STM TEST – 2 : ANSWER KEY
1 (a)
(b)
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Formal Feedback
Informal Feedback
Positive Feedback
Negative Feedback
(3 marks)
Performance appraisal (or performance review) is a process for individual employees (7 marks)
and those concerned with their performance, typically line managers, to engage in a
dialogue about their performance and development and the support they need in their
role. It is used to both assess recent performance and focus on future objectives,
opportunities and resources needed.
Methods:
 Graphic rating scale
 Alternation ranking method
 Paired comparison method
 Forced distribution method
 Behaviorally anchored rating scale (BARS)
 Management by Objectives (MBO)
 Computerized and Web-Based Performance Appraisal
(c)
2 (a)
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Strategic congruence
Thoroughness
Practicality
Meaningfulness
Specificity
Identification of effective and ineffective performance
Reliability
Validity
Acceptability and fairness
Inclusiveness
Openness
Correctability
Standardisation
Ethicality
ED is concerned with preparing employees so that they can move with the organization
as it develops, changes and grows
(10 marks)
(3 marks)
ED represents the ‘provision of learning experiences in the workplace in order that
performance can be improved’
1
(b)
Pay for performance or performance related pay
(7 marks)
Objectives:
 Encourage high performance levels by linking pay to performance
 Encouraging entrepreneurial culture
 Notion of equity /fairness
Advantages :
 Supports organization’s personnel philosophy
 Motivates employees to perform better
 Ensures consistency in pay distribution
 Increases individual and organizational effectiveness
(c)
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Called 360 because information is gathered from individuals all around the
employee
Employees also rate themselves on various performance dimensions and
compare self-perceptions with the information provided by others
A Gap analysis is conducted to examine areas for which there are large
discrepancies between self and others perceptions
Anonymous feedback
• Feedback includes graphs showing areas in which employees’
perception differ from other raters
Most useful when used
• For DEVELOPMENT &NOT for administrative purposes
Internet used for collecting data
• Consulting firms used
• Provide online training for raters
Tools to help employees :Improve performance by using performance
information gathered from many sources (Superiors, Peers, Customers,
Subordinates, The employee
(10 marks)
Features:
 Measures specific behaviors
 Confidential process of obtaining feedback (Anonymous)
 Focuses on observable behaviors that can be modified
 Provides open ended information also
 Provides clarity about one’s strengths and insight about potential areas of
development
 Improves individual and team performance
2
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The Q12 measures the actionable issues for management — those predictive of
attitudinal outcomes such as satisfaction, loyalty, pride, and so on. On Gallup’s standard
Q12 instrument, following an overall satisfaction item are 12 items measuring issues we
have found to be actionable at the supervisor or manager level in the company — items
measuring the extent to which employees are “engaged” in their work.
(10 marks)
The Q12 statements are as follows:
Q00. (Overall Satisfaction) On a five-point scale, where “5” is extremely satisfied and
“1” is extremely dissatisfied, how satisfied are you with (your company) as a place to
work?
Q01. I know what is expected of me at work.
Q02. I have the materials and equipment I need to do my work right.
Q03. At work, I have the opportunity to do what I do best every day.
Q04. In the last seven days, I have received recognition or praise for doing good work.
Q05. My supervisor, or someone at work, seems to care about me as a person.
Q06. There is someone at work who encourages my development.
Q07. At work, my opinions seem to count.
Q08. The mission or purpose of my company makes me feel my job is important.
Q09. My associates or fellow employees are committed to doing quality work.
Q10. I have a best friend at work.
Q11. In the last six months, someone at work has talked to me about my progress.
Q12. This last year, I have had opportunities at work to learn and grow.
High Q12 scores exhibit lower turnover, higher sales growth, better productivity, better
customer loyalty.
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