Human Resource Management

ESSAY TEST:
3. Identify the five criteria for effective performance management systems.
Validity
It refers to the performance metric that evaluates all essential components of
performance. A performance metric must not be inadequate or polluted to be legitimate. The goal
of validity is to maximize the overlap between real work performance and the performance
metric.
Reliability
Consistency among those who evaluate an employee's performance is a crucial type of
reliability. The metric should be consistent throughout time. Test-retest reliability is defined as
the capacity of a measure to provide dramatically varied ratings depending on when it is
administered.
Acceptability
The acceptability of a performance metric relates to whether or not the people who use it
accept it. Many complex performance metrics are highly valid and dependable, yet they take up
so much time that managers refuse to use them. Those who are being assessed by a measure
may, on the other hand, refuse to accept it.
Specificity
It refers to the degree to which a performance metric informs employees about what is
expected of them and how they may fulfill those expectation. Specificity is necessary for
performance management's strategic and developmental goals. If a measure does not specify
what an employee must do to help the company achieve its goals, it does not accomplish its
strategic purpose.