Performance management is an important managerial tool that directs employees’ goals and behavior toward the organization’s strategic goals. This article focuses on simulation-based training in performance management systems. The simulation developed at the School of Business Administration of the College of Management in Israel is based on a typical life insurance firm. It is designed to promote understanding of the process of performance management. The simulation involves assessing performance of supervisors using multirater assessment and an organizational Balanced Scorecard. Student feedback showed that the simulation significantly enhanced the effectiveness of the performance-management teaching program.
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