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.