True / False1. KPIs and objectives are same (False)2. Key
Performance Indicator (KPI) is a quantifiable metric. (True)3.
Aleading indicatoris a metric that mainly refers toleading
developments.(False)4. Alagging indicatoris a metric that mainly
refers topast developments and effects/results (True)5. KPIs are to
gauge individual performance; company goals & objective are
independent. Individual KPIs & Company Goal are not
interlinked. (False)6. It is advised t update KPIs at least
quarterly. (False)7. KPIs are to gauge individual employee working.
(False) 8. Individual performance & organizational performance
are directly proportional to each other. (True)9. Performance
management purpose is to keep an eye over employees. (False)10. PM
helps in Curbing or redirecting non-productive activities (True)11.
Performance management is the process of creating a work
environment or setting in which people are enabled to perform to
the best of their abilities to achieve organizational effectiveness
& best possible performance. (True)12. Total Reward Statement
is another name of Salary Slip which reveals total salary / reward.
(False)13. In performance planning process, we plan hw we will
guage performance. (False)14. Performance Coaching; where a manager
intervenes to give feedback and adjust performance (True)15.
Performance Management; where individual performance is formally
documented and feedback delivered. (False)16. Performance and
result is the end result whereas organization provides means to the
end. (False)17. The ultimate focus of HPI is on performance and
accomplishments with secondary emphasis on behaviors. (True)18.
Changing goals and targets boost challenging behavior and employees
more easily adjust their working. (False)19. Supervisors are
advised to continuously check employee working to avoid deviation
from desired results (False)20. High turnover always provide
promotion opportunities to employees staying in organization. Hence
high turnover is encouraging. (False)21. Performance management is
a broader term than performance appraisal, and emphasizes the use
of all of the management tools to ensure achievement of
performance. (True)22. A rating of the employee=s past performance
using a rating form is an example of the evaluative objective of
performance appraisals. (True)23. All performance deficiencies can
be overcome through training and development activities. (False)24.
Every error is a rater error that might be discovered when all of
the ratings given to subordinates by a particular supervisor are
high or very favorable. (False)25. Performance Management does not
involve staff development. (False)26. Peer review lends itself to
accusations of retaliation and bias. (True)27. Subjective measures
of performance tend to be more narrowly focused than objective
measures, leading to subjective measures being inadequately
defined. (False)28. Realistic, measurable, clearly understood
performance standards benefit both the organization and the
employee. (True)29. The purpose of developmental feedback is to
compare individuals. (False)30. The most common method of
performance appraisal involves employees being evaluated by their
immediate supervisors. (True)31. Management by objectives evaluates
managers by the extent to which they have achieved organisational
objectives. (False)32. The overall aim of an effective system is to
distill performance appraisal into a single number that can be used
to support pay raises. (False)33. Performance appraisals programme
can be used for many purposes including salary recommendations and
the retention and termination of employees. (True)34. Formal
performal appraisal encourages teamwork because of the interaction
it creates with the supervisor. (False)35. Developmental purposes
for performance appraisal include identifying strengths and
weaknesses and improving communication. (True)36. Link between
performance management and the organizations strategies and goals
is never neglected. (False)37. Performance planning and evaluation
systems specify a desired level of performance at the beginning of
the evaluation period. (True)38. The extent to which a performance
management system seeks performance consistent with organizational
goals is referred to as strategic congruence. (True)39. Validity
refers to the consistency of the performance measure. (False)40.
Subjective measures of job performance tend to exhibit high
interrater reliability. (False)41. Reliability refers to the extent
which a performance measure instructs employees about what is
expected of them (False)42. The consistency among the different
individuals who evaluate the employees performance is known as
internal consistency reliability (False)43. The best use of
self-ratings is for administrative purposes (False)44. Supervisors
are the most frequently used source of performance information.
(True)45. A disadvantage of the results approach to performance
measurement is that individuals may focus only on aspects of their
performance that are measured. (True)46. Annual feedback is the
most effective strategy for employers as well as employees.
(False)47. Performance Coaching is only benefitting to supervisors.
