Managing Employee Performance

Question 1

What does effective performance do?

Answer 1

Tells top performers they are valued
Encourage communication between managers and their employees
Establish consistent standards for evaluating employees
Help the org identify its strongest and weakest employees

Question 2

Performance management process

Answer 2

Step1: Identifying and defining the important outcomes for company division and department
Step2: Develop employee goals, behaviour, and actions to achieve outcomes
Step3. Provide support and and ongoing performance discussion
Step4: Evaluate performance
Step5: Identify improvements needed
Step 6: Provide consequences for performance results

Question 3

Purposes of performance management

Answer 3

Strategic purpose
Administrative purpose
Developmental purpose

Question 4

Strategic purpose

Answer 4

Linking employees’ behaviour with company goals.

Goals and feedback must be communicated t employees

Question 5

Administrative purpose

Answer 5

Way in which organisation use their performance management system to provide information for day-to-day decisions about:
salary
benefits
recognition programs
decisions about employees retention
termination for poor performance
Hiring
Layoffs

Question 6

Developmental purpose

Answer 6

Basis for developing employees’ knowledge and skills.
Feedback makes employees aware of strengths and areas to improve. The cause of weakness should be identified to know how to improve

Question 7

Criteria for effective performance management

Answer 7

Fit with strategy
Validity
Reliability
Acceptability
Specific feedback

Question 8

Fit with strategy

Answer 8

Performance management should aim at achieving employee behaviour and attitudes, which support the organisation’s strategy, goals and culture.

Question 9

Validity

Answer 9

Whether appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.

Question 10

Reliability

Answer 10

Consistency of the results that performance measure will deliver

Question 11

Contamination

Answer 11

Gathered, but irrelevant information

Question 12

Deficiency

Answer 12

Not gathered, but relevant information

Question 13

Inter-rater reliability

Answer 13

Refers t consistency of results when more than one person measures the performance

Question 14

Test-retest reliability

Answer 14

Consistency of results over time

Question 15

Internal consistency reliability

Answer 15

Extent to which all the items are internally consistent

Question 16

Acceptability

Answer 16

Extent to which a performance measure is deemed to be valid and reliable by those who use it, both the manager and the employee.

Question 17

Specific feedback

Answer 17

Implies that a performance measure should specifically tell employees what is expected from them and how they can meet those expectations.

Question 18

Comparative approach

Answer 18

Indicates that the rater has to compare one individual’s performance with that of others.

Question 19

Simple ranking

Answer 19

Manager rank employees from the highest to the lowest performer.

Question 20

Alternation ranking

Answer 20

Is a variation of simple ranking

Crossing out best and worst employee, which end up in ranking.

Question 21

Forced distribution method

Answer 21

Assigns certain percentage of employees to specific category in a set of categories. This way employees are ranked in groups.

Question 22

Paired-comparison method

Answer 22

Comparing each employee with each other employee to establish ranking

Question 23

Comparative performance measuring methods

Answer 23

Simple ranking
Forced distribution method
Paired-comparison method

Question 24

Rating individuals

Answer 24

Rating attributes

Rating behaviours

Question 25

Rating attributes

Answer 25

Graphic rating scale: lists traits and provides a discrete or continuous rating scale for each trait.
Mixed-standard scales: use several statements describing each trait to produce a final score for that trait.

Question 26

Rating behaviours

Answer 26

Determines the behaviours that employees need to show in order to be effective in their jobs.

a) Critical-Incident methods
b) Behaviourally anchored rating scales
c) Behavioural observation scale
d) Organisational behaviour modification

Question 27

Behaviorally anchored rating scales

Answer 27

Define performance dimensions specifically using statements of behaviour that describe different levels of performance

Question 28

Behavioural observation scale

Answer 28

variation of BARS, which uses all behaviours necessary for effective performance to rate performance at a task.

Question 29

Organizational behaviour modification

Answer 29

Plan for managing the behaviour of employees through a formal system of feedback and reinforcement.

Question 30

Critical-Incident method

Answer 30

based on managers’ records of specific examples of when the employee acts in a way that are either ineffective or effective

Question 31

OBM components

Answer 31

Define a set of key behaviours necessary for job performance
Use a measurement system to assess whether the employee exhibits the key behaviour
Inform employees of the key behaviours, perhaps in terms if goals for how often to exhibit the behaviours
Provide feedback and reinforcement based on employees’ behaviour

Question 32

Most widely used measurement methods

Answer 32

Productivity

Management by objectives or the use of objectives

Question 33

Management by objectives or the use of objectives

Answer 33

System in which people at each level of the organisation set goals in a process that flows from the top to the bottom.

Question 34

Components of standards of evaluating employees

Answer 34

1. Goals are specific, difficult and objective
2. Managers and employees work together to set the goals
3. The manager gives objective feedback throughout the rating period

Question 35

Total quality management

Answer 35

Assesses both individual performance and the system within which the individual works

Question 36

Feedback in the quality approach should be?

Answer 36

1. Subjective feedback from managers, peers and customers about the employee’s personal qualities such as cooperation and initiative
2. objective feedback based on the work process

Question 37

Distribution error

Answer 37

Only one part of the scale is used
Leniency: rating everyone at the top
Strictness: rating everyone at the bottom
Central tendencies

Question 38

Appraisal politics most likely to occur

Answer 38

Raters are accountable to the employee being rated
The goals of the rating are not compatible with one another
Performance appraisal is directly linked to highly desirable rewards
Top executives tolerate or ignore distorted ratings and spread them around

Question 39

Calibration meetings

Answer 39

Meeting in which managers give performance ratings and provide evidence

Question 40

Approaches in feedback sessions

Answer 40

Tell and sell –> tell and justify
Tell and listen –> tell and let employee explain
Problem solving–> work together to solve problem