Performance Management and Appraisal
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Questions and Answers

What is the primary purpose of performance appraisal?

  • To establish organizational culture
  • To provide training opportunities
  • To enhance employee engagement
  • To remove any performance deficiencies (correct)
  • Which of the following is NOT a component of the SMART goals for performance appraisal?

  • Maximal (correct)
  • Specific
  • Timely
  • Relevant
  • Who holds the primary responsibility for appraising an employee's performance?

  • The performance rating committee
  • The HR department
  • The CEO
  • The employee's direct supervisor (correct)
  • Which of the following steps is NOT part of the performance appraisal process?

    <p>Paying bonuses</p> Signup and view all the answers

    What is the goal of upward feedback in a performance appraisal system?

    <p>To allow subordinates to assess their supervisors anonymously</p> Signup and view all the answers

    Which type of appraisal includes feedback collected from various sources around the employee?

    <p>360-degree feedback</p> Signup and view all the answers

    Employees typically rate themselves how compared to ratings given by peers or supervisors in many cultures, particularly in Asia?

    <p>Lower than they are rated</p> Signup and view all the answers

    Which factor does NOT contribute to the effectiveness of peer appraisals?

    <p>Increased social loafing</p> Signup and view all the answers

    Which appraisal method involves ranking employees by selecting the highest and lowest performers alternately?

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

    What is a significant drawback of graphic rating scales?

    <p>Involves subjective interpretation of standards</p> Signup and view all the answers

    In which appraisal technique do supervisors record both positive and negative examples of an employee's behavior?

    <p>Critical incident method</p> Signup and view all the answers

    What does the Forced Distribution method resemble in educational settings?

    <p>Curved grading systems</p> Signup and view all the answers

    Which method combines narrative critical incidents and measured scales to depict performance?

    <p>Behaviorally Anchored Rating Scale (BARS)</p> Signup and view all the answers

    What is the first step in developing a Behaviorally Anchored Rating Scale (BARS)?

    <p>Write critical incidents</p> Signup and view all the answers

    Which appraisal technique is designed to minimize rating errors like leniency?

    <p>Mix standard scales</p> Signup and view all the answers

    What is the main goal of Management by Objective (MBO)?

    <p>To set specific measurable goals with employees</p> Signup and view all the answers

    What does the recency effect emphasize in employee performance evaluations?

    <p>The employee's most recent behavior and actions</p> Signup and view all the answers

    How can supervisors reduce errors caused by the central tendency bias?

    <p>By ranking employees based on performance metrics</p> Signup and view all the answers

    Which strategy can be implemented to combat leniency and strictness errors in performance appraisals?

    <p>Enforcing a performance distribution and ranking employees</p> Signup and view all the answers

    What is the primary goal of ongoing feedback in performance management?

    <p>To provide real-time updates on progress toward objectives</p> Signup and view all the answers

    What is the focus of coaching and developmental support in the feedback process?

    <p>Enhancing employee performance through guidance and support</p> Signup and view all the answers

    Which concept is best described as the communication of an organization's higher-level goals to its employees?

    <p>Direction Sharing</p> Signup and view all the answers

    What does bias in performance appraisal refer to?

    <p>The impact of personal attributes on appraisal ratings</p> Signup and view all the answers

    What aspect of performance management entails identifying and developing the capabilities of teams?

    <p>Performance Management</p> Signup and view all the answers

    Study Notes

    Performance Appraisal Overview

    • Performance appraisal evaluates an employee's performance against set standards.
    • Main goal is to identify and address performance shortcomings.

    SMART Goals in Performance Appraisal

    • Effective goals are defined as Specific, Measurable, Attainable, Relevant, and Timely.

    Roles in Performance Appraisal

    • Direct supervisors conduct appraisals; they are essential to the process.
    • HR Department oversees the system but does not participate in ratings.

    Steps in Performance Appraisal Process

    • Establish work standards.
    • Assess actual performance against these standards.
    • Provide constructive feedback to employees.

    Job Definition and Agreements

    • Clarifying job duties, standards, and appraisal methods is critical for mutual understanding.

    Peer Appraisals and Feedback Mechanisms

    • Peer evaluations enhance team dynamics, reduce social loafing, and improve motivation.
    • Upward feedback allows subordinates to anonymously evaluate their supervisors, leading to managerial improvements.
    • 360-degree feedback incorporates evaluations from various sources (peers, supervisors, subordinates, customers).

    Appraisal Methods

    • Graphic Rating Scale: Popular method listing traits with assigned performance values.
    • Paired Comparison Method: Compares employees directly against each other.
    • Alternation Ranking: Ranks employees from best to worst on specific traits.
    • Forced Distribution: Categorizes employees into performance-based percentages.
    • Critical Incident Method: Requires logging specific work-related behaviors (positive and negative).
    • Behaviorally Anchored Rating Scale (BARS): Combines narrative examples with quantified ratings.

    Addressing Rating Errors

    • Mix Standard Scales aim to reduce leniency and bias in ratings.
    • Common graphic rating issues include unclear standards, halo effects, central tendency, leniency, strictness, and bias.
    • Recency Effect: Overemphasis on recent employee behavior.

    Strategies to Minimize Rating Errors

    • Use employee rankings to combat central tendency.
    • Implement performance distribution to reduce leniency and strictness bias.

    Appraisal Interviews and Performance Management

    • Appraisal interviews focus on planning to improve areas of weakness.
    • Performance management is a continuous process for measuring and enhancing individual and team performance.

    Key Components of Effective Performance Management

    • Direction sharing: Aligning company goals throughout all levels.
    • Goal alignment: Connecting individual goals with departmental and organizational objectives.
    • Ongoing feedback: Utilizing both personal and digital feedback concerning goal progress.
    • Coaching: Essential for supporting employee development.
    • Rewards and recognition motivate and guide performance efforts.

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    Description

    This quiz explores the concepts of performance management and appraisal. It covers key elements such as the definition of performance appraisal and the effective SMART goals for assessing employee performance. Gain insights into improving performance through structured evaluations.

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