(False)48. Building and maintaining a respectful workplace means
understanding that disrespectful behavior or conflict can impact on
performance. (True)49. Performance management consolidates goal
setting, performance appraisal, and development into a single,
common system. (True)50. The aim of performance management is to
evaluate and reward the employee's efforts. (False)51. The concept
that the employee's effort should be goal directed is at the heart
of performance management. (True)52. Setting easily achievable
goals for employees defeats the purpose of performance management.
(False)53. Employees perform on a higher level when they
participate with supervisors in setting goals. (False)54. Human
Resource is responsible for monitoring the appraisal system and
preparing detailed forms and procedures. (True)55. The simplest and
most popular performance appraisal technique is the forced
distribution method. (False)56. A manager setting specific
measurable goals with each employee and then periodically
discussing the employee's progress toward the goals is a feature of
management by objectives. (True)57. A supervisor who rates an
employee high on all job traits because the employee has good
computer skills has fallen prey to the halo effect. (True)58.
Performance appraisal problems like bias and halo effects can be
cancelled out by using multiple raters. (True)
MCQs1. The system that seeks to tie the performance appraisal
process to the firms strategies through specifying at the beginning
of the evaluation period what types and levels of performance must
be accomplished is called thea. performance appraisal and
evaluation system. b. performance feedback system.c. performance
management system.d. performance planning and evaluation
system.
Ans: d
2. Which of the following is not a purpose of performance
management systems?a. The administrative purpose b. The
developmental purpose c. The feedback purposed. The strategic
purpose
Ans: c
3. Most performance appraisal systems focus on a. administrative
and strategic purposes.b. strategic and developmental purposes. c.
administrative and feedback purposes.d. developmental and
administrative purposes.
Ans: d
4. What performance management evaluation criterion is concerned
with maximizing the overlap between actual job performance and the
measure of job performance?a. Reliabilityb. Acceptability c.
Specificityd. Validity
Ans: d
5. A performance management system that evaluates irrelevant
aspects of performance isa. unreliable.b. invalid.c. Contaminated.
d. inconsistent.
Ans: c
6. Which of the following is not a criterion that should be used
to evaluate performance management systems?a. Acceptability b.
Specificityc Complexity d. Reliability
Ans: c
7. The extent to which the performance measure assesses all the
relevant aspects of performance is calleda. reliability. b.
validity.c. specificity.d. acceptability.
Ans: b
8. The consistency among the different individuals who evaluate
the employees performance is known asa. internal consistency
reliability. b. interrater reliability.c. intrarater reliability.
d. test-retest reliability.
Ans: b
9. The extent to which all of the items rated are consistent
with respect to content refers to a. internal consistency
reliability.b. interrater reliability. c. intrarater reliability.
d. test-retest reliability.
Ans: a
10. A measure that results in dramatically different ratings
over time lacksa. internal consistency reliability. b. interrater
reliability.c. intrarater reliability. d. test-retest
reliability.
Ans: d
11. If a performance appraisal method is not reliable, it; a.
can still be valid.b. can still be acceptable. c. cannot be
valid.d. cannot be acceptable.
Ans: c
12. Performance can be managed by focusing on all of the
following excepta. behaviors.b. weaknesses. c. results.d. employee
attributes.
Ans: b
13. The extent to which the performance measure gives guidance
to employees about what is expected of them is calleda.
reliability. b. validity.c. specificity.d. acceptability.
Ans: c
14. Which is not a component of management by objectives?a.
Specific goalsb. Subordinate participation c. Managerial feedbackd.
Modification of goals
Ans: d
15. Which of the following is the most objective performance
measure?a. Attitudeb. Degree of cooperation c. Initiatived. Number
of errors made
Ans: d
16. When managers are being evaluated, who are especially
valuable sources of information?a. Othermanagers b. Subordinatesc
Customersd.Their bosses
Ans: b
17. Which rater error is made when one judges individuals in the
immediate work group higher than those who are not?a. Contrastb.
Distributional error c. Halo/hornsd. Similar to me
Ans: d
18. What rater error is a result of a raters tendency to use
only one part of the rating scale?a. Contrastb. Distributional
error c. Halo/hornsd. Similar to me
Ans: b
19. When a rater fails to distinguish among different aspects of
performance, what kind of error is present?a. Contrastb.
Distributional error c. Halo/hornsd. Similar to me
Ans: c
20. What rater error leads employees to believe that no aspects
of their performance need improvement?a. Contrast b. b. Haloc.
