This chapter covers performance management and appraisal and examines several essential management functions, such as motivation and incentive plans. Issues of errors and bias are also explored. It is imperative that managers know how to get the most out of their employees as well as how to properly assess their performance. This chapter will give an overview of the basics in each area.
After completing this chapter, the student should be able to
1. Understand common challenges in performance evaluation.
2. Understand and describe the impact of pay-for-performance plans.
3. Determine the type of performance management approach that is appropriate for his or her organization.