problems with feedback
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
Lecture: 4 points on how to give feedback, stop serving feedback sandwich
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
Lecture: WLU case study problems
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
Lecture: WLU case study solution
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
Lecture: how does google do it?
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
Lecture: self-other ratings
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
Lecture: performance appraisal meeting case
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
Lecture: who gets the money?
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
LO2: 7 parts of performance appraisal process
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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