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Managing Human Resources 16Th Edition Snell Solutions Manual Full Chapter PDF
Managing Human Resources 16Th Edition Snell Solutions Manual Full Chapter PDF
Managing Human Resources 16Th Edition Snell Solutions Manual Full Chapter PDF
A properly planned and effectively utilized performance appraisal program should contribute
to improved employee performance. In this chapter there is an extensive discussion of the
development of an appraisal program, including various sources of appraisal information. In
addition, several performance appraisal methods are described within the categories of trait,
behavior, and results approaches. A summary of the major strengths and weaknesses of
various appraisal techniques is shown in Figure 8.8. The section on feedback of appraisal has
been expanded with some practical suggestions for appraisal interviews. A section on improving
performance, which includes an examination of sources of ineffective performance, concludes the
chapter. We have found that performance appraisal is one of the functions that most concerns
managers and about which they often have many questions. In this chapter we attempt to bring
out the issues about which questions are frequently raised.
It is important for students to realize that training employees will not eliminate many of the
differences found among employees at the time they are hired. For this reason, performance
appraisal should be viewed as one of the important HR functions that can contribute to the
continuing development of the individual employee. The need for standards of satisfactory job
performance should be emphasized, particularly in this era of downsizing and restructuring.
From their own job experiences, students may be asked to list such criteria for various jobs. This
listing can give you an opportunity to point out those worker qualities that can be objectively
determined versus those that are subjectively determined. For example, the quantity of production
can be objectively determined, whereas employee cooperativeness is largely a matter of
subjective interpretation.
LEARNING OUTCOME 1 Explain what performance management is and how the establishment
of goals, ongoing performance feedback, and the appraisal process
are part of it.
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duplicated, or posted to a publicly accessible website, in whole or in part.
LEARNING OUTCOME 2 Explain the purposes of performance appraisals and the reasons they
sometimes fail.
LEARNING OUTCOME 4 Explain the various methods used to evaluate the performance of
employees.
LECTURE OUTLINE
I. PERFORMANCE MANAGEMENT SYSTEMS
• Performance appraisal is a process, typically delivered annually by a supervisor to a
subordinate, that is designed to help employees understand their roles, objectives, and
expectations when it comes to contributing to the firm’s success. In addition, new
employees are often put on probationary status for a period of time and evaluated 30,
60, or 90 days after being hired, with their continued employment contingent upon
their performing satisfactorily.
• Performance management is the process of creating a work environment in which
employees can perform to the best of their abilities.
• Performance appraisal programs and merit rating systems are not new or unique to
organizations. From their early use in the federal government, performance
appraisals have become a major activity of HRM.
• Mention that most successful organizations use performance appraisals as a basis for
HR activity. Mention that recent interest in teamwork, continuous improvement,
learning, and the like has caused many organizations to rethink their approach to
performance appraisals.
you wait to appraise your employees once or twice a year? Probably not. Most likely you
would want to monitor their sales on a weekly and monthly basis. Has a particular
salesperson met his or her customer-contact numbers this week? Why or why not? Is the
salesperson closing deals with the people he or she does contact? If at the six-month mark,
the salesperson isn’t making his or her goals, how can you help the person if you haven’t
provided the individual with ongoing feedback? The lack of sales will be hard to make up
at this point.
seeing and coordinating the appraisal program while other managers assist in
establishing objectives for the program.
• Studies have shown that employees have greater trust and respect for appraisal systems
when they participate in the development of the rating instrument.
A. What Are the Performance Standards?
Before managers can appraise the performance of employees, appropriate
performance standards must be established and communicated to employees. These
standards, or criteria, must be job-related requirements. Discuss the basic
considerations for establishing performance standards. Use Figure 8.4 in the textbook
for this discussion.
