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Performance Management System

Notes 1.9 Keywords

Expectancy: It refers to the extent to which the person believes his efforts will lead to the fi rst
level outcome.
Instrumentality: It refers to the probabilities attached by the individual to each possible
performance outcome alternative just as the individual previously assigned probabilities to
various levels of effort leading to different levels of performance.
Performance Management: It deals with improving organizational performance by improving
employee performance.
Performance: Behaviors or actions that are relevant to the goals of the organisation.
Valence: It means the attraction or an outcome to the individual.

1.10 Self Assessment

Fill in the blanks:
1. Performance deals with behavior and…………………
2. Performance management is ……………….. in concept.
3. Performance is best developed through ………………….. and experience.
4. ……………… is a systematic evaluation of present potential capabilities of personnel and
employees by their superiors, superior’s or a professional form outside.
5. The performance management approach focuses more on ……………… and concrete
results based on the previously established smart objectives.

6. Performance management is a much broader term in comparison with ………………….. .
7. MBO means ………………….. .
8. Performance management may be regarded as a ………………….. .
State whether the following statements are true or false:
9. Performance management translates organizational objectives into work units, departmental
team and individual goals.
10. Performance management is a continuous and integrated process.
11. In the present scenario, the organizations have shifted their focus from performance
management to performance appraisals.
12. Performance management focuses on top down assessment.
13. Performance appraisal is not directly linked with pay.
14. Performance management creates a system of regular feedback with positive reinforcement
of employee’s behavior and action.
15. Performance management is more of a developmental tool rather than administration of
fi nancial rewards.

1.11 Review Questions

1. Describe the concept of performance management.
2. “Performance management is a key to success.” Do you agree?

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