Performance Management Systems Overview

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Questions and Answers

What is a primary purpose of performance management systems?

Customer satisfaction

Goal setting and feedback (correct)

Employee compensation

Market analysis

Which of the following is NOT a step in the appraisal process?

Communicate expectations

Initiate corrective action if needed

Select employees for promotion (correct)

Measure actual performance

What type of evaluation compares employees against a fixed set of standards?

Absolute standards (correct)

Peer evaluations

Outcome-based evaluation

Relative standards

Which method is an example of relative standards in performance evaluation?

Group-order ranking Signup and view all the answers

What is 'halo error' in the context of performance appraisals?

Letting one positive or negative trait influence the entire evaluation Signup and view all the answers

Which of the following factors can distort appraisals?

Central tendency Signup and view all the answers

Which method focuses primarily on the results that employees achieve?

Outcome-based evaluation Signup and view all the answers

In the performance appraisal meeting, which action is recommended for managers?

Involve the employee in the appraisal discussion Signup and view all the answers

What should managers do to create more effective performance management systems?

Use behavior-based methods Signup and view all the answers

What is an essential aspect when developing performance appraisals in international settings?

Considering cultural differences Signup and view all the answers

Performance management systems are designed primarily to motivate employees to perform their worst.

False Signup and view all the answers

The appraisal process includes steps such as measuring actual performance and discussing appraisal outcomes with employees.

True Signup and view all the answers

Relative standards for evaluating employee performance compare an employee to a national average.

False Signup and view all the answers

Inflationary pressures can lead to managers giving lower ratings to avoid conflict.

False Signup and view all the answers

Management by Objectives (MBO) is an outcome-based evaluation method involving the setting of SMART goals.

True Signup and view all the answers

Leniency error occurs when evaluators are overly critical in their appraisals.

False Signup and view all the answers

Using multiple raters in performance appraisals can enhance the accuracy of evaluations.

True Signup and view all the answers

Attribution theory is concerned with the internal and external factors affecting an employee's performance.

True Signup and view all the answers

Central tendency refers to the practice of avoiding extreme ratings in performance evaluations.

True Signup and view all the answers

Cultural differences are irrelevant when performing international performance appraisals.

False Signup and view all the answers

Match the following purposes of performance management systems with their descriptions:

Goal setting and feedback = Clarifying objectives and providing performance evaluations Motivation and development = Encouraging employee growth and engagement Documentation = Recording performance for legal and compliance reasons Talent management = Identifying and nurturing high-potential employees Signup and view all the answers

Match the appraisal methods with their corresponding descriptions:

Critical incident appraisal = Evaluates key behaviors relevant to job performance Graphic rating scale = Rates traits along a range of performance levels Forced-choice appraisal = Requires the evaluator to make a selection between statements Behaviorally anchored rating scale (BARS) = Utilizes examples of actual job behaviors for evaluation Signup and view all the answers

Match the types of evaluation standards with their definitions:

Absolute standards = Comparative benchmarks based on specific job requirements Relative standards = Comparison of an employee's performance to others' performance Outcome-based evaluation = Focuses on tangible results achieved by employees Management by Objectives (MBO) = Evaluation method focusing on achieved SMART goals Signup and view all the answers

Match the types of appraisal distortions with their descriptions:

Leniency error = Evaluating employees too favorably Halo error = One trait influencing the overall evaluation Similarity error = Rating based on how alike an employee is to the evaluator Inflationary pressures = Feeling compelled to give high ratings to avoid conflict Signup and view all the answers

Match the recommended practices for performance appraisals with their explanations:

Use behavior-based methods = Focusing on observable performance actions Provide ongoing feedback = Continuous communication regarding performance Involve the employee = Engagement of employees in the appraisal conversation Train appraisers = Preparing evaluators for effective performance evaluations Signup and view all the answers

Match the steps in the appraisal process with their corresponding actions:

Establish performance standards = Setting benchmarks for evaluating results Measure actual performance = Assessing how employees performed against set goals Discuss appraisal with the employee = Engaging in a conversation about evaluation outcomes Initiate corrective action if needed = Implementing changes based on performance results Signup and view all the answers

Match the types of ratings in relative performance evaluation with their definitions:

Group-order ranking = Ranking employees in teams against each other Individual ranking = Listing employees based on personal performance Paired comparison = Comparing two employees to assess which performs better Performance rankings = Categorizing employee performance into different levels Signup and view all the answers

Match the effective meeting strategies for performance appraisals with their descriptions:

Prepare and schedule in advance = Organizing the meeting for optimal timing Describe the purpose of the appraisal = Communicating the objectives of the discussion Support evaluation with examples = Providing specific instances to justify feedback Check for understanding = Ensuring the employee comprehends the evaluation process Signup and view all the answers

Match the international performance appraisal considerations with their implications:

Cultural differences = Affect the perception of performance and feedback Evaluation roles = Deciding who conducts performance evaluations Global standards = Establishing benchmarks applicable in various markets Regional practices = Tailoring appraisal processes to local customs Signup and view all the answers

Match the attributes of behavior-based methods with their outcomes:

Increase clarity = Define specific performance expectations Enhance engagement = Boost employee involvement in their assessments Encourage development = Foster growth-oriented feedback Provide actionable insights = Deliver specific suggestions for improvement Signup and view all the answers

Study Notes