HR Chapter 10

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Performance Management
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The process through which managers ensure that employees activities and outputs contribute to the organization’s goals. -knowing what activities are desired -observing whether they occur -providing feedback
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A
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If the performance management system created competition among team members, I would A. Make collaboration a criterion to be evaluated. b. Nothing, competition is good. c. Increase the specificity of the feedback. d. Focus on personal traits rather than behaviors.
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1. Define Performance outcomes 2. Develop employee goals, behaviors, and actions to achieve 3. Provide support and ongoing performance discussion 4. Evaluate Performance 5. Identify Improvements 6. Provide Consequences for performance results
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What are the 6 steps in the Performance Management Process?
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1. Strategic 2. Administrative 3. Development
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What are 3 purposes for why organizations establish performance management systems?
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Strategic Purpose
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Effective performance management helps the organization achieve its business objectives. Helps link employees’ behaviors with the organizations goals. Only achieved when measurements are truly linked to the organization’s goals and when the goals and feedback about performance management are communicated to employees
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Administrative Purpose
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Performance management system refers to the ways in which the organizations use the system to provide information for day to day decisions about salary, benefits and recognition programs. Also related to employee retention, termination, hiring and layoff.
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Developmental Purpose
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Serves as a basis for developing employee knowledge and skills. Feedback makes employees aware of their strengths and of the areas of which they can improve on.
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1. Fit with strength 2. Validity 3. Reliability 4. Acceptability 5. Specific Feedback
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What are 5 criterias to determine the effectiveness of performance measures?
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Fit With Strength
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Aim at achieving employee behaviors and attitudes that support the organizations strategy, goal, and culture. Should define the kinds of behaviors that contribute to goal.
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Validity
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Refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.
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Contamination
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Information that is gathered but irrelevant. All information in a performance appraisal.
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Deficiency
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Information is not gathered but is relevant. All relevant measures of Job Performance. “True” “Actual”
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Reliability
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Describes the consistency of the results that the performance measure will deliver.
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Interrater Reliability
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Consistency of results when more than one person measures performance.
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Test-Retest Reliability
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Refers to consistency of results overtime.
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Acceptability
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Must believe in the performance measure
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Specific Feedback
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Should specifically tell employees what is expected of them and how they can meet those expectations. Helps meet goals of supporting strategy and development employees
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A
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Sarah is a computer programmer whose job mainly consists of independently coding software. Interpersonal and teamwork skills are included on performance appraisal. Measuring these skills most closely represents: A. Criterion contamination B. Criterion deficiency C. Unreliability
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1. Comparative 2. Attribute 3. Behavioral 4. Results 5. Quality
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What are the 5 basic approaches to Performance Management?
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Performance Management Approach
Performance Management Approach
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Comparative
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The rater compare one individual’s performance with that of others. Involves ranking which some employees are best, some are average and others are worst. Arranging individuals from best to worst. Benefits: -distribution pay raises or layoffs -Easy to use Downsides: -No linked to org. goal -Open to interpretation
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1. Simple Ranking 2. Forced Distribution 3. Paired Comparison
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What are 3 techniques for making comparisons?
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Simple Ranking
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Requires managers to rank employees in their group from the highest performer to the poorest performer. Alternation Ranking: the manager works from the list of employees and crosses off names from highest then lowest then next highest then next lowest.
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Validity
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What is the major downside of ranking?
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Forced Distribution
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Assigns a certain percentage of employees to each category in a set of categories. Works best if the members of a group really do vary this much in terms of their performance
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Paired Comparison
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Comparing each employee with each other employee to establish rankings. Point based system. Method is time consuming
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Rating Individuals
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Looks at each employees performance relative to a uniform set of standards in terms of attributes believed desirable. Or may identify whether employees have behaved in desirable way and then provide a form on which the manager can rate. Ex: Scale 1-5
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Graphic Rating Scale
Graphic Rating Scale
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The most widely used method for rating ATTRIBUTES. Lists traits and provides a rating scale for each trait. Downside is low reliability b/c managers are likely to arrive at different judgments
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Mixed Standards
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Solves problem of graphic rating scale in which it uses several statements describing each trait to produce a final score for that trait.tells how to use the pluses, zeros, and minuses to score performance. Someone who excels at every level of performance (pluses for high, medium, and low performance) receives a score of 7 for that trait.
