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MHR 523 Chapter 8 Notes.docx

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Department
Human Resources Management
Course
HRM 2600
Professor
All Professors
Semester
Winter

Description
Chapter 8: Performance Management Performance Management: The use of performance data to effect organizational culture, systems, and processes, set goals, allocate resource, affect policies and programs, and share results. To make performance management work requires several characteristics:  Performance objectives: This is a critical aspect of a company’s strategy that it has to meet; otherwise the company will result in a lower customer satisfaction and other less desirable organizational results.  Performance goals: Achievable and realistic targets to which actual outcomes can be compared.  Performance measurement: Measuring the process of achieving preset goals, including the efficiency of transforming resources to goods and services, their quality, client satisfaction, quality of decision making, and efficiency and effectiveness of management contribution  Output measures: quantity and quality assessments.  Outcome measures: results of programs compared to preset targets. Performance appraisal: The process by which organizations evaluate employee job performance. Rater Biases:  Halo effect: occurs when an evaluation allows some information to disproportionately affect the final evaluation  Error of central tendency: An error in rating employees that consists of evaluating employees as neither good or poor performers even when some employees perform exceptionally well or poor  Leniency bias: A tendency to rate employees higher than their performance j
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