Performance management

Performance Management

It is a process of identifying, measuring, managing, and developing the performance of the human resources in an organization.

It is about aligning the organisational objectives with the employees' agreed measures, skills, competency requirements, development plans and the delivery of results.​

Performance appraisal evaluates an employee's job performance based on benchmarks for output, versatility, teamwork, supervision, and leadership.

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​Performance Appraisal

Employee Effort and Performance

Watch this tongue-in-cheek comic sketch.

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​Uses

• Offer feedback

• Decide on promotions

• Decide on dismissals

• Encourage performance

• Boost motivation

• Establish objectives

• Determine compensation

• Promote training and development

• Improve resource management

• Validate recruitment needs

• Improve the organisation’s general performance

Methods of Performance Appraisal

Multiple Choice

Evaluating employee performance involves discussing strengths, weaknesses, past performance, and potential. It's a simple approach but can be affected by the Evaluator's writing skills. It can still provide helpful recommendations for improvement.

• Written Essay Method

• 360 Degree Feedback Method
• Management by Objectives Method
• Behaviorally Anchored Rating Scales Method

Multiple Choice

Here, a rating scale lists job characteristics, such as quality of work, and includes short definitions for each rating level, ranging from outstanding to unsatisfactory.

• 360-Degree Feedback
• Graphic Rating Scale

• Management by Objectives (MBO)
• Critical Incident Technique

Multiple Choice

Under this performance appraisal method, employees will be presented with specific situations or behaviours, and their performance will be rated as either high, moderate or low.

• 360-Degree Feedback
• Behaviorally Anchored Rating Scales (BARS)
• Management by Objectives (MBO)
• Critical Incident Technique

Multiple Choice

This appraisal method consists of identifying, planning and defining objectives. After establishing clear goals, employers and employees should have regular meetings to analyse progress. Which way are we describing?

• 360 Degree Feedback
• Management by Objectives
• Behaviorally Anchored Rating Scales
• Critical Incident Technique

Multiple Choice

In this appraisal method, the manager compiles brief examples of the employees'

good or bad performance, then use these examples to support the employee's appraisal and development needs.

• 360-Degree Feedback
• Critical Incident Method
• Management by Objectives
• Behaviorally Anchored Rating Scales

Multiple Choice

In this performance appraisal method, the reviewer grades employees from best to worst to form a ranking. This is a comparative system, and a numeric result determines each employee’s position.

• 360-Degree Feedback
• Multi-Person Ranking Method

• Critical Incident Method
• Behaviorally Anchored Rating Scales

Multiple Choice

__________ includes all those who work with the employee: their superiors, clients, subordinates and suppliers.

To evaluate an employee's performance comprehensively, minimize subjective bias and involve as many participants as possible.

• 360-Degree Feedback
• Management by Objectives
• Behaviorally Anchored Rating Scales
• Critical Incident Method

Multiple Choice

_________ use situational exercises, workgroups, and games to evaluate employees' reactions in work-related situations and skills like problem-solving, self-assurance, and leadership.

• Psychological Appraisal method

• Assessment Centre

• 360-Degree Feedback
• Behaviourally Anchored Rating Scales

Multiple Choice

This model analyses the employee's performance according to the revenue an organisation generates from their input. To calculate this, the cost the individual represents for the company is compared to the employee's revenue.

• Cost Performance Model
• Revenue Performance Model
• Input-Output Model
• Human resources cost accounting method

Multiple Choice

The latest trends in performance reviews involve using data analysis, ongoing evaluations, and technology as essential tools. The main focus now is on individuals and how they can achieve their goals within the company while also advancing professionally. This approach benefits both the employee and the company. The goal is to foster a work culture that values merit and encourages open communication, even informally.

Given this information, which statement is correct?

• Performance reviews are now based on personal opinions and annual reviews
• Performance reviews now focus on the use of technology, data analysis, and ongoing reviews
• Performance reviews are now based on the number of hours worked
• Performance reviews are now based on the number of tasks completed

Multiple Choice

IDP, under the context of Performance Appraisal, stands for?

• Integrated Development Program

• Individual Development Plan

• Identity Provider
• Internet Data Protocol

Multiple Choice

The 720-degree feedback process involves two rounds of 360-degree feedback. The first round analyses feedback and charts an action plan, while the second evaluates effectiveness and observes improvements.

• True

• False

Let's look at the methods again

The evaluator writes a description of the employee’s strengths and weaknesses, past performance, and potential and provides suggestions for improvement.

+ Simple to use

− May be a better measure of the evaluator’s writing ability than of the employee’s actual

performance

Written Essay

Evaluator focuses on critical behaviors that separate effective and ineffective

performance.

+ Rich examples, behaviorally based

− Time-consuming, lacks quantification

​​Critical Incident

​A popular method that lists a set of performance factors and an incremental scale;

evaluator goes down the list and rates employees on each factor.

+ Provides quantitative data; not time-consuming

− Doesn’t provide in-depth information on job behaviour

​​Graphic Rating Scale

This method aims to combine the benefits of critical incidents and quantified ratings by anchoring each rating in the rating scale (from high to low) with illustrative performance examples
+ Focuses on specific and measurable job behaviours

− Time-consuming; challenging to develop

Behaviorally Anchored Rating Scale (BARS)

​Also known as the Forced Distribution Method, it is a form of ranking similar to grading on a curve. The rater places predetermined rate percentages into performance categories: top 10 per cent, middle 80 per cent and bottom 10 per cent.
+ Compares employees with one another

− Difficult with a large number of employees; legal concerns

​​Multi-Person Comparison

This appraisal method consists of identifying, planning, and defining objectives. After establishing clear goals, employers and employees should have regular meetings to analyse progress.
+ Focuses on goals; results oriented

− Time-consuming

Management by Objectives

The assessment centre method combines role plays, situational judgment tests, interviews, simulations, and psychometric tests to evaluate performance and make critical talent decisions.
The method can be instrumental in identifying high-potential employees and professional training needs to bridge the skills gaps, leadership development and succession planning.

Assessment Centre

Psychometric assessments measure role-specific potential, industry-specific aptitude, and personality traits.
These assessments are also known as psychological appraisals and help analyze six significant components of an employee’s performance: Interpersonal Skills, EQ, Cognitive Abilities, Intellectual traits, Leadership skills and Personality Tests.

​​Psychometric appraisal

720-degree feedback is a type of appraisal that involves two rounds of 360-degree feedback.
It is used to evaluate employee performance and identify areas for improvement.
The first round is conducted before any intervention, while the second round is performed later to compare the results. By comparing the effects of both rounds, employers can analyze any improvements made by the employee.

​​720 Degree feedback