MGT 463 – Exam 1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Definition of Performance Management
answer
1. Continuous process of ... -Identifying -Measuring -Developing ... the performance of individuals and teams 2. Aligning performance with the strategic goals of the organization
question
Performance Management is NOT...
answer
Performance Appraisal`
question
Differences: Performance Management
answer
-Strategic business considerations -Driven by line manager -Ongoing feedback (So employee can improve performance)
question
Differences: Performance Appraisal
answer
-Driven by HR -Assesses employee: Strengths & Weaknesses -Once a year -Lacks ongoing feedback
question
Contributions of Performance Management for Employees
answer
-Clarify definitions of: Job & Success criteria -Increase motivation to perform -Increase self-esteem -Enhance self-insight and development
question
Contributions of Performance Management for Managers
answer
-Communicate supervisors' views of performance more clearly -Managers gain insight about subordinates -Better and more timely differentiation between good and poor performers -Employees become more competent
question
Contributions of Performance Management for Organization/HR Function
answer
-Clarify organizational goals -Facilitate organizational change -Fairer, more appropriate administrative actions -Better protection from lawsuits
question
Disadvantages/Dangers of Poorly Implemented PM Systems for Employees
answer
-Lowered self-esteem -Employee burnout and job dissatisfaction -Damaged relationships -Use of false or misleading information
question
Disadvantages/Dangers of Poorly Implemented PM Systems for Managers
answer
-Increased turnover -Decreased motivation to perform -Unjustified demands on managers' resources -Varying and unfair standards and ratings
question
Disadvantages/Dangers of Poorly Implemented PM Systems for Organization/HR Function
answer
-Wasted time and money -Unclear ratings system -Emerging biases -Increased risk of litigation
question
Reward Systems Definition
answer
Set of mechanisms for distributing... -Tangible returns -Intangible or relational returns ... as part of an employment relationship
question
Reward Systems Tangible Returns
answer
Cash compensation: -Base pay -Cost-of-Living and Contingent Pay -Incentives (short- and long-term) Benefits such as: -Income Protection -Allowances -Work/life focus
question
Reward Systems Intangible Returns
answer
Relational returns such as: -Recognition and status -Employment security -Challenging work -Learning opportunities
question
Returns and Their Degrees of Dependency on the Performance Management System
answer
Low Dependency: -Cost of Living Adjustment -Income Protection Moderate Dependency: -Work/Life Focus -Allowances -Relational Returns -Base Pay High Dependency: -Contingent Pay -Short-Term Incentives -Long-Term Incentives
question
Purposes of PM SystemsStrategic Purpose
answer
-Link individual goals with organization's goals -Communicate most crucial business strategic initiatives
question
Purposes of PM SystemsAdministrative Purpose
answer
Provide information for making decisions regarding: -Salary adjustments -Promotions -Retention or termination -Recognition of individual performance -Layoffs
question
Purposes of PM SystemsInformational Purpose
answer
Communicate to employees: -Expectations -What is important -How they are doing -How to improve
question
Purposes of PM SystemsDevelopmental Purpose
answer
-Performance feedback/coaching -Identification of individual strengths and weaknesses -Identification of causes of performance deficiencies -Tailor development of individual career path
question
Purposes of PM SystemsOrganizational Maintenance Purpose
answer
-Plan effective workforce -Assess future training needs -Evaluate performance at organizational level -Evaluate effectiveness of HR interventions
question
Purposes of PM Systems Documentation Purpose
answer
-Validate selection instruments -Document administrative decisions -Help meet legal requirements
question
An Ideal PM System: 15 Characteristics
answer
1. Strategically congruent 2. Contextually congruent 3. Thorough 4. Practical 5. Meaningful 6. Specific 7. Identifies effective and ineffective performance 8. Reliable 9. Valid 10. Acceptable and fair 11. Inclusive 12. Open (No Secrets) 13. Correctable 14. Standardized 15. Ethical
question
An Ideal PM System: 15 CharacteristicsStrategically Congruent
answer
-Consistent with organization's strategy -Aligned with unit and organizational goals
question
An Ideal PM System: 15 CharacteristicsContextually Congruent
answer
Congruent with the organization's culture as well as the broader cultural context of the region or country Example: A 360-degree feedback is not effective where communication is not fluid and hierarchies are rigid
question
An Ideal PM System: 15 Characteristics Thorough
answer
-All employees are evaluated -All major job responsibilities are evaluated -Evaluations cover performance for entire review period -Feedback is given on both positive and negative performance
question
An Ideal PM System: 15 Characteristics Practical
answer
-Available -Easy to use -Acceptable to decision makers -Benefits outweigh costs
question
An Ideal PM System: 15 Characteristics Meaningful
answer
-Standards are important and relevant -System measures ONLY what employee can control -Results have consequences -Evaluations occur regularly and at appropriate times -System provides for continuing skill development of evaluators
question
An Ideal PM System: 15 Characteristics Specific
answer
Concrete and detailed guidance to employees: -What's expected -How to meet the expectations
question
An Ideal PM System: 15 Characteristics Identifies effective and ineffective performance
answer
-Distinguish between effective and ineffective: Behaviors & Results -Provide ability to identify employees with various levels of performance.
