Chapter 1

Human Resources Management (HRM)

It is the process of managing human resources (human capital and intellectual assets) to

achieve an organizations objectives.

Why Study HRM?

Staffing the organization,

designing jobs and teams,

developing skillful employees,

identifying approaches for improving their performance, and

rewarding employee successes

Core Competencies

Integrated knowledge sets within an organization that distinguishes it from its competitors

and delivers value to customers.

Sustained competitive advantage through people is achieved if these human

resources:

Have value.

Are rare and unavailable to competitors.

Are difficult to imitate.

Are organized.

Overall Framework for Human Resource Management

The most pressing competitive issues facing firms:

Going global

Embracing new technology

Managing change

Managing talent, or human capital

Responding to the market

Containing costs

Globalization

The trend toward opening up foreign markets to international trade and investment

Impact of globalization on HRM

When managers talks about going global, they have to balance a complicated set of issues

related to different geographies, cultures, laws and business practice

Issues:

Identifying capable managers and workers

Developing foreign culture and work practice training programs.

Adjusting compensation plans for overseas work

Human Resources Information System (HRIS) (embarrassing new technology)

It is a computerized system that provides current and accurate data for the purposes of

control and decision making.

Benefits:

Store and retrieve of large quantities of data.

Combine and reconfigure data to create new information.

Institutionalization of organizational knowledge.

Easier communications.

Lower administrative costs, increased productivity and response times.

Types of Change

Technology and globalization are only two of the forces driving change in organization and

HRM

1. Reactive change

Change that occurs after external forces have already affected performance

2. Proactive change

Change initiated to take advantage of targeted opportunities

Managing Change through HR

To manage change, executives and managers have to:

envision the future,

communicate this vision to employees,

set clear expectation for performance, and

develop the capabilities to execute by recognizing people and move assets

Human Capital

It is the knowledge, skills, and capabilities of individuals that have economic value to an

organization.

Valuable because capital:

Is based on company-specific skills.

Is gained through long-term experience.

can be expanded through development

Responding to market

Total Quality Management (TQM)

A set of principles and practices whose core ideas include understanding customer needs,

doing things right the first time, and striving for continuous improvement.

Reengineering and HRM

Fundamental rethinking and radical redesign of business processes to achieve dramatic

improvements in cost, quality, service, and speed.

Requires that managers create an environment for change.

Depends on effective leadership and communication processes.

Requires that administrative systems be reviewed and modified.

Containing Costs

There are many ways to lower labor Cost like:

downsizing,

The planned elimination of jobs

Out sourcing

Contracting outside the organization to have work done that formerly was done by

internal employees

employee leasing,

Employees who are hired away by a vendor firm but continue to work in their original

jobs

productivity enhancement

Performance =f(M,E,A)

Managing Diversity

Being aware of characteristics common to employees, while also managing employees as

individuals

The primary business reasons for diversity management include

Better utilization of talent

Increased marketplace understanding

Breadth of understanding in leadership positions

Enhanced creativity

Increased quality of team problem-solving

Demographic and Employee Concerns

Demographic Changes

Diversity of back ground

Age distribution of employee

Gender distribution of work force

Rising level of education

Culture Changes

Employee rights

Concern for privacy

Changing attitude toward work

Balancing work and family

Responsibilities of the HR Manager

Advice and counsel

Internal (policies, labor agreement, past practices, and the needs of employee)

External (economic and employment data, legal issue, and the like)

Service (recruiting, selecting, testing, planning, and conducting training programs)

Policy formulation and implementation

Employee support

HR Competencies

Business mastery

HR mastery

Change mastery

Personal credibility

Chapter 3

What is a Job?

It is a group of related activities and duties.

What is a Position?

The different duties and responsibilities performed by only one employee.

What is Job Specification?

Statement of the needed knowledge, skills and abilities of the person who is to perform the

job.

What is Job Description?

Statement of the tasks, duties and responsibilities of a job to be performed.

HRM Functions

1. Recruitment

2. Selection

3. Training and Development

4. Performance Appraisal

5. Compensation Management

What is Job Analysis?

