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performance management definition

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process through which managers ensure that employees activities and outputs contribute to the orgs goals

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an effective performance management process does?

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contribute to companys overall competitive advantages and must be given visible support by CEO and other senior managers

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what are the six steps of performance management process?

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-define performance outcomes for company, division, and department -develop employee goals, behavior, and actions to achieve outcomes -provide support and ongoing performance discussions -evaluate performance -identify improvements needed -provide consequences for performance results

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what are the three purposes of establishing performance management systems?

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strategic, administrative, developmental

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what is the strategic purpose of performance management?

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helps the org achieve its business objectives, links employees behavior with orgs goals

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whats the administrative purpose of performance management systems?

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ways in which org uses the system to provide information for day to day decisions about salary, benefits, and recognition programs

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whats the developmental purpose of performance management systems?

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serves as a basis for developing employees knowledge and skills

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what does effective performance feedback do?

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makes employee aware of their strengths and areas in which they can improve. discussing areas where they fall short can help the employee identify steps for improvement

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what are the criteria for effective performance management?

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fit with strategy, validity, reliability, acceptability, specific feedback

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what does fit with strategy mean for criteria of effective performance management?

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employee behaviors that support orgs strategy, goals, and culture

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what does validity mean in criteria for effective performance management?

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whether the appraisal measures all relevant aspects of performance and omits irrelevant aspects

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what does reliability describe in regard to performance management?

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describes the consistency of the results that the performance measure will deliver

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interrater reliability definition

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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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consistency of results over time

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simple ranking definition

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requires managers to rank employees in their group from the highest performer to the poorest performer

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alternation ranking definition

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manager work from a list of employees, The process continues with the manager selecting the second best, second worst, third best, and so on, until all the employees have been ranked

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forced distribution definition

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assigns certain percentage of employees to each category in a set of categories

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paired comparison method definition

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comparing each employee with each other employee to establish rankings, give one point to highest ranked employee for every set of employees

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what are the benefits of ranking employees?

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counteracts the tendency to avoid controversy by rating everyone favorably or in the center, can erase tendency from performance scores

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what is a major drawback of rankings?

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not linked to orgs goals, leaves basis for ranking open to interpretation

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graphic rating scale definition

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method lists traits and provides a rating scale for each trait

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mixed standard scales definition

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use several statements describing each trait to product a final score for that trait

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what are the most popular way to measure performance in orgs?

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rating attributes, easy to develop and can be applied to wide variety of jobs

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critical incident method definition

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requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffectices

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behaviorally anchored rating scale definition

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builds on critical incidents, intended to define performance dimensions specifically using statements of behavior that describe different levels of performance. The organization gathers many critical incidents representing effective and ineffective performance, then classifies them from most to least effective. When experts about the job agree the statements clearly represent levels of performance, they are used as anchors to guide the rater.

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behavioral observation scale definition

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uses examples to define all behaviors necessary for effective performance, asks manager to rate the frequency with which the employee has exhibited the behavior during the rating period

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behaviorism definition

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individuals future behavior is determined by their past experiences, specifically the ways in which past behaviors have been reinforced

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organizational behavior modification definition

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plan for managing the behavior of employees through a formal system of feedback and reinforcement

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4 components of OBMs

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1. Define a set of key behaviors necessary for job performance. 2. Use a measurement system to assess whether the employee exhibits the key behaviors. 3. Inform employees of the key behaviors, perhaps in terms of goals for how often to exhibit the behaviors. 4. Provide feedback and reinforcement based on employees' behavior.

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when do behavioral methods not work as well?

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complex jobs in which it is difficult to see a link in behavior and results

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Two of the most popular methods for measuring results are of performance measurements

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measurement of productivity and management by objectives

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management by objectives definition

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system in which people at each level of org set goals in process that flows from top to bottom, so employees at all levels are contributing to the orgs overall goals

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3 components of MBO systems

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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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how does total quality management measure performance?

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assesses both individual performance and system within individual works, employees and customer set standards

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what are the 2 kinds of feedback in TQM?

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(1) subjective feedback from managers, peers, and customers about the employee's personal qualities (2) objective feedback based on the work process.

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statistical quality control definition

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methods use charts to detail causes of problems, measures of performance, or relationships between work-related variables. Employees are responsible for tracking these measures to identify areas where they can avoid or correct problems

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what is the most used source of performance information?

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employee's manager

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what are the advantages of using managers to evaluate performance?

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-supervisors have extensive knowledge of the job requirements and have had enough opportunity to observe their employees -incentive to provide accurate and helpful feedback because their own success depends on their employees performance

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what is the negative of using managers to evaluate performance?

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-supervisor doesn't have enough opportunity to observe

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what are the advantages of using peers to evaluate performance information

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-can inform about performance in a job where supervisor does not often observe the employee -expert knowledge of job requirements -bring different perspective

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disadvantages of peer evaluation?

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-friendships or rivals -peers are uncomfortable with rating employees for decisions that may affect themselves

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what are advantages of using subordinates in evaluation?

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-best chance to see how well manager treats an employee

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disadvantages of subordinate evaluation

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-reluctant to say anything negative -when managers receive ratings the employees have more power, so managers tend to emphasize employee satisfaction

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when feedback forms require that the subordinates identify themselves, what happens?

answer

managers are rated higher

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__ and __ evaluations are most useful for development purposes?

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peer and subordinates

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problem with self ratings?

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inflate assessment of own performance

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crowdsourcing definition

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The collaborative tools of social media can allow individuals to work together by contributing small pieces to a bigger project. Especially when this is done on a large scale

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which is the best source of performance information?

