hrm chapter 10
Steps in the Performance Management Process
1. define performance outcomes for company division and department 2. develop employee goals, behavior, and actions to achieve outcomes 3. provide support and ongoing performance discussions 4. evaluate performance 5. identify improvements needed 6. provide consequences for performance results
Validity
: measure what it is intended to
organizational behavior modification
A plan for overseeing and controlling employee behavior by way of an official system of both feedback and reinforcement is called _____
management by objectives
A system in which people at each level of the organization set goals in a process that flows from top to bottom of the company is called _____.
give managers higher ratings
According to researchers, when performance feedback forms require that subordinates identify themselves as part of the evaluation, they tend to ____
fit with strategy
Customer service is a key attribute of Sharon's Shoe Shop. Sharon expects all of her employees to provide excellent service, and her performance appraisals go over this area in detail. Which criterion for effective performance is Sharon using?
specific
Feedback should be _____ in nature. In other words, it should expressly describe to an employee what is expected of him or her.
contrast error
If a rater compares an individual against other employees and not against objective standards, which type of error is likely to occur?
Validity
In the case of performance appraisal, which criteria refers to whether or not an appraisal measures all the relevant aspects of performance and omits the irrelevant ones?
in a job where the supervisor does not often observe the employee
In which type of job are co-workers an excellent source of performance information?
horns
Lillian is occasionally late for work. The human resource manager feels she won't be a good candidate for the assistant manager position because of her tardiness. The HR manager's bias is an example of the _____ error
forced distribution method
Method of performance measurement that assigns a certain percentage of employees to each category in a set of categories
paired comparison method
Method of performance measurement that compares each employee with each other employee to establish rankings
simple ranking
Method of performance measurement that requires managers to rank employees in their group from the highest performer to the poorest performer.
strategic
Organizations establish performance management systems to meet developmental, administrative, and _____ purposes.
fit with strategy
Performance appraisals should measure whether employees are engaging in behaviors that support the organization's goals and culture. This criterion is described as _____.
information for day-to-day decisions about recognition programs, benefits, and salary
The administrative purpose of a performance management system is to provide _____
instantly
The best feedback comes to an employee
privacy
The biggest concern with the use of electronic monitoring of an employee's performance is _____.
critical
The company had received many complaints about Susan's work as a repair technician. In order to evaluate these complaints, her manager started keeping a record of her ineffective behavior that showed how she failed to show up for an appointment, bring necessary tools on work calls, and offer the extended warranty to customers. This is an example of using the -incident method to rate behavior.
eliminate the influence of rating errors
The goal of a calibration meeting is to _____
an employee manager
The most commonly utilized source of performance observation and judgment comes from _____.
achieve its business objectives
The strategic purpose of an effective performance management process is to help an organization _____. Multiple choice question.
providing employees with training
The third step in the performance management process involves _____
false
True or false: In the paired-comparison method of performance measurement, the employee with the lowest number of points is considered the top-ranked employee.
true
True or false: The principles of total quality management (TQM) provide a basis for performance measurement. True false question.
It might be used as a substitute for careful management. It places too much emphasis on time spent at one's desk. It allows companies to treat employees as robots.
What concerns are often expressed by those who criticize electronic monitoring of employee productivity?
It requires large amounts of information
What is a major disadvantage of using a behavior observation scale (BOS) to rate employees?
The ranking system is not linked to the organization's goals.
What is a major drawback of using a ranking system to evaluate employee performance?
to increase the scope of employees' knowledge and skills
What is the developmental purpose of a performance management process?
People tend to inflate assessments of their performance.
What is the most obvious problem associated with a self-rating system? Multiple choice question.
Identify ways employees can make the most of their current strengths and address weaknesses. Provide consequences for achieving or failing to achieve performance outcomes.
What should happen in the final steps of the performance management process?
strictness
When a reviewer favors the lower rankings on a scale, it is an example of the distributional error known as _____. Multiple choice question.
leniency
When a reviewer rates every employee near the top of the scale, it represents the distributional error known as ____
when the members of a certain group vary greatly in terms of their performance
When does the forced-distribution method of performance measurement work best?
Acceptability
Which criterion takes into account whether or not employees want to use a performance measure? Multiple choice question.
managers set the goals to be achieved for employees
Which of the following is NOT a component of a management by objectives (MBO) system?
It helps avoid the tendency to rank everyone near the center of the rating scale
Which of the following is a benefit of ranking employees as part of performance measurement?
the can be reduced through training
Which of the following is true of rating errors?
Attend trainings that offer hypothetical scenarios and rating tips. Focus on all of the aspects of performance that deserve attention.
