Criteria for Conducting Employee Evaluations Performance management is the proce

Question

Criteria for Conducting Employee Evaluations

Performance management is the process through which managers ensure that employees' activities and work contribute to the organization's goals. There are a variety of approaches that can be used to measure, rate, and discuss the performance of an employee. Whatever the approach used, a performance management system must be thoughtfully designed in order to achieve its goals of linking employee behavior with the organization's goals. Its methods for measuring performance must fit with the organization's strategy, they must be valid and measure what they intend to measure, they must be reliable and deliver consistent results, they must be acceptable to the people who use it, and they must provide specific feedback.

In the following activity, you will read about performance evaluation measures used at Heavenly Handbags, a fictional company that manufactures and distributes designer handbags. Then, you will answer questions about the effectiveness of Heavenly Handbags' performance measures.

Read the case below and answer the questions that follow.

Heavenly Handbags recently revamped its sales associate performance measures to make them more effective in improving employee performance, and they were almost ready to roll them out. One measure that was added was diversity effectiveness. Heavenly Handbags wanted to emphasize a factor that they believed would give them a competitive edge over other organizations, so they created a diversity measure that assessed factors such as employees' ability to interact with a variety of customers, use of cultural norms when interacting with co-workers that were different from themselves, and promoting awareness of diversity in the organization. These behaviors were consistent with the overall approach and culture of the company. Management at Heavenly Handbags also wanted the performance measures to produce consistent results. To ensure this consistency, they did two things. First, they had multiple raters evaluate the same individual to ensure that they gave similar ratings. Then, they evaluated individuals across multiple time periods to review the consistency of the ratings over time. Finally, management at Heavenly Handbags wanted to make sure that employees could understand why they were being evaluated on each factor, including sales, service, diversity, and interpersonal skills; they also wanted to be sure that employees felt that the measures of these factors were fair. As a first step, Heavenly Handbags clearly identified the guidelines and expectations that would be used in evaluating performance.

Having more than one rater evaluate the same individual is a way to assess which of the following?

Multiple Choice

Interrater reliability

Fit with strategy

Internal consistency

Validity

Test-retest reliability

Explanation / Answer

A. Inter-Rater Reliability

Heavenly Handbag wanted to check the consistency of the employees, and they wanted to make sure that the rating is true and accurate.

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