quiz 5 pt 3 Flashcards
What is performance management?
Activities related to improving employee performance, productivity, and effectiveness.
What are the 3 major purposes of performance management?
1- Align employee actions with strategic goals.
2- Reinforce company culture and values.
3- Provide input into training, compensation, and succession planning.
What are the 5 steps of the performance management process?
1- Define performance expectations.
2- Provide ongoing feedback and coaching.
3- Conduct performance appraisal.
4- Determine rewards/consequences.
5- Career development discussion.
What are the two types of job performance?
Task Performance – Direct contribution to business outcomes.
Contextual Performance – Indirect contribution (e.g., teamwork, positive attitude).
What is the role of the manager in performance management?
✅ Give ongoing feedback
✅ Adjust performance expectations
✅ Offer coaching and support
What is the role of the employee in performance management?
✅ Monitor own performance
✅ Ask for help
✅ Adjust to feedback
What are the two approaches to measuring performance?
Performance as Effort/Behavior – For jobs with hard-to-measure outcomes.
Performance as Results – For jobs with measurable outcomes.
What is a graphic rating scale?
A scale that rates employees based on traits and performance levels.
✅ Simple and easy to use
❌ Can be vague and subjective
What is the alternation ranking method?
Rank employees from highest to lowest on a specific trait.
✅ Easy to apply
❌ Lacks performance detail
What is the paired comparison method?
Compare each employee against others on specific traits.
✅ Clear comparison
❌ Time-consuming for large teams
What is the forced distribution method?
Ranks employees into categories (e.g., top 20%, bottom 10%).
✅ Motivates top performers
❌ Can demotivate average performers
What is the critical incident method?
Records notable good or bad performance events.
✅ Identifies specific behaviors
❌ Hard to compare employees
What are narrative forms in performance appraisal?
Open-ended written evaluations of performance.
✅ Provides detailed feedback
❌ Time-consuming
What is a Behaviorally Anchored Rating Scale (BARS)?
Combines numeric ratings with specific behavioral examples.
✅ Consistent and specific feedback
❌ Time-consuming to develop
What is Management by Objectives (MBO)?
Setting measurable goals and reviewing progress toward them.
✅ Encourages employee commitment
❌ Hard to measure intangible goals
What are the common rating errors in performance appraisal?
Unclear Standards – Vague criteria.
Halo Effect – One trait influences other ratings.
Central Tendency – Rating everyone as average.
Leniency or Strictness – Rating everyone too high or low.
Recency Effect – Focusing only on recent events.
Similar-to-Me Bias – Higher ratings for similar personalities.
Appraisal Bias – Personal bias (e.g., race, gender).
How can you reduce rating errors?
✅ 360-degree evaluations
✅ Rater training
✅ Calibration meetings
✅ Clear performance standards
What is a 360-degree evaluation?
Feedback from supervisors, peers, subordinates, and self.
✅ Holistic view
❌ Requires confidentiality and training
What are calibration meetings?
Meetings where managers align performance expectations together.
✅ Ensures consistency in ratings
✅ Reduces personal bias
What are the two types of performance appraisal discussions?
Satisfactory – Promotable – Discuss career growth.
Satisfactory – Not Promotable – Focus on maintaining performance.
Unsatisfactory – Correctable – Develop improvement plan.
How should you handle defensive employees during performance discussions?
✅ Focus on performance, not personality
✅ Stay calm and professional
✅ Provide specific examples
What are the two types of rewards in performance management?
Monetary – Bonuses, raises, incentives.
Non-Monetary – Recognition, promotions, training opportunities.
What are common consequences of poor performance?
✅ Performance improvement plan
✅ Additional training
✅ Disciplinary action
Who can conduct a performance appraisal?
✅ Supervisors – Know the job well but may be biased.
✅ Self – Encourages employee engagement but may be overly positive.
✅ Peers – Daily insight but risk of “logrolling.”
✅ Committees – Balanced but time-consuming.
✅ Subordinates – Good for manager feedback but may be uncomfortable.
✅ 360-Degree – Holistic but complex to manage.
What is a performance improvement plan (PIP)?
A formal plan outlining steps to improve performance.
✅ Provides structure and accountability
✅ Helps employees know how to improve
what are the key legal issues in performance management?
✅ Consistent and objective evaluation criteria
✅ No discrimination based on age, race, gender, etc.
✅ Confidentiality of performance ratings
What is the “Halo Effect” in performance appraisal
Letting one good trait influence all ratings.
✅ Example: High communication skills = High teamwork score
What is the “Recency Effect” in performance appraisal?
Focusing on recent events rather than overall performance.
✅ Example: Rating based only on last project
What is “Similar-to-Me Bias”?
Higher ratings for employees similar to the rater.
✅ Example: Same background, interests, personality
What is Management by Objectives (MBO)?
Setting goals with employees and evaluating success.
✅ Motivates employees
✅ Improves goal clarity
What are the advantages of a 360-degree evaluation?
✅ Balanced feedback
✅ Provides different perspectives
What is the key disadvantage of the forced distribution method?
Demotivates average and low performers.