Which of the following should raters do to try to avoid rating errors?
the behaviorally anchored rating scale (BARS)
Which performance method rates behavior by using a scale that shows specific statements of behavior describing different levels of performance?
critical incident method
Which rating approach asks that managers maintain a detailed log of specific examples of employees' effective and ineffective work behaviors?
simple ranking
Which technique for making comparisons as part of a performance appraisal asks that managers order employees in a ranked group from highest performer to lowest performer?
the employee
Who has the greatest opportunity to observe an employee's behavior on the job?
Because manager ratings tend to be subjective
Why does rating employee attributes on a graphic rating scale have low reliability?
because customers may be the only ones to directly observe a worker's performance
Why would customers be the best source of performance information for some workers?
Reliability
With regard to performance measures, which of the following criteria represents the dependability of the results that the performance measure will deliver?
acceptability
accepted by those who use it
measuring rating behaviors
critical incident method,Behavior Anchored Rating Scale (BARS),Behavioral Observation Scale (BOS), Organizational Behavior Modification (OBM)
performance appraisal sources
customer feedback managers, peers, subordinates, and employees themselves
effective performance measures
fit with strategy validation reliability acceptability specific feedback
productivity
getting more done with smaller amount of resources increases company's profits
measuring rating attributes
graphic rating scale, mixed standard scale
interrater reliablity
is consistency of results when more than one measures performance
contrast error
rater compares individual not against objective standard but against other employees
•Rater bias:
rater lets their opinion of one quality color their opinion of others •Halo error: bias causes favorable ratings •Horns error: bias causes negative ratings
•Distributional error:
rater uses only part of rating scale •Leniency: reviewer rates everyone near top •Strictness: reviewer favors lower rankings •Central tendency: reviewer rates everyone in middle of scale
Methods for Measuring Performance
simple ranking, forced distribution, pared comparison,
Purposes of Performance Management
strategic, administrative, developmental
fit with strategy
support companies goals
reliability
yield consistent results over time
Behavioral Observation Scale (BOS)
•A variation of BARS •Rating scale includes all critical behaviors •Asks the manager to rate frequency with which employee has exhibited each behavior during period
total quality management
•Assessment of both individual performance and the system within which the individual works
development purpose
•Basis for developing employees' knowledge and skills •Even employees who are meeting expectations can become more valuable when they hear and discuss performance feedback
Organizational Behavior Modification (OBM)
•Builds on branch of psychology call behaviorism •Employer provides feedback and reinforcement to encourage behaviors that achieve company goals
Behavior Anchored Rating Scale (BARS)
•Builds on critical-incidents •Behaviors rated in terms of scale showing specific statements that describe behaviors at different levels of performance
strategic purpose
•Helps link employees' behavior with the organization's goals •Helps organization achieve business objectives
what is the process of performance management
•Knowing what activities and outputs are desired •Observing whether the activities and outputs occur •Providing feedback to help employees meet expectations.
graphic rating scale
•Lists traits and provides a rating scale for each trait •Employer uses scale to indicate extent to which employee displays each trait •Rating scales are subjective and vary by employer
problem solving approach
•Managers and employees work to solve performance problems
preparing for a feedback session
•Managers should be well prepared for each session •Managers should ask each employee to complete a self-assessment ahead of time neutral meeting place and free of distractions
tell and sell approach
•Managers tell employees their ratings and justify those ratings
tell and listen approach
•Managers tell employees their ratings and then let employees explain their own view
Management by Objectives (MBO)
•People at each level of organization set goals in process that flows from top to bottom •Employees at all levels contribute to organization's overall goals Set goals become standards for evaluating employee performance
administrative purpose
•Performance management can support decision making related to employee retention, termination for poor behavior, and hiring or layoffs.
360-Degree Performance Appraisal
•Performance measurement that combines information from a variety of sources •Results in most complete assessment possible
rating errors
•Raters tend to give higher evaluations to people they consider similar to themselves
performance feedback schdueling
•Should be a regular, expected management activity •Most effective when information does not surprise employee •Employees motivated when they know if they are on right track
critical incident method
•Specific instances of effective and ineffective employee behavior documented •Employees receive feedback about what they do well and what they do poorly
Mixed-Standard Scales
•Uses several statements to describe each trait •Employer scores employee in terms of how employee compares to statements
collaboration meetings
•can be used to minimize politics in performance appraisals •Managers discuss performance ratings and provide evidence supporting their ratings with goal of eliminating intentional errors
subjective feedback
•comes from managers, peers, and customers about the employee's personal qualities such as cooperation and initiative.