Hornsd. Similar to me
Ans: b
21. To improve the performance feedback process, employers
should nota. give employees feedback every day.b. let employees
rate their performance before the feedback session. c. discuss
every criticism of the employee.d. focus on behavior or
results.
Ans: c
22. Which of the following is not one of the main reasons for
major changes in performance appraisal in recent years? a) Culture
change programmes.b) Team working initiatives.c) Government
legislation.d) Changes in payment systems.e) Total quality
management.f) Knowledge management initiatives.
23. Which of the following statement are correct? Select all
that apply. a) Performance appraisal is not used in the public
sector.b) Performance appraisal now includes previously untouched
organisations and occupational groups.c) Performance appraisal has
become more widespread.d) Performance appraisal is diminishing in
importance.
24. Which of the following is not a type of performance
appraisal?a) 45 degree appraisal.b) Team based appraisal.c)
Appraisal of managers.d) Customer appraisals.
25. Why might an organisation use multiple systems of appraisal?
Select all that apply. a) Different systems for different
organisational groups.b) To provide employees with a choice of
methods.c) Different systems for different part of the
organisation.d) To prevent the misuse of performance appraisal
systems by line managers.e) To separate reward and non-reward
aspects of appraisal.f) All except D
26. Which of the following is not a reason why performance
appraisal is used by organisations? a) To improve team, individual,
and corporate performance.b) To determine promotion.c) To clarify
and define performance expectations.d) To allocate financial
rewards.e) Because it is a legal requirement.f) To motivate
employees.
27. Performance management is believed to have originated from
which country? a) France.b) Germany.c) USA.d) Denmark.e) Japan.
28. Which of the following statements about performance
management systems is not true? a) They cause stress for
employees.b) Performance management systems are ineffective.c) They
improve organisational performance in the long-term.d) Commitment
from line managers is questionable.e) Recommendations are
prescriptive and suggest one best way.f) They encourage a
short-term view among managers.
29. Which of the following statements about performance
appraisal is not true? a) Performance appraisal reduces managerial
control.b) Companies use appraisal to encourage employee loyalty
and commitment.c) Employees may be appraised on both objective and
subjective measures.d) Performance appraisal has become a tool to
motivate and control workers.
30. What is the meaning of upward appraisal?a) Senior managers
rate the performance of line managers.b) Employees rate the
performance of their manager.c) Employees rate the performance of
their peers.d) Line managers rate the performance of employees.
31. What is meant by 360 degree appraisal? a) A system where
every employee rates another employee chosen at random.b) A system
where the line manager rates subordinates simultaneously.c) A
system where feedback is obtained from peers subordinates and
supervisors.d) A system where a senior manager rates all line
managers simultaneously.
32. Which of the following statements about 360 degree appraisal
is not true?a) Feedback may comprise both open and closed
questions.b) The data generated is normally highly accurate, valid
and meaningful.c) 360 degree appraisal is normally conducted
anonymously.d) 360 degree appraisal may be linked to pay awards.33.
What is the purpose of a 'mystery shopper'? a) A person who
pretends to be an employee in order to test service process.b) A
person who pretends to be a manager in order to test the service
process.c) A person who works for a competitor and pretends to be a
customer in order to test the service encountered.d) A person
pretends to be a real customer in order to test the service
encountered.
34. What is meant by the 'Veblen effect'? a) The practice of
giving everyone high ratings.b) The practice of giving everyone low
ratings.c) The practice of giving everyone average ratings.d) The
practice of giving everyone random ratings.
35. What is meant by 'Impression effect'? a) The notion that
closeness between manager and employee may create distortions in
the appraisal process.b) The notion that some employees can manage
their reputation to ensure managers have a good impression of
them.c) Where a single negative aspect dominates and distorts the
appraisal.d) Where the ratings reflect the similarity between
appraiser and appraisee.
36. Performance management is viewed as a process carried out as
a(n) a. once-a-year taskb. twice-a-year activityc. ongoing process
or cycled. None of the above
37. Performance evaluation can be defined as a process of
evaluating
a. past performanceb. present performancec. future performanced.
past and present performance
38. The term performance rating system stands for a. a grade or
score concerning the overall performanceb. the information about
the extent to which the work objectives were metc. the past
objectives of the organizationd. the achievements for a period of
one year
39. The 360-degree performance feedback involves the evaluation
of employees by a. HR managersb. employeesc. supervisorsd. all who
are directly in contact with the ratee
40. Which of the following is an essential prerequisite of
MBO?
a. Joint goal-settingb. Mid-term reviewc. Developing reviewsd.
