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Management · College

Performance Management and Feedback

Performance appraisal methods and effective employee feedback practices from an intro management course.

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What is 360-degree feedback?
A performance appraisal method where feedback is collected from multiple sources: the employee's manager, peers, direct reports, and sometimes customers or the employee themselves.
Define Management by Objectives (MBO).
A performance appraisal approach where managers and employees jointly set specific, measurable goals at the start of a period, then measure actual performance against those objectives.
What is forced ranking (or forced distribution)?
A performance appraisal method that requires managers to classify employees into predetermined performance categories, such as top 20%, middle 70%, and bottom 10%.
What does BARS stand for in performance appraisals?
Behaviorally Anchored Rating Scale, a method that uses specific behavioral examples to define each point on a rating scale, making judgments more concrete and consistent.
Describe the critical incident method of performance appraisal.
A method where managers document specific examples of good or poor employee performance as they occur throughout the evaluation period, then use these incidents as evidence during the appraisal.
What is a halo effect in performance appraisal?
A bias where a manager's overall positive impression of an employee causes them to rate that employee high on all dimensions, even when performance varies across different areas.
What is central tendency bias in performance ratings?
A tendency for raters to avoid extreme ratings and cluster most employees in the middle of the scale, avoiding both very high and very low ratings.
Define leniency bias.
A rater bias where a manager consistently gives employees ratings that are higher than their actual performance warrants, making it hard to differentiate performance levels.
What is strictness bias in performance appraisal?
A rater bias where a manager consistently gives lower ratings than performance actually deserves, causing all employees to appear underperforming.
Explain recency bias in performance evaluation.
A bias where a manager relies too heavily on recent employee performance or behavior when making appraisal decisions, rather than considering the entire evaluation period.
What is the primacy effect in performance appraisal?
A bias where an employee's early performance or first impression disproportionately influences the manager's overall rating throughout the evaluation period.
Describe the contrast effect in performance ratings.
A bias where a manager's rating of one employee is influenced by comparisons to other employees recently rated, rather than against an objective standard or job requirements.
What does SMART stand for in goal-setting?
Specific, Measurable, Achievable, Relevant, and Time-bound; a framework for setting clear, realistic performance goals that can be tracked and evaluated.
What is a Performance Improvement Plan (PIP)?
A formal document created when an employee's performance is unsatisfactory, outlining specific performance expectations, required improvements, the timeline for improvement, and consequences if standards are not met.
What role does peer feedback play in performance appraisal?
Peer feedback provides perspectives on how an employee collaborates, communicates, and contributes to team success; peers often observe behaviors that managers may not see directly.

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