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Managing People > Performance Management > Flashcards

Performance Management Flashcards

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1
Q

Performance Management

A

a set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations

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2
Q

Performance Management Steps

A

Define
Monitor and evaluate
review
provide consequences

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3
Q

Uses of performance management

A

make employee-related decisions (administrative) for linking performance to pay or making staffing decisions
guide employee development- suggest need for improvement or determine training needs
send strong signals to employees

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4
Q

Developmental Performance Appraisal

A

Provide performance feedback
identify individual strengths and weaknesses
recognize individual performance achievements
help employees identify goals
evaluate goal achievement of employees
identify individual training needs
determine organizational training needs
reinforce authority structure
allow employees to discuss concerns
improve communication
provide a forum for leaders to help employees

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5
Q

Administrative Performance Appraisal

A

document personnel decisions
promote employees
determine transfers and assignments
identify performance problems and develop ways to correct them
make retention, termination, and layoff decisions
validate selection criteria
meet legal requirements
evaluate training programs/progress
assist with human resources planning
make reward and compensation decisions

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6
Q

Performance Management results

A

Higher profitability.
* Higher productivity.
* Higher employee engagement.
* Higher customer service.
* Lower turnover.

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7
Q

Why can Performance Management fail?

A

Pm policies do not always keep pace with organizational change leading to disconnect
reviews are too narrow and only measure a limited set of elements
ambiguous performance standards
rater biases
too much paperwork and little accountability

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8
Q

Performance Appraisal Methods

A

Trait= Assess whether employee possess specific characteristics
behavior= assess the behavior of employees on the job
results= assess bottom-line performance
will be partially based on the characteristics of the job-measurability of outcomes, employee control etc.

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9
Q

Trait based

A

focus on characteristics possessed by employees
initiative, leadership, dependability etc.
can suffer from bias to a greater extent than other methods

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10
Q

trait based methods

A

graphic rating
mixed standard scales
forced choice

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11
Q

behavior based

A
  • Behavior or Effort Assessment
  • Assess what employees do on their jobs
  • Best when how a job is performed is important
  • Provides more direct feedback
  • Methods:
  • Behaviorally-anchored rating scales (BARS)
  • Behavior observation scales (BOS)
  • Can suffer from deficiency
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12
Q

results based

A
  • Output Assessment
  • Assess bottom-line performance
  • Useful when it is not important how a job is performed
  • Problems with practicality, contamination, deficiency
  • May not be appropriate for some jobs
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13
Q

why set goals?

A
  • Can provide focus,
  • Enhance productivity,
  • Increase commitment.
  • Research shows those who set goals are more
    likely to complete it.
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14
Q

performance goal

A

targets a specific end result

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15
Q

learning goal

A

involves enhancing your knowledge or skill

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16
Q

Step 1: Define Performance Expectations and Set Goals

A
  • Managers typically emphasize performance goals
    over learning goals, but skills and experience are
    needed to achieve performance goals.
  • When skills are lacking, it often is helpful to set
    learning goals first and then performance goals
    once you’ve developed some level of proficiency.
    SMART
    Four step process for goal implementation
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17
Q

SMART

A

Specific
Measurable
Attainable
Results Oriented
Time bound

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18
Q

Four step process for goal implementation

A

set goals
promote goal attainment
provide support, feedback
create action plans

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19
Q

Step 2:

A
  • Monitoring performance: measuring, tracking, or
    otherwise verifying progress and ultimate
    performance.
  • You use the information gathered through
    monitoring to identify problems (and successes)
    and opportunities to enhance performance during
    the pursuit of a goal, and your final outcomes.
  • Performance measurement and monitoring can
    be improved by considering other types of
    measures including timeliness, quality, quantity,
    and financial metrics.
  • Accurately and appropriately monitoring and
    evaluating both progress and outcomes are
    critical components of effective performance
    management.
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20
Q

objective measures

A
  • Production, sales, attendance, business unit
    performance (profit, market share)
  • Problems with opportunity bias, contamination,
    and deficiency
    Subjective measures
  • Comparative
  • Attribute
  • Behavioral
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21
Q

Comparative Ratings

A

Ranking = Rank order employees, Can be overall or
on dimensions
Forced distribution = Force ratings to conform to a
specific distribution. An approach to combat
distributional errors
Paired comparison = Compare each employee with
each other employee

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22
Q

rater errors

A

leads to biases and undermine performance management systems

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23
Q

360

A

feedback from direct reports, peers, cross-functional partners, and leaders.

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24
Q

Halo

A

a rater forms an overall impression about a
person or object and then uses that impression to
bias ratings about the same.

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25
Q

Leniency

A

a personal characteristic that leads an
individual to consistently evaluate other people or
objects in an extremely positive fashion.

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26
Q

Central Tendency

A

the tendency to avoid all
extreme judgments and rate people and objects
as average or neutral.

27
Q

Recency Effects

A

the tendency to remember
recent information

28
Q

Contrasts Effects

A

the tendency to evaluate people
or objects by comparing them with characteristics
of recently observed people or objects.