Is the process of obtaining information about jobs by determining what the duties or

activities or tasks of those jobs.

HR managers use the data to develop job descriptions and job specifications that

are the basis for employee performance appraisal and development.

The ultimate purpose of job analysis is to improve organizational performance

and productivity.

Essential Functions

Statements in the job description of job duties and responsibilities that is critical for success

of the job.

A job function is essential if:

The position exists to perform the function.

A limited number of employees are available to perform the function.

The function is specialized, requiring needed expertise or abilities to complete the job.

Performing Job Analysis

Select jobs to study

Determine information to collect: Tasks, responsibilities, skill requirements

Identify sources of data: Employees, supervisors/managers

Methods of data collection: Interviews, questionnaires, observation, diaries and

records

Evaluate and verify data collection: Other employees, supervisors/managers

Write job analysis report

Gathering Job Information

Interviews

Questionnaires

Observation

Diaries

Job analysis methods

Functional Job Analysis (FJA)

Quantitative approach to job analysis that utilizes a compiled inventory of the various

functions or work activities that can make up any job

Position Analysis Questionnaire (PAQ)

A questionnaire covering 194 different tasks that, by means of a five-point scale, seeks to

determine the degree to which different tasks are involved in performing a particular job

Critical Incident Method

Job analysis method by which job tasks are identified that is critical to job success.

The job analyst writes five to ten important task statements for each job under study

Task Inventory Analysis

An organization-specific analysis developed by identifyingwith the help of employees and

managersa list of tasks and their descriptions that are components of different jobs.

HRIS and Job Analysis

Human resource information systems (HRIS) and specialized software help automate job

analysis.

Analyze jobs and write job descriptions and job specifications based on those

analyses.

Combine job analysis with job evaluation and the pricing of organizational jobs.

Preparing the Job Description

Key Elements of a Job Description

Job Title

Indicates job duties and organizational level (it has psychological importance e.g. Sanitation

engineer and Garbage Collector, and it should provide some indication of the duties of

the job e.g. senior engineer and junior engineer)

Job Identification

Distinguishes job from all other jobs (it contains information of the department location,

reporting manager, how many employees performing the job and sometimes the payroll)

Essential Functions (Job Duties)

Indicate responsibilities entailed and results to be accomplished (should indicate the weight

or value of each duty and responsibilities and the tools to accomplish success)

Job Specifications

Skills required to perform the job and the physical demands of the job (the personal

qualifications an individual must possess)

Problems with job descriptions:

1. If they are poorly written, using vague rather than specific terms, they provide little

guidance to the jobholder.

2. They are sometimes not updated as job duties or specifications change.

3. They may violate the law by containing specifications not related to job success.

4. They can limit the scope of activities of the jobholder.

Job Design

An outgrowth of job analysis that improves jobs through technological and human

considerations in order to enhance organization efficiency and employee job satisfaction..

Basic Considerations of job design:

1. Organizational objectives (tasks and duties to be performed)

2. Industrial engineering considerations (efficient production process and work method

improvements)

3. Ergonomic concerns ( human capabilities and limitations)

4. Employee contributions ( work process improvements or enhanced, decentralized

decision making)

Increasing employee contribution to decision making offer a number of

advantages, including:

commitment to organizations goals,

consensus decision making and

Encouragement of a team approach to workplace tasks.

Here are some techniques to improve employee contribution:

Employee empowerment

Employee involvement groups

Employee teams

Job enrichment

Changes in job characteristics

Adjustments of traditional work schedules

Upward communication systems:

Suggestion system (covers methods and procedures, equipment design and safety

devices that help increase the efficiency of the organization)

Attitude survey (how employees feel about their jobs and wages and working

conditions)

Job Enrichment (Herzberg)

Enhancing a job by adding more meaningful tasks and duties (vertical expansion) to make

the work more rewarding or satisfying.

