Quiz 10: Performance Management


The company follows a unique approach to manage the performance of its employees. It does not follow any rule book for performance management rather manage it through talented people. The company also has no policy for vacation time there, the employees decides themselves how much vacation and sick leave to take. They have no tolerance for average or poor performance. This all seems to be exciting to work for as the company provides the flexibility to its employees. They are focused only on the outcomes of the employees not on how much time is put and all. The company seems to follow an open culture which seems to be a positive thing for creativity. However at the same time the drawbacks in such culture are no trainings, development, bonuses or career planning in the organization may cause issues like high turnover, lower morale, motivation and ethical concerns. As anyone working with an organization needs to know what career path will be followed, where he will be in the organization hierarchy. So the company HR should consider these aspects as well for effective and efficiently achieving the strategic goals of the organization.

Performance management is the process of identifying expected performance levels from an employee and motivating them to achieve that goal. If the organization culture is more performance focused then it will positively affect the performance management system as all employees will work hard to maintain that culture. However, if the culture of the organization is not focused then employees will not be encouraged to work harder which will negatively affect the performance management system. Apart from that, performance criteria provides the guidelines or the according to which an employee has to work. It affects the performance management system because it measures whether the employee has worked according to the targeted goal or not. Therefore both organization culture and performance criteria affects the performance management system.

A supervisor can make many mistakes when preparing the performance appraisal on a clerical employee by not taking all the work into consideration. This might give an incorrect rating to the employee which will further degrade his review. However, these errors can be easily avoided by the supervisor by taking all the accounts and work into consideration. The supervisor should not appraise the employee based on one quarter or a limited time period. Rather his whole year performance should be taken into consideration to avoid any error.

There is no answer for this question