All of the above
41. The evaluation method that requires the supervisors to keep
a written record of positive and negative work-related actions of
the employees is called a. Critical incident methodb. Essay
methodc. Work standard methodd. Field review method
42. Job evaluation is a technique adopted for determining the
_______ of the job.a. internal worthb. external worthc. internal
and external worthd. None of the above43. The aim of performance
management is to:a. Ensure employee's performance is supporting the
company's strategic aims.b. Consolidate goal setting.c. Ensure
employee has the tools needed to perform the job.d. Evaluate
employee's performance against standards.44. The increasing use of
performance management reflects:a. Every employee's efforts must
focus on helping the company achieve its strategic goals.b. The
popularity of TQM concepts.c. Traditional performance appraisals
are often counter-productive.d. All of the above.45. Reasons for
appraising a subordinate's performance include:a. The supervisor
and the employee together develop a plan for correcting the
employee's deficiencies.b. Appraisals play an integral role in
performance management.c. Appraisals play a part in the employer's
salary raise decisions.d. All of the above.46. Steps that
supervisors should follow in the performance appraisal process
include all the following except:a. Define the job.b. Prepare
detailed forms and procedures to be used.c. Provide feedback.d.
Appraise performance.47. A problem(s) with management by objectives
is (are) that it can:a. Be time consuming.b. Result in unmeasurable
objectives.c. 1 and 2d. None of the above.48. Rating an employee
high on several traits because he or she does one thing well is
called the:a. Central tendency.b. Bias problem.c. Halo effect.d.
Unclear standards.49. The problem with self-ratings is that:a.
Supervisors rate employees too highly.b. Supervisors accentuate
differences and rigidify positions.c. Employees rate themselves
higher than do supervisors.d. All of the above.50. Supervisors can
ensure that employees are satisfied with their performance
appraisals by ensuring that employees:a. Do not feel threatened
during the interview.b. Have a helpful and constructive supervisor
conduct the interview.c. Have the opportunity to present their
ideas and feelings.d. All of the above.
Short Questions1. Define Performance ManagementContinuous
Process of Identifying performance of individuals and teams
Measuring performance of individuals and teams Developing
performance of individuals and teamsand Aligning performance with
the strategic goals of the organization2. Working with your
introverted employees1. Listen: 2. Accept silence:3. Give
introverts their space: 4. Use e-mail: 5. Be mindful: 6. Dont
interrupt: 7. Discover their interests: 8. Provide peace offerings:
9. Dont expect them to show up: 10. Allow them to telecommute: 11.
Plan, plan, and plan:
3. Discuss Aligning performance with the strategic goals of the
organizationPerformance management requires that managers ensure
that employees activities and outputs are congruent with the
organisations goals and, consequently, help the organisation gain a
competitive business advantage. Performance management therefore
creates a direct link between employee performance and organisa
tional goals, and makes the employees contribution to the
organisation explicit.
4. Disadvantages/Dangers of Poorly Implemented PM Systems
Employees may quit due to results False or misleading information
may be used Self-esteem may be lowered Time and money are wasted
Relationships are damaged Motivation to perform is decreased
Employees suffer from job burnout and job dissatisfaction There is
increased risk of litigation Managers are required to use an
unjustified amount of resources Standards and ratings vary and are
unfair Biases can replace standards Mystery surrounds how ratings
were derived
5. Why you say that Performance Management is a Continuous
process. Performance management is ongoing. It involves a
never-ending process of setting goals and objectives, observing
performance, and giving and receiving ongoing coaching and
feedback. 6. What is performance problem?A performance problem is
any gap between desired results and actual results.
7. What is performance improvement?Performance Improvement is
any effort targeted at closing the gap between actual results and
desired results
8. Human performance improvementis the systematic process of
discovering and analyzing important human performance gaps,
planning for future improvements in human performance, designing
and developing cost-effective and ethically justifiable
interventions to close performance gaps, implementing the
interventions, and evaluating the financial and non-financial
results.9. Uses of Performance Appraisal Data;1. HR Planning2.
