9

Rater-related errors
- are biases or inaccuracies in the performance appraisal process that result from the
personal characteristics or subjective judgements of the raters.
- They can affect the validity and reliability of the performance ratings and undermine the
fairness and effectiveness of the performance management system.

 Some common types of rater-related errors are:

o Halo effect: The tendency to rate an employee high or low on all performance
dimensions based on a general impression of the employee.
o Horns effect: The opposite of the halo effect, where a negative impression of an
employee leads to low ratings on all performance dimensions.
o Leniency or strictness: The tendency to rate all employees either higher or lower than
their actual performance deserves.
o Central tendency: The tendency to avoid giving extreme ratings and rate all
employees near the middle of the scale.
o Recency effect: The tendency to base ratings on the most recent events or behaviors of
the employee, rather than the entire performance period.
o Similar-to-me effect: The tendency to give higher ratings to employees who are similar
to the rater in terms of demographic characteristics, personality, or attitudes.
o Contrast effect: The tendency to compare employees with each other, rather than with
the performance standards.

To reduce or prevent rater-related errors, HR managers can use various strategies, such as:
o Providing rater training to improve the knowledge and skills of the raters in conducting
performance appraisals.
o Using multiple raters to increase the diversity and objectivity of the feedback sources.
o Choosing appropriate performance appraisal methods that match the nature and goals
of the job and the organization.
o Communicating clear and specific performance standards and criteria to the raters and
the employees.
o Encouraging frequent and constructive feedback and dialogue between the raters and
the employees.

Job analysis
- is a systematic process used to identify and determine, in detail, the particular job duties
and requirements and the relative importance of these duties for a given job.
- It allows HR managers to understand what tasks people actually perform in their jobs and
the human abilities required to perform these tasks.
- Job analysis is the foundation for many HR activities, such as job design, recruitment,
selection, training, performance appraisal, compensation, and legal compliance.
Job analysis aims to answer questions such as:
 What are the specific elements of the job?
 What physical and mental activities does the worker undertake?
 When is the job to be performed?
 Where is the job to be performed?
 Under what conditions is it to be performed?
  Job analysis is the foundation for many HRM processes, such as recruitment, selection,
training, performance appraisal, and compensation.

Job evaluation
- is a process of determining the relative worth of different jobs within an organization. It
involves comparing jobs based on their content, context, and value to the organization.
- Job evaluation helps to establish a fair and equitable pay structure that reflects the internal
hierarchy and external competitiveness of the organization.

Job evaluation methods can be classified into two categories: quantitative and qualitative
- Quantitative methods assign numerical values to various job factors and then add them up
to obtain a total score for each job.
- Qualitative methods use a ranking or classification system to place jobs into groups or
grades based on their similarities and differences.
-

Job description
- is a written document that summarizes the main duties, responsibilities, and outcomes of
a specific job.
- It also includes information about the job context, such as the working conditions, reporting
relationships, and performance standards.
- Job description is an important tool for communicating the expectations and requirements
of the job to current and potential employees, as well as for evaluating their performance
and providing feedback.
- Job description is usually derived from the results of job analysis and is updated regularly to
reflect any changes in the job.
- It also serves as a basis for developing job specifications, performance standards, and
training programs.

