What is the process of setting goals, measuring progress, and rewarding or correcting employee performance called?

What is the process of setting goals, measuring progress, and rewarding or correcting employee performance called?

• A. Performance management
• B. Performance appraisals
• C. Pay range
• D. Parochialism

Answer: (A)

The concept being tested is performance management. It’s the ongoing, integrated process of setting goals, monitoring and measuring progress, and providing rewards or making corrections to how an employee performs. This approach ties individual efforts to organizational objectives and includes coaching, feedback, development planning, and appropriate consequences to drive improvement and recognition. Performance appraisals, by contrast, are the formal evaluations that often occur at a set point in time and summarize performance for a period rather than guiding ongoing behavior. A pay range is simply the compensation band for a role and doesn’t describe managing performance. Parochialism is a bias toward one’s own group and isn’t related to how performance is managed.

The concept being tested is performance management. It’s the ongoing, integrated process of setting goals, monitoring and measuring progress, and providing rewards or making corrections to how an employee performs. This approach ties individual efforts to organizational objectives and includes coaching, feedback, development planning, and appropriate consequences to drive improvement and recognition.

Performance appraisals, by contrast, are the formal evaluations that often occur at a set point in time and summarize performance for a period rather than guiding ongoing behavior. A pay range is simply the compensation band for a role and doesn’t describe managing performance. Parochialism is a bias toward one’s own group and isn’t related to how performance is managed.