1. Define five criteria for measuring the effectiveness of a performance management system.
Performance measures should fit with the organization’s strategy by supporting its goals and culture. Performance measures should be valid, so they measure all the relevant aspects of performance. These measures should also provide interrater and test-retest reliability, so that appraisals are consistent among raters and over time. Performance measurement systems should be able acceptable to the people who use them or receive feed-back from them. Finally, a performance measure should specifically tell employees what is expected of them and how they can meet those expectations. 2. Describe the major methods for measuring performance and major source of performance information

Methods for measuring performance: * Making comparisons: the performance appraisal method may require the rater to compare one individual's performance with that of others. This method involves some form of ranking, in which some employees are best, some are average, and others are worst. The usual technical for making comparisons are simply ranking, forced distribution, and paired comparison. * Rating individuals: instead of focusing on arranging a group of employees from the best to worst, performance measurement can look each employee's performance relative to a uniform set of standards. The measurement may evaluate employees in terms of attributes (characteristics or traits) believes desirable. Or the measurements may identify whether employees have behaved in desirable ways, such as closing sales or completing assignment. For both approaches, the performance management system must identify the desired attributes or behaviors, then provide a form on which the manager can rate the employee in terms of those attributes or behaviors. Typically, the form includes a rating scale, such as a