Recruitment Selection3. Training & Development 4. Career
Planning5. Compensation & Benefits6. Internal Employee
Relations7. Assessment of Employees Potential8. Areas for
performance Improvement10. Performance Management Involves;Clarity
of VisionSetting Performance StandardsMeasuring Performance against
standardsFeedback & Corrective actions
11. Contributions of PM Motivation to perform is increased
Self-esteem is increased Managers gain insight about subordinates
The definitions of job and criteria are clarified Self-insight and
development are enhanced Admisnistrative actions are more fair and
appropriate Organisational goals are made clear Employees become
more competent There is better protection from lawsuits There is
better and more timely differentiation between good and poor
performers Supervisors views of performance are communicated more
clearly Organisational change is facilitated Motivation, commitment
and intention to stay in organization is increased
12. Define Reward SystemSet of mechanisms for distributing
Tangible returnsand Intangible or relational returnsAs part of an
employment relationship13. Returns and their degree of dependence
on the performance management systemReturn Degree of dependenceBase
pay Moderate Cost of living adjustment Low Contingent pay
HighShort-term incentives High Long-term incentives High Income
protection Low Work/life focus Moderate Allowances
ModerateRelational returns Moderat
14. Aims and Role of PM SystemsThe information collected by a
performance management system is most frequently used for salary
administration, performance feedback and the identification of
employee strengths and weaknesses. In general, however, performance
management systems can serve the following purposes: (a) strategic,
(b) administrative, (c) information, (d) developmental, (e)
organisational maintenance, and (f) documentation. Lets consider
each of these purposes in turn.Table 1.4 Purposes served by a
performance management system Strategic: To help top management
achieve strategic business objectives Administrative: To furnish
valid and useful information for making adminis- trative decisions
about employees Information: To inform employees about how they are
doing and about the organisations and the supervisors expectations
Developmental: To allow managers to provide coaching to their
employees
Organisational maintenance: To provide information to be used in
workplace planning and _____________________________ allocation of
human resources
Documentation: To collect useful information that can be used
for various purposes (e.g., test development, personnel
decisions)
15. Three major points to consider while offering voluntary
benefitsWhat are the demographics of our company, and how might
they change with future recruits? Which benefits will appeal to
most employees? How can we present these products in a way that
doesnt cause information overload?
16. Characteristics of an ideal performance management system
Strategic congruence Thoroughness Practicality Meaningfulness
Specificity Identification of effective and ineffective performance
Reliability Validity Acceptability and fairness Inclusiveness
Openness Correctability Standardisation Ethicality
17. Leading vs LaggingLeading KPI - Aleading indicatoris a
metric that mainly refers tofuture developmentsand drivers/causes .
e.g. % of employees involved in the innovation processLagging KPI-
Alagging indicatoris a metric that mainly refers topast
developments and effects/results, e.g. reflects history and
outcomes of certain actions and processes.
18. Tools for critically analyzing KPI:
(SMARTER)SpecificMeasurableAlignedRealisticTimelyEthicalRecorded
19. Characteristics of KPIs1. KPIs should not be an end in
themselves, but be considered as an aid to management. 2. KPIs
should be seen within their local context and have more a meaning
as a comparison over time than as a comparison between
organizations. 3. KPIs should be reviewed and updated. 4. The
targeted performance description, which is described in measurable
terms through the KPIs, must be deployed to the organizational
level that has the authority and knowledge to take the necessary
action.20. Tips for Good KPIs1. Have them.2. Align them to
standards.3. Test them for validity and reliability.4. Discuss and
review them. Are they really key? Dont overestimate their
importance!5. Differentiate between lag and lead indicators.6.
Benchmark them.7. Do something with them. KPI should lead to
change.8. Keep them simple but not too simple!9. Balance focus on
positive and negative news (i.e. opportunities for
improvement).
21. A compensation program must be: Internally equitable
Externally competitive Affordable Understandable, legal, and
defensible Efficient to administer Capable of being reshaped for
the future Appropriate for the organization Attractive and able to
retain and motivate employees22. Key Performance IndicatorKey
Performance Indicator (KPI) is a quantifiable metric that reflects
how well an organization or division or department or individual
employee is achieving its stated goals and objectives.
