ADMS 2600 Lecture Notes - Lecture 8: Performance Appraisal, Management System, Job Performance

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brownminnow274

27 Jan 2016

School

York University

Department

Administrative Studies

Course

ADMS 2600

Professor

Amanda J Hudson

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Document Summary

Chapter 8: performance management and the employee appraisal process. Performance management: is the process of creating a work environment in which people can perform to the best of their abilities to meet a company"s goals. Appraisals are a tool organizations can use to maintain and enhance their productivity and facilitate progress toward their strategic goals. Step 1: goals set to align with higher level goals. Step 2: behavioural expectations and standards set and then aligned with employee and organizational goals. Step 6: hr decision making (e. g. , pay, promotion, etc. ) Appraisals are simply a logical extension of the day-to-day performance management process. Focal performance appraisal: is one in which all employees of a company are reviewed at the same time of year rather than on the anniversary dates they were hired, Two types and/or purposes of performance appraisals 1. Performance appraisals are part of an organization"s measurement process. Two most common purposes of performance appraisals: administrative and developmental.

Related Questions

Read the article below and write a brief (1-2 paragraph) summary. This assignment should be approximately 250 words . Complete this assignment as a Word document.

Time to Scrap Performance Appraisals

Times have changed. More and more companies have decided to radically change (read âscrapâ or âre-engineerâ) their performance appraisal process.

Last week at our research conference we spoke with Adobe, Juniper, Kelly Services, and a variety of other companies who have decided to do away with traditional performance ratings and dramatically change the annual appraisal process.

Our research shows that this is a strong and positive trend.

Why the process must change.

Why do companies have annual reviews in the first place? They are an artifact from traditional top-down organizations where we had to âweed outâ the bottom performers every year. By forcing managers to rate people once per year we can have annual talent reviews and decide who gets more money, who to promote, and who to let go.

Coupled with the performance rating is the âpotentialâ rating, which tries to capture an individualâs potential to move up two levels in the organization (the traditional definition).

This approach is based on a philosophy that â we cant totally trust managersâ so weâre going to force them to fit people into these rating scales. And in many companies (around 20%) there are forced distributions, which mandate that some percent of employees are rated at the bottom and only a limited percent can be rated at the top.

The well publicized problems with this process abound. These include:

Employees need and want regular feedback (daily, weekly), so a once-a-year review is not only too late but itâs often a surprise. Regular coaching is the key to alignment and performance.

Managers cannot typically âjudgeâ an entire year of work from an individual at one time (imagine if your spouse gave you an annual review!), so the annual review is awkward and uncomfortable for both manager and employee.

Manager-employee relationships are not 1:1 like they used to be. We work with many leaders and peers during the year, so one person cannot adequately rate you without lots of peer input.

While some employees are a poor fit and likely are poor performers, these issues should be addressed immediately, not at the end of the year.

Some companies really do have a lot of high performers, so forced ranking eliminates great people and damages the culture.

People are inspired and motivated by positive, constructive feedback â and the âappraisalâ process almost always works against this.

The most valuable part of an appraisal is the âdevelopment planningâ conversation â what can one do to improve performance and engagement â and this is often left to a small box on the review form.

Companies are nervous about eliminating this process because:

We need a fair and validated way to distribute compensation increases (donât we?)

We need a record of low performance when we let someone go

We need to capture performance data in an employeeâs profile for future promotion and other talent reviews, development plans, and career migration

We need a way to make sure managers are doing their jobs well.

Well, Iâve probably discussed these issues with 100+ companies over the last five years and our research shows more and more that companies are ready to let this process go.

Organization structures have changed and companies need to be more agile. We have a shortage of key talent and the keys to success now focus on regular alignment, coaching, creating passion and engagement, and continuous employee development.

The new keys to success:

Develop a âfeedback-richâ culture and set of tools (often online, sometimes formal, often informal) that encourages all employees to give each other feedback. Tools from companies like Achievers, Globoforce, and most HR software vendors now enable and make this easy.

Separate the discussions about performance from discussions about potential and future career plans. Yes we need to evaluate people when raise time comes, but that can be a totally different conversation from.

Talk about performance regularly and let employees create their own goals on a regular basis. Force managers to provide ongoing feedback and teach them how to have honest conversations.

Assume that employees already know something about their own performance, and force them to self-assess. People tend to have a good idea of their own strengths and weaknesses â give them an open and positive opportunity to share it. That starts the dialogue about expectations and the match between their self-assessment and that of the organization.

