Human Resources: Ch 8 Performance Management

performance appraisal
set goals, see how employee performs, then add feedback
performance management
the process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals.
strategic, administrative, and developmental
three purposes of performance management:
strategic purposes
helps the organization achieve its business objectives
administrative purposes
the ways in which the organization uses the system to provide information for day-to-day decisions about salary, benefits, and recognition programs
developmental purposes
serves as a basis for developing employees’ knowledge and skills
Does the system accurately measure what it is intended to measure
information that is gathered but irrelevant (ex: employees have good attendance, but do they work efficiently?)
the consistency of the results that the performance measure will deliver
simple ranking
method of performance measurement that requires managers to rank employees from highest performer to lowest performer
forced distribution
method of performance measurement that assigns a certain percentage of employees to each category in a set of categories
paired comparison
method of performance measurement that compares each employee with each other employee to establish ranking
graphic rating scale
method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait
mixed-standard scales
method of performance measurement that uses several statements describing each trait to produce a final score for that trait
critical-incident method
method of performance measurement based on managers’ records of specific examples of the employee acting in ways that are either effective or ineffective
behaviorally anchored rating scales (BARS)
method of performance measurement that rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
behavioral observation scale (BOS)
a variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task
organizational behavior modification (OBM)
a plan for managing the behavior of employees through a formal system of feedback and reinforcement
management by objectives (MBO)
a system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization’s overall goals
360-degree performance appraisal
performance measurement that combines information from the employee’s managers, peers, subordinates, self, and customers
halo effect
rating employees positively in all areas because of strong performance observed in one area
horns effect
rating employees negatively in all areas because of weak performance observed in one area
contrast error
when the rater compares an individual, not against an objective standard, but against other employees
distributional error
when raters use only one part of a rating scales for example leniency, strictness, or central tendency
“Tell and Sell”
managers tell employees their ratings and then justify those ratings
“Tell and Listen”
managers tell employees their ratings and then let the employees explain their side of the story.
“Problem Solving”
managers and employees work together to solve performance problems.

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