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Human Resource Management 9th Edition Stone Solutions Manual
Human Resource Management 9th Edition Stone Solutions Manual
Human Resource
th
Management, 9
edition
by Raymond J. Stone
Chapter 8
Appraising and managing performance
In-chapter Questions
Newsbreak
This question is subjective and will elicit varying responses, particularly if the students
have work experience and experience with receiving performance appraisals. Many of the
shortcomings listed in the article are things that most employees and managers would
recognise as problems with the current model of undertaking performance appraisals.
Students may agree with some of the points raised in the Five Conversations Framework
model that the author proposals, however, others may baulk at the six-month cycle that
the five conversations take place over.
2. What are some of the common sources of bias in performance appraisals? How might
these be overcome?
There are many sources of error in performance appraisal, most of which can result in
some form of bias. The most common are:
• management attitude;
• rater errors;
• the halo effect;
• central tendency;
• leniency/strictness bias;
• prejudice;
• the recency effect;
• the relationship effect;
• emphasis on subjective criteria.
© John Wiley & Sons Australia, Ltd 2017 Chapter 8 Appraising & managing performance 2
Human Resource Management, 9th edition
4. How can supervisors make their performance appraisal feedback sessions more effective?
5. Describe the preparation required of (a) the manager and (b) the employee before a
performance appraisal meeting.
• Review the employee’s job description to ensure that it is still accurate and that
nothing has been overlooked.
• Read the employee’s last performance appraisal report to refresh his or her memory
on key points and to identify areas of improvement and areas still requiring emphasis.
• Check the employee’s actual performance against the mutually agreed goals.
• Consult with other managers who have contact with the employee in the performance
of the job.
• Alert the employee well in advance about the forthcoming performance review
discussion so he or she can undertake the necessary preparation.
• List all key points to be discussed in the interview.
• Ensure that there is sufficient time available for the appraisal discussion and that there
are no interruptions.
The employee would also benefit from this type of preparation. They should also give
some thought to what they have achieved, what they need help with, and where they
© John Wiley & Sons Australia, Ltd 2017 Chapter 8 Appraising & managing performance 3
Human Resource Management, 9th edition
would like to head in the future. This will help them to put a positive spin on the
discussion and address their needs as well as the needs of the organisation.
6. Explain the use of MBO in performance appraisal and discuss its advantages and
disadvantages.
• Advantages
– easy to understand
– it is objective
– it involves the subordinate in the appraisal process
• Disadvantages
– time-consuming
– considerable effort to develop
– effectiveness may depend on national culture
– expensive
• Advantages: allows a company to use one rating system for all employees, which
allows the firm to rank or cross-reference all employees against one another; quicker
to fill in than paper versions; the data can be accessed whenever (24/7) and wherever
(via cloud-based storage systems); supervisors are able to be more critical in their
responses (which is often not the case in face-to-face appraisals) which can lead to
more honest, detailed, and useful appraisals.
• Disadvantages: impersonal in nature, especially if the employee receives the results
on his or her computer with no face-to-face explanation from a supervisor. Without
this personal interaction, a critical rating can seem much worse than the reviewer
intended, or alternatively, a serious problem might not come across that way to an
employee; if company files are hacked, the possible resultant data-sharing could lead
to an invasion of privacy and create liability for the company that administered and
kept them; commercially available appraisal programs that generate standardised
employee performance reports risk being overly general, repetitive, and uninspiring.
© John Wiley & Sons Australia, Ltd 2017 Chapter 8 Appraising & managing performance 4
Human Resource Management, 9th edition
• Deficiencies: can be met with considerable employee resistance, and are not suitable
for small companies (less than 100 employees) and those seeking to promote a
‘family culture’; they can erode trust and stimulate unhealthy competition and
infighting between employees.
Factors employees might consider when determining whether their performance appraisal
is fair or unfair include:
• management attitude;
• rater errors;
• halo effect;
• central tendency;
• leniency/strictness bias;
• prejudice;
• recency effect;
• the relationship effect.
Other rater-related errors are produced when the manager is subject to political
influences, or varies the ratings for a specific purpose, such as obtaining a salary increase
or promotion for a subordinate.
10. What is performance management? Why is it important? How does it differ from
performance appraisal?
Environmental influences
Describe the key environmental influences from the model (see figure 8.23) that have
significance for performance appraisal.
Figure 8.23 provides an insight into the impact of the external environment on the HRM
function in organisations. The HR manager must identify those external influences that will
impact on the organisation and the management of its human resources. Some of the major
influences existing outside of the organisation include:
• legal. Laws and regulations regarding hours of work, holidays, equal employment,
affirmative action, sexual harassment, workers’ compensation, health and safety, fringe
© John Wiley & Sons Australia, Ltd 2017 Chapter 8 Appraising & managing performance 5
Human Resource Management, 9th edition
benefits and terminations clearly impact on HRM. EEO, for example, has seen the
creation of new jobs such as sex equity expert, gender bias officer and harassment
facilitator.
• cultural. Historical background, ideologies, values, norms and language all influence
employee views on the role of HRM, EEO, job titles and specific aspects of HR such as
job tasks and duties, education, rewards and motivation and employee communications.
• social. Changing values and attitudes towards issues such as dress, work, minorities,
unions, management, social mobility, status, rewards, smoking, job security, quality of
life, employee privacy, sex roles and gay rights affect every aspect of HRM
• business. The degree of competition, industry size, takeover and merger activity, industry
characteristics, the nature of customers and suppliers, the nature of shareholders and
levels of activism and entry into foreign markets are some of the factors which influence
the acquisition, development, reward and motivation, maintenance and departure of an
organisation’s human resources.
Ethical dilemma
1. Who If you were Katie Angelli, chief human resources officer, how would you handle this
situation?
This will need to be handled very carefully. Whilst Angelli knows that the claims that
Mark Lucas is making are untrue, however, as Lucas has ‘evidence’ (secret recordings) of
selective conversations and meetings, Angelli will need to ensure that these secret
recordings are not leaked to the media or to other employees. From the case study, it is
not 100% clear whether Lucas is simply taking advantage of Ace International with the
payment of a $1 000 000 settlement (Joanna Hill, Angelli, Tina Wong, and Sam Goldberg
all seem to think he is) or whether Lucas genuinely feels like he has been discriminated,
bullied, and harassed by others in the workplace and is suffering from mental health
© John Wiley & Sons Australia, Ltd 2017 Chapter 8 Appraising & managing performance 6
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