Managing Employee Performance - chap 7

Question 1

what is performance management

Answer 1

A set of integrated management practices designed to help employees maximize performance, thereby allowing the organization to reach its goals

Question 2

what are the two parts of performance management

Answer 2

A systems approach to performance management

(1) allows the organization to integrate the management functions in order to maximize employee potential

(2) helps increase employees’ satisfaction with their work and with the organization.

Question 3

is performance management easy

Answer 3

Managers frequently avoid this process, yet when it is done properly, the organization improves and the employees’ engagement and development are enhanced.

Question 4

purpose of managing purpose

Answer 4

• compensating
• planning
• documenting
• coaching and devloping

Question 5

what is compensating

Answer 5

• determining salary increases
• structuring bonuses and pay for performance

Question 6

planning

Answer 6

• implementing succession plans
• identifying knowledge and skills
• identifying competency gaps

Question 7

documenting

Answer 7

• creating a paper trail for documenting HRM decisions
• providing evidence support layoffs

Question 8

coaching and developing

Answer 8

• providing ongoing coaching to employees, discussing strengths, and identifying areas needing improvements
• setting formal training training programs

Question 9

what is the role of managers

Answer 9

managers implement the performance management system and are therefore ultimately responsible for the process and outcomes.

Question 10

how do we clarify the work that needs to be done

Answer 10

Information from job analysis and job descriptions or from conversations between managers and employees will help identify the expected outcomes and determine how those results will be measured

Question 11

what are the steps in effective job performance

Answer 11

• clarify the work
• setting goals
• frequent coaching
• conducting formal review
• recognizing and rewarding
• creating an action plan
• identify reasons for ineffective performance.

Question 12

setting goals

Answer 12

To ensure a strong link to business goals, the manager may also need to establish performance measures that are qualitative (e.g., customer relations) rather than quantitative (e.g., revenue).

With the use of both financial results (e.g., cost of food) and soft measures (e.g., customer satisfaction),

Question 13

providing frequent coaching

Answer 13

Coaching is also a good way to avoid the costs of firing employees and hiring new employees.

It is difficult for employees to improve their performance if the manager does not take the time to help them understand what they need to do.

Question 14

formal review

Answer 14

As such, a formal performance review is an opportunity to evaluate, discuss, and document what an employee has accomplished in relation to the goals that were set

Question 15

recognizing and rewarding

Answer 15

can be monetary and non-monetary

• considered for a promotion,
• given the opportunity to work on a special project,
• praised by the manager, and
• profiled in a business journal or a company newsletter about a particular achievement.

People like to know that their good work and achievements are noticed.

Question 16

setting up an action plan

Answer 16

Action plans regarding future training and development and discussions regarding career development should be an outcome from a review of performance.

As well, clarifying work and setting goals for the upcoming year or performance cycle

Question 17

what are reasons for ineffective performance

Answer 17

• organizational factors
• job factors
• personal factors

Question 18

organizational factors

Answer 18

• insufficient training
• poor selection decisions
• unclear reporting standars

Question 19

job factors

Answer 19

• unclear job expectations
• unmotivating work
• unsafe work

Question 20

personal factors

Answer 20

• relationship
• financial
• conflict between family and work demands

Question 21

key reasons why performance management systems may not achieve desired outcomes?

Answer 21

Lack of alignment with organizational goals

Weak organizational culture or lack of employee buy-in

No top management support

Limited employee involvement in goal setting

The system is too complex or unclear
No integration with training, rewards, or promotions

Untrained managers lacking skills/clarity

Misconception that it’s a one-time event; lack of ongoing feedback

Remote work trend increases the need for continuous feedback and flexibility

Question 22

what employees can do during performance reviews

Answer 22

Track positive/negative feedback

Keep records of training (courses, workshops, etc.)

Encourage employee participation and input

Question 23

what managers can do during a performance review

Answer 23

Issues:

Biases: inflated ratings, recency, halo, central tendency, contrast errors
Personal feelings or organizational politics
Avoiding conflict or delaying reviews

Solutions:

Manager training on feedback, rater errors, and interpersonal skills
Focus on behavior, not the person
Deliver reviews privately and involve the employee

Question 24

performance review legal requirements

Answer 24

The legality of any performance feedback is measured against the criteria of reliability, fairness, and validity.

Reliability: Consistent measurement across employees

Fairness: Free from unrelated bias

Validity: Job-related and accurate

Legal compliance: Must meet standards under the Canadian Charter and human rights laws
- must be assessed on the basis of job requirements to ensure legal compliance.

Question 25

What is the spillover effect from the U.S. in Canadian performance management practices?

