Managing People > Performance Management > Flashcards

Performance Management Flashcards

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1
Q

Performance Management

A

a set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations

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2
Q

Performance Management Steps

A

Define
Monitor and evaluate
review
provide consequences

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3
Q

Uses of performance management

A

make employee-related decisions (administrative) for linking performance to pay or making staffing decisions
guide employee development- suggest need for improvement or determine training needs
send strong signals to employees

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4
Q

Developmental Performance Appraisal

A

Provide performance feedback
identify individual strengths and weaknesses
recognize individual performance achievements
help employees identify goals
evaluate goal achievement of employees
identify individual training needs
determine organizational training needs
reinforce authority structure
allow employees to discuss concerns
improve communication
provide a forum for leaders to help employees

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5
Q

Administrative Performance Appraisal

A

document personnel decisions
promote employees
determine transfers and assignments
identify performance problems and develop ways to correct them
make retention, termination, and layoff decisions
validate selection criteria
meet legal requirements
evaluate training programs/progress
assist with human resources planning
make reward and compensation decisions

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6
Q

Performance Management results

A

Higher profitability.
* Higher productivity.
* Higher employee engagement.
* Higher customer service.
* Lower turnover.

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7
Q

Why can Performance Management fail?

A

Pm policies do not always keep pace with organizational change leading to disconnect
reviews are too narrow and only measure a limited set of elements
ambiguous performance standards
rater biases
too much paperwork and little accountability

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8
Q

Performance Appraisal Methods

A

Trait= Assess whether employee possess specific characteristics
behavior= assess the behavior of employees on the job
results= assess bottom-line performance
will be partially based on the characteristics of the job-measurability of outcomes, employee control etc.

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9
Q

Trait based

A

focus on characteristics possessed by employees
initiative, leadership, dependability etc.
can suffer from bias to a greater extent than other methods

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10
Q

trait based methods

A

graphic rating
mixed standard scales
forced choice

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11
Q

behavior based

A
  • Behavior or Effort Assessment
  • Assess what employees do on their jobs
  • Best when how a job is performed is important
  • Provides more direct feedback
  • Methods:
  • Behaviorally-anchored rating scales (BARS)
  • Behavior observation scales (BOS)
  • Can suffer from deficiency
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12
Q

results based

A
  • Output Assessment
  • Assess bottom-line performance
  • Useful when it is not important how a job is performed
  • Problems with practicality, contamination, deficiency
  • May not be appropriate for some jobs
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13
Q

why set goals?

A
  • Can provide focus,
  • Enhance productivity,
  • Increase commitment.
  • Research shows those who set goals are more
    likely to complete it.
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14
Q

performance goal

A

targets a specific end result

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15
Q

learning goal

A

involves enhancing your knowledge or skill

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16
Q

Step 1: Define Performance Expectations and Set Goals

A
  • Managers typically emphasize performance goals
    over learning goals, but skills and experience are
    needed to achieve performance goals.
  • When skills are lacking, it often is helpful to set
    learning goals first and then performance goals
    once you’ve developed some level of proficiency.
    SMART
    Four step process for goal implementation
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17
Q

SMART

A

Specific
Measurable
Attainable
Results Oriented
Time bound

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18
Q

Four step process for goal implementation

A

set goals
promote goal attainment
provide support, feedback
create action plans

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19
Q

Step 2:

A
  • Monitoring performance: measuring, tracking, or
    otherwise verifying progress and ultimate
    performance.
  • You use the information gathered through
    monitoring to identify problems (and successes)
    and opportunities to enhance performance during
    the pursuit of a goal, and your final outcomes.
  • Performance measurement and monitoring can
    be improved by considering other types of
    measures including timeliness, quality, quantity,
    and financial metrics.
  • Accurately and appropriately monitoring and
    evaluating both progress and outcomes are
    critical components of effective performance
    management.
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20
Q

objective measures

A
  • Production, sales, attendance, business unit
    performance (profit, market share)
  • Problems with opportunity bias, contamination,
    and deficiency
    Subjective measures
  • Comparative
  • Attribute
  • Behavioral
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21
Q

Comparative Ratings

A

Ranking = Rank order employees, Can be overall or
on dimensions
Forced distribution = Force ratings to conform to a
specific distribution. An approach to combat
distributional errors
Paired comparison = Compare each employee with
each other employee

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22
Q

rater errors

A

leads to biases and undermine performance management systems

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23
Q

360

A

feedback from direct reports, peers, cross-functional partners, and leaders.

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24
Q

Halo

A

a rater forms an overall impression about a
person or object and then uses that impression to
bias ratings about the same.

