Performance Management- Chapter Eight 1. What is the definition of performance management and its purpose? Performance management = The means through which managers ensure that employees' activities and outputs contribute to the organization's goals Purposes:  Strategic – effective performance management helps the organization achieve its business objectives  Administrative – ways in which organizations use the system to provide information for the day-to-day decisions about salary, benefits, and recognition problems  Developmental – serves as a basis for developing employee’s knowledge and skills 2. What are the steps in the performance management process? How is this different from the traditional model? 1. Define performance outcomes for company division and department 2. Develop employee goals, behavior, and actions to achieve outcomes 3. Provide support and ongoing performance discussions 4. Evaluate performance (annual formal performance review) 5. Identify improvements needed 6. Provide consequences for performance results Traditional model: 3. Compare and contrast types of performance measures, subjective and objective. What’s wrong with rating traits and attributes? What are result-oriented measures vs. behavioral?  Behavior-based appraisals: gets the job done, comes to work on time, technically astute; often comparing people to one another or to a standard; trait focused; work ethic, attitude, initiative