5 factors for enriching jobs:

1. Achievement

2. Recognition

3. Growth

4. Responsibility

5. Performance of the whole job versus only parts of the job

Job Characteristics Model (Hackman & Oldham):

It proposes that three psychological states of a jobholder result in improved work

performance and lower absenteeism and turnover;

1. Meaningfulness of work performed

2. Experience responsibility of outcomes

3. Having knowledge of the results

5 Core job dimensions to achieve these 3 psychological states:

1. Skill variety

2. Task identity

3. Task Significance

4. Autonomy

5. Feedback

Employee teams:

They are a logical outgrowth of employee involvement and the philosophy of empowerment.

Adjustments in work schedules

The compressed workweek:

The number of days in the work week are shortened by lengthening the number of hours

worked per day. E.g. four-day, forty-hour week (4/10 or 4/40)

Flextime:

It's called flextime or flexible working hours, permits the employees the option of choosing

daily starting and quitting times, provided they work a certain number of hours.

Job sharing:

The arrangement whereby two part-time employees perform a job that otherwise would be

held by one full time employee.

Telecommuting:

It is the use of microcomputers, networks and other communications technology to do work

at home that is traditionally done in the workplace.

Chapter 4

Human resource planning (HRP):

process of anticipating and making provision for the movement of people into, within, and

out of an organization.

Strategic Planning:

Procedures for making decisions about the organizations long-term goals and strategies

Organizational capability:

the capacity to act and change in pursuit of sustainable competitive advantage.

Strategic Human Resources Management (SHRM)

The pattern of human resources deployments and activities that enable an organization to

achieve its strategic goals

Strategy formulation: providing input as to what is possible given the types and

numbers of people available.

Strategy implementation: making primary resource allocation decisions about

structure, processes, and human resources.

Forecasting involves:

forecasting the demand for labor

forecasting the supply of labor

balancing supply and demand considerations

Forecasting demand for employee:

Forecasting the number and the type of people needed to meet organizational objectives.

There are two approaches for HR forecasting: qualitative and quantitative:

Quantitative approach: involves the use of statistical or mathematical techniques Ex. trend

analysis: quantitative approach to forecast labor demand based on organizational index such

as sales. Sales(in thousands)/sales per employee= HR demand.

Qualitative approach: qualitative approach to forecasting are less statistical attempting to

reconcile the interests, abilities and aspirations of individual employees with the current and

future needs of an organization.

Ex:

Management forecasts: are the opinions of supervisors, department managers, experts

about the organization future needs.

Delphi Technique: An attempt to decrease the subjectivity of forecasts by soliciting and

summarizing the judgments of a preselected group of individuals.. The final forecast

represents a composite group judgment.

Forecasting supply of employees.

Internal labor supply.

Staffing Tables

Markov Analysis

Skill Inventories

Replacement Charts

Succession Planning

Staffing tables: Graphic representations of all organizational jobs, along with the

numbers of employees currently occupying those jobs and future (monthly or yearly)

employment requirements.

Markov analysis: shows the percentage and actual number of employees who remain in

each job from one year to the next as well as the proportions of those who are promoted,

demoted, transferred or exit the organization.

Skill Inventories: Files of personnel education, experience, interests, skills, etc., that

allows managers to quickly match job openings with employee backgrounds.

Replacement Charts: Listings of current jobholders and persons who are potential

replacements if an opening occurs.

Succession Planning : The process of identifying, developing, and tracking key

individuals for executive positions.

External labor supply

When an organization lacks an internal supply of employees for promotion or when it is

staffing entry level positions managers must consider the external supply of labor, many

factors influence the labor supply including the demographic changes in population, national

and regional economics, educational level of work force, demand for specific employees

skills, population mobility and government policy.

Balancing demand and supply considerations

Organizational downsizing: when the organization has a surplus of employees in certain

areas they have to find ways to reduce head counts

Recruitment

Labor Market

Area from which applicants are to be recruited.

Tight market: high employment, few available workers

Loose market: low employment, many available workers

Factors determining the relevant labor market:

Skills and knowledge required for a job

Level of compensation offered for a job

Reluctance of job seekers to relocate

Ease of commuting to workplace

Location of job (urban or nonurban)

Sources of external recruiting:

Advertisements

Public employment agencies.

