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09MB025- Performance Management Answer Key PART A 1.

. Performance Management System refers to the set of organizational, managerial, team, and individual metrics used to attain the aims and objectives of performance management. 2. Need for performance Appraisal Identifying Areas of Strength Identifying Training Needs Leadership Development and Succession Planning 3. Goal setting involves establishing specific, measurable, achievable, realistic and timetargeted goals. Work on the theory of goal-setting suggests that it's an effective tool for making progress by ensuring that participants in a group with a common goal are clearly aware of what is expected from them. On a personal level, setting goals helps people work towards their own objectivesmost commonly with financial or career-based goals 4. A performance indicator or key performance indicator (KPI) is an industry jargon for a type of performance measurement. KPIs are commonly used by an organization to evaluate its success or the success of a particular activity in which it is engaged. Quantitative indicators Practical indicators Directional indicators Actionable indicators Financial indicators 5. Elements in Feedback Descriptive Immediate Training Use data Honesty 6. Essay Appraisal method Paired comparison method 7. Errors in Performance Appraisal Central Tendency Error Contrast Error

False Attribution Halo Effect

Leniency Error Perceived Meaning Recency Error

Severity Error Stereotyping

8. BARS refer to Behaviourally Anchored RatingScales. It was developed by Smith and Kendall to provide a better method of rating employees. It differs from "standard" rating scales in one central respect, in that it focuses on behaviors that are determined to be important for completing a job task or doing the job properly, rather than looking at more general employee characteristics 9. Competency mapping is a process through which one assesses and determines ones strengths as an individual worker and in some cases, as part of an organization. It generally examines two areas: emotional intelligence or emotional quotient (EQ), and strengths of the individual in areas like team structure, leadership, and decision-making. Large organizations frequently employ some form of competency mapping to understand how to most effectively employ the competencies of strengths of workers. They may also use competency mapping to analyze the combination of strengths in different workers to produce the most effective teams and the highest quality work. 10. Outcomes of reward a. Better and improved performance b. Employee commitment c. Employee satisfaction and motivation d. High recognition 11. Key Result Areas or KRAs refer to general areas of outcomes or outputs for which a role is responsible. A typical role targets three to five KRA. KRAs are also known as key work outputs (KWOs). 12. Ethical Issues a. Managerial Malpractice b. Moral mazes c. Different standards d. Value Conflict e. Peer pressure f. Workplace politics

PART B
13. a Working towards common goals A clear understanding of job expectations Regular feedback about performance

Advice and steps for improving performance Rewards for good performance

13.b Effective Performance Management System will bring the following things to the organization Clarity and culture Clear process People management capability Motivation Learning organization Measurement and reward

14. a. Important aspects of goal setting Provide Direction Meet Deadlines Avoid Wasted Time Manage Distractions Improve Overall Business 14.b competency mapping parameters Skills Knowledge Attitude Analytical Thinking/Intellectual Capability Collaboration/Integration Customer/Market Oriented Decisiveness Drive for Results Finding/Managing/Developing Talent Integrity Strategic Thinking/Vision

Accountability Challenge the Status Quo Communication/Persuasion Creativity/Innovation Diversity Energy/Enthusiasm Global Perspective Interpersonal Skills

15. a. Designing effective performance appraisal system

Work and results are measured by standards which are realistic, measurable and attainable and are modified when required to meet changing conditions. People understand and accept the results they are expected to achieve and the work for which they are accountable and can evaluate their own performance on this basis. Recognition that some areas of work defy quantification and efforts to define such areas may lead to frustration. The major benefit of effective performance appraisal arises from the honest communication and negotiation which take place between boss and subordinate to identify and correct deficiencies in performance.

15.b Feedback is an "information about the gap between the actual level and the reference level of a system parameter which is used to alter the gap in some way", emphasizing that the information by itself is not feedback unless translated into action 1. Clarify and specify the behaviors, skills, and accomplishments that employees at each level need to exhibit to do their jobs well and to progress to the next level: What are these factors and why are they important? 2. Use multiple approaches to teach employees what these factors are and how they link to the company's strategy, values, and performance. Publicize them in training sessions, emails, or websites. Ask higher-level employees to meet with lower-level colleagues for a Q&A session on getting ahead. Offer mentoring, coaching, formal classes, and/or opportunities to shadow employees working in different units, roles, or higher-level positions. 3. Create an organizational climate that's safe for asking questions, getting feedback, and learning new things. Let employees know that whenever they have questions they can and should reach out to their supervisors and others in higher-level positions. 4. Coach supervisors in how to give performance feedback to their direct reports that includes: 1. delivering an honest message in a way that employees are likely to find both fair and constructive 2. inviting employees to ask questions, provide input, and reflect on their own performance 3. keeping the focus on the task and behavior, not the self and personal traits 4. providing coaching to support employees in acquiring new and more effective skills, behaviors, and accomplishments 5. setting goals for performance improvement 6. emphasizing the learning opportunity and the fact that change is possible.

5. Be prepared when receiving feedback to ask the kinds of questions that will check defensiveness and enhance learning, such as: What do you think I'm already doing well? What are areas for improvement? Are there specific things I have done that I should definitely keep doing? What specific things have I done that have concerned you and why? Then paraphrase what you have heard ("So key areas for me to work on are."), ask what resources exist for you to make improvements in these areas, and set a date to meet again to discuss your progress. 16. a. 360 degree feedback, also known as'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job Advantages of Performance Appraisal It is said that performance appraisal is an investment for the company which can be justified by following advantages: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. 5. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication. 6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future. 16. b Assessing team readiness What doesn't work With process work teams, allow trial and error Reserve a bonus pool for process teams Set deadlines for project work teams Pay strategies for project teams Part-time work teams thrive on recognition Part-time teams may not require extra pay A true team will measure its own performance Pay, the final frontier 17. a. Effective Performance management system have vital role in designing compensation management system. 17.b Performance Appraisal affect the HR activities in following activities Employee resistance Employee dissatisfaction Decreased employee morale Creating politics Creating conflict

18. Compulsory Question Marks can be awarded based the depth and orientation of concepts and the solution

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