Chap 2.11: Performance Management Strategies

Front

Define PERFORMANCE MANAGEMENT strategies

Back

Performance management strategies aim to align employee performance with business goals.

Performance management strategies include:
1. Management by objectives
2. Appraisals
3. Self-evaluation
4. Employee observation

(M.A.S.E)

Front

Define "MANAGEMENT BY OBJECTIVES (MBO)"

Back

Managers and employees work together to set individual goals that align with business objectives; and evaluating performance based on achieving these goals.

Front

Define "APPRAISAL"

Back

Manager provides feedback based on the assessment of employees' performance

Front

Advantages of MANAGEMENT BY OBJECTIVES

Back

• - Employee Involvement = Higher Productivity: Employees participating in goal setting and action planning are more likely to be productive and responsible.
  

• - Clear Expectations & Roles: Joint goal setting clarifies responsibilities for both managers and employees, reducing ambiguity.
  

• - Identifies Training Needs: The process can highlight areas where employees need training, supporting career growth.
  

• - Improved Communication & Awareness: Collaborative goal setting enhances communication and increases employee understanding of business objectives.

Front

Disadvantages of MANAGEMENT BY OBJECTIVES

Back

• - Time Consuming & Expensive: Meetings and reports associated with MBO can increase workload and costs for both management and employees.

• 
  - Not Universally Suitable: MBO may not be effective for all types of employees or roles.

• 
  - Potential for Demotivation: Failure to achieve objectives can negatively impact employee morale and motivation.

• - Potential for Increased Costs: Employees meeting objectives may expect rewards like pay raises or promotions, which can be costly for the business.

Front

How often does "PERFORMANCE APPRAISAL" typically occur?

Back

Performance Appraisal occurs at frequent intervals, such as every 12 months, every six months, or every quarter.
Regular performance appraisals help in setting objectives, reviewing progress, and planning for future development.

Front

Describe the APPRAISAL process?

Back

Appraisal process includes an initial meeting, regular reviews, and discussions between the manager and employee. This process helps in determining performance standards and agreeing on future development plans.

Front

A PERFORMANCE APPRAISAL can be formal or informal.

Back

Formal appraisals occur annually, while informal appraisals involve ongoing feedback on specific tasks.

Front

Common methods of APPRAISAL ?

Back

Common method of Appraisal includes include essay method, critical incident method, and comparison method.

These methods help in evaluating employee performance based on different criteria and situations.

Front

Advantages of APPRAISAL

Back

• • Improves Communication & Relationships: Appraisals help management and employees communicate better and build positive working relationships.
  

• • Provides Performance Improvement Feedback: Feedback during appraisals can show employees specific areas where they can improve their work.
  

• • Informs HR Decisions: Information from appraisals helps managers make decisions about pay raises, promotions, and sometimes dismissals.