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Rating Attributes
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What is the most popular way to measure performance in organizations. Can be valid and reliable. Downside, often fail to meet standards and rarely link to the organizations strategy. characteristics or traits believed desirable
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Rating Behaviors
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A way to over come drawbacks of rating attributes. measurements that identify whether the employee behaved in desirable ways
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Critical Incident Method
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Managers keep a record of specific examples of the employee acting ways that are either effective or ineffective. Evaluates performance in a specific way.
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Behaviorally anchored rating scale (BARS)
Behaviorally anchored rating scale (BARS)
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Builds on the critical incident approach in that it is intended to define performance dimensions specifically using statement of behaviors that describe differently levels of performance. These statements are “anchors” of the performance level.
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Behavioral Observation Scale (BOS)
Behavioral Observation Scale (BOS)
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A variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task. Asks the manager to rate frequency with which the employee has exhibited the behavior during rating period.
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Behaviorism
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Approach to assessment builds directly on a branch of psychology in which it holds that individuals future behaviors is determine by their past experiences. The we past behaviors have been reenforced.
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Organizational Behavior Modification (OBM)
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A plan for managing behavior of employees through a formal system of feedback and reinforcement.
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1. Define a set of key behaviors necessary. 2. Use measurement system to assess if employee exhibits behavior 3. Inform employees about the key behaviors 4. Provide feedback and reinforcement
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What are the 4 components of OBM
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Management by Objectives (MBO)
Management by Objectives (MBO)
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People at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization’s overall goals. These goals become the standards for evaluating each employee’s performance. Can have a very positive effect on an organization’s performance
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1. Goals are specific, difficult, and objective. 2. Managers and their employees work together to set the goals. 3. The manager gives objective feedback through the rating period to monitor progress toward the goals.
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What are the 3 main components of MBO?
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A
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The performance management system at XYZ company currently is perceived as unfair and is time-consuming for managers. Which of the following systems is the most likely and least likely used, respectively. A. Paired comparisons; B. Results C. Results; Forced distribution D. Behavioral; Attributes Attributes; Comparative
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Total Quality Management
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Provide methods for performance measurement and management. Performance measurement combines measurements of attributes and results.
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Subjective feedback Statistical quality control
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What are the 2 kinds of TQM feedback
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Subjective
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From managers, peers and customers about the employees personal qualities such as cooperation, and initiative
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Objective
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Based on the work process
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Statistical Quality Control
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Use charts to detail causes of problems, measures of performance and relationships between work related variables.
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360-degree Feedback
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Source of performance information that combines information from -Managers -Peers -Subordinates -Self -Customers
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Managers
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Most used source of performance information Advantages: Extensive knowledge of job requirements Possess basic qualification Incentive to provide accurate feedback
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Peers
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Used when supervisor does not observe the employee often. Expert knowledge on job requirements Different perspectives According to research does not influenced by friendship
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1. Contrast Errors 2. Distributional Erros 3. Rater Bias
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What are 3 types of performance measurement rating errors?
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Contrast Errors
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Rater compares an individual, not against an objective standard, but against other employees.
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Distributional Errors
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Rater tends to use only one part of a rating scale.
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Leniency
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The reviewer rates everyone near the top
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Strictness:
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The rater favors lower rankings
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Central tendency:
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the rater puts everyone near the middle of the scale
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Rater Bias
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Raters often let their opinion of one quality color their opinion of others.
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Halo Errors
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Bias is favorable direction, mistakenly tell employees they don’t need to improve in any area.
