An effective performance management system should:
A) be used only as an administrative tool.
B) be effective in documenting employee performance.
C) provide equal rewards to all employees.
D) avoid categorizing employees as high, average, and low performers.

Question

Quizplus · Accepted Answer

A performance management system should be effective in documenting employee performance, as this enables management to make informed decisions, provide feedback, and identify areas for improvement. It should not be used solely as an administrative tool, as this fails to address issues relating to employee performance. Similarly, providing equal rewards to all employees is not an effective approach, as it fails to recognize differences in employee contributions and may lead to a lack of motivation. Categorizing employees as high, average, and low performers is an important aspect of performance management, as it allows management to identify areas for improvement and provide targeted feedback and training.

An Effective Performance Management System Should