23. What are Key Performance Indicators?A KPI is not a single
component, but an integrated collection of components such
as;Objectives: what are we trying to achieve?Indicators: what are
you going to measure? Measures: how are you going to measure
it?Targets: what is the desired result?Results: what have you
actually achieved?
24. What is a Total Reward Statement?TRS are personalized
statements listing everything that comes from the organization to
the individual employee. Provide a reassuring picture to employees
and are a tangible reminder of the companys financial commitment to
them beyond just base pay and benefits.
25. Use of Total Reward Statement?Demonstrating how employees
are valued is more important than ever now the economy is improving
and retention can no longer be taken for granted.
26. What to Include in a Total Reward Statement?Total reward
statements do not need to be too complicated. However, at a
minimum, the following items should be included:Compensation
Information; this includes base salary, overtime, bonuses,
incentives, and commissions. These are the basic staples of a total
reward statement, the information is in front of employees faces
all the time already.Leave Benefits; (number of days off). Analyze
what your company offers in terms of holidays, personal time,
vacation/PTO banks, sick leave, bereavement, and even jury
duty.Insurance Benefits; be sure to account for both employee cost
and employer cost on the statement; show how much your organization
has invested, and that the employee isnt shouldering all costs.
Examples include medical; dental; vision; flexible spending
accounts; cafeteria plans; healthcare spending accounts; basic life
insurance; accidental death and dismemberment costs;
supplemental/dependent life benefits; short-term and long-term
disability; and/or business travel accident insurance.Financial
Security Elements; again, divide this up into employee cost and
employer cost. Include social security, Medicare, federal
unemployment insurance, state unemployment insurance, workers
compensation costs, and retirement plan elements (such as 401(k)
matches or employee stock ownership plans).Additional
Benefits;including work/life programs. This can be huge, youre only
restricted by your own innovation and creativity. Just make sure
these benefits are aligned with company culture! For a total reward
statement, you could incorporate any number of things, including
adoption assistance, auto allowances, childcare programs,
education/tuition reimbursements, employee assistance programs,
employee meals, health club discounts, paid parking, or uniform
expenses
27. Define Introverted Employees
28. Working with your introverted employees! Listen Accept
silence Give introverts their space Use e-mail Be mindful Dont
interrupt Discover their interests Provide peace offerings Dont
expect them to show up Allow them to telecommute Plan, plan, and
plan
29. Define Direct Compensation.
30. Define Indirect Compensation
31. Difference between direct & direct compensation.
32. Why do performance management systems often fail?Performance
management systems often fail for several reasons. One of the
primary reasons for failure is the mistrust of those being rated
and of those who provide the ratings. Another reason for failure is
that ratees and raters often feel ill at ease during the process
but will intentionally try to downplay the emotional aspects of the
performance appraisal process. Additionally, various systems may
have built in technical problems, rating inconsistencies, and
poorly understood performance goals. Finally, performance
management systems may fail because the system does not tie into
the organizations vision, mission, and strategic priorities.
33. What is the difference between performance management and
performance appraisal? Performance appraisal is a systematic
evaluation of the strengths and weaknesses of individuals and
groups with regard to their job specifications. In the United
States, performance appraisals usually occur once a year and may be
tied to increases in pay. In other countries, appraisals may occur
every 5 to 10 years. Performance management occurs continuously as
a process which identifies, measures, and develops individual and
group performances toward organizational goals. Both performance
appraisals and performance management need to be behaviorally based
and exhibit relevancy with regard to organizational strategy.
However, a basic difference exists in that performance appraisals
occur at one time and performance management occurs continuously.
Performance appraisal processes are generally understood and
accepted within organizations by employees and managers.
Performance management is not as readily understood and, if not
implemented correctly, may lead to an overall distrust within
organizations and may serve to undermine employee performance at
all organizational levels.
34. What are the three most important purposes of performance
management systems and why? The three most important purposes of
performance management systems may be categorized as strategy,
communication, and employment decision based. Strategically,
performance management systems serve to link organizational
missions to employee behaviors and responsibilities. Performance
management systems serve to as communicate how well an employee is
doing and what the organization expects from an employee.