question
An Ideal PM System: 15 Characteristics Reliable
answer
-Consistent -Free of error -Inter-rater reliability
question
An Ideal PM System: 15 Characteristics Valid
answer
-Relevant (i.e., measures what is important) -Not deficient (i.e., doesn't measure unimportant facets of job) -Not contaminated (i.e., only measures what the employee can control)
question
An Ideal PM System: 15 Characteristics Acceptable and Fair
answer
-Perception of Distributive Justice: Work performed -> Evaluation received -> Reward -Perception of Procedural Justice *Fairness of procedures used to: Determine ratings & Link ratings to rewards
question
An Ideal PM System: 15 Characteristics Inclusive
answer
-Represents concerns of all involved -When system is created, employees should help with deciding: What should be measured & How it should be measured -Employee should provide input on performance prior to evaluation meeting.
question
An Ideal PM System: 15 Characteristics Open (No Secrets)
answer
-Frequent, ongoing evaluations and feedback -Two-way communications in appraisal meeting -Clear standards and ongoing communication -Communications are factual, open, and honest
question
An Ideal PM System: 15 Characteristics Correctable
answer
-Recognizes that human judgment is fallible -Appeals process provided
question
An Ideal PM System: 15 Characteristics Standardized
answer
-Ongoing training of managers to provide -Consistent evaluations across: People & Time
question
An Ideal PM System: 15 Characteristics Ethical
answer
-Supervisor suppresses self-interest -Supervisor rates only where (s)he has sufficient information about the performance dimension -Supervisor respects employee privacy
question
Integration with other Human Resources and Development Activities
answer
PM provides information for: -Development of training to meet organizational needs -Workforce planning -Recruitment and hiring decisions -Development of compensation systems
question
PM Around the World
answer
PM used in United States, Mexico, Turkey, India, Australia, China, and so on Common across countries: Need to align individual and organizational goals to enhance the performance of individuals and groups Yet, different countries emphasize different components of PM EX 1: PMs in Japan tend to emphasize behaviors to the detriment of results EX 2: The current challenge among many organizations in South Korea is how to reconcile a merit-based approach with more traditional cultural values
question
Performance Management Process
answer
Prerequisites -> Performance Planning -> Performance Execution -> Performance Assessment -> Performance Review -> Performance Renewal and Recontracting (START OVER)
question
Prerequisites
answer
1. Knowledge of the organization's mission and strategic goals 2. Knowledge of the job in question
question
Knowledge of Mission and Strategic Goals
answer
Strategic planning -Purpose or reason for the organization's existence -Where the organization is going -Organizational goals -Strategies for attaining goals
question
Mission and Goals
answer
Cascade effect throughout organization Organization -> Unit -> Employee
question
Knowledge of the Job
answer
Job analysis of key components -Activities -Tasks -Products -Services -Processes KSAs required to do the job -Knowledge -Skills -Abilities
question
Job Description
answer
-Job duties -KSAs -Working conditions
question
Generic Job Descriptions
answer
Occupational Informational Network (O*Net) http://online.onetcenter.org/
question
Job Analysis
answer
Use a variety of tools -Interviews -Observation -Questionnaires (available on the Internet)
question
Job Analysis Follow-Up
answer
All incumbents should -Review information -Provide feedback -Rate tasks and KSAs in terms of: Frequency & Criticality
question
Rater Biases
answer
Rating of frequency and criticality of tasks and KSAs is susceptible to: -Self-serving bias -Social projection bias -False consensus bias -These biases exaggerate the importance of certain tasks & KSAs
question
Rater Training: Web-based training
answer
-Takes only about 15 minutes -Establishes common point of reference via largely 5 steps -In the 5 steps, participants basically practice their rating skills -As a result, reduces exaggeration of the importance of certain task and KSAs
question
Web-based training: 5 steps
answer
1. Defines the rating dimensions 2. Defines the scale anchors 3. Describes behaviors indicative of each rating dimension 4. Allows raters to practice their rating skills, and 5. Provides feedback on the practice
question
Performance Planning: Results