Private employment agencies.

Executive search firms

Educational institutions

Employee referrals

Unsolicited applications and resumes

Professional organizations

Labor unions

Temporary help agencies

Employees leasing

Yield Ratio

Percentage of applicants from a recruitment source that make it to the next stage of the

selection process.

Cost of Recruitment (per employee hired)

SC = source cost

AC = advertising costs, total monthly expenditure (example: $28,000)

AF = agency fees, total for the month (example: $19,000)

RB = referral bonuses, total paid (example: $2,300)

NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)

H = total hires (example: 119)

Realistic Job Previews (RJP)

Informing applicants about all aspects of the job, including both its desirable and undesirable

facets.

Recruiting within organization:

Advantages:

An organization can capitalize on its own investment it has made in recruiting,

selecting, training and developing its current employees.

Promotion serves to reward employees for past achievement and encourage them to

continue their effort.

Method of locating qualified job candidate:

Computerized record systems: Database systems containing the records and

qualifications of each employee that can be accessed to identify and screen candidates

for an internal job opening.

Job posting and bidding: Posting vacancy notices and maintaining lists of employees

looking for upgraded positions.

Limitations of recruiting from within:

Certain jobs at the middle and top level that require specialized training and

experience and cant be filled from within.

Some jobs require hiring individuals from outside who gained experience from other

employers.

Risk of employee cloning.

Attempt to gain secrets from competitors by hiring away their employees

Calculating Turnover and Absenteeism

H

NCRBAFAC

H

SC

Turnover rate

Computing Absenteeism Rates

Chapter 5

Selection

The process of choosing individuals who have relevant qualifications to fill existing or

projected job openings.

Selection Considerations

Person-job fit: job analysis identifies required individual competencies (KSAOs) for

job success.

Person-organization fit: the degree to which individuals are matched to the culture

and values of the organization.

Steps of the Selection Process

1- Completion of application form

2- Initial interview in HR department

3- Employment tests

4- Background investigation

5- Preliminary selection in HR department

6- Supervisory or team interview

7- Medical examination/ drug testing

8- Hiring decision

Obtaining Reliable and Valid Information

Reliability

The degree to which interviews, tests, and other selection procedures yield comparable data

over time and alternative measures.

Validity

Degree to which a test or selection procedure measures a persons attributes.

Approaches to validation

Criterion-related validity

Content validity

Construct validity

Criterion-related Validity

The extent to which a selection tool predicts, or significantly correlates with, important

elements of work behavior.

A high score indicates high job performance potential; a low score is predictive of low job

performance.

Types Of Criterion-related Validity

1. Concurrent Validity

The extent to which test scores (or other predictor information) match criterion data obtained

at about the same time from current employees.

High or low-test scores for employees match their respective job performance.

2. Predictive Validity

The extent to which applicants test scores match criterion data obtained from those

applicants/ employees after they have been on the job for some indefinite period.

A high or low-test score at hiring predicts high or low job performance at a point in time

after hiring.

3. Cross-validation

Verifying the results obtained from a validation study by administering a test or test battery

to a different sample (drawn from the same population).

Validity (or Correlation) Coefficient (r)

A number ranging from 0.00, denoting a complete absence of relationship, to 1.00 and to -

1.00, indicating a perfect positive and perfect negative relationship, respectively.

Content validity

The extent to which a selection instrument, such as a test, adequately samples the knowledge

and skills needed to perform a particular job.

Example: typing tests, drivers license examinations

Construct validity

The extent to which a selection tool measures a theoretical construct or trait.

Are difficult to validate

Example: creative arts tests, honesty tests

Sources of Information about Job Candidates

Application Forms

Online Applications

Biographical Information Blanks (BIB)

Background Investigations

Integrity and Honesty Tests

Graphology

Medical Examinations

Employment Tests

Interviews

Employment Test

An objective and standardized measure of a sample of behavior that is used to gauge a

persons knowledge, skills, abilities, and other characteristics (KSAOs) in relation to other

individuals.