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Horn Errors
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Negative rating and cause employees to feel frustrated
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B
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Bill rates all of his employees very low except for Jan. Jan gets above average ratings because she consistently comes to work on time. The rating errors Bill makes are _______ and _______, respectively. A. Leniency; Horn B. Strictness; Halo C. Similar-to-me; Central Tendency D. Horn; Strictness
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Political Behaviors in Performance Appraisals
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Distorting a performance evaluation to advance one’s personal goals. intentional distort their ratings for personal gain. One technique to minimize appraisal politics is to hold calibration meetings.
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Calibration Meeting
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Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating influence of rating errors
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Scheduling Performance Feedback
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-Performance feedback should be a regular, expected management activity. -Annual feedback is not enough. -Employees should receive feedback so often that they know what the manager will say during their annual performance review.
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Preparing for a Feedback Session
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Location: neutral Describe it as role Open dialogue Employees take self assessment
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1. Tell and Sell 2. Tell and Listen 3. Problem- Solving
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What are 3 ways to conduct the feedback session?
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Tell and Sell
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Managers tell employees their ratings and then justify those ratings.
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Tell and Listen
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managers tell employees their ratings and then let employees explain view.
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Problem Solving
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managers and employees work together to solve performance problems.
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Problem-Solving
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Which one is superior?
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Tell and Sell
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Which one do most managers rely on?
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1. Listen as well as talk 2. Use specific concrete examples 3. Be honest 4. Prevent Surprises 5. Treat Employees with respect 6. Focus on Goals
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What are 6 ways to structure communication
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Prevent surprises
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Employees should have clear job descriptions and receive clear directions. Supervisors should be communicating regularly with employees about expectations and how well they are performing. Then when the formal feedback is delivered to an employee, it should be consistent with what the employee has been hearing since the previous review.
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Use specific, concrete examples
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Statements about “attitude” or “commitment” require some mind-reading, and employees may feel misunderstood. References to specific accomplishments and examples of behavior are more neutral. Specific comments are especially important to back up negative feedback.
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Focus on Goal
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Compare the previous performance with the most recent measure to look for improvement.
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Listen as well as talk
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Employees who feel heard are more likely to believe that the review is fair and that their contributions are valued.
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Be Honest
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If performance is not acceptable, don’t pretend that it is. Pretending is disrespectful of the employee and could get the organization in legal trouble if the employee is later let go and believes the company discriminated. Guessing at an answer related to an employee’s future is another way to create problems for the organization, as well as for the supervisor’s relationship with the employee.
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Treat employees with respect
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By using polite language and looking for solutions rather than simply placing blame on employees when performance is less than desired.
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Improving Performance
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the most effective way to improve performance varies according to the employee’s ability and motivation. In general, when employees have high levels of ability and motivation, they perform at or above standards. But when they lack ability, motivation, or both, corrective action is needed. The type of action called for depends on what the employee lacks. Rewards and direct feedback help to maintain these employees’ high motivation levels.
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1. Ability 2. Motivation 3. Both
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What are 2 areas employees can lack in?
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Improve Performance
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Legal
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Performance management processes are often scrutinized in cases of discrimination or dismissal.
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1. Discrimination 2. Unjest Dismissal
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Lawsuits related to performance management usually involve which 2?
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Legally Defensible
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To protect against both kinds of lawsuits System Should: -Based on valid job analyses, with requirements for job success clearly communicated to employees. -Evaluates behaviors or results, rather than traits. -Multiple raters (including self-appraisals) used. -All performance ratings reviewed by upper-level managers. -Appeals mechanism for employees.
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Ethical
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Employee monitoring via electronic devices and computers may raise concerns over employee privacy.
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Electronic Monitoring
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Provides detailed, accurate information, but employees may find it demoralizing, degrading, and stressful. It is essential that organizations protect the privacy of performance measurements, as they must do with other employee records. E22 Alloy: collects data about employees actions on computer, phone, etc. and stores the data in a cloud.

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