Performance Management M5

Question 1

What do most Performance Managemenet Systems include?

Answer 1

Goals, Measures, Assessment, Feedback, and Reward.

Question 2

Which parties should be involved in the performance management process?

Answer 2

Both the employee and the supervisor.

Question 3

Once goals are established, what are ways in which performance is measured?

Answer 3

Balanced Score Card, Business Excellence, Shareholder value, or any other financial/non-financial unit of measure.

Question 4

What is an important part of the Performance Management Process to ensure improvement of the employee and business

Answer 4

Assessment and ongoing feedback

Question 5

Performance can be measured either on a(n)
A. individual basis 
B. team basis
C. organization basis
D. All of the above

Answer 5

D. All of the above

Question 6

Which type of opportunity allows employees to receive feedback from coworkers, subordinates, and other members of the organization in addition to their direct manager?

Answer 6

360 Feedback.

Question 7

What is the overall objective of a Merit Program

Answer 7

To link Pay for Performance in a manner that is consistent with the mission / decisions of the organization.

Question 8

What are the required conditions for a Merit Pay Program?

Answer 8

1. there must be variations in employee performance, and contribution must be measurable.
2. managers must be provided with the tools and training to determine the reward.

Question 9

What 3 factors effect Merit Pay?

Answer 9

1. Managerial
2. Employee
3. Organizational

Question 10

What are the career stages that need to be taken into consideration when evaluating merit investment?

Answer 10

1. New to Role
2. Emerging
3. Established
4. Expert

Question 11

What is an advantage of a Performance ONLY Base Pay Program (Merit)?

Answer 11

It is easy for both the employee and manager to understand.

Question 12

What is a disadvantage of a Performance ONLY Base Pay Program (merit) / AKA percent of pay?

Answer 12

Larger increases go to people receiving the same performance ranking.

Question 13

For which type of employee should the lowest (first) quartile be used in a merit pay system with pay ranges divided into quartiles?

A. Red-circled employees
B. Employees new to the role
C. High-performing employees with five years in the job
D. Employees with five to seven years of experience that fully meet standards

Answer 13

B. Employees new to the role

Question 14

What is a disadvantage of delivering a merit increase as a percent of base pay?

A. Employees with the same performance receive different monetary increases
B. Employees with the same performance receive the same monetary increases
C. Employees who are lower in the range receive larger monetary increases

Answer 14

A. Employees with the same performance receive different monetary increases