HRM Performance Management Part 2
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Questions and Answers

Which component of SMART objectives signifies that a goal should be clear and challenging?

  • Achievable
  • Specific (correct)
  • Relevant
  • Measurable

Performance appraisals are only conducted at the end of the review period.

False (B)

What does the 'M' in SMART objectives stand for?

Measurable

Performance appraisals help in identifying the employee's ___ and development needs.

<p>training</p> Signup and view all the answers

Match the following components of SMART objectives with their descriptions:

<p>S = Specific/stretching M = Measurable A = Achievable R = Relevant T = Time framed</p> Signup and view all the answers

What is the primary purpose of the final review meeting between a direct report and their line manager?

<p>To assess performance against agreed objectives (C)</p> Signup and view all the answers

Performance management only occurs once a year.

<p>False (B)</p> Signup and view all the answers

What is the focus of the performance setting process?

<p>Setting individual objectives</p> Signup and view all the answers

The ___ review involves assessing progress made between the final review and the next performance meeting.

<p>interim</p> Signup and view all the answers

Match the following terms related to performance management with their correct descriptions:

<p>Objectives = Specific targets for performance Interim Review = Assessment between final reviews Learning and Development = Opportunities for skill enhancement Feedback = Information provided on performance</p> Signup and view all the answers

What type of actions are taken during the ongoing conversations throughout the year?

<p>Feedback on performance and addressing underperformance (A)</p> Signup and view all the answers

Learning and development plans are typically not discussed during the performance management cycle.

<p>False (B)</p> Signup and view all the answers

What is one corrective action that may be taken based on the interim review?

<p>Reset objectives</p> Signup and view all the answers

What is one of the main objectives of performance appraisal?

<p>Supporting the implementation of organisational strategies (D)</p> Signup and view all the answers

360-degree feedback is a traditional performance appraisal technique.

<p>False (B)</p> Signup and view all the answers

Name one theory related to motivation mentioned in the context of performance appraisal.

<p>Expectancy theory</p> Signup and view all the answers

Performance appraisal techniques include self-assessment, rating, and ______.

<p>ranking</p> Signup and view all the answers

Match the performance appraisal techniques with their descriptions:

<p>Self-assessment = Employee evaluates their own performance Rating = Assigning scores to performance metrics Ranking = Ordering employees based on performance 360-degree feedback = Gathering feedback from multiple sources</p> Signup and view all the answers

Which of the following is NOT a type of performance appraisal technique?

<p>Cost-benefit analysis (C)</p> Signup and view all the answers

What is a primary purpose of performance appraisal in an organization?

<p>To assist decisions in pay, promotion, and employee development (D)</p> Signup and view all the answers

Performance appraisal involves an interview between employees and their peers.

<p>False (B)</p> Signup and view all the answers

Performance appraisals link performance to promotions only.

<p>False (B)</p> Signup and view all the answers

What is the purpose of linking performance to pay in performance appraisals?

<p>To motivate employees</p> Signup and view all the answers

What key HRM activity involves improving or moving employees who do not meet performance targets?

<p>Redeployment</p> Signup and view all the answers

A performance culture aims to build a strong ______ among employees.

<p>performance</p> Signup and view all the answers

Performance appraisal is also known as performance ______.

<p>review</p> Signup and view all the answers

Match the following terms with their descriptions:

<p>Performance Management = Evaluating employee performance to assist in decision-making Induction = Process of introducing new employees to the organization Succession Management = Planning for future leadership roles Employee Development = Activities aimed at improving employee skills</p> Signup and view all the answers

Which group of individuals does 360-degree feedback typically include?

<p>Subordinates, peers, and line managers (A)</p> Signup and view all the answers

What is typically included in a performance appraisal process?

<p>Setting future goals (D)</p> Signup and view all the answers

The terms appraisal, review, and evaluation refer to different processes in HRM.

<p>False (B)</p> Signup and view all the answers

What is a common goal of performance appraisal in terms of employee outcomes?

<p>Motivation</p> Signup and view all the answers

The main goal of HRM strategy is to attract and select competent individuals who fit the ______.

<p>culture</p> Signup and view all the answers

Which of the following is NOT a benefit of performance appraisal?

<p>Increased office distractions (A)</p> Signup and view all the answers

Flashcards

Performance Appraisal/Review/Evaluation

The formal process of setting goals and evaluating performance. It includes setting SMART objectives, providing feedback, and identifying learning and development needs.

SMART Objectives

A set of criteria used to ensure goals are clear, measurable, achievable, relevant, and time-bound.

Evaluation of the employee

The act of assessing an individual's performance against set goals and providing feedback.

Identification of learning/training and development needs

A process that helps identify an individual's training and development needs to improve their performance.

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Performance-related pay & bonuses, promotion, PIP, exit etc

The use of performance data to inform decisions about compensation, promotion, and development.

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Performance Appraisal

A systematic process of evaluating an employee's performance against pre-defined standards.

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Performance Review

A formal conversation between an employee and their manager, to review past achievements, discuss future goals, and identify development opportunities.

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Performance Management

The overall process of managing an employee's performance, including setting goals, providing feedback, and tracking progress.

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Performance Management Framework

A framework for aligning employee activities with organizational objectives, ensuring that individual contributions support strategic goals.

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Performance Appraisal Evaluation

The process of evaluating the effectiveness of performance management systems and processes.