answer
Key accountabilities Specific objectives Performance standards
question
Key Accountabilities
answer
-Broad areas of a job for which the employee is responsible for producing results
question
Specific Objectives
answer
Statements of outcomes: -Important -Measurable
question
Performance Standards
answer
-"Yardstick" to evaluate how well employees have achieved each objective -Information on acceptable and unacceptable performance, such as: Quality, Quantity, Cost, & Time
question
Performance Planning:Behaviors
answer
How a job is done
question
Performance Planning:Competencies
answer
-Measurable clusters of KSAs -Critical in determining how results will be achieved
question
Performance Planning:Development Plan
answer
-Areas for improvement -Goals to be achieved in each area of improvement
question
Performance Execution:Employee's Responsibilities
answer
-Commitment to goal achievement -Ongoing requests for feedback and coaching -Communication with supervisor -Collecting and sharing performance data -Preparing for performance reviews
question
Performance Execution:Manager's Responsibilities
answer
-Observation and documentation -Updates -Feedback -Resources -Reinforcement
question
Performance Assessment
answer
-Manager assessment -Self-assessment -Other sources (e.g., peers, customers)
question
Multiple Assessments Are Necessary To...
answer
-Increase employee ownership -Increase commitment -Provide information -Ensure mutual understanding
question
Performance ReviewOverview of Appraisal Meeting
answer
-Past: Behaviors and results -Present: Compensation to be received -Future: New goals and development plans
question
Six Steps for Conducting Productive Performance Reviews
answer
1. Identify what the employee has done well and poorly 2. Solicit feedback 3. Discuss the implications of changing behaviors 4. Explain how skills used in past achievements can help overcome any performance problems 5. Agree on an action plan 6. Set a follow-up meeting and agree on behaviors, actions, and attitudes to be evaluated
question
Performance Renewal and Recontracting
answer
Identical to performance planning EXCEPT: -Uses insights and information from previous phases -Restarts the performance management cycle
question
Strategic Planning: Definition
answer
Process -Describe the organization's destination -Assess barriers -Select approaches for moving forward
question
Strategic Planning: Goal
answer
Allocate resources to provide the organization with competitive advantage
question
Strategic Planning: Purposes
answer
-Help define the organization's identity -Help the organization prepare for the future -Enhance the ability to adapt to environmental change -Provide focus and allow for better allocation of resources -Produce an organizational culture of cooperation -Allow for the consideration of new options and opportunities -Provide employees with information to direct daily activities
question
Strategic Planning : Overview
answer
1. Environmental Analysis 2. Mission 3. Vision 4. Goals 5. Strategies
question
Environmental Analysis
answer
Identifies external and internal trends: -To understand broad industry issues -To make decisions using "big picture" context
question
External Trends
answer
Opportunities: -Environmental characteristics that can help the organization succeed Threats: -Environmental characteristics that can prevent the organization from being successful
question
External Trends—Factors to Consider
answer
-Economic -Political/Legal -Social -Technological -Competitors -Customers -Suppliers
question
Internal Trends
answer
Strengths: -Internal characteristics that the organization can use for its advantage Weaknesses: -Internal characteristics that can hinder the success of the organization
question
Internal Trends— Factors to Consider
answer
-Organizational structure -Organizational culture -Politics -Processes -Size
question
Gap Analysis
answer
Analyzes: External environment (opportunities and threats) vis-à-vis Internal environment (strengths and weaknesses)
question
Gap Analysis Determines:
answer
Opportunity + Strength = Leverage Opportunity + Weakness = Constraint Threat + Strength = Vulnerability Threat + Weakness = Problem
question
Strategic Planning for the Organization
answer
Environmental and Gap Analyses provide information for organizations to decide: -Who they are -What they do
question
Mission
answer
A good mission statement answers: -Why does the organization exist? -What is the scope of the organization's activities? -Who are the customers served? -What are the products or services offered?