Classification of Employment Tests

1- Cognitive ability tests

2- Personality and interest inventories

3- Physical ability tests

4- Job knowledge tests

5- Job sample tests

1. Cognitive Ability Tests

Aptitude tests

Measures of a persons capacity to learn or acquire skills.

Achievement tests

Measures of what a person knows or can do right now.

2. Personality and Interest Inventories

Big Five personality factors:

Extroversion, agreeableness, conscientiousness, neuroticism, openness to experience.

3. Physical Ability Tests

Must be related to the essential functions of the job.

4. Job Knowledge Tests

An achievement test that measures a persons level of understanding about a particular job.

5. Work Sample Tests

Require the applicant to perform tasks that are actually a part of the work required on the job

Interviewing Methods

1- The nondirective interview

2- The structured interview

3- The situational interview

4- The behavioral description interview

5- The panel interview

6- The computer interview

1. Nondirective Interview

The applicant determines the course of the discussion, while the interviewer refrains from

influencing the applicants remarks.

2. Structured Interview

An interview in which a set of standardized questions having an established set of answers is

used.

3. Situational Interview

An interview in which an applicant is given a hypothetical incident and asked how he or she

would respond to it.

4. Behavioral Description Interview (BDI)

An interview in which an applicant is asked questions about what he or she actually did in a

given situation.

5. Panel Interview

An interview in which a board of interviewers questions and observes a single candidate.

6. Computer Interview

Using a computer program that requires candidates to answer a series of questions tailored to

the job.

Answers are compared either with an ideal profile or with profiles developed on the basis of

other candidates responses.

7. Video interviews

Using video conference technologies to evaluate job candidates technical abilities, energy

level, appearance, and the like before incurring the costs of a face-to-face meeting.

Basic Approaches to Selection

1- Clinical (personal judgment) approach

2- Statistical approach

Compensatory Model

Permits a high score in one area to make up for a low score in another area.

Multiple Cutoff Model

Requires an applicant to achieve a minimum level of proficiency on all selection

dimensions.

Multiple Hurdle Model

Only applicants with sufficiently high scores at each selection stage go on to

subsequent stages in the selection process.

Chapter 6

Training

Effort initiated by an organization to foster learning among its members.

Tends to be narrowly focused and oriented toward short-term performance concerns.

Development

Effort that is oriented more toward broadening an individuals skills for the future

responsibilities

Phases of the System Approach

1- Conducting the needs assessment

2- Designing the training program

3- Implementing the training program

4- Evaluating the training program

Phase 1: Conducting the Needs Assessment

Organization Analysis

An examination of the environment, strategies, and resources of the

organization to determine where training emphasis should be placed.

Task Analysis

The process of determining what the content of a training program should be on

the basis of a study of the tasks and duties involved in the job.

Person Analysis

A determination of the specific individuals who need training.

Competency assessment

Analysis of the sets of skills and knowledge needed for decision-oriented and

knowledge-intensive jobs.

Phase 2: Designing the Training Program

a- Instructional objectives

b- Trainee readiness and motivation

c- Principles of learning

d- Characteristics of instructors

a. Instructional Objectives

Represent the desired outcomes of a training program

Provide a basis for choosing methods and materials and for selecting the means

for assessing whether the instruction will be successful.

b. Trainee readiness and motivation

Strategies for Creating a Motivated Training Environment:

Use positive reinforcement.

Eliminate threats and punishment.

Be flexible.

Have participants set personal goals.

Design interesting instruction.

Break down physical and psychological obstacles to learning.

c. Principle of learning

Focus on learning and transfer

1- Goal setting

2- Meaningfulness of presentation

3- Modeling

4- Individual differences

Focus on method and process

1- Active practice and repetition

2- Whole-versus-part learning

3- Massed-versus-distributed learning

4- Feedback and knowledge of progress

5- Rewards and reinforcement

d. Characteristics of Instructors

Knowledge of subject

Adaptability

Sincerity

Sense of humor

Interest

Clear instructions

Individual assistance

Enthusiasm

Phase 3: Implementing the Training Program

Training Methods for Non-managerial Employees

On-the-Job Training (OJT)

Apprenticeship Training

Cooperative Training, Internships, and Governmental Training

Classroom Instruction

Programmed Instruction

Audiovisual Methods

Computer-based Training and E-Learning

Simulation Method

On-the-job training (OJT)

Method by which employees are given hands-on experience with instructions from their

supervisor or other trainer.

