MGT1101 - T8 (2): Performance Appraisal

An employee performance management system is a means to ensure that every employee works in a manner which is aligned with organizational goals, and which ensures that the employee reaches his maximum potential on the job.

• True

• False

HR system related to:

• Managing the performance of individual employees

• Training

• Reward system

• All of the following

The performance management system is implemented by employees.

• True

• False

Following are factors affecting employee performance, EXCEPT:

• Employee’s

  Knowledge

• Employee's Skill

• Employee's Attire

• Work Environment

The objectives/targets/key result areas/key performance indicators established for each employee must be:

State two (2) benefits of a Performance Appraisal System.

Evaluate responses using AI:

OFF

State any two (2) potential bias in Performance Appraisal System.

Evaluate responses using AI:

OFF

This bias occurs when recent employee performance significantly influences overall appraisal, leading managers to prioritize recent events or behaviors over earlier accomplishments or areas for improvement.

• Recency effect

• Halo effect

• Central tendency

• Fatigue

Central tendency bias is:

• when appraisers become overwhelmed during evaluation, leading to rushed or inconsistent assessments, inaccurate ratings, and overlooking important performance details.

• a management practice where managers rate all employees as average or near-average, potentially leading to inflated ratings for underperforming employees and lower ratings for high performers.

• where a manager's perception of an employee's performance can influence their evaluation of other unrelated aspects.

• a biased evaluations based on personal characteristics, with managers unknowingly favoring or discriminating against employees based on stereotypes rather than objective performance criteria.

Who gives input into an appraisal?

• Financial Institutions

• Investors

• Customers

• Employees