Employment decisions based on performance management include
whether to train, promote, transfer, discipline, or terminate
employees. Performance management systems may serve additional
purposes, too. These include providing criteria data, training
development information, organizational development information,
personal development information, a source for feedback
information, and human resources record keeping.
35. Under what circumstances can performance management systems
be said to work? Performance management systems may be said to work
when they address and include nine requirements. These requirements
include congruence with strategy, thoroughness, practicality,
meaningfulness, specificity, discriminability,
reliability/validity, inclusiveness, and fairness/acceptability.
Taken in order -Congruency means that the performance management
system ties behaviors and expectations to organizational
goals.Thoroughness means that the performance management system
includes all job related behaviors for the entire time covered by
the review.Practicality refers to an organizations ability to
administer the systems with the benefits outweighing any associated
costs. Meaningfulness refers to the perceptions that employees and
managers have with regard to the usefulness of the information
gathered for everyone involved.Specificity is accomplished when the
system provides clearly understood guidance for employees and
management. Discriminability is exhibited when the system clearly
distinguishes between effective and ineffective employees. Reliable
and valid performance management systems produce consistent ratings
over time that accurately measure and predict
performances.Inclusiveness is demonstrated when raters and ratees
actively participate in the review process. Fairness/acceptability
means that raters and ratees perceive the performance management
system as conducted with justice and equitability.
36. What kinds of unique information about performance can each
of the following provide: immediate supervisors, peers, self,
subordinates, and clients served?Immediate supervisors provide
unique information with regard to a subordinates behavioral
contribution to an organizations goals. Supervisors must also
distinguish between effective and ineffective performances as
related to the distribution of rewards and disciplinary actions.
This relationship works well when supervisors interact frequently
with their subordinates but does not perform as well when
subordinates function with more autonomy. For these employees,
other sources need to contribute to performance information. Peers
provide valuable performance information when members of groups
work with each other consistently. Peer ratings may be gathered by
using nominations (high and low knowledge, skills, abilities, or
others), ratings (for feedback), and rankings (highest to lowest
performers). Peer ratings research demonstrates reliability,
validity, and ratee acceptance. Ratings usefulness may suffer when
group friendship bias exists or when the group members rate
behaviors unrelated to the work (common method variance).
Subordinates provide unique and extremely valuable performance
information with regard to a managers or a supervisors
administrative effectiveness, planning, delegation, communications,
and leadership. These ratings appear to be both reliable and valid.
However, some caution is warranted as subordinate ratings tend to
show more leniencies with regard to salary and promotion decisions
compared to decisions for managerial development. Self ratings
contribute significantly to effective goal-setting, personal
development, and acceptance of the overall performance management
system. Self ratings do exhibit some weakness or challenge with
regard to leniency, variability, bias, and agreement with other
raters. These challenges may be explained by differences in
perspectives or on the focus of the rated behaviors and actions.
The effectiveness of self ratings can be improved by following four
steps. These steps include the use of absolute and relative
performance scales, collection of multiple self ratings, assurance
of confidentiality, and focus on the future. Client ratings offer
unique perspectives for an employees performance as seen through
individuals outside of an organization. While these perceptions may
not reflect an accurate assessment of an organizations goals, the
perceptions can contribute to organizational decisions regarding
promotion, transfer, training, development, and criterion
measurement.
37. What are some of the interpersonal/social interaction
dimensions that should be considered in implementing a performance
management system?Interpersonal and social interaction dimensions
should be considered when implementing performance management
systems. Interpersonal dimensions to consider include communication
effectiveness and beliefs in the performance management systems
process. Social interaction dimensions to consider include
measurement characteristics, behavioral observations, and
attitudinal issues. Measurement characteristics refer to the use of
objective versus subjective data and relative versus absolute.
Additional measurement characteristics to consider are the types of
scales (behavioral, graphic, forced choice, rank ordering) and the
frequencies and repetitions of the measurement. Behavioral
observation characteristics to consider are the sources
(supervisor, subordinate, self, client) of observations and the
verifiability of the observations. Attitudinal interactions include
the perceived fairness and the perceived procedural justice of the
performance management system. These attitudinal perceptions are
influenced by contextual performance and the assertiveness of the
ratee.