29
Q

Feedback

A

information about (individual or
collective) performance shared with those in a
position to improve the situation.
* Feedback enables you to learn how your
performance compares to the goal, which you can
then use to modify your behaviors and efforts.
* Feedback is Instructional & Motivational

30
Q

Effective feedback programs

A

Hard data such as units sold, days absent, dollars
saved, projects completed, customers satisfied,
and quality rejects

31
Q
A

Performance appraisal programs that discourage
two-way communication and treat employee
involvement as a bad thing do not represent feedback.

32
Q

Why do people not provide feedback?

A

concerns about how feedback could strain
relationships, time constraints, lack of confidence in
providing effective feedback, and the lack of
consequences for not providing feedback.

33
Q

Sources of feedback

A
  • Peers, Supervisors, Lower-level employees, outside
    customers, oneself, the task.
  • 360-degree appraisal systems = receiving feedback
    from multiple sources
34
Q

Factors affecting perceptions of feedback

A

Accuracy
Credibility of source
Fairness of the system
performance reward expectancies
reasonableness of the standards
self serving bias
coaching

35
Q

Accuracy in feedback

A

feedback is inaccurate if the PM system measures the wrong things or measures the right things wrongly

36
Q

Credibility of the source giving feedback

A

feedback from the top performers or from the trusted people will be given more weight

37
Q

fairness of the system in feedback

A

feedback will be discounted of you perceive the process or outcomes as unfair

38
Q

performance reward expectancies

A

can be fostered through ongoing and open feedback

39
Q

reasonableness of the standards

A

feedback about the unattainable goals would not be valued

40
Q

self serving bias

A

the tendency to attribute successes to internal personal factors and failures to external, situational factors

41
Q

coaching

A

customized process between two or more
people with the intent of enhancing learning and
motivating change.
Effective coaching is developmental, has specific
performance goals, and typically involves considerable
self-reflection, self-assessment, and feedback.

42
Q

types of rewards

A

extrinsic-financial and non-financial
intrinsic- meaningfulness and achievement

43
Q

desired outcomes

A

attract
motivate
retain
develop
engage

44
Q

distributing rewards

A

results
behavior and actions
non performance considerations

45
Q

results

A

tangible outcomes such as quantity, quality, and
individual, group, or organizational performance. Such
as —sales, profit, error rate, customer satisfaction.

46
Q

Behavior and actions

A

teamwork, cooperation, risk
taking, and creativity.

47
Q

nonperformance considerations

A

customary or
contractual, where the type of job, nature of the work,
equity, tenure, level in hierarchy, etc., are rewarded.

48
Q

total and alternative rewards

A
  • Compensation.
  • Benefits.
  • Professional growth.
  • Personal growth.
  • Attention and recognition.
  • Advancement.
49
Q

Pay for performance

A

monetary incentives linking at least
some portion of one’s pay directly to results or
accomplishments

50
Q

pay for performance works best when

A
  • Merit pay is used to differentiate top performers.
  • The ability to game the system is mitigated.
  • Multiple measures of performance are used.
  • Performance measures are accurate, consistent, and
    aligned with goals and outcomes.
51
Q

rewards fail

A
  • Too much emphasis is placed on monetary rewards.
  • Overtime rewards are seen as entitlements.
  • They foster counterproductive behaviors.
  • A lag occurs between performance and reward.
  • Reward structures are not tailored to goals, tasks.
  • Organizational policies and practices are misaligned.
52
Q

Law of effect

A

Behavior with favorable consequences tends to be
repeated, while behavior with unfavorable consequences
tends to disappear.
* This was novel at the time as previous theories said
behavior is a product of inborn instincts

53
Q

operant conditioning

A
  • The term “contingent” means there is a systematic if-then
    linkage between the target behavior and the consequence.
  • A behavior is strengthened when it increases in frequency
    and weakened when it decreases in frequency.
54
Q

positive reinforcement

A

the process of strengthening a
behavior by contingently presenting something pleasing.

55
Q

negative reinforcement

A

strengthens a desired behavior by
contingently withdrawing something displeasing.

56
Q

punishment

A

the process of weakening behavior through
either the contingent presentation of something displeasing
or the contingent withdrawal of something positive.

57
Q

extinction

A

weakening a behavior by ignoring it or making
sure it is not reinforced.

58
Q

Continuous reinforcement

A

such as getting paid every
time you make a sale.
* Every instance of a target behavior reinforced.
* Great when learning a new skill.
* Can quickly lose its effect.

59
Q

intermittent reinforcement

A

such as getting a SPOT
award or merit bonus
* Involves reinforcement of some but not all instances.
* Can vary the ratio and interval.
* Works best with variable ratio and variable interval.

60
Q

strategic relevance

A

individual standards directly relate to strategic goals.

61
Q

criterion deficiency

A

Standards capture all of an individual’s contributions.

62
Q

criterion contamination

A

Performance capability is not reduced by external factors.

63
Q

reliability

A

Standards are quantifiable, measurable, and stable.

64
Q

methods to improve appraisals

A

Evaluator training
* Rater error training
* Frame-of-reference training
Evaluator feedback
* Rate the rater on how well they evaluate others’
performance

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