question
Mission Statement contains:
answer
Information on an organization's: -Basic product/service to be offered -Primary market/customer groups -Unique benefits and advantages of product/services -Technology to be used -Concern for survival through growth and profitability
question
Mission Statement May Contain:
answer
Information on an organization's values and beliefs: -Managerial philosophy -Public image sought by organization -Self-concept of business adopted by -Employees -Stockholders
question
Vision
answer
-Statement of future aspirations -Focuses attention on what is important -Provides context for evaluating -Opportunities -Threats
question
A Good Vision Statement: Eight Characteristics
answer
1. Brief 2. Verifiable 3. Bound by a Timeline 4. Current 5. Focused 6. Understandable 7. Inspiring 8. A stretch
question
Purposes for Setting Goals
answer
-Formalize expected achievements -Provide motivation -Provide tangible targets -Provide the basis for good decisions -Provide the basis for performance measurement
question
Strategies
answer
Create strategies, game plans or "How to" procedures to address issues of: -Growth -Survival -Turnaround -Stability -Innovation -Leadership
question
How the HR Function Contributes:
answer
-Communicate knowledge of strategic plan -Provide knowledge of KSAs needed for strategy implementation -Propose reward systems
question
Strategic Plans at the Unit Level
answer
Every Unit mission statement, vision statement, goals, and strategies" Must clearly align with and be congruent with the Organization's mission statement, vision statement, goals, and strategies
question
Strategic Consensus
answer
Definition: The state in which various organizational units agree on a common set of strategic priorities -Predicts firm performance
question
Two Ways to Achieve Strategic Consensus
answer
Strategies -> Goals vs. Goals -> Strategies Strategies -> Goals better predicts firm performance
question
Job Descriptions
answer
-Tasks and KSAs are congruent with Organization and Unit strategic plans. -Activities described support mission and vision of Organization and Unit.
question
Individual and Team Performance
answer
Organization and Unit mission, vision, goals lead to: -Performance management system, which: -Motivates employees -Aligns development plans with organization priorities
question
Strategic Plan -> Six Choices in PM System Design
answer
1. Criteria (Behavior vs. Results) 2. Participation (Low vs. High) 3. Temporal Dimension (Short Term vs. Long Term) 4. Level of Criteria (Individual vs. Team/Group) 5. System Orientation (Developmental vs. Administrative) 6. Rewards (Pay for Performance vs. Tenure/Position)
question
Building Support—Answering "What's in It for Me?"
answer
For top management support: -Emphasize that PM helps carry out an organization's vision For support from all levels: -Clearly communicate nature and consequences of PM -Involve employees in the process of PM design and implementation
question
Defining Performance: Performance is...
answer
-Behavior -What employees do
question
Defining Performance: Performance is NOT...
answer
-Results or outcomes -What employees produce
question
Behaviors Labeled as Performance Are...
answer
Evaluative: -Negative -Neutral -Positive Multidimensional -Many different kinds of behaviors -Advance or hinder organizational goals
question
Behaviors Are NOT Always...
answer
-Observable -Measurable
question
Results/Consequences May Be Used...
