What is performance management? correct answers managers ensure that employees activities
are congruent with organizational goals
What is performance appraisal? correct answers obtaining information on employee performance
What is performance feedback? correct answers giving information on employee performance
What are common problems with performance management? correct answers -Used extensively,
but often misused
-Managers don't consider yearly performance useful
-Many employees surprised/unhappy with ratings
-recency bias
What are the steps in performance management? correct answers 1. Identify performance
outcomes and allign behaviors to organization goals
2. Understand how to achieve organization goals established in step 1
3. Provide employees with neccesary resources, including training and feedback.
4. Manager/Employee discussion (Annual performance review)
5. Identify what the employee can do for their strengths and weaknesses
6. Provide consequences for (failing to) achieving performance outcomes
What is a strategic purpose? correct answers The link between a performance management
system, employee activities, and the firm's goals.
-Define neccesary characteristics and measurement/feedback systems for them
,What is administrative purpose? correct answers Using performance information to determine
consequences (positive or negative)
-Managers are uncomfortable rating employees
What is developmental purpose? correct answers serves as a basis for developing employees'
knowledge and skills
-double check this with textbook
What is strategic congruence? correct answers the need for performance management systems to
contribute to success by guiding employees
-Flexible to change
-check textbook
What is a CSF? correct answers critical success factor
What is reliability in performance management? correct answers Test-retest reliability: reliability
over time
Interrater reliability: reliability over different people
What is validity in performance management? correct answers Measures relevant aspects of
performance.
-maximize overlap between actual performance and measure of performance
What is contamination? (validity) correct answers if a test measures irrelevant aspects (similar to
critereon validity)
What is acceptability in the context of performance measures? correct answers needs to be an
acceptable test to take by those who use it
, What are the 3 categories of prerceived fairness? (acceptability) correct answers -procedural
-interpersonal
-outcome
What could happen if a performance measurement system is perceived as unfair? correct answers
employer could get sued, or employees could be less motivated to improve
What is procedural fairness? (acceptability) correct answers Collaborate with employees, ensure
consistency and collaboration between managers and employees
-Important for development
What is interpersonal fairness? (acceptability) correct answers measures of performance should
be able to be challenged, and feedback should be done respectfully with transparency
-Important for usage
what is outcome fairness? (acceptability) correct answers communication regarding outcomes,
rationale and rewards/consequences
-Important for outcomes
What is specificity for performance measures? correct answers Measure expectations for goals
and find problems.
-Shows development and strategic goals
What is the comparative approach? correct answers comparing employee performance
-easy to use
-often fails to consider strategic goals