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What is Performance Management (PM)?
PM is a systematic process where an organization plans, monitors, and appraises the performance of employees and teams. The goal is to ensure effective and efficient work toward company goals.
Beyond output, what does PM focus on qualitatively?
It focuses on intentional behavior at the individual, team, and organizational level to achieve better output and performance.
How is "performance" viewed differently in private vs. public organizations?
Private firms focus on traditional metrics; public organizations focus on "profit for society". What defines good performance depends on sector and objectives.
List the seven steps of the PM cycle.
1) Goal setting, 2) Performance planning, 3) Performance monitoring, 4) Feedback and coaching, 5) Performance appraisal, 6) Performance recognition and rewards, 7) Development and training.
Why are goals established in Step 1?
Goals provide a framework, clarity, and focused targets, creating a sense of purpose.
What does the S in SMART stand for?
Specific: defining exactly what needs to be done, why, and how.
What does the M in SMART stand for?
Measurable: establishing criteria for measuring progress and success.
What does the A in SMART stand for?
Achievable: ensuring goals are realistic and attainable.
What does the R in SMART stand for?
Relevant: aligning goals with the organization's objectives and values.
What does the T in SMART stand for?
Time-bound: setting a timeframe to create a sense of urgency.
What is the primary reason why goal-setting is motivating?
Monitoring progress toward goals is the key driver of motivation.
What occurs during Step 2: Performance Planning?
Outlining specific actions and strategies to achieve goals, including identifying necessary resources.
What is an Event Preview?
A tool in performance planning where a team mentally simulates an event to construct a plan of action.
What are the core activities in Step 3: Monitoring?
Regular feedback, progress assessments, and data collection. Discussing and acknowledging progress is highly motivating.
What are the characteristics of effective Check-ins?
Brief and frequent conversations to track progress. Preferably face-to-face, with the manager actively listening.
What is the goal of an After-Action Review (AAR)?
Reflection on a project or event to learn from successes and obstacles encountered.
How is an AAR conducted?
A short conversation involving five specific questions.
Why is frequent feedback beneficial?
It leads to improved performance, enhanced employee engagement, and increased motivation.
What defines a feedback-friendly culture?
Feedback detached from annual evaluations, occurring informally, from credible sources, and focused on learning and development.
What is Feedback-seeking Behavior (FSB)?
The active solicitation of feedback by an individual.
What are the two ways to obtain feedback?
1) Inquiry: explicitly asking for feedback; 2) Monitoring: observing and deducing information from the environment.
Define Future-oriented feedback.
Focus on growth, looking ahead, and discussing potential future challenges rather than past mistakes.
Give an example of future-oriented feedback.
"For your next presentation, consider incorporating interactive elements to keep the audience involved."
Define Goal-oriented feedback.
Linking actions to set goals and the organization's mission.
Give an example of goal-oriented feedback.
"By engaging the audience, you help achieve our goal of securing new business, aligning with our strategic objective."
Define Strength-oriented feedback.
Emphasizing what went well and providing encouraging feedback rather than focusing solely on errors.
Give an example of strength-oriented feedback.
"Your use of visuals was excellent; you could further enhance storytelling in your presentation."
Define Reflection-oriented feedback.
Encouraging the employee to enter a meta-cognitive state of reflection regarding their performance.
Give an example of reflection-oriented feedback.
"What were your main objectives for this pitch, and how do you feel you met them? How did the audience respond?"
What is the basis of the Feedforward Interview (FFI)?
Rooted in positive psychology, focusing exclusively on successes and strengths.
What is the first step of an FFI?
The employee shares a success story, often written beforehand.
What is the second step of an FFI?
Analyze the story to determine the conditions that led to success.
What is the final step of an FFI?
Discuss how successful conditions can be replicated in the future.
What is Step 5?
A (semi-)annual evaluation of an employee's performance over a specific period to identify areas for development.
Why are formal appraisals often seen as ineffective?
Time-consuming, can evoke negative reactions, not dynamic enough, and prone to bias.
Define Leniency and Centrality bias.
Leniency: being too generous in scoring; Centrality: giving everyone average scores.
What is Recency bias?
Over-emphasizing an employee's most recent performance while ignoring earlier performance.
Contrast the Halo and Horn effects.
Halo: one positive trait makes all performance seem positive. Horn: one negative trait makes all performance seem negative.
Define Contrast and First Impression effects.
Contrast: comparing an employee to others rather than standards. First Impression: initial perception dictates entire evaluation.
What is the Projection or Clone effect?
Giving higher ratings to employees who are similar to the rater.
What is the Trojan Horse bias?
A bias mentioned as a potential pitfall in performance appraisals.
What is Vertical Integration in PM?
PM practices must align with the mission, vision, culture, and pace of the organization.
Why is Internal Consistency crucial for PM?
All practices in the PM cycle must work together; there is no one-size-fits-all, and it must fit the organization's way of working.
What are the goal-related challenges in the public sector?
Goals are often unclear (process vs. output) and must be carefully aligned with organizational objectives.
What constraints do public sector managers face?
Less autonomy in managing performance compared to private sector.
Define Public Service Motivation (PSM).
Also called prosocial motivation: an inherent need to serve society.
Where should public sector PM focus its efforts?
On employee development, feedback culture, and staff's inherent motivation.
What is Step 6 of the cycle?
Performance recognition and rewards.
What is Step 7 of the cycle?
Development and training.
What is the core takeaway regarding the PM cycle's structure?
It is a continuous loop (planning → monitoring → appraising → developing) ensuring alignment between individual effort and organizational success.