Enable managers to assess performance regularly. Software teams now use Agile tools which evaluate code on a weekly basis. Managers should be giving people feedback regularly. If they learn to do this on a regular basis it will get easier and employees will learn to appreciate it.

Focus managers on hiring the best, so they build a team which strives for 100% high performers. This is never possible of course, but rather than assuming that 20% of your employees will perform poorly, spend more time on assessment, culture, and fit to make sure very few low performers make it into the organization in the first place.

Remember that everyone wants to succeed. If they arenât performing well itâs not necessarily their fault â the organization should take responsibility for helping them find a better fit if possible.

Set and reset goals frequently. Companies that set performance goals quarterly generate 31% greater returns from their performance process than those who do it annually, and those who do it monthly get even better results. This means employees get feedback on a continuous basis (most sales organizations work this way). Read our research for more details.

Beware of pay for performance plans. While many companies (particularly investment banking, sales) have large pay for performance plans, research showsthat these can create perverse behavior. People focus on their own goals at the expense of the organization. In sales related roles this process works well â when you move to customer service, engineering, and other âbuilderâ roles they can create problems.

Give your leaders a cultural framework and set of values to work from. Companies like Juniper and Deckers (Uggs shoes) focus very heavily on corporate values, forcing managers to hire and manage to these values. This makes selection easier and enables us to evaluate and coach people against higher level frameworks.

Invest in leadership development. Being a manager is a tough job. Managers at all levels struggle with selection, hiring, training, coaching, and evaluation. Give them time and tools to learn, a framework for feedback, and a continuous development process so they learn how to become better.

Reward talent âproductionâ not talent âhoarding.â If you pay your managers to âproduce output,â they will focus heavily on talent performance and evaluation. This may be a good thing, but ultimately companies thrive by building skills â so in addition to encouraging managers to produce good work, incent them to produce good talent as well.

Iâve had the opportunity to study HR and performance management for almost 15 years now, and this topic has been controversial for a long time. In todayâs globalized,talent constrained workplace itâs clear to me that the traditional appraisal has to change.

Businesses thrive on agility, speed, passion, and alignment. The process of driving and measuring performance has to do the same.

Budget constraints on marketing research are most likely to leadto:

		a wrong interpretation of the research results.
		an incorrectly formulated sample size and design.
		incorrect reasons regarding why the research is needed.
		pretest measurements of competitive brand sales.

2 points

QUESTION 2

Stacy, a marketing manager at a beverage manufacturing firm,conducts a customer survey to determine the reason for a dip in thesales of Zeal, a cola, in the last quarter. The survey reveals thatthere is an immediate customer demand requiring the use of organicingredients to Zeal. The firm decides to enhance Zeal with theintroduction of organic ingredients. This new product would fallinto the category of ________.

		new-to-the-world products
		new-to-the-firm products
		improvements and revisions of existing products
		additions to existing product lines

2 points

QUESTION 3

Lauren is a brand manager at a company that manufacturestoothpaste. She wants to increase the sales of an existing brand oftoothpaste. To do so, she calls for a meeting with a teamcomprising of members from the administrative department, the humanresource department, and the finance department. All of thesemembers work together to come up with ways to improve the company'stoothpaste brand positioning. Such a team is an example of a________.

		category-management system
		cross-functional team
		departmental team
		marketing-management system

2 points

QUESTION 4

________ are methods used to determine how resources should beallocated among the various strategic business units (SBUs) in anorganization.

		Vector models
		Matrix models
		Variable models
		Portfolio models

2 points

QUESTION 5

For high-involvement products that require extensive decisionmaking, marketers should provide consumers with:

		ready availability of the products in a variety of outlets andat competitive prices.
		factual information that highlights the competitive advantage ofthe products.
		minimum information to encourage a quick purchasing process.
		eye-catching advertisements and in-store displays to encouragethem to make a purchase.

2 points

QUESTION 6

The number of times, on average, that audience members areexposed to an advertisement within a given time period is knownas:

		frame rate.
		time to target market.
		reach intensity.
		average frequency.

2 points

QUESTION 7

Ariston Inc. manufactures a wide range of personal careproducts. Its method of sales forecasting involves conductingdetailed surveys of retailers who stock the company's productstoward the end of a fiscal year. The aim of this survey is toestimate the quantity of Ariston's products the retailers arelikely to order in the next fiscal year. Which of the followingapproaches of sales forecasting is Ariston using?

