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Unit 6: Performance ManagementStudy Guide Questions 1.What purposes does performance management serve?-The textbook notes that the purpose of performance management is to ensure that “employees’ activities and outputs contribute to the organization’s goals” (Steen et al., 2013, p. 174). This purpose is certainly consistent with the purpose of other HR functions that we have examined so far in the course. Evaluating and changing the behaviour of workers is a challenging process because relatively high stakes are involved for the organization and for the worker, and because performance assessment is subjective.-As with other HR functions, aligning employees’ activities and outputs can create resistance among employees. This suggests that in addition to considering the techniques of performance evaluation, it is useful to consider why and how employees may resist performance management and what happens when performance management is unsuccessful.-Performance management is the process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals. This process requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. In the course of providing feedback, managers and employees may identify performance issues and establishing ways to resolve those issues.-Effective performance management can tell top performers that they are valued, encourage communicationsbetween managers and their employees, and help the organization identify its strongest performers-According to the Hay Group, companies on its Global Most Admired list, which it prepares for Fortune magazine, have CEO’s who understand that performance measurement helps the organization motivate people and link performance to rewards.-Organization’s establish performance management systems to meet three broad purposes: strategic, administrative, and development (pg. 175)Strategic purposemeans effective performance management helps the organization achieve its business objectives. It does this by helping to link employees’ behaviour with the organization’s goals. Performance management can achieve its strategic purpose only when measurements are truly aligned with the organization’s goals and when the goals and feedback about performance are communicated to employees.Ex. A system where employees and managers meet to agree on several personal objectives through which each employee will help meet the objectives of his/her department. Together, they identify whatever training the employee needs and meet regularly to discuss the employee’s progress in meeting the objectivesThe administrative purposeof a performance management system refers to how organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Performance management can also support decisions making related to employee retention, termination for poor performance, and hiring or layoffs. Because performance