Performance Management Unit-III

What is the primary purpose of performance management?

• To create a competitive hiring strategy.

• To align individual performance with organizational goals.

• To evaluate employee satisfaction levels.

• To determine salary increases for employees.

Define KRA and its significance in performance management.

• KRA (Key Result Area) is a framework that outlines expected outcomes for employees, crucial for aligning goals and assessing performance.

• KRA stands for Key Resource Allocation, which focuses on budget management.

• KRA is a method for employee training and development without performance assessment.

• KRA refers to Key Risk Assessment, primarily used in financial audits.

What does KPI stand for and how is it used?

• Key Performance Index

• Key Performance Indicator

• Key Project Indicator

• Key Performance Insight

Explain the difference between KPA and KPI.

• KPA and KPI are interchangeable terms.

• KPA identifies focus areas; KPI measures performance in those areas.

• KPA is a financial metric; KPI is a qualitative measure.

• KPA measures performance; KPI identifies focus areas.

What are some common methods of performance management?

• Common methods of performance management include goal setting, performance appraisals, continuous feedback, 360-degree feedback, and performance metrics.

• Employee satisfaction surveys

• Team-building exercises

• Work-life balance initiatives

How can potential assessment impact employee development?

• It is solely focused on financial performance.

• Potential assessment impacts employee development by providing insights for personalized growth plans and aligning skills with organizational goals.

• It only benefits management, not employees.

• It has no effect on employee development.

What role does performance planning play in an organization?

• Performance planning is solely focused on employee training.

• Performance planning plays a crucial role in aligning individual and organizational goals, enhancing communication, and assessing employee performance.

• Performance planning is only relevant for upper management.

• Performance planning eliminates the need for feedback.

List three benefits of effective performance management.

• 1. Aligns individual and organizational goals. 2. Enhances employee engagement and motivation. 3. Facilitates continuous feedback and development.

• Increases employee turnover rates.

• Reduces overall productivity.

• Limits communication between teams.

How can feedback be integrated into performance management?

• Performance management does not require any feedback.

• Feedback should only be given at the end of the year.

• Feedback is only necessary for underperforming employees.

• Feedback can be integrated into performance management through continuous feedback loops, regular check-ins, 360-degree feedback, and incorporating feedback into reviews and goal-setting.

What challenges might organizations face in performance management?

• Regular feedback sessions

• Challenges include unclear metrics, lack of engagement, bias, insufficient training, and resistance to feedback.

• Clear performance metrics

• High employee satisfaction