• 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 proclivity 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 "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 types of appraisal systems to determine the one that best fits their organization's culture and strategy.

    Completing this unit should take you approximately 4 hours.

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

      • explain the distinction between performance management and performance appraisals; and
      • conceptualize HR strategies to improve overall organizational success.

    • 5.1: Performance Management Systems

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

    • 5.2: Performance Appraisal for Human Capital

      • Performance Assessment Page
        This article notes the importance of assessing employee job performance on clear pre-established criteria and objectives. Since employee performance can make or break a company, performance management can be critical. 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.
      • Motivating Employees Through Personnel Appraisals URL
        This chapter explains why companies use performance appraisals, the basic characteristics of successful performance appraisals, the advantages and disadvantages of the different types, and how to conduct a performance appraisal meeting.
      • Appraisal Methods Page
        Read this article that details various performance appraisal methods, such as graphic rating scales, behavioral methods, and 2+2 feedback. Substantial planning is required to develop the most appropriate appraisal method to maximize performance results. Which appraisal method do you believe you would be most likely to respond positively toward?

    • Unit 5 Assessment

      • Unit 5 Assessment Quiz
        Receive a grade

        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.