1. Strategic Relevance—This refers to how the appraisal standards relate to the
strategic objectives of the organization. A strategy-driven performance appraisal
process results in the documentation HR managers need to justify various training
expenses in order to close any gaps between, employees’ current skills and those
they will need in the future to execute the firm’s strategy.
2. Criterion Deficiency
• Performance standards must capture the full range of a person’s job. When
standards focus on only one element of the job (e.g., sales), they are likely
leave out important evaluation criteria.
• You may choose relate the concept of criterion deficiency to content validity
discussed in Chapter 6.
3. Criterion Contamination—Performance standards should not be influenced
by factors outside the employee’s control. For example, if bad materials or poor
equipment affects an employee’s performance, his or her performance standards
may be contaminated.
4. Reliability
• This refers to the stability or consistency of a standard, or the extent to which
individuals tend to maintain a certain level of performance over time.
• Stress that performance standards should be written and that they should be
defined in quantifiable and measurable terms.
• A new process some companies are using to make sure managers are rating
employees consistently is called calibration. During calibration meetings, a
group of supervisors, led by their managers and facilitated by an HR
professional, discuss the performance of individual employees to ensure all
managers apply similar standards to all of the firm’s employees. Calibration
meetings can be particularly helpful after a merger or acquisition, especially
one that’s global.
• Have students develop quantifiable and measurable performance standards
for the jobs of (1) college recruiter, (2) college teacher, (3) sales clerk,
(4) computer operator, and/or (5) bus driver.
100 Part 3: Developing Effectiveness in Human Resources
• Temporal errors (e.g., recency) are the result of how a person evaluates
information over time.
• Contrast error occurs when an employee’s evaluation is biased either
favorably or unfavorably because of a previous employee’s performance
evaluation.
• Similar-to-me error occurs when an appraiser inflates the evaluation of a
person with whom they have something in common.
• Discuss how various stereotypes held toward minorities and women may
affect their performance review.
3. Feedback Training
• Feedback not only provides employees with knowledge of results, but it also
allows the manager and employee to discuss current problems and set future
goals. Managers need to realize that employees want feedback. That is, they
want know how they are doing and how they can improve. They are less eager
to be appraised or judged.
• Refer to Highlights in HRM 1: Supervisor’s Checklist for the Performance
Appraisal in the textbook. This piece provides excellent points for
scheduling, preparing for the review, and conducting the performance review
with the employee.
unfavorable, selecting the one statement that best describes the employee’s
behavior. The manager selects the statement without knowing which statement
correctly describes successful job performance.
4. Essay Method
• The essay method of performance appraisal requires the supervisor to write
a statement that describes the employee’s behavior. Normally both strengths
and weaknesses are described, along with a plan for future employee
development.
• Have students discuss what they see as the advantages and weaknesses of
this appraisal method.
B. Behavioral Methods
1. Critical Incident Method—The critical incident method appraises employees
based on favorable or unfavorable critical incidents related to the job. Managers
keep a log on employees and note the critical incidents in the log as they occur.
Ask students to keep a list of favorable and unfavorable critical incidents of
students’ behavior in their various classes (without names). Discuss their entries in
class.
2. Behavioral Checklist Method—Checklists consist of groups of statements that
pertain to a given job. The rater checks those statements that apply to the ratee.
3. Behaviorally Anchored Rating Scale (BARS)
• A behaviorally anchored rating scale (BARS) is often mentioned as one
way to improve rating scales. It does this by providing a description of
behavior along the scale, or continuum. A BARS is based on critical incidents
of job performance. Normally, a BARS consists of a series of five to ten
vertical scales, one for each important dimension of job performance. High-
lights in HRM 4 in the textbook provides an example of a behaviorally
anchored rating scale for firefighters.
• While BARS instruments have been widely publicized as a more effective
way to appraise performance, at present there is no strong evidence that a
BARS reduces all of the rating errors mentioned earlier.