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25
Leniency
a personal characteristic that leads an individual to consistently evaluate other people or objects in an extremely positive fashion.
26
Central Tendency
the tendency to avoid all extreme judgments and rate people and objects as average or neutral.
27
Recency Effects
the tendency to remember recent information
28
Contrasts Effects
the tendency to evaluate people or objects by comparing them with characteristics of recently observed people or objects.
29
Feedback
information about (individual or collective) performance shared with those in a position to improve the situation. * Feedback enables you to learn how your performance compares to the goal, which you can then use to modify your behaviors and efforts. * Feedback is Instructional & Motivational
30
Effective feedback programs
Hard data such as units sold, days absent, dollars saved, projects completed, customers satisfied, and quality rejects
31
Performance appraisal programs that discourage two-way communication and treat employee involvement as a bad thing do not represent feedback.
32
Why do people not provide feedback?
concerns about how feedback could strain relationships, time constraints, lack of confidence in providing effective feedback, and the lack of consequences for not providing feedback.
33
Sources of feedback
* Peers, Supervisors, Lower-level employees, outside customers, oneself, the task. * 360-degree appraisal systems = receiving feedback from multiple sources
34
Factors affecting perceptions of feedback
Accuracy Credibility of source Fairness of the system performance reward expectancies reasonableness of the standards self serving bias coaching
35
Accuracy in feedback
feedback is inaccurate if the PM system measures the wrong things or measures the right things wrongly
36
Credibility of the source giving feedback
feedback from the top performers or from the trusted people will be given more weight
37
fairness of the system in feedback
feedback will be discounted of you perceive the process or outcomes as unfair
38
performance reward expectancies
can be fostered through ongoing and open feedback
39
reasonableness of the standards
feedback about the unattainable goals would not be valued
40
self serving bias
the tendency to attribute successes to internal personal factors and failures to external, situational factors
41
coaching
customized process between two or more people with the intent of enhancing learning and motivating change. Effective coaching is developmental, has specific performance goals, and typically involves considerable self-reflection, self-assessment, and feedback.
42
types of rewards
extrinsic-financial and non-financial intrinsic- meaningfulness and achievement
43
desired outcomes
attract motivate retain develop engage
44
distributing rewards
results behavior and actions non performance considerations
45
results
tangible outcomes such as quantity, quality, and individual, group, or organizational performance. Such as —sales, profit, error rate, customer satisfaction.
46
Behavior and actions
teamwork, cooperation, risk taking, and creativity.
47
nonperformance considerations
customary or contractual, where the type of job, nature of the work, equity, tenure, level in hierarchy, etc., are rewarded.
48
total and alternative rewards
* Compensation. * Benefits. * Professional growth. * Personal growth. * Attention and recognition. * Advancement.
49
Pay for performance
monetary incentives linking at least some portion of one’s pay directly to results or accomplishments
50
pay for performance works best when
* Merit pay is used to differentiate top performers. * The ability to game the system is mitigated. * Multiple measures of performance are used. * Performance measures are accurate, consistent, and aligned with goals and outcomes.
51
rewards fail
* Too much emphasis is placed on monetary rewards. * Overtime rewards are seen as entitlements. * They foster counterproductive behaviors. * A lag occurs between performance and reward. * Reward structures are not tailored to goals, tasks. * Organizational policies and practices are misaligned.
52
Law of effect
Behavior with favorable consequences tends to be repeated, while behavior with unfavorable consequences tends to disappear. * This was novel at the time as previous theories said behavior is a product of inborn instincts
53
operant conditioning
* The term “contingent” means there is a systematic if-then linkage between the target behavior and the consequence. * A behavior is strengthened when it increases in frequency and weakened when it decreases in frequency.
54
positive reinforcement
the process of strengthening a behavior by contingently presenting something pleasing.
55
negative reinforcement
strengthens a desired behavior by contingently withdrawing something displeasing.
56
punishment
the process of weakening behavior through either the contingent presentation of something displeasing or the contingent withdrawal of something positive.
57
extinction
weakening a behavior by ignoring it or making sure it is not reinforced.
58
Continuous reinforcement
such as getting paid every time you make a sale. * Every instance of a target behavior reinforced. * Great when learning a new skill. * Can quickly lose its effect.
59
intermittent reinforcement
such as getting a SPOT award or merit bonus * Involves reinforcement of some but not all instances. * Can vary the ratio and interval. * Works best with variable ratio and variable interval.
60
strategic relevance
individual standards directly relate to strategic goals.
61
criterion deficiency
Standards capture all of an individual’s contributions.
62
criterion contamination
Performance capability is not reduced by external factors.
63
reliability
Standards are quantifiable, measurable, and stable.
64
methods to improve appraisals
Evaluator training * Rater error training * Frame-of-reference training Evaluator feedback * Rate the rater on how well they evaluate others’ performance
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