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performance management -ch1
Chapter 1
29
Management
Undergraduate 4
09/07/2010

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Term
______________ is the process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.
Definition
performance management

(pg2)
Term
What type of process is performance management?
Definition
continuous process

(pg2)
Term
What type of process is performance appraisal?
Definition
periodic performance measurement process that evaluates an employees strengths and weaknesses

(Pg 3 top)
Term
T/F
Performance management systems that do not explicit the employees contribution to the organizations goals are NOT true performance management systems.
Definition
True

(pg3 last paragraph)
Term
The following are examples of____________.
1. motivation to perform
2. increased self-esteem
3. managers gain insight to employees
4. job and criteria are clarified
5. self-insight & development are enhanced
6. administration actions are more fair and appropriate
7. organizational goals are made more clear
8. Employees are more competent
9. Better protection from lawsuits
10. Timely/better differentiation between good and poor performers
11. Supervisors' view of performance are more clear
12. Organizational change is facilitated.
13. Company loyalty enhanced
Definition
Contributions/benefits to performance management systems
(pg 6)
Term
T/F
Almost ALL potential contributions/benefits of performance management systems are realized.
Definition
False

(pg7)
Term
The following are examples of______________.
1. Decreased motivation
2. lowered self-esteem
3. damaged relationships
4. false and misleading info
5. employee burnout
6. varying and unfair standards and ratings
7. unjustified demands on managers and employees
8. unclear rating systems
9. increased risk of litigation
10. emerging biases of supervisor
11. wasted time and money
12. increased turnover
Definition
Disadvantages to poorly implemented Performance Management Systems
(pg9 table)
Term
T/F
Tangible and intangible returns are always based on performance management systems
Definition
False, some are based on seniority

(pg9 last paragraph)
Term
___________ focuses on the position and duties rather than an individuals contribution.
Definition
base pay

(pg 10 top of page)
Term
T/F
In some countries, there is a difference between wage and salary.
Definition
true

(pg 10 top)
Term
___________ are increases given regardless of performance and are given to combat the effects of inflation.
Definition
cost of living adjustments

(pg 10)
Term
_____________ is given as an increase given based on past performance.
Definition
contingent pay or merit pay

(pg 10)
Term
______________ are one time payments based on past performance.
Definition
variable pay or short term incentives

(pg 10)
Term
T/F
Contingency pays are known in advance.
Definition
False, incentives are known in advance.

(pg 10)
Term
Stock ownership or options to buy stock are examples of what types of of pay?
Definition
long term incentives
Term
Medical insurance, pension plans, and savings plans are all examples benefits of what type of pay?
Definition
income protection

(pg 12 2nd paragraph)
Term
Vacation time, financial planning, and non-paid time off are all examples of benefits of what type of pay?
Definition
work/life focus

(Pg 12)
Term
Reimbursing the employee for the business use of the employee's car is an example of ___________
Definition
allowances

(pg 12)
Term
Short-term and long-term incentives have a __________ degree of dependency on the performance management system whereas cost-of-living adjustments have a ______ degree of dependency.
Definition
high; low

(Pg 13)
Term
__________________ refers to the impact a performance management system has on who receives incentives and who does not.
Definition
degree of dependency

(pg13)
Term
Recognition and status, employment security, challenging work, opportunities to learn are all examples of ____________ which are intangible.
Definition
rational returns

(pg 12 bottom)
Term
The 6 purposes PM systems
Definition
1. strategic
2. administrative
3. informational
4. developmental
5. organizational maintenance
6. documentary purposes

(pg 14)
Term
T/F
Once you have established a PM system that serves the strategic purpose of the company feedback is not relevant.
Definition
false

(pg 15 middle)
Term
The 2 most frequent purposes for PM systems are __________ and ___________
Definition
administrative and developmental

(pg 16 last paragraph)
Term
__________ purpose is the purpose which reinforces behaviors consistent with the attainment of organizational goals
Definition
strategic

(pg 14)
Term
____________ purpose is the purpose used to show employees how they are doing in comparison to the expectations
Definition
informational

(pg 17 table)
Term
T/F
In Ideal PM Systems, information will be exchanged from the supervisor to the employee where the employee is informed of his/her performance and gives very little input until the appeals process.
Definition
false

(pg 19 2nd to last paragraph)
Term
T/F
Performance management systems serve a single purpose: to align behavior with company goals.
Definition
False, they serve multiple purposes

(pg22 last bullet)
Term
Being congruent with strategy, having important consequences, and being standardized are examples of _____________.
Definition
ideal performance management systems

(pg23 top)
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