All of the following are characteristics of an ideal performance management system except:

A combination of forms, processes and procedures is used by organizations to evaluate their employees' job performance. The ideal performance management system consists of several elements: job descriptions, performance expectations, appraisals, disciplinary policies and commendations. Although supervisors and employees alike often dread annual performance evaluations and appraisals, many performance management systems function well and provide adequate support for a productive workforce.

The Performance Management Process

Performance management exists to give employees clear and continuous feedback on their performance, so they know which areas they are strong in and where they need to improve. A good system will also allocate the right goals to employees, and make sure that everyone is achieving those goals.

There are several characteristics of a performance management system. While businesses have their own way of doing things, Forbes recommends that you incorporate the following six vital elements:

• The system must be accurate and fair
• The system must be efficient
• The system should be set up to elevate performance, and not simply review past performance
• Compensation should be linked to the performance evaluation
• The system should use multiple data sources, such as measuring performance against objective key performance indicators
• The system should include formal development and training strategies   

Job Descriptions

An accurate job description is a fundamental characteristic of an ideal performance management system. Without a clear understanding of job duties, it's impossible to know what the employee is supposed to be doing and whether she is meeting the requirements of the job.

The job description isn't a laundry list of tasks for each title or position. However, it contains the essential functions of each job and the qualifications necessary to perform those tasks.

Training and Coaching

An ideal performance management system provides training for supervisors who conduct employee evaluations. The training consists of techniques for giving complimentary as well as constructive feedback to employees, learning how to determine when disciplinary review is warranted and how to write up employees for disciplinary action.

In addition, supervisors learn how to evaluate employees objectively. Training for employees explains how their performance will be measured and evaluated, as well as what actions are subject to disciplinary review and the policies for receiving disciplinary counseling and notices.

Fair, Accurate and Timely

Performance appraisals – the annual evaluation of employee performance – must be accurate, fair and timely. Although supervisors and employees alike may dread the appraisal season, they may also look forward to know how well their performance ranks when compared to the employer's expectations.

A timely performance appraisal works to address problems and deficiencies before they become too serious, reports the Society for Human Resource Management. Likewise, employee performances worthy of commendation should be immediately recognized to reinforce the positive behavior and action.

Compensation Decisions

Employees generally want to know how their performance is connected to pay. This question often comes up during the interview stage, so it's an important factor for employees, especially workers who have become accustomed to extra rewards for their efforts.

Money isn't everything, but the whole purpose of a performance management system is to mobilize the energy of the employee toward the achievement of strategic goals. It's unavoidable that your performance management system has a tie-in with compensation, whether it's a certain percentage raise or wage hike based on the employee's level, effort or actual performance and productivity.

Chapter 1—Performance Management and Reward Systems in ContextMultiple-Choice Questions1All of the following are possible benefits of a performance management system EXCEPT:AProtection from lawsuitsBEmployees become more ethicalCEmployees become more competentDThe definitions of job and criteria are clarified

(Suggested points: 2, [1.3])2Which of the following does the text identify as a possible danger of a poorlyimplemented performance management system?(Suggested points: 2, [1.4])

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3Tangible returns include:ABase payBLearning opportunitiesCRespect from coworkersDNone of the above(Suggested points: 2, [1.6])4Relational returns include:AIncome protectionBRecognition and statusCChallenging workDB and C(Suggested points: 2, [1.6])5Pay that focuses on position and duties performed rather than on a specific individual’scontribution is called:

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