		Customer expectations method
		Time-series analysis
		Sales forecast composite method
		Jury of executive opinion method

2 points

QUESTION 8

________ carry broad product assortments and compete on thebasis of offering a good selection in different product categoriesand offering lower prices on products in their largeassortments.

		Specialty stores
		Mass merchandisers
		Category killers
		Convenience stores

2 points

QUESTION 9

Which of the following best describes personal selling?

		Personal selling is a paid form of communications about anorganization, its products, or its activities that is transmittedthrough a mass medium.
		Personal selling is an activity that offers customers orresellers a direct inducement for purchasing a product.
		Personal selling is a nonpaid form of communication that seeksto influence the attitudes, feelings, and opinions of stockholders,suppliers, employees, and political bodies about anorganization.
		Personal selling is face-to-face communication with potentialbuyers to inform them about and persuade them to buy anorganization's product.

2 points

QUESTION 10

Which of the following best explains why Delicia Co., amanufacturer of potato chips, prices each bag of potato chips at 99cents rather than $1.00?

		To encourage consumers to think the chips are less expensive
		To increase sales by offering the chips at a discountedprice
		To create a signal that these chips are exceptionally fine
		To attract those consumers who are not too sure about thequality of the chips

2 points

QUESTION 11

Which of the following is NOT a step in the marketing researchprocess?

		Performance of the research
		Plan of the research
		Preview of the research
		Preparation of the research report

2 points

QUESTION 12

In the context of product purchasing, the diffusion ofinnovation is:

		used to describe the ability of an organization to createentirely new products.
		applied to products at the introductory stage of the productlife cycle.
		used to describe an audit task.
		the spread of a product through the population.

2 points

QUESTION 13

Distribution allowances are typical examples of ________.

		push strategies
		profile strategies
		pull strategies
		mixed promotional strategies

2 points

QUESTION 14

Which of the following is a benefit of mathematical modeling asa marketing research method?

		It is ideal for investigating customer beliefs, attitudes,satisfaction, and other issues.
		It generates a substantial number of ideas when compared withother methods.
		It is involved in the analysis and interpretation of primarydata exclusively.
		It provides an efficient way to study problems with extremelylarge secondary data sets.

2 points

QUESTION 15

Identify the persuasion objective of the sales force in personalselling.

		To reassure consumers of product or service superiority throughdemonstrable actions
		To enable prompt delivery of the product or service that exceedscustomer expectations
		To ensure immediate follow-up calls and visits to addressunresolved or new concerns
		To clearly distinguish attributes of a firm's products orservices from those of competitors

2 points

QUESTION 16

Which of the following statements is true of the influences ofprice, product, and promotions on consumer behavior?

		Consistent bombarding of messages about a product will put offpotential consumers.
		Salespeople do not have a direct impact on consumer behavior andits patterns.
		Value-conscious consumers buy products on the basis of placerather than other attributes.
		Marketing communications play a critical role in informingconsumers about products and services.

2 points

QUESTION 17

According to the VALSâ¢ model, Experiencers are:

		driven to demonstrate success.
		driven by a desire for social or physical activity.
		driven by knowledge and principles.
		driven by the level of resources and innovation.

2 points

QUESTION 18

In which of the following stages of the new product developmentprocess is the new product proposal evaluated and responsibilityfor a project assigned to a project team?

		Product development
		Idea screening
		Test marketing
		Project planning

2 points

QUESTION 19

Which of the following is an advantage of secondary data overprimary data?

		Secondary data sources are limited, making the information morevaluable.
		Secondary data are cheaper to obtain and utilize.
		Secondary data are collected specifically for the researchproblem under investigation.
		Secondary data are always available for strategy-specificresearch questions.

2 points

QUESTION 20

An automobile manufacturing firm decides to meet all itssuppliers while planning to manufacture a new automobile that is aminor variant of an existing model in terms of design andperformance. The firm wants to provide its loyal customers withautomobiles at a low price without compromising on performance.According to authors Crawford and DiBenedetto, this new productfalls into the category of ________.

		price redemptions
		repositionings
		price exemptions
		cost reductions

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ADMS 2600 Lecture Notes - Lecture 8: Performance Appraisal, Management System, Job Performance

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