answer
-To infer behavior -As proxy for behavioral measure
question
Determinants of Performance
answer
Performance = Declarative Knowledge X Procedural Knowledge X Motivation
question
Declarative Knowledge
answer
Information about: -Facts -Labels -Principles -Goals Understanding of task requirements
question
Procedural Knowledge
answer
Knowing: -What to do -How to do it Skills: -Cognitive -Physical -Perceptual -Motor -Interpersonal
question
Motivation
answer
Choices: -Expenditure of effort -Level of effort -Persistence of effort Deliberate practice leads to excellence
question
Deliberate Practice
answer
-Approach performance with goal of getting better and better -Focus on performance -What is happening? -Why? -Seek feedback from expert sources -Build mental models of job, situation, and organization -Repeat first four steps on an ongoing basis
question
Implications for Addressing Performance Problems
answer
-Managers need information to accurately identify source(s) of performance problems -Performance management systems must... -Measure performance AND -Provide information on source(s) of problems
question
Factors Influencing Determinants of Performance
answer
Individual characteristics: -Procedural knowledge -Declarative knowledge -Motivation HR practices Work environment
question
Performance Dimensions:Types of Multidimensional Behaviors
answer
-Task performance -Contextual performance -Prosocial behaviors -Organizational citizenship
question
Task Performance
answer
Activities that: -Transform raw materials -Help with the transformation process -Replenishing -Distributing -Supporting
question
Contextual Performance
answer
Behaviors that: -Contribute to the organization's effectiveness AND -Provide a good environment in which task performance can occur
question
Differences Between Task and Contextual Performance
answer
Contextual Performance: -Fairly similar across jobs -Not likely to be role prescribed -Influenced by: Personality Task Performance -Varies across jobs -Likely to be role prescribed -Influenced by: Abilities & Skills
question
Why Include Task and Contextual Performance Dimensions in PM System?
answer
1. Global competition 2. Customer service 3.Teamwork 4. Employee perceptions of PM 5. Supervisor views 6. Cultural differences
question
Voice Behavior
answer
-Behavior that emphasizes expression of constructive challenge with the goal to improve rather than merely criticize -Challenges the status quo in a positive way -Makes innovative suggestions for change -Recommends modifications to standard procedures
question
Approaches to Measuring Performance
answer
-Behavior Approach: Emphasizes how employees do the job -Results Approach: Emphasizes what employees produce -Trait Approach: Emphasizes individual traits of employees
question
Behavior Approach
answer
Appropriate if... -Employees take a long time to achieve desired outcomes -Link between behaviors and results is not obvious -Outcomes occur in the distant future -Poor results are due to causes beyond the performer's control Not appropriate if... -Above conditions are not present
question
Results Approach
answer
Advantages: -Less time -Lower cost -Data appear objective Most appropriate when: -Workers skilled in necessary behaviors -Behaviors and results obviously related -Consistent improvement in results over time -Many ways to do the job right
question
Trait Approach
answer
Most appropriate when: -Emphasis on individual: Evaluate stable traits (i.e., cognitive abilities, personality) -Positive relationship between abilities, personality traits, and desirable work-related behaviors -Appropriate if structural changes planned for organization Disadvantages -Improvement not under individual's control -Trait may not lead to desired behaviors or results
question
Accountabilities
answer
Broad areas of a job for which an employee is responsible for producing results
question
Objectives
answer
Statements of important and measurable outcomes
question
Performance Standards
answer
Yardstick used to evaluate how well employees have achieved objectives
question
Determining Accountabilities
answer
Collect information about the job (Job Description) Determine importance of task or cluster of tasks -Percentage of employee's time spent performing tasks -Impact on the unit's mission if performed inadequately -Consequences of error
question
Determining Objectives
answer
Purpose: to identify outcomes -Limited number -Highly important When achieved -Dramatic impact on overall organization success
question
Ten Characteristics of Good Objectives
answer
1. Specific and Clear 2. Challenging 3. Agreed Upon 4. Significant 5. Prioritized 6. Bound by Time 7. Achievable 8. Fully Communicated 9. Flexible 10. Limited in Number
question
Determining Performance Standards
answer
Standards refer to aspects of performance objectives, such as: -Quality : How well the objective is achieved -Quantity : How much, how many, how often, and at what cost? -Time :Due dates, schedule, cycle times, and how quickly?
