Performance Management
Questions & Exam Practice
Key Concepts Check In
- Define performance management.
- Identify the benefits of effective performance management for businesses.
- Define the following performance management strategies:
- Management by objectives (MBO)
- Appraisals
- Self-evaluation
- Employee observation
- Outline one advantage of management by objectives.
- Identify one limitation of employee observation.
- Outline one difference between management by objectives and appraisals.
- Outline what 360-degree feedback is.
Deep Dive
- Explain how management by objectives can help achieve business objectives.
- Explain how appraisals can improve employee performance over time.
- Analyse the importance of fairness and objectivity in performance management.
- Explain how self-evaluation can improve employee engagement.
- Discuss the effectiveness of employee observation in improving efficiency in a business.
- Compare management by objectives and appraisals as performance management strategies. (4 marks)
- Evaluate how appraisals can be used to achieve one business objective and one employee objective. (6 marks)
Content in Action
- An electronics retail business has objectives to improve customer satisfaction and reduce employee errors at checkout. The manager introduces structured performance discussions every 12 months, where employees are reviewed against teamwork, communication and sales targets.
- Identify the performance management strategy being used. (1 mark)
- Explain how this strategy could improve one of the business objectives. (3 marks)
- An employee who has been with the business for five years now has an objective to become the store manager in the next two years.
Discuss an appropriate performance management strategy (other than the one currently being used) could help the employee achieve this objective. (6 marks)
- A manufacturing company wants to increase productivity by 15% over the next year. Senior managers have implemented Management By Objectives to help them achieve this objective.
Evaluate the effectiveness of this performance management strategy in achieving both business and employee objectives. (6 marks) - A hospitality business has noticed inconsistent service quality across shifts. Managers begin observing employees during service and provide immediate coaching and feedback.
Examine whether employee observation is the most appropriate performance management strategy to improve service quality. (5 marks) - “Whether performance management strategies are implemented well or not, employee engagement will improve.”
Analyse the above statement. (10 marks)