Apprenticeship training

A system of training in which a worker entering the skilled trades is given thorough

instruction and experience, both on and off the job, in the practical and theoretical aspects of

the work.

Cooperative Training

A training program that combines practical on-the-job experience with formal educational

classes.

Internship Programs

Are jointly sponsored by colleges, universities, and other organizations that offer students

the opportunity to gain real-life experience while allowing them to find out how they will

perform in work organizations.

Classroom Instruction

Enables the maximum number of trainees to be handled by the minimum number of

instructors.

Blended learninglectures and demonstrations are combined with films, DVDs, and

videotapes or computer instruction.

Programmed Instruction

Referred to as self-directed learninginvolves the use of books, manuals, or computers to

break down subject matter content into highly organized, logical sequences that demand

continuous response on the part of the trainee.

Audiovisual Methods

Technologies, such as CDs and DVDs, are used to teach skills and procedures by illustrating

the steps in a procedure or interpersonal relations.

E-Learning

Learning that takes place via electronic media such web and computer-based training (CBT)

Allows the firm to bring the training to employees

Allows employees to customize their own learning in their own time and space

Simulation

The simulation method emphasizes realism in equipment and its operation at minimum cost

and maximum safety.

Used when it is either impractical or unwise to train employees on the actual equipment used

on the job.

Training Methods for Management Development

On-the-Job Experiences

Seminars and Conferences

Case Studies

Management Games

Role Playing

Behavior Modeling

Phase 4: Evaluating the Training Program

Reactions

Learning

Behavior

Results

Chapter 7

Performance Appraisal

A process, typically performed annually by a supervisor for a subordinate, designed to help

employees understand their roles, objectives, expectations, and performance success.

Purposes of Performance Appraisal

It gives the employee the opportunity to discuss performance regularly with their

supervisor.

Provides the supervisor with a mean to identify the strengths and weaknesses of an

employee.

Provides a format enabling the supervisor to recommend a specific program designed

to help an employee improve performance.

Provides a basis for salary recommendations.

Reasons Appraisal Programs Sometimes Fail

Manager lacks information concerning an employee's actual performance.

Standards by which to evaluate an employee's performance are unclear.

Manager does not take the appraisal seriously.

Manager is not honest during the evaluation.

Manager lacks appraisal skills.

Employee does not receive feedback.

Manager feel that little or no benefit will be delivered from the time and energy spent

in the process.

Manager dislike the face to face confrontation of appraisal interviews.

Performance Standards Characteristics

Strategic Relevance: Individual standards directly relate to strategic goals.

Criterion Deficiency: Standards capture all of an individuals contributions.

Criterion Contamination: Performance capability is not reduced by external factors-

factors outside an employees control can influence his or her performance.

Reliability (Consistency): Standards are quantifiable, measurable, and stable.

Sources of Performance Appraisal

Manager and/or Supervisor

Appraisal done by an employees manager and reviewed by a manager one level

higher.

Self-Appraisal

Appraisal done by the employee being evaluated, generally on an appraisal form

completed by the employee prior to the performance interview.

Subordinate Appraisal

Appraisal of a superior by an employee, which is more appropriate for

developmental than for administrative purposes.

Peer Appraisal

Appraisal by fellow employees, compiled into a single profile for use in an

interview conducted by the employees manager.

Team Appraisal

based on TQM concepts, that recognizes team accomplishment rather than

individual performance

Customer Appraisal

A performance appraisal that, like team appraisal, is based on TQM concepts

and seeks evaluation from both external and internal customers

Putting All Together : 360-Degree Appraisal

Providing the employee with an accurate view of their performance by getting

input from all angels: supervisors, peers, subordinates, customers and the like.