Answer 25

U.S. lawsuits have influenced Canadian organizations Prompted efforts to reduce vagueness in traits (e.g., “initiative,” “leadership”) Encouraged clear, objective criteria to avoid legal risks Improves fairness and reduces subjectivity in reviews

Question 26

organizations reduce legal risk in performance reviews

Answer 26

Avoid vague trait descriptions (e.g., “attitude,” “dependability”) Define traits with clear, specific behaviours (e.g., no tardiness = dependable) Reduce subjectivity to improve fairness and clarity

Question 27

guideline for performance reviews

Answer 27

Share performance expectations Encourage employee input Allow appeals/disagreements Base ratings on job-related, observable, measurable factors Train managers on evaluation and feedback

Question 28

what are the types of reviews

Answer 28

- manager review - self review - subordinate reviews - peer review - customer review - 360 review

Question 29

manager review

Answer 29

Performance review done by the employee’s manager Managers may not observe daily performance May rely on other sources (e.g., call monitoring) Tools like phone monitoring improve accuracy if valid and reliable Without good data, reviews may be inaccurate

Question 30

self review

Answer 30

Employee evaluates their own performance Encourages reflection on goals and expectations Shared with manager before formal review Used to guide discussion and plan future goals - some research argues that people are their worst critics

Question 31

subordinate review

Answer 31

Employee gives feedback on their manager’s leadership & communication Not suitable for evaluating manager’s job tasks (e.g., budgeting) Best for developmental use, not administrative Must ensure anonymity and no retaliation

Question 32

peer review

Answer 32

Peer review: Feedback collected from colleagues Advantages: - More accurate than superior assessments - Co-workers see different dimensions of performance Challenges: - Potential biases or pressure on reviewers - Confidentiality breaches can cause rivalries - Not suitable for competitive environments (e.g., sales)

Question 33

customer review

Answer 33

Customer review: Feedback from both external and internal customers Used for: Evaluating employee performance based on customer satisfaction Linking customer service measures (CSMs) to employee goals and incentives Example: Secret shoppers at Radisson Hotel providing feedback on billing accuracy Includes: Internal customer feedback (e.g., managers relying on HR services)

Question 34

360 review

Answer 34

Back (Answer): 360-degree review: Performance feedback from various sources (managers, peers, team members, customers) Originally: Used for developmental purposes (management/career development) Now: Used for performance appraisal and HR purposes Example: Starwood Hotels uses it to inform training programs Challenges: Complex administration, handled by software (e.g., Cornerstone) Security: Data is saved in employee history, with password protectio

Question 35

Performance review methods

Answer 35

- trait methods - behavioural methods - results methods

Question 36

trait methods

Answer 36

Employees are rated on key characteristics (e.g., dependability, creativity) Ratings are given on a numerical scale (e.g., 1 to 5) Often includes written comments for each trait Subjective: Can be biased or overly simple

Question 37

graphic rating scale

Answer 37

A trait approach to performance review where an employee is rated, typically on a numerical scale, regarding key elements within the job

Question 38

behavioural methods

Answer 38

Behavioural methods describe which specific actions should (or should not) be displayed by an employee. describes 2 approaches that use them: the behavioural checklist method and behaviourally anchored rating scale (BARS).

Question 39

behavioural checklist

Answer 39

Behavioral Checklist: Manager reviews a list of statements Action: Check off behaviors the employee displays Example: For a server, behaviors like “explains menu choices clearly” or “arrives at work on time”

Question 40

BARS

Answer 40

behaviourally anchored rating scale (BARS) Performance review method with scales for each job performance dimension Rating: Based on critical incidents of on-the-job performance Example: Evaluates performance in areas like communication in a service-based industry

Question 41

Result based method

Answer 41

Results-based method: Reviews performance based on accomplishments (e.g., sales, items produced) Advantages: Objective: Less prone to bias Employee responsibility: Gives discretion over methods Drawbacks: May focus on short-term results over long-term outcomes Teamwork matters: Does not account for how results are achieved, especially in collaborative roles

Question 42

management by objectives

Answer 42

Employees and managers agree on an individual’s goals, which support the organization’s objectives, and employee performance is assessed upon results achieved in relation to these goals

Question 43

what should obj. be

Answer 43

S SPECIFIC M MEASURABLE A ATTAINABLE R RELEVANT T TIME BOUND

Question 44

the balance scorecard

Answer 44

A measurement framework to translate strategic goals into operational objectives 4 Categories: Financial Customer Processes Learning Purpose: Aligns individual performance with company goals Effectiveness: Depends on organizational culture, integration, communication, and continual review

Question 44

choosing a performance review method

Answer 44

Key factors: Advantages and disadvantages of each method Cost: Cheaper methods may be less accurate Alignment with culture: Performance management decisions must fit with organizational culture Important: Cost shouldn't be the only factor in decision-making