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MGT 352 CH 8: Performance Mgt
Terms and major concepts for MGT 352 Probett
26
Business
Undergraduate 3
11/18/2010

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Term
Performance Management
Definition
The process through which managers ensure that employees' activities and outputs contribute to the organization's goals
Term
Performance Appraisal
Definition
The measurement of specified areas of an employee's performance
Term
Reliability
Definition
The extent to which a measure consistently produces the same results
Term
Interrater reliability
Definition
Consistency of results when more than one person measures performance 
Term
Test-Retest Realiability
Definition
Refers to consistency of results over time
Term
Validity
Definition
The system accurately measures what it is intended to measure
Term
Simple Ranking
Definition
Requires managers to rank employees in their group from the highest performer to the poor performer
Term
Forced Distribution 
Definition
Assigns a certain percentage of employees to each category in a set of categories
Term
Paired Comparison
Definition
Each employee is compared to every other employee and if they are better they get a point - the employee with the most points is ranked highest and so on
Term
Graphic Rating Scale
Definition
Lists traits and provides a rating scale for each trait, the employer uses the scale to indicate the extent to which an employee displays each trait
Term
Mixed-Standard Scales
Definition
Uses several statements describing each trait to produce a final score for that trait
Term
Critical Incident Method
Definition
method of performance measurement based on managers' records of specific examples of the employee acting in ways that are either effective or ineffective
Term
Behaviorally Anchored Rating Scales (BARS)
Definition
rates behavior in terms of a scale showing specific statements of behavior that describe different levels of performance
Term
Behavioral Observation Scales (BOS)
Definition
uses all behaviors necessary for effective performance to rate performance at a task. Managers indicate how often desireable behaviors are performed
Term
Organization Behavior Modification (OBM)
Definition
a plan for managing the behavior of employees through a formal system of feedback and reinforcement
Term
Management by Objectives (MBOs)
Definition
a system in which people at each level of the organization set goals in a process that flows from top to bottom so employees are contributing to the organizations overall goals
Term
360 Degree Performance Appraisal
Definition
performance measurement that combines information from the employee's managers, peers, subordinate, self and customers
Term
Similar to me error
Definition
rating error of giving a higher evaluation to people who seem similar to oneself 
Term
Contrast errors
Definition
the rater compares an individual, not against an objective standard, but against other employees
Term
distributional errors
Definition
the rater tends to use only one part of a rating scale, leniency, strictness, central tendancy
Term
Halo Error
Definition
occurs when the rate reacts to one positive performance aspect by rating the employee positively in all areas of performance
Term
Horns error
Definition
rating error that occurs when the rater responds to one negative aspect by rating an employee negatively in other aspects
Term
Tell and sell approach
Definition
managers tell the employees their ratings and then justify those ratings
Term
tell and listen approach
Definition
managers tell the employees their ratings and then let the employees explain their side of the story
Term
problem solving feedback approach
Definition
managers and employees work together to solve performance problems in an atmosphere of respect and encouragement
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