Performance Management Exam Questions with Verified Solutions Latest Update 2024 (Graded A+)

Performance Management Exam Questions with Verified Solutions Latest Update 2024 (Graded A+) Performance management - Answers The means through which managers ensure that employees activities and outputs are congruent with the organizations goals performance appraisal - Answers The process through which an organization gets information on how well an employee is doing his or her job Performance feedback - Answers The process or providing employees information regarding their performance effectiveness Use of technology in performance appraisals - Answers Can reduce the administrative burden of performance appraisal, improve the accuracy of performance reviews, and ensure that employees get frequent feedback about their performance. Performance management systems three parts - Answers Defining performance, measuring performance, and feeding back performance information. Steps of performance management process - Answers 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. Refer to page 323 for test Purposes of performance management - Answers Strategic, administrative, and developmental Performance management connection to talent management - Answers To identify employees strengths and weaknesses, Drive employee engagement, link employees to appropriate training and development activity, and reward good performance with pay and other incentives. Performance management information used in many administrative decisions: - Answers Salary administration (pay raises), promotions, retention-termination, layoffs, and recognition of individual performance. third purpose of performance management - Answers developing employees. when employees are not performing as well as they should, performance management seeks to improve their performance. strategic congruence - Answers the extent to which the performance management system elicits job performance that is consistent with the organization's strategy, goals, and culture. critical success management factors - Answers (CSFs) key performance indicators (KPIs) into their performance mangement systems. CSFs are factors in a companys business strategy that give it a competitive edge. to effectively use non financial performance measures managers need to: - Answers 1. develop a model of how nonfinancial performance measures link to the companys strategic goals. identify the performance areas that are critical to success. 2. using already exisiting databases, identify data that exists on key performance measures (customer statisfaction, employee satisfaction surveys) if data are not available, identify a performance area that affects the companys strategy and performance. develop measures for those performance areas. 3. use statistical and qualitative methods for testing the relationship between the performance measures and financial outcomes. regression and correlation analysis as well as focus groups and interviews can be used. 4. revisit the model to ensure that the nonfinancial performance measures are appropriate and determine whether new measures should be added. 5. act on conclusions that the model demonstrates. 6. audit whether the actions taken and the investments made produced the desired result. validity - Answers the extent to which a performance measure assesses all the relevant- and only the relevant- aspects of job performance. often referred to as "content validity" contaminated measure - Answers evaluates irrelevant aspects of performance or aspects that are not job related. the performance measure should seek to minimize contamination, but its complete elimination is seldom possible. an example; the use of actual sales figures for evaluating sales persons across very different regional territories. often sales are highly dependent upon the territory rather than the actual performance of the sales person. reliability - Answers the consistency of a performance measure; the degree to which a performance measure is free from random error. acceptability - Answers the extent to which a performance measure is deemed to be satisfactory or adequate by those who use it. interrater reliability - Answers the consistency among the individuals who evaluate the employee's performance. a performance measure has interrater reliability if two individuals give the same (or close to the same) evaluations of a person's job performance. internal consistency reliability - Answers evidence seems to indicate that most subjective supervisory measures of job performance exhibit low reliability. with some measures, the extent to which all the items rates are internally consistent is important. test-retest reliability - Answers reliable over time. a measure that results in drastically different ratings depending on when the measures are taken lacks test-retest reliability. specificity - Answers the extent to which a performance measure gives detailed guidance to employees about what is expected of them and how they can meet these expectations. simple ranking - Answers requires managers to rank employees within their departments from highest performer to poorest performer (or best to worst) alternation ranking - Answers consists of a manager looking at a list of employees, deciding who is the best employee, and crossing that person's name off the list. from the remaining names, the manager decides who the worse employee is and crosses that name off the list- and so forth. forced distribution - Answers uses a ranking format, but employees are ranked in groups. the technique requires the manager to put certain percentages of employees into predetermined categories. most commonly, employees are grouped into three, four, or five categories usually of unequal size indicating the best workers, the worst workers, and one or more categories in between. see page 333 for example forced distribution systems - Answers provide a mechanism to help align company performance and employee performance and compensation. employees in the bottom 10% cause performance standards to be lowered, influence good employees to leave, and keep good employees from joining the company. a forced distribution system helps managers tailor development activities to employees based on their performance. the use of a forced distribution system is seen as a way for companies to increase performance, motivate employees, and open the door for new talent to join the company to replace poor performers. paired comparison - Answers requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he or she is considered the higher performer. once all the pairs have been compared, the manager computes the number of times each employee received the favorable decision (counts up the points), and this becomes the employee's performance score. comparative approach - Answers an effective tool in differentiating employee performance; it virtually eliminates problems of leniency, central tendency, and strictness. this is especially valuable if the results of the measures are to be used in making administrative decisions such as pay raises and promotions.