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Individual Perspective on Performance

Perspective that focuses on the employee's individual performance and potential for growth.

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Organizational Perspective on Performance

Perspective that considers how employee performance contributes to team and organizational goals.

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Performance Appraisal Technique

A method to assess employee performance, such as rating scales, goal-setting frameworks, or 360-degree feedback.

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Goal Setting Framework

A structured approach to set clear expectations, track progress, and provide regular feedback to employees.

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360-Degree Feedback

A performance appraisal method where feedback is gathered from multiple sources, including supervisors, peers, and subordinates.

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Planning Performance Meeting

A formal meeting held between an employee and their manager in January to discuss performance goals, learning and development plans, rewards, promotion opportunities, and any underperformance issues.

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Individual Objectives

Specific goals and objectives set for an employee to achieve during the year, covering areas like performance, learning, and development.

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On-going Performance Conversations

Regular conversations throughout the year between an employee and their manager to provide feedback, address concerns, and track progress towards objectives.

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Actioning Development

The process of implementing learning, training, and development activities that were agreed upon during the planning performance meeting.

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Interim Review

A formal meeting held in June or July to review progress against agreed objectives and make adjustments if needed.

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Final Review

A formal meeting held in November or December to assess an employee's overall performance against objectives, providing feedback, and planning for the next year.

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Reset Objectives

A process of adjusting an employee's objectives or taking corrective action when performance is not meeting expectations during an interim review.

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Organizational Strategies

A set of aims that an organization strives to achieve, often cascaded down to individual goals.

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Managing Performance

The practice of motivating and guiding employees to succeed in their roles and contribute to organizational goals.

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Expectancy Theory

This theory suggests that motivation is driven by the perceived value of a reward (outcome) and the belief that effort will lead to that reward.

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Equity Theory

This theory proposes that individuals compare their inputs (effort, skills) and outputs (compensation, recognition) to those of others, and strive for fairness.

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Goal-Setting Theory

This theory emphasizes the importance of setting clear and challenging goals to motivate employees and enhance performance.

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Self-Assessment

A systematic and formal process where employees assess their own performance, strengths, weaknesses, and development needs.

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Ranking

A method where employees are ranked against each other based on overall performance, often used for talent management and promotion decisions.

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Free-Form Appraisal

A performance evaluation technique that focuses on detailed descriptions of employee performance, behaviors, and contributions.

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Study Notes

Human Resource Management (HRM) - Performance Management (Part 2)

  • Performance management is a formal system/process facet of HRM
  • The lecturer is Dr Brigid Milner, Chartered FCIPD, Lecturer in Strategic & International HRM
  • The overview includes defining appraisal/review/evaluation, the process, perspectives on managing performance, and techniques for appraisal/review/evaluation.

Key HRM Activities

  • HRM objectives and strategy focus on improving, redeploying, or moving employees who don't meet targets or fit the culture, maintaining an internal career system, attracting and selecting competent employees who fit the culture, offering incentives, and inducting, training, and developing employees to meet standards.
  • This aligns with ensuring a suitable culture for performance, quality, and commitment.

Defining Performance Appraisal/Review/Evaluation

  • This is a formal process or system within Performance Management.
  • "Performance appraisal can be described as a systematic approach to evaluating employee performance, aiding decisions in areas like pay, promotion, development, and motivation" (Gunnigle, Heraty, & Morley, 2017, p.198)
  • "Performance appraisal usually consists of an interview between employees and managers to review performance and set future goals for reward, promotion, and development decisions" (Carbery & Cross, 2019, p.122)

Performance Appraisal/Review/Evaluation - Process

  • The process includes planning performance objectives (SMART objectives- Specific, Measurable, Achievable, Relevant, Time-bound)
  • Ongoing feedback and conversations throughout the year (e.g. Jan-Dec)
  • A final review/meeting, ideally in November/December for annual assessment

Performance Appraisal/Review/Evaluation - Features

  • Appraisal/Review/Evaluation often refers to the formal process part of performance management.
  • It involves identifying employee development needs and providing feedback regularly.
  • This also ties into performance-related pay, bonuses, promotions, PIPs, and exits.

Performance Appraisal/Review/Evaluation - Objectives

  • Supporting the implementation of organizational strategies through cascading objectives
  • Motivating performance (e.g. using expectancy theory, equity theory, goal-setting theory)
  • Creating a performance culture
  • Helping individuals develop their knowledge, skills, and attitudes; deciding who to promote and what performance is linked to pay
  • Managing poor performers

Performance Appraisal/Review/Evaluation - Techniques

  • Self-assessment
  • Ratings
  • Free-Form
  • Ranking
  • 360-degree Review/Feedback (this involves multi-rater or multi-sourced feedback from subordinates, peers, colleagues, customers, and line managers)

Example Forms

  • Various forms for employee self-assessment and performance reviews (employee self-evaluation forms and performance reviews covering areas like individual objectives, performance, skills, and core values)
  • A bell curve for performance review distribution, is included

360-Degree Feedback

  • A method for collecting performance feedback from various sources (supervisors, subordinates, peers, and self).

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Description

Explore the critical aspects of performance management in Human Resource Management. This quiz covers the definitions, processes, and techniques for performance appraisal, as well as strategies for effective employee evaluation. Gain insights into HRM objectives and the importance of aligning culture and performance.

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