Job specifications
- Job specifications are a list of the knowledge, skills, abilities, and other characteristics
(KSAOs) that an individual must have to perform a particular job.
- They are derived from the job analysis and are used to identify the minimum qualifications
and competencies required for the job.
- Job specifications help HR managers to screen and select the most suitable candidates for
the job, as well as to design and evaluate training and development programs.
- Job specifications can be divided into two types: essential and desirable.
 Essential specifications are those that are absolutely necessary for the job
 Desirable specifications are those that can enhance the performance or potential of the
employee.
Attrition Rate
- is the reduction in the number of employees through retirement, resignation or death.
- It can also be a deliberate strategy to improve organizational performance by not replacing
employees who leave and reassigning their work to other employees.
- To calculate attrition, divide the number of employees who left voluntarily by the average
number of employees in a given period. Then, multiply the result by 100 to get a
percentage. See below for the equation.
Attrition Rate = (Voluntary Departures ÷ Average Headcount) x 100
Turnover rate
- is the loss of employees who are replaced by new employees.
- It can be voluntary or involuntary, and it can have positive or negative effects on the
organization depending on the reasons and costs of turnover.
- To calculate turnover, divide the number of employees who left (voluntarily or involuntarily)
by the average number of employees in a given period. Then, multiply the result by 100 to
get a percentage. See below for the equation.
Turnover Rate = (Total Departures ÷ Average Headcount) x 100

Shrinkage rate
- is the difference between the number of employees that an organization needs and the
number of employees that it actually has at a given time.
- It can be caused by various factors, such as absenteeism, turnover, attrition, leaves of
absence, and changes in business demand.
- To calculate shrinkage, subtract the number of employees available from the number of
employees required. Then, divide the result by the number of employees required. Finally,
multiply the result by 100 to get a percentage. See below for the equation.
Shrinkage Rate = ((Employees Required - Employees Available) ÷ Employees Required) x 100

Piece rate
- is a method of compensation that pays employees based on the number of units they
produce or the number of tasks they complete.
- It can be used to motivate employees to increase their productivity and quality, as well as to
align their interests with the organization’s goals. T
- To calculate piece rate, divide the total pay by the number of units or tasks produced or
completed. See below for the equation.
Piece Rate = Total Pay ÷ Units or Tasks

Base pay
- is the fixed amount of money that an employee receives as compensation for performing
his or her job.
- It is usually determined by the value of the job in the market and the organization, as well as
the skills and experience of the employee.
- Base pay can be expressed as an hourly wage or a monthly or annual salary.
- Base pay is the most stable and predictable form of compensation for employees, and it
can also affect their motivation, satisfaction, and retention.

Performance pay
- is the variable amount of money that an employee receives as compensation for achieving
certain results or outcomes related to his or her job.
 - It is usually determined by the performance of the individual, the team, or the
organization, as well as the goals and standards set by the employer.
- Performance pay can be expressed as a bonus, a commission, a profit-sharing, a stock
option, or a merit pay.
- Performance pay is the most flexible and contingent form of compensation for employees,
and it can also influence their behaviour, productivity, and quality.

Indirect pay
- is the non-monetary benefit that an employee receives as part of his or her total
compensation package.
- It is usually determined by the policies and practices of the employer, as well as the needs
and preferences of the employee.
- Indirect pay can include health insurance, pension plan, vacation, sick leave, training,
education, or other perks.
- Indirect pay is the most diverse and comprehensive form of compensation for employees,
and it can also enhance their well-being, loyalty, and commitment.

Employer leasing
- A process that involves terminating employees who are then hired by a leasing company
(often a temporary help agency) and contracting with that company to lease back the
employees.
- This allows the original employer to reduce its payroll and benefits costs and transfer some
HR functions to the leasing company
Yield ratio
- A calculation of how many people make it through the recruiting step to the next step in the
hiring process.
- It is calculated by dividing the number of applicants who advance to a given stage by the
number of applicants who applied to the previous stage.
For example, if 100 applicants applied for a job, and 20 of them were invited for an interview, the
yield ratio for the interview stage is 20/100 = 0.2 or 20%.
- Yield ratio can help the organization evaluate the effectiveness and efficiency of its
recruitment sources and methods, as well as identify any potential problems or bottlenecks
in the selection process.

Selection ratio
- The proportion of applicants who are hired for a job.
- It is calculated by dividing the number of people hired by the total number of applicants.
For example, if 20 people are interviewed and 4 are hired, the selection ratio is 4/20 = 0.2 or
20%.
- A low selection ratio indicates a high level of competition and selectivity for a job.

