CAIIB · ABM

B Employee's feedback and reward system

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Q

What is the primary purpose of an employee feedback system in banking organizations?

A

The primary purpose is to provide employees with information about their performance relative to expectations, enabling improvement, development, and alignment with organizational goals.

Q

What is the difference between absolute and relative performance standards in employee appraisal?

A

Absolute standards measure against fixed criteria; relative ranks employees against peers.

Q

What is a 360-degree feedback system?

A

A 360-degree feedback system collects performance input from multiple sources including supervisors, peers, subordinates, and sometimes customers, providing a holistic view of an employee's competencies and behavior.

Q

What is the strictness error in performance appraisal systems?

A

Consistently rating employees lower than their actual performance deserves.

Q

What distinguishes formative feedback from summative feedback in HR management?

A

Formative feedback is ongoing and developmental, aimed at improving performance during a task or period, while summative feedback evaluates overall performance at the end of a defined period such as an appraisal cycle.

Q

What is the central tendency error in employee performance ratings?

A

Raters avoid extremes and cluster all ratings near the midpoint of scale.

Q

What is the role of Key Result Areas (KRAs) in employee performance feedback?

A

KRAs define the specific outcomes and responsibilities an employee is accountable for, serving as the basis against which performance is measured and feedback is structured during appraisal.

Q

What is the recency bias in performance appraisal and how does it affect outcomes?

A

Overweighting recent events and ignoring performance from earlier in the review period.

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