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customer

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using customer evaluations of employee performance is appropriate in 2 situations:

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1) employee's job requires direct service to the customer or linking the customer to other services within the organization 2) customer evaluations are appropriate when the organization is interested in gathering information to determine what products and services the customer wants

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drawback of customer feedback/surveys?

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expense

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people often tend to give higher evaluation to people they consider ____

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similar to themselves

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contrast error definition

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rater compares an individual not against an objective standard but against other employees

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distributional error definition

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tend to use only one part of a rating scale

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leniency definition

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reviewer rates everyone near the top

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strictness definition

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rater favors lower rankings

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central tendency definition

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rater puts everyone in the middle of the scale

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halo error definition

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bias in a favorable direction, someone who speaks well is seen as helpful and talented, tells them dont need to improve

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horns error definition

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bias of negative ratings, cause employees to feel frustrated and defensive

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appraisal politics are most likely to occur when

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raters are accountable to the employee being rated, the goals of rating are not compatible with one another, performance appraisal is directly linked to highly desirable rewards, top executives tolerate or ignore distorted ratings, senior employees tell newcomers company folklore that include stories of distorted ratings

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calibration meeting definition

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managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating erros

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how can org help managers give accurate and fair appraisals?

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-training them to use the appraisal process, -encouraging them to recognize accomplishments that the employees themselves have not identified, -fostering a climate of openness in which employees feel they can be honest about their weaknesses

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why is frequent, planned performance feedback important?

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-managers are responsible for correcting performance deficiencies as soon as they occur -feedback is most effective when info does not surprise the employee -employees are motivated and directed by regular feedback

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whats important to enable employees to do in preparing for the feedback session?

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be well prepared, do a self assessment beforehand

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tell and sell approach of conducting feedback session

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managers tell the employees their ratings and then justify those ratings

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tell and listen approach of conducting feedback session

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managers tell employees their ratings and then let employees explain their side of the story

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problem solving approach of feedback sessions

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managers and employees work together to solve performance problems in an atmosphere of respect and encouragement

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most managers rely on the ___ approach for conducting feedback sessions

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tell and sell

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what to do when an employee lacks ability?

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offer coaching, training, and more detailed feedback, sometimes restructure the job so the employee can handle it

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what to do when an employee has a lack of motivation?

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explore ways to demonstrate that the employee is being treated fairly and rewarded adequately, more positive feedback, may need referral for counseling or help with stress management

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what to do when an employee is unmotivated and unskilled?

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Performance may improve if the manager directs the employee's attention to the significance of the problem by withholding rewards or providing specific feedback. If the employee does not respond, the manager may have to demote or terminate the employee

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what to do with employee that has low ability but high motivation?

answer

-coaching -frequent performance feedback -goal setting -training -temporary assignment for skill development -restructured job assignment

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what to do when skill is high and motivation is high?

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-reward good performance -identify development opportunities -provide honest, direct feedback

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what are low ability high motivation employees called?

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misdirected effort

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what are high motivation high ability employees called

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solid performers

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how to deal with high ability low motivation employees?

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give honest direct feedback -provide counseling -use team building and conflict resolution -link rewards to performance outcomes -offer training for needed skills -manage stress levels

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what are low ability low motivation employees called

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deadwood

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what are high motivation low ability employees called?

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underutilizers

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lawsuits related to performance management usually relate to

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discrimination or unjust dismissal

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evidence suggests that tendency for white raters to rate white people higher and same with blacks " " is strongest when

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one group is only a small percentage of the total work group. When the vast majority of the group is male, females receive lower ratings; when the minority is male, males receive lower ratings

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to protect from lawsuits, performance management systems should:

answer

-valid -evaluate behaviors rather than traits -should use multiple raters -train raters how to use system -review all performance ratings by upper managers -should include feedback and process for coaching or training employees to help them improve

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electronic monitoring definition

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Organizations often store records of employees' performance ratings, disciplinary actions, and work-rule violations in electronic databases. Many companies use computers to monitor productivity and other performance measures electronically

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when should electronic monitoring be used?

answer

only when necessary, should communicate reasons why it is necessary

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components of talent management (3)

answer

-managing the availability of talent -managing the development of people within the org -managing the performance of employees

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what are the uses for appraisal information categories? (4)

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-developmental uses -administrative uses -documentation -strategic uses

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how are performance appraisals used for developmental activities?

answer

-monitor individual goal progress -identify individual training needs -feedback -career progression -link behavior to results

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how are performance appraisals used for administrative activities?

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-salary -promotion -layoff -termination -poor and strong performers identified

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how are performance appraisals used in documentation activities?

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-document HR decisions -meet legal requirements

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how are performance appraisals used in strategic activities?

answer

-human capital planning -org training needs -org goal achievement

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what are the objective methods for appraising performance? (4)

answer

-production measures -dollar sales -performance tests -business unit performance measure

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what are the subjective methods for appraising performance?

answer

-essay -ranking -forced distribution -graphic rating scales -critical incident technique

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why would a manager inflate ratings on a performance appraisal? (7)

answer

-Avoid confrontation. -Little to no raises? Give employee most money possible. -Feel sorry for someone. -To reward an employee who has shown improvement, even if it is still low. -Don't want to make it a part of the permanent record. -Don't want others to know what's going on within department. -Get someone promoted out of department.

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why would a manager deflate ratings in a performance review? (4)

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-Shock an employee back into better performance. -To build documentation to fire someone. -To send a message to an employee that he or she should quit. -To teach a lesson to an employee whom you don't like or are annoyed with.

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