38. Under what circumstances would you recommend that the
measurement of performance be conducted as a group task?I would
recommend that performance management be conducted as a group task
when three conditions are present. The first condition indicating
group rating effectiveness is when individuals interact often with
members of a work group. Research supports the effectiveness of
group ratings when group members work with each other consistently
over time. Second, group ratings are indicated when specific
behaviors over time are of interest. Groups are better at
remembering definite, unique, and combined group member
effectiveness and effort. Finally, group ratings are appropriate
when the magnitude of the individual performance is not too large.
In summary, group ratings offer a more complete picture of the
effects individuals have on group and organizational
performance.
39. What key elements would you design into a rater-training
program? Three key elements to design into a rater-training program
(aka train the trainer) are improving observational skills,
reducing judgmental biases, and improving rater communications with
ratees. To improve observational skills, I would teach the raters
what behaviors to attend to. For example, having the rater play the
role or complete the job of the person they are to rate will assist
the raters ability to focus on necessary and effective behaviors
and to screen out the unnecessary or irrelevant behaviors. To
reduce judgmental biases, I would teach the raters about the types
of biases and allow them to experience the recognition of these
biases through case studies, video demonstrations, and rating
practice. I would make sure that the training program also offered
occasional re-training to assist the rater to develop long term
rating skills. The specific approach with each of these training
efforts will include a focus on the most appropriate Frames of
Reference for the jobs performances. This training will include six
specific steps. First, trainees receive instructions to evaluate
three ratees on three dimensions. Next, trainees read the
dimensions while hearing the dimensions read aloud. Then, the
trainer discusses the appropriate ratings per ratee per dimension.
Videos are shown demonstrating the behaviors. Ratings are collected
from the raters, written on a board, and discussed as a group.
Finally, the trainer will provide the preferred ratings per ratee
per dimension allowing questions and answers to occur as the
presentation is given.
40. Assume an organization is structured around teams. What
role, if any, would a performance management system based on
individual behaviors and results play with respect to a team-based
performance management system?As organizational interests continue
to increase with regard to team based management and performance,
it is necessary to understand how each individual contributes to a
teams successful performance. As individual contributions to team
performance is understood, overall team performance should increase
leading to increases in individual performance in a repetitive and
iterative process. The critical nature of performance will be a
function of the type of team involved. For example, project teams
may not work together long enough for an individual to need a team
based performance appraisal. Work or service teams may have members
needing specific behavioral training and evaluation to increase the
overall teams performance. Network team members will need to
receive individual training and performance evaluation to make sure
that all of the members have equivalent or the necessary specific
technological skills.
41. Discuss three dos and three donts with respect to appraisal
interviews. Three dos for performance appraisal interviews are to
communicate frequently with the ratee(s), stay current with
appraisal training, and to judge your own performance first
Appraisals receive more acceptance when they occur often and are
specific rather than long term and general. Frequent communications
come across more as a coaching encounter than as a potentially
threatening or possibly embarrassing appraisal. Just as jobs are
becoming more and more technologically dependent and experiencing
frequent changes, appraisal methodologies and purposes change. This
requires effective appraisers to stay current with their own
training, too. Learning how to evaluate your own performance
effectively also helps you to rate others more effectively.
Becoming an effective self evaluator requires time and intentional
awareness but does lead to better appraisals for others, as well.
Other dos for performance appraisal interviewers include
encouraging subordinate participation, use of priming information,
being warm and encouraging, judging performance not personality,
being specific, listening actively, avoiding criticisms, setting
effective goals, assessing goals regularly, and tying
organizational rewards to performance. With these dos in mind,
several donts include limiting subordinate participation, avoiding
priming information, being cold and discouraging, attacking the
ratees personality, being vague, failing to listen, threatening a
ratees self-esteem, setting rigid goals, communicating infrequently
and inconsistently, failing to tie organizational rewards to
performance.
42. INDIRECT VERSUS DIRECT COMPENSATION
There are two types of compensation: direct and indirect. Direct
compensation consists of things like cash money and bonuses;
indirect compensation consists of things other than cash money,
including benefits, rewards programs, and long-term incentives.
Indirect forms of compensation are becoming more and more popular.
Good group benefits or paid leave policies can often make up for
what might otherwise be seen as pay deficiencies.
