Topic outline

  • Unit 5: Performance Management and Measurement

    Many businesses define success as an individual's ability to live up to the demands of their position. With proper job analysis, it should be easy to quantify the level of success or failure of each employee. However, managers can be distracted by certain irrelevant biases during the employee performance review process. For example, they can be subject to leniency or the predisposition to be "too nice" because they dislike confrontation or are afraid to hurt their employee's feelings. The halo effect refers to a tendency to focus on one positive aspect of an employee's performance, such as the ability to meet their sales quota, rather than look at their overall contribution to the organization. Recently, many companies have incorporated a "360 degree" approach in which employees also review their managers and co-workers to find ways to increase company-wide productivity and performance. Business managers should explore various appraisal systems to determine the one that best fits their organization's culture and strategy.

    Completing this unit should take you approximately 2 hours.

    • Upon successful completion of this unit, you will be able to:

      • analyze the role of performance management in meeting performance expectations; and
      • explain the role of performance appraisals as a component of organizational success.
    • 5.1: Performance Management Systems

      • Read this chapter to learn about common performance issues in the workplace. When you finish reading, you should be able to say why it is important for human resources to establish clear and communicated policies to handle performance issues. These policies play an important role in avoiding wrongful termination legal actions. In addition, this chapter details the disciplinary actions when performance issues arise. Establishing clear objectives regarding performance management is an essential component of organizational success.

      • Watch this short video regarding the importance of performance management. Performance management is centered around setting goals, tracking the progress of the goals, and rewarding when goals are met. Meeting performance goals leads to meeting organizational goals.

      • As we shift towards more relationship-based performance management, agile performance management is coming front and center as the way to do that. This video discusses what Agile PM is and how organizations can benefit from this type of performance management.

    • 5.2: Performance Appraisal

      • This article notes the importance of assessing employee job performance on clear pre-established criteria and objectives. Performance management can be critical since employee performance can make or break a company. Review the graphic that reflects how performance standards, performance measurement, reporting of progress, and quality improvement processes are all components of an effective performance management system.

      • This chapter covers performance evaluation systems, which measure how well employees do their jobs. It will explain popular appraisal methods and how to conduct the appraisal.

    • Unit 5 Assessment

      • Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.