Test 4 Flashcards
The process of creating a work environment in which people can perform to the best of their abilities.
Performance Management
A process, typically performed annually by a supervisor for a subordinate, designed to help employees understand their roles, objectives, expectations, and performance success.
Performance Appraisal
A process whereby managers meet to discuss the performance of individual employees to ensure their employee appraisals are in line with one another
calibration
Must be based on job-related requirements derived from job analysis and reflected in job description and job specifications.
Help translate an organization’s goals and objectives into job requirements that define acceptable and unacceptable performance levels.
Calibration
Establishing Performance Standards
Individual standards directly relate to strategic goals.
strategic relevance
Occurs when standards don’t capture all of an individual’s contributions. Focus on minimizing this.
criterion deficiency
Occurs when performance capability is reduced by external factors. Focus on minimizing this.
criterion contamination
Standards are quantifiable, measurable, and stable.
reliability (consistency)
Appraisal done by an employee’s manager and reviewed by a manager one level higher.
Manager and/or Supervisor
Appraisal done by the employee being evaluated, generally on an appraisal form completed by the employee prior to the performance interview.
self appraisal
Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes.
subordinate appraisal
Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager.
peer appraisal
Based on TQM concepts; recognizes team accomplishment rather than individual performance
teram appraisal
A performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers
customer appraisal
- Communicating effectively
- Diagnosing the root causes of performance problems
- Setting goals and objectives
feedback skills training
- Observe other managers making errors
- Actively participate in discovering their own errors
- Practice job-related tasks to reduce the errors they tend to make
rating error training
A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics.
graphic rating scale method
An approach to performance appraisal similar to other scale methods but based on comparison with (better than, equal to, or worse than) a standard.
mixed standard scale method
- A performance appraisal that measures the frequency of observed behavior (critical incidents).
- Preferred over BARS for maintaining objectivity, distinguishing good performers from poor performers, providing feedback, and identifying training needs.
Behavior Observation Scale (BOS)
Consists of a series of vertical scales, one for each dimension of job performance; typically developed by a committee that includes both subordinates and managers.
Behaviorally Anchored Rating Scale (BARS)
- An unusual event that denotes superior or inferior employee performance in some part of the job
- The manager keeps a log or diary for each employee throughout the appraisal period and notes specific critical incidents related to how well they perform.
critical incident method
- Appraisals based on quantitative measures (e.g., sales volume) that directly link what employees accomplish to results beneficial to the organization.
- Criterion contamination
- Focus on short-term results
productivity measures
A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager.
management by objectives (MBO)
Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization.
strategic compensation
The standard by which managers tie compensation to employee effort and performance.
pay for performance standard
An employee’s perception that compensation received is equal to the value of the work performed.
pay equity
– fairness of your pay relative to others in the labor market
External pay equity
fairness of your pay relative to others in the organization
Internal pay equity
A motivation theory that explains how people respond to situations in which they feel they have received less (or more) than they deserve.
equity theory
A theory of motivation that holds that employees should exert greater work effort if they have reason to expect that it will result in a reward that they value.
expectancy theory
An organizational policy prohibiting employees from revealing their compensation information to anyone.
Creates misperceptions and distrust of compensation fairness and pay-for-performance standards.
pay secrecy
Work paid on an hourly basis.
hourly work