question
Standards Must Include
answer
-A verb -The desired result -A due date -Some type of indicator -Quality or -Quantity
question
Good Performance Standards:Six Characteristics
answer
1. Related to the Position 2. Concrete, Specific, and Measurable 3. Practical to Measure 4. Meaningful 5. Realistic and Achievable 6. Reviewed Regularly
question
Identify Competencies
answer
-Measurable clusters of KSAs -Knowledge -Skills -Abilities -That are critical in determining how results will be achieved
question
Types of Competencies
answer
Differentiating: -Distinguish between superior and average performance Threshold: -Needed to perform to minimum standard
question
Identify Indicators
answer
-Observable behaviors -Used to measure the extent to which competencies are present or not
question
Necessary Components for Describing Competencies
answer
-Definition -Description of specific behaviors -When competency is demonstrated -When competency is not demonstrated -Suggestions for developing the competency
question
Choose a Measurement System
answer
-Comparative system: Compares employees with one another -Absolute system: Compares employees with prespecified performance standards
question
Advantages of Comparative Systems
answer
-Easy to explain -Straightforward -Identifies top as well as underperformers -Better control for biases and errors found in absolute systems -Leniency -Severity -Central tendency
question
Disadvantages of Comparative Systems
answer
-Rankings may not be specific enough for: -Useful feedback -Protection from legal challenge -No information on relative distance between employees -Specific issues with forced distribution method
question
Comparative Systems
answer
-Simple rank order -Alternation rank order -Paired comparisons -Relative percentile -Forced distribution
question
Simple Rank Order
answer
Advantages: -Simple and easy to do -Results are clear Disadvantages: -Judges performance based on one dimension only -May be difficult to rank similar performance levels
question
Alternation Rank Order
answer
Advantages: -Simple and easy to do -Results are clear -Uses two anchors (best and worst) Disadvantages: -Judges performance based on one dimension only -May be difficult to rank similar performance levels -Does not specify threshold for acceptable performance
question
Paired Comparisons
answer
Advantages: -Thorough -Final rankings are more accurate Disadvantages: -Very time consuming -May encounter problem of comparing "apples and oranges"
question
Relative Percentile
answer
Advantages: -Simple and easy to use -Evaluates specific competencies or overall performance Disadvantages: -May be difficult to consider all ratees at the same time -Time consuming if using several scales for different competencies
question
Forced Distribution
answer
Advantages: -Categorizes employees into specific performance groups -Facilitates reward assessment -Competition may be good for organizational performance Disadvantages: -Assumes performance scores are normally distributed -May discourage contextual performance and teamwork
question
Absolute Systems
answer
-Essays -Behavior checklists -Critical incidents -Graphic rating scales
question
Advantages and Disadvantages of Absolute Systems
answer
Advantages: -Can be used in large and small organizations -Evaluations more widely accepted by employees Disadvantages: -Higher risk of leniency, severity, and central tendency biases -Generally, more time consuming than comparative systems
question
Behavior Checklists
answer
Advantages: -Easy to use and understand -Provides quantitative information -Widespread use -More objective than other systems Disadvantages: -May feel impersonal and disconnected -Scale points used are often arbitrary -Difficult to get detailed and useful feedback
question
Essays
answer
Advantages: -Simplest absolute method -Individualized for each employee -Can be done anytime -Potential for detailed feedback Disadvantages: -Unstructured and may lack detail -Depends on supervisor's writing skill -Comparisons virtually impossible -Lack of quantitative information; difficult to use in personnel decisions
question
Critical Incidents
answer
Advantages: -Focus on actual job behavior -Provides specific examples -Employees identify with rating Disadvantages: -Collecting critical incidents can be very time consuming -Quantification is difficult
question
Graphic Rating Scales
answer
Advantages: -Meanings, interpretations, and dimensions being rated are clear -Useful and accurate -Most popular tool Disadvantages: -Time consuming and resource-laden to develop -Lacks individualized feedback and recommendations
question
Graphic Rating Scales:BARS Improvement
answer
-Behaviorally Anchored Rating Scales (BARS) -Uses critical incidents as anchors -Involves multiple groups of employees in development -Identify important job elements -Describe critical incidents at various levels of performance -Check for inter-rater reliability
question
Measuring Performance
answer
-Several types of methods -Differ in terms of: -Practicality (time and effort) -Usefulness (quantifiable)
