Chapter 10 Exercise: Performance Management and Appraisal

Use your knowledge of the performance appraisal process to fill in the labels in the following table.

A. Top leaders B. Systematic C. Employee D. Goal-setting/MBO

You have been asked to create a training program on performance management for managers. Which of the following items should you include in that training? Check all that apply.

When and how to discuss training and development goals Conducting and discussing the compensation review The performance criteria that employees will be rated on The process for and timing of performance appraisals

Forced distribution ratings require that managers identify high, average, and low performers, with a limited percentage of employees falling into each category. What are the drawbacks of this method? Check all that apply.

Forced distribution positions can be difficult to explain to employees. In the past, forced distribution has led to discrimination lawsuits. Forced distribution is a very severe form of appraisal.

Eduardo goes to his mentor, Mateo, to get tips for improving his performance.

Developmental

In the course of discussing his performance appraisal, Mike and his manager look for ways to resolve the problems that slow down the assembly line.

Developmental

Will, an employee at Metropolitan Bakery, says of James that "He'll teach you." This statement indicates Metropolitan Bakery uses which of the following approaches to performance management?

Developmental approach to learning

Elodie has been asked to submit a self-appraisal for her next performance review. What is the biggest problem companies encounter with self-appraisals?

Employees can be too lenient when they rate themselves.

Stephanie is an amazing writer. Her boss, Steffan, often asks her to write important documents, such as end-of-year reports and presentations on new products. Steffan routinely gives Stephanie very high performance appraisal ratings. Unfortunately, he doesn't consider the fact that Stephanie does have flaws in some areas—for example, she rarely turns in her timesheet on time and she seems to have difficulty working with some of her teammates. But Steffan feels that if Stephanie is so good at writing, she must be good at everything. Which rating error is Steffan making?

Halo error

In which of the following countries might performance management be considered as inappropriate? Check all that apply.

Japan, China

After an employee's introductory period, how often are most performance appraisals given?

Once a year

May Lin's boss wants to use a pay-for-performance approach to reward his most productive workers. But May Lin is concerned. Which of the following are challenges that companies face when they use pay-for-performance systems? Check all that apply

Pay-for-performance systems can make teamwork more difficult in the workplace. Pay-for-performance systems can create inequity among employees.

Your text points out that 95% of managers say that they are dissatisfied with their organization's performance management system. What could these managers do to better manage performance appraisals? Check all that apply.

Provide timely feedback Tie feedback to individual goals Tie goal accomplishment to monetary rewards

James Barrett, cofounder and co-owner of Metropolitan Bakery, brings in a lot of employees who have previously been in the prison system. What should he do in terms of performance management if he wants to train these employees in ethical behavior?

Reinforce ethical behaviors and punish unethical behaviors during the performance review.

Suppose that an employee completes a large work project on time and under budget. He has saved the company several million dollars and you want to reward him for that. But his performance review is not for several months, and your budget for raises this year is small. As a result, your employee gets about the same amount of money this year as all of his coworkers. What is the employee likely to think?

The company's compensation system is unfair.

Which of the following types of performance ratings have courts suggested not using?

Trait-based

BARS are considered to be superior to graphic rating scales for measuring performance because they detail the behaviors associated with each level of performance. What are the drawbacks of using BARS for performance appraisal? Check all that apply.

When using BARS, you need to have a different appraisal form for every different type of job in the company. BARS take a very long time and a lot of effort to develop.

Appraisal feedback should be focused on

coaching and development