Chapter 8 Flashcards
Balanced scorecard
Integrated organizational performance measuring approach that looks at organizational learning and innovation, financial management, internal operations and customer mgmt
Variations: HR scorecard, leadership scorecard
Performance standards
Benchmarks against which performance is measured
Performance measures
Ratings used to evaluate employee performance
Direct/indirect; objective/subjective
Comparative evaluation methods
Collection of different methods that compare one person’s performance with that of co-workers
E.g. ranking, forced distribution
Noncomparative evaluation methods
Rating scale Behaviourally and anchored rating scale Performance tests and observations Management by objectives Assessment centres
Behaviourally anchored rating scale
Evaluation tools that rate employees along a rating scale by means of specific behaviour examples on the scale
360-degree performance appraisal
Combination of self, peer, supervisor and subordinate performance evaluation
Management by objectives
Requires an employee and superior to jointly establish performance goals for the future. Employees are subsequently evaluated on how well they have obtained these objectives
Halo effect
Bias that occurs when an evaluation allows some information to disproportionately affect the final evaluation
Error of central tendency
Evaluating employees as neither good nor poor even when some perform exceptionally well or poorly (I.e. not using the extreme ends of the rating scale at all)
Leniency/strictness bias
Tendency to rate employees higher/lower than performance justifies
Recency effect
Allowing more recent employee performance to sway overall evaluation
Contrast errors
Comparing employees to each other rather than a performance standard
