Understanding Performance Management

What is the primary purpose of performance management?

• To create a competitive hiring strategy.

• To determine salary increases for employees.

• To align individual performance with organizational goals.

• To evaluate employee satisfaction levels.

List two advantages of effective performance management.

• 1. Aligns individual and organizational goals. 2. Enhances employee development and performance.

• Reduces employee motivation and engagement.

• Limits communication between teams and departments.

• Increases administrative workload and complexity.

What are some common disadvantages of poorly-implemented performance management systems?

• Increased employee motivation

• Regular and constructive feedback

• Common disadvantages include unclear objectives, inconsistent feedback, employee disengagement, and potential bias.

• Clear communication of goals

How can performance appraisals be used to enhance employee development?

• Performance appraisals are only for salary increases.

• Performance appraisals can enhance employee development by providing feedback, identifying development needs, and setting goals.

• Performance appraisals have no impact on employee motivation.

• They are used to punish underperforming employees.

What is the role of feedback in effective performance management?

• Feedback is crucial for guiding improvement, fostering communication, and aligning goals in performance management.

• Feedback is only necessary for annual reviews.

• Feedback is irrelevant to goal setting in performance management.

• Feedback should be avoided to maintain employee morale.

Identify three types of performance information that can be collected.

• Employee attendance records

• Financial reports

• Sales forecasts

• Quantitative metrics, qualitative feedback, benchmarking data

What criteria should be established for evaluating employee performance?

• Length of employment

• Measurable goals, quality of work, communication skills, teamwork, initiative, adherence to company values.

• Salary expectations

• Personal appearance

Describe one method of performance appraisal and its benefits.

• Self-assessment method

• 360-degree feedback system

• Management by objectives (MBO)

• Rating scale method

How does goal setting contribute to performance management?

• Goal setting decreases employee motivation.

• Goal setting is irrelevant to performance management.

• Goal setting leads to confusion and uncertainty.

• Goal setting contributes to performance management by providing clarity, motivation, and a framework for measuring progress.

What are the potential consequences of neglecting performance management?

• Improved financial performance

• Increased employee satisfaction

• Decreased motivation, lower productivity, lack of accountability, poor team dynamics, high turnover, and decline in organizational performance.

• Enhanced team collaboration