4. Behavior Observation Scales (BOS)—A behavior observation scale (BOS) is
similar to BARS but asks raters to evaluate how frequently each behavior has
been observed. In contrast to BARS, this approach allows the appraiser to play
more the role of observer than judge. Highlights in HRM 4 in the text-book show
an example of BOS for a sales representative.
C. Results Methods
1. Productivity Measures
• A number of measures can be used to assess results achieved. Salespeople,
for example, are evaluated based on sales volume. Production workers can be
evaluated based on output produced, scrap rate, defects, and the like.
104 Part 3: Developing Effectiveness in Human Resources
• There are a number of potential problems with output measures. Recall the
earlier discussion of criteria contamination and criteria deficiency.
2. Management by Objectives
• Developed by Peter Drucker in 1954, management by objectives (MBO) is a
philosophy of management as well as a goal-setting and performance
appraisal system. At periodic time intervals, employees set goals with their
supervisors and are evaluated against those goals on specified review dates.
Figure 8.7 in the textbook illustrates how performance appraisal functions under
an MBO program.
• Ask the class if anyone has worked or is currently working under an MBO
system. Have students explain the MBO process at their organizations.
a. Requirements for a Successful MBO Program
• To be successful, MBO programs must meet several characteristics.
Established goals should be quantifiable and set for both the long run and
the short run. Goals must be realistically set and under the employee’s
control. Managers and employees must establish specific times when goals
are to be reviewed and evaluated. Accompanying the goals should be a
detailed description of how the goals will be achieved.
• Advantages of MBO include the following: (1) employees can measure
their own performance; (2) quantifiable goals are set; (3) goal setting is a
joint effort between the employee and the manager; and (4) employees
have the satisfaction of achieving mutually established objectives.
b. Criticisms of MBO. The disadvantages of MBO include (1) some studies
show that MBO programs have achieved only mediocre success; (2) goals
may be unrealistically set; (3) employees and managers may not be fully
committed to the MBO process; and (4) some goals may be hard to quantify
but, nevertheless, are important to employee job success.
3. The Balanced Scorecard
• Developed by Harvard professors Robert Kaplan and David Norton, the
Balanced Scorecard (BSC), discussed initially in Chapter 2, is a measurement
framework that helps managers translate strategic goals into operational
objectives. The logic of the BSC is that learning and people management help
organizations improve their internal processes.
• Discuss with students the importance of not only measuring performance in
terms of bottom-line, but in long-term measures that may not provide
immediate benefits to the organization.
• Similar in some ways to MBO, the BSC enables managers to translate broad
corporate goals into divisional, departmental and team goals. Highlights in
HRM 5 shows an example of a personal scorecard used for this process.
Chapter 8: Performance Management and the Employee Appraisal Process 105
C. Improving Performance
Employees cannot improve their performance unless they know exactly what is
expected of them. Supervisors have the responsibility to inform employees of their
job standards at the start of the review period. By doing this, employees can adjust
their behavior to conform to performance criteria, and surprises can be avoided at the
appraisal interview.
1. Identifying Sources of Ineffective Performance
• Use Figure 8.9: Factors That Influence Performance and Figure 8.10:
Performance Diagnosis to talk about the major causes of ineffective job
performance, broken into three categories: (1) ability, (2) motivation, and
(3) environment. These ideas were first brought up in Chapter 1 under
discussions about productivity enhancement.
• It is recommended that ineffective employee job performance be diagnosed
according to three interactive factors: the employee’s skill, the employee’s
effort levels, and the external conditions surrounding the job.
2. Performance Diagnosis
• Although performance appraisal systems can often tell us who is not
performing well, they typically cannot reveal why. So, if someone is not
achieving desired results, it can be difficult to decide if it is due to ability,
motivation, or external constraints.
• It is thus important to compare various measures of performance to ensure
improvement. For example, if someone is demonstrating all the desired
behaviors but is not achieving the desired results, logic suggests that it may be
due to factors beyond his or her control.
3. Managing Ineffective Performance