Podcast
Questions and Answers
What is one of the strategic purposes of performance management?
What is one of the strategic purposes of performance management?
How is the developmental purpose of performance management best achieved?
How is the developmental purpose of performance management best achieved?
Which characteristic is NOT part of the criteria for effective performance management?
Which characteristic is NOT part of the criteria for effective performance management?
What does 'contamination' refer to in performance appraisal?
What does 'contamination' refer to in performance appraisal?
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Which of the following best describes the administrative purpose of performance management?
Which of the following best describes the administrative purpose of performance management?
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What is the primary purpose of performance measures in a management context?
What is the primary purpose of performance measures in a management context?
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Which method of measuring performance involves ranking employees from highest to lowest?
Which method of measuring performance involves ranking employees from highest to lowest?
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What does interrater reliability ensure in performance evaluations?
What does interrater reliability ensure in performance evaluations?
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Which method requires a manager to assign a specific percentage of employees to predefined performance categories?
Which method requires a manager to assign a specific percentage of employees to predefined performance categories?
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What should effective performance management ideally establish within an organization?
What should effective performance management ideally establish within an organization?
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What is a disadvantage of the graphic rating scale in evaluating employee performance?
What is a disadvantage of the graphic rating scale in evaluating employee performance?
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Which method allows managers to give specific feedback based on observed incidents?
Which method allows managers to give specific feedback based on observed incidents?
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How does the Behaviorally Anchored Rating Scale (BARS) improve performance evaluation?
How does the Behaviorally Anchored Rating Scale (BARS) improve performance evaluation?
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In a Behavioral Observation Scale (BOS), what is primarily measured?
In a Behavioral Observation Scale (BOS), what is primarily measured?
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What is a primary focus of Organizational Behavior Modification (OBM)?
What is a primary focus of Organizational Behavior Modification (OBM)?
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What is a characteristic of the Behaviorism theory in relation to behavior management?
What is a characteristic of the Behaviorism theory in relation to behavior management?
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What is a potential drawback of maintaining critical incidents for performance evaluation?
What is a potential drawback of maintaining critical incidents for performance evaluation?
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Which performance measurement system enhances objectivity and feedback utility but requires extensive data?
Which performance measurement system enhances objectivity and feedback utility but requires extensive data?
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What is a primary drawback of using feedback and reinforcement based on employee behavior?
What is a primary drawback of using feedback and reinforcement based on employee behavior?
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What is the main focus of Management by Objectives (MBO)?
What is the main focus of Management by Objectives (MBO)?
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What is a potential benefit of using a Balanced Scorecard approach in performance management?
What is a potential benefit of using a Balanced Scorecard approach in performance management?
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Why is multi-rater feedback considered more effective than a single-source appraisal?
Why is multi-rater feedback considered more effective than a single-source appraisal?
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What is a disadvantage of using peers as a source of performance evaluation?
What is a disadvantage of using peers as a source of performance evaluation?
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What is one of the key roles of self-evaluation in performance appraisal systems?
What is one of the key roles of self-evaluation in performance appraisal systems?
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What is a limitation of customer evaluations as a source of performance information?
What is a limitation of customer evaluations as a source of performance information?
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Study Notes
Performance Management
- Performance management is a process where managers ensure that employees' activities and outputs contribute to organizational goals.
- Effective performance management systems are perceived as fair by employees and involve their participation in development and implementation.
- Performance management systems serve three purposes: strategic, administrative, and developmental.
- Strategic purpose: links employee behavior to organizational goals to achieve business objectives.
- Administrative purpose: provides information for everyday decisions like salary, benefits, recognition programs, and employment decisions.
- Developmental purpose: helps employees develop knowledge and skills by providing feedback on strengths and weaknesses.
Criteria for Effective Performance Management
- Fit with Strategy: employee behavior and attitudes should support the organization's goals and culture.
- Validity: appraisal measures should focus only on relevant aspects of job performance.
- Contamination: measures should avoid irrelevant aspects of performance.
- Deficiency: measures should include all relevant aspects of performance.
- Reliability: measures should be consistent over time and across raters.
- Inter-rater reliability: consistency of results when multiple people measure performance.
- Test-retest reliability: consistency of results over time.
- Acceptability: employees and managers should find the system easy to use and fair.
Methods for Measuring Performance
- Making Comparisons: comparing one employee's performance to another (simple ranking, alternation ranking, paired comparisons).
- Rating Individuals: Rating against a set of standards (attributes, behaviors - graphic rating scale).
Critical Incident Behavior
- Critical incidents are specific examples of employee behavior, both effective and ineffective.
- This method involves documenting these incidents for feedback and improvement.
Behavioral Observation Scale (BOS)
- BOS is a variation of BARS (Behaviorally Anchored Rating Scales).
- It uses various behaviors necessary for effective performance to define performance levels.
- Easy to use, provides feedback, maintains objectivity, and suggests training and development needs.
Organizational Behavior Modification (OBM)
- OBM is a formal plan for managing employee behavior using feedback and reinforcement.
- It involves: defining specific behaviors, measuring their occurrence, and providing feedback and appropriate reinforcement.
Measuring Results
- Measures productivity and effectiveness.
- This approach gets more done with fewer resources.
Management by Objectives (MBO)
- MBO is a system where individuals at all levels set objectives that support overall organizational goals.
- Goals are specific, measurable, achievable, relevant, and time-bound (SMART).
Sources of Performance Information
- Performance information can come from various sources, such as employees, managers, peers, and customers.
- Multi-rater systems combine information from multiple sources to provide a more complete and balanced assessment.
- 360-degree performance appraisal: combines information from employees, managers, peers, direct reports, and customers.
Errors in Performance Measurement
- Similar to Me: judging favorably someone perceived as similar to oneself.
- Contrast Error: Comparing employee performance to coworkers instead of objective standards.
- Distributional Errors: Rater only uses one part of rating scale (strictness/leniency/central tendency).
- Halo effect: Positive evaluation in one area affects ratings in other areas.
- Horns effect: Negative evaluation in one area affects ratings in other areas.
Conducting Feedback Sessions
- Various approaches exist for conducting feedback sessions, including tell-and-sell, tell-and-listen, and problem-solving approaches.
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Description
Explore the essential components of performance management, including its purposes and criteria for effectiveness. Understand how strategic, administrative, and developmental aspects align employee behavior with organizational goals.