PROS of 360 degree appraisal

The system is more comprehensive in that responses are gathered from multiple

perspectives.

Quality of information is better. (Quality of respondents is more important than

quantity.)

It complements TQM initiatives by emphasizing internal/external customers and

teams.

It may lessen bias/prejudice since feedback comes from more people, not one

individual.

Feedback from peers and others may increase employee self-development.

CONS of 360 degree appraisal

The system is complex in combining all the responses.

Feedback can be intimidating and cause resentment if employee feels the respondents

have ganged up.

There may be conflicting opinions, though they may all be accurate from the

respective standpoints.

The system requires training to work effectively.

Employees may collude or game the system by giving invalid evaluations to one

another.

Appraisers may not be accountable if their evaluations are anonymous.

Training Performance Appraisers

Common rater-related errors:

Error of central tendency

Leniency or strictness errors

Similar-to-me errors

Recency errors

Contrast and halo errors

Error of Central Tendency

A rating error in which all employees are rated about average.

Leniency or Strictness Error

A rating error in which the appraiser tends to give all employees either

unusually high or unusually low ratings.

Recency Error

A rating error in which appraisal is based largely on an employees most recent

behavior rather than on behavior throughout the appraisal period

Contrast Error

A rating error in which an employees evaluation is biased either upward or

downward because of comparison with another employee just previously

evaluated.

Similar-to-Me Error

An error in which an appraiser inflates the evaluation of an employee because

of a mutual personal connection.

Rating Error Training

Observe other managers making errors

Actively participate in discovering their own errors

Practice job-related tasks to reduce the errors they tend to make

Feedback Skills Training

Communicating effectively

Diagnosing the root causes of performance problems

Setting goals and objectives

Performance Appraisal Methods

a. Trait Methods:

Graphic Rating Scale

Mixed Standard Scale

Forced-Choice

Essay

b. Behavioral methods:

Critical Incident

Behavioral Checklist

Behaviorally Anchored Rating Scale (BARS)

Behavior Observation Scale (BOS)

a. Trait Methods:

Graphic Rating-Scale Method

A trait approach to performance appraisal whereby each employee is rated

according to a scale of individual characteristics.

Mixed-Standard Scale Method

An approach to performance appraisal similar to other scale methods but based

on comparison with (better than, equal to, or worse than) a standard.

Forced-Choice Method

Requires the rater to choose from statements designed to distinguish between

successful and unsuccessful performance.

1. ______ a) Works hard _____ b) Works quickly

2. ______ a) Shows initiative _____ b) Is responsive to customers

3. ______ a) Produces poor quality _____ b) Lacks good work habits

Essay Method

Requires the rater to compose a statement describing employee behavior

b. Behavioral methods:

Critical Incident Method

Critical incident

An unusual event that denotes superior or inferior employee

performance in some part of the job

The manager keeps a log or diary for each employee throughout the

appraisal period and notes specific critical incidents related to how well

they perform.

Behavioral Checklist Method

The rater checks statements on a list that the rater believes are characteristic

of the employees performance or behavior.

Behaviorally Anchored Rating Scale (BARS)

Consists of a series of vertical scales, one for each dimension of job

performance; typically developed by a committee that includes both

subordinates and managers.

Behavior Observation Scale (BOS)

A performance appraisal that measures the frequency of observed behavior

(critical incidents).

Preferred over BARS for maintaining objectivity, distinguishing good

performers from poor performers, providing feedback, and identifying

training needs.

Results Methods

Evaluate employee accomplishments according to the results they achieve through their

work.

Productivity Measures

Appraisals based on quantitative measures (e.g., sales volume) that directly link

what employees accomplish to results beneficial to the organization. People are

evaluated on the basis of their sales volume or the number of units they produce

Criterion contamination

Focus on short-term results

Management by Objectives (MBO)

A philosophy of management that rates performance on the basis of employee

achievement of goals set by mutual agreement of employee and manager.