What is the definition of performance management and its purpose? - correct answer ✔✔the process
through which managers ensure that employees' activities and outputs contribute to the organization's
goals
What are the steps in the performance management process? How is this different from the traditional
model? - correct answer ✔✔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
What's wrong with rating traits and attributes? - correct answer ✔✔
What are result-oriented measures vs. behavioral? - correct answer ✔✔
How does opportunity bias affect a seemingly objective measure, such as sales? - correct answer ✔✔
Explain criteria used to evaluate an effective performance evaluation system. - correct answer ✔✔
Understand the different evaluation methods (simple ranking, forced distribution, graphic rating scales,
BARS, MBO, 360 reviews) and their benefits and disadvantages. - correct answer ✔✔Simple Ranking -
method of performance measurement that requires managers to rank employees in their group from
highest performer to the poorest performer // Graphic Rating Scale - method of performance
measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to
indicate the extent to which an employee displays each trait // BARS - method of performance
measurement that rates behavior in terms of a scale showing specific statements of behavior that
describe different levels of performance // MBO - Management by objective - a system in which people
at each level of the organization set goals in a process that flows from top to bottom, so employees at all
levels are contributing to the organization's overall goals; these goals become the standards for
, evaluating each employee's performance // 360 reviews - performance measurement that combines
information from the employee's managers, peers, subordinates, self, and customers // forced
distribution - method of performance measurement that assigns a certain percentage of employees to
each category in a set of categories
Why are self-evaluations used? - correct answer ✔✔positive: high self esteem, believe in ability to
accomplish goals, emotionally stable
negative: blame others for problems, don't work towards change, do nothing or act aggressively toward
people they blame
What are benefits and disadvantages of merit-based systems? - correct answer ✔✔Advantages - 1.
establish high standards of performance
2. develop and implement sound performance management systems
3. train supervisors in mechanics of performance appraisal and the art of feedback
4. tie rewards to performance
5. Make pay increase meaningful // Disadvantages - 1. incentives are low paying
2. link between performance and rewards is weak
3. Supervisors will resist performance appraisals
4. Union contracts influence pay-for-performance decisions within and between organizations
5. Annuity Problem
Why do managers inflate and deflate ratings? - correct answer ✔✔
What types of biases/ratings errors exist (there was a slide with several) and how can a company deal
with them? - correct answer ✔✔
Describe how to give performance feedback effectively. What are SMART goals? - correct answer ✔✔
How do ability and motivation affect performance? Be familiar with the diagram at the end of chapter
eight. - correct answer ✔✔
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