BFOR
- A legal concept that allows employers to discriminate based on a prohibited ground of
discrimination, such as race, sex, or religion, if there is a legitimate and reasonable reason
that is connected to the ability to perform the job.
- For example, a firefighter may be required to meet certain physical fitness standards that
are necessary for public safety.
 - A standard or rule that is integral to carrying out the requirements of a specific position or
occupation. For example, a taxi driver must be able to see in order to drive safely and
transport passengers.
- The employer must establish that any accommodation or changes to the standard or rule
would create an undue hardship for the organization.
- A test that consists of three criteria to determine if a workplace standard or rule is a BFOR
and therefore not discriminatory:
 the standard is rationally connected to the performance of the job
 the employer adopted the standard in an honest and good faith belief that it was
necessary to accomplish a legitimate work-related purpose
 the standard is reasonably necessary to accomplish that purpose, and it is
impossible to accommodate the affected individuals without imposing undue
hardship on the employer

Stress- Any adjustive demand caused by physical, mental,or emotional

Eustress
- Positive stress that accompanies achievement and exhilaration
- is a positive form of stress that can motivate and energize employees to perform better and
achieve their goals.
- Eustress can occur when employees face challenging but manageable tasks, have a sense of
control and autonomy, receive feedback and recognition, and have opportunities for
learning and growth.
- Eustress can enhance employee well-being, creativity, and productivity.
- Some examples of eustress are completing a project successfully, receiving a promotion, or
learning a new skill.
Distress
- Harmful stress characterized by a loss of feelings of security and adequacy
- is a negative form of stress that can harm employees’ physical and mental health, reduce
their performance and satisfaction, and increase absenteeism and turnover.
- Distress can occur when employees face excessive or prolonged demands, have low or
conflicting expectations, lack resources or support, or experience unfairness or injustice.
- Distress can impair employee decision making, communication, and teamwork. Some
examples of distress are working long hours, dealing with difficult customers, or coping
with organizational change.

Stress is defined as any adjustive demand caused by physical, mental, or emotional factors that require
coping behaviour. Eustress is a positive stress that accompanies achievement and exhilaration, while
distress is harmful stress characterized by a loss of feelings of security and adequacy.

Chapter 12- Stress, distress and eustrees

1. Managerial, technical, or public contact jobs may all experience a kind of stress that usually
energizes them. What is this positive stress called?
a. eustress
b. pos-stress
c. distress
d. fight-or-flight stress
ANSWER: a
2. Mary is beginning to sense a loss of security and adequacy in her work at ABC Inc. What is it that
she is beginning to experience?
a. cumulative trauma disorders
b. distress
c. eustress
d. dysfunctional adaptation
ANSWER: b

3. What’s a key issue in the debate on drug testing in Canadian workplaces?

a. rewards for testing
b. what types of drugs to test for
c. who manages the testing
d. potential for privacy violations
ANSWER: d

4. What is burnout?
a. a severe stage of eustress
b. a mild stage of eustress
c. a severe stage of distress
d. a mild stage of distress
ANSWER: c

5. Cathy has been experiencing severe stress on the job, including depression, frustration, and a
loss of productivity. What is she most likely experiencing?
a. burnout
b. an alarm reaction
c. eustress
d. severe eustress
ANSWER: a

6. When are overachievers most likely to experience burnout?

a. when rewards are low
b. when the work is not sufficiently challenging
c. when unrealistic goals are unattainable
d. when work?0?life balance is achieved
ANSWER: c

7. Which of the following statements best describes job-related stress?

a. Burnout is the first stage of distress.
b. Stress that is harmful to some employees may be healthy for others and improve their
performance.
c. Providing music of any kind will help relieve stress.
d. Setting ever higher performance goals relieves employee stress by giving them self- esteem
about their ability to achieve goals.

ANSWER: b
9. Kent Factory Inc. is a sausage plant that has been receiving bad reports in the press related to its
health and safety problems. The reports are causing a loss in profits. Assume that you are the new HR
manager. Which of the following would be one of your first initiatives to deal with the problems?
a. fire the HR staff because they have been ineffective in dealing with the problems
b. alert the CEO that you are not a trained psychologist or a safety officer, so another department
should handle the issue
c. invite the press for a tour of the facilities
d. diagnose the cause of the problems and formulate a plan to deal with them
Answer: d

True or False
1. If at all possible, one should avoid stress. ANSWER: False
2. Stress is any demand on the individual that requires coping behaviour. ANSWER: True
3. Eustress is the feeling of euphoria one gets after a strenuous workout. ANSWER: False
4. Inadequate recognition for a job well done can be a major stressor. ANSWER: True
5. Burnout is an early stage of distress. ANSWER: False
6. Stress that is harmful to some employees may be healthy for others.ANSWER: True

Some of the common types of interviews:

Structured interviews:
- These are interviews that follow a predetermined set of questions that are asked to all
candidates in the same order and manner.
- The questions are usually based on the job analysis and the competencies required for the
position.
- The advantage of structured interviews is that they are more reliable, valid, and fair than
unstructured interviews.
- The disadvantage is that they may not allow for flexibility and probing of the candidates’
responses.
Unstructured interviews:
- These are interviews that do not follow a specific format or script.
- The interviewer can ask any questions that come to mind and vary the order and style of the
questions depending on the situation.
- The advantage of unstructured interviews is that they can be more conversational and
natural, and allow for more exploration of the candidates’ personality and fit. T
- The disadvantage is that they may be more prone to bias, inconsistency, and irrelevance
than structured interviews.
Behavioural interviews:
- These are interviews that ask candidates to describe how they handled specific situations or
tasks in their past work or life experiences.
- The premise of behavioural interviews is that past behaviour is the best predictor of future
behaviour.
- The advantage of behavioural interviews is that they can provide more evidence of the
candidates’ skills and abilities than hypothetical or general questions.
- The disadvantage is that they may not capture the candidates’ potential or adaptability to
new situations.
Situational interviews:
 - These are interviews that present candidates with hypothetical scenarios or problems that
they may encounter on the job and ask them how they would handle them.
- The advantage of situational interviews is that they can assess the candidates’ problem-
solving and decision-making skills, as well as their creativity and innovation.
- The disadvantage is that they may not reflect the actual situations or challenges that the
candidates will face on the job.
Stress interviews:
- These are interviews that deliberately create a stressful or uncomfortable environment for
the candidates, such as asking difficult or provocative questions, interrupting or criticizing
the candidates, or imposing time pressure or distractions.
- The purpose of stress interviews is to test the candidates’ ability to cope with stress and
pressure, as well as their emotional intelligence and resilience.
- The advantage of stress interviews is that they can reveal the candidates’ true personality
and reactions under stress.
- The disadvantage is that they may be unethical, unfair, and counterproductive, as they may
discourage or offend the candidates, or elicit negative emotions or behaviours that are not
indicative of their normal performance.

360 degree feedback system

- is a method of performance appraisal that involves collecting feedback from multiple
sources, such as supervisors, peers, subordinates, customers, and self.
- The purpose of this system is to provide a comprehensive and balanced view of an
employee’s strengths and weaknesses, as well as to identify areas for improvement and
development.
The benefits of this system include:
 increased accuracy
 validity
 reliability of performance ratings
 enhanced employee self-awareness and motivation
 improved communication and teamwork
 reduced bias and halo effect

The challenges of this system include:

 potential conflicts
 resentment
 defensiveness among raters and rates
 difficulty in interpreting and integrating feedback from different sources
 increased time and cost of administration
 possible legal and ethical issues

The best practices for implementing this system include:

 aligning it with the organization’s goals and values

 ensuring confidentiality and anonymity of feedback
 providing adequate training and support for raters and rates
 using multiple and diverse raters
 following up with action plans and coaching