HR Exam 3
Performance Management Definition - ANS The process where managers ensure the
employee's activities and outputs contribute to the organization's goals
Purpose of performance management - ANS strategic, administrative, developmental
To define the communication gap from mission, vision, and value, and goals to the employee's
behaviors
6 steps in a modern performance management system - ANS 1 - define performance outcomes
for the 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 if needed
6 - provide consequences for performance results
Traditional Performance model - ANS 1 - identify the company goal
2 - SMART goals: specific, measurable, achievable, relevant, timely
3 - provide training & feedback on new process
4 - meet with employee to formally determine goal process & document successes and areas
for improvement
5 - feed this data back into strategic planning
Differences between Modern performance management system & Traditional performance
management system - ANS - feedback was often limited to the employee's direct supervisor,
now it's more collaborative and holistic
- modern systems are more employee centric, encouraging self-assessments and more
- modern systems focus of development & growth rather than only past performance and
assigning ratings/scores
Accuracy of performance measures - ANS Performance measures tend to have the validity,
reliability, acceptability, and feedback specificity
Result oriented measures vs behavioral - ANS Result oriented measures
- MBO method
Behavioral measures
-critical incident
, - BARS
- BOS
- OBM
What categories of performance measurement are there? - ANS Measuring attributes (graphic
rating scale), measuring behavior (critical incident, BARS, BOS, OBM), comparisons (simple
ranking & forced distribution & paired comparison), results (MBO)
Simple ranking method - ANS ranks employees from highest to lowest performer - method of
comparative ranking
Cons: low validity when comparative ranking - it doesn't define what's good or bad about an
employee
Forced distribution method - ANS Assigns a percentage of employees in each category of
criteria - method of comparative ranking
ex: exceptional (5%), above expectations 10%) , meets expectations (50%), needs
improvement (25%), not acceptable (10%)
Pros: It's a good measure if employees in a group vary this much in terms of performance
Cons: if all of most employees are meeting/exceeding expectations, placing few employees in
low criteria can hurt morale
Graphic rating scale - ANS for rating attributes (most widely used) - lists specific traits and
provides a rating scale (distinguished to poor) for each trait
cons: low reliability because employers are going to arrive at different ratings for each employee
BARS - behaviorally anchored rating scale - ANS builds on the critical incident approach -
behaviorally anchored rating scale rates behaviors in terms of a scale (literal bar rating 1-5 for
criteria ) showing statements of behaviors which describes in different levels of performance
pros: can improve manager's reliability
cons: it can bias the manager's memory
BOS - behavioral observation scale - ANS variation of BARS - Behavior observation scale
defines all behaviors necessary for effective performance and rated by frequency from almost
never to almost always
pros:
cons: there's so much information required, upwards of 80 behaviors
Performance Management Definition - ANS The process where managers ensure the
employee's activities and outputs contribute to the organization's goals
Purpose of performance management - ANS strategic, administrative, developmental
To define the communication gap from mission, vision, and value, and goals to the employee's
behaviors
6 steps in a modern performance management system - ANS 1 - define performance outcomes
for the 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 if needed
6 - provide consequences for performance results
Traditional Performance model - ANS 1 - identify the company goal
2 - SMART goals: specific, measurable, achievable, relevant, timely
3 - provide training & feedback on new process
4 - meet with employee to formally determine goal process & document successes and areas
for improvement
5 - feed this data back into strategic planning
Differences between Modern performance management system & Traditional performance
management system - ANS - feedback was often limited to the employee's direct supervisor,
now it's more collaborative and holistic
- modern systems are more employee centric, encouraging self-assessments and more
- modern systems focus of development & growth rather than only past performance and
assigning ratings/scores
Accuracy of performance measures - ANS Performance measures tend to have the validity,
reliability, acceptability, and feedback specificity
Result oriented measures vs behavioral - ANS Result oriented measures
- MBO method
Behavioral measures
-critical incident
, - BARS
- BOS
- OBM
What categories of performance measurement are there? - ANS Measuring attributes (graphic
rating scale), measuring behavior (critical incident, BARS, BOS, OBM), comparisons (simple
ranking & forced distribution & paired comparison), results (MBO)
Simple ranking method - ANS ranks employees from highest to lowest performer - method of
comparative ranking
Cons: low validity when comparative ranking - it doesn't define what's good or bad about an
employee
Forced distribution method - ANS Assigns a percentage of employees in each category of
criteria - method of comparative ranking
ex: exceptional (5%), above expectations 10%) , meets expectations (50%), needs
improvement (25%), not acceptable (10%)
Pros: It's a good measure if employees in a group vary this much in terms of performance
Cons: if all of most employees are meeting/exceeding expectations, placing few employees in
low criteria can hurt morale
Graphic rating scale - ANS for rating attributes (most widely used) - lists specific traits and
provides a rating scale (distinguished to poor) for each trait
cons: low reliability because employers are going to arrive at different ratings for each employee
BARS - behaviorally anchored rating scale - ANS builds on the critical incident approach -
behaviorally anchored rating scale rates behaviors in terms of a scale (literal bar rating 1-5 for
criteria ) showing statements of behaviors which describes in different levels of performance
pros: can improve manager's reliability
cons: it can bias the manager's memory
BOS - behavioral observation scale - ANS variation of BARS - Behavior observation scale
defines all behaviors necessary for effective performance and rated by frequency from almost
never to almost always
pros:
cons: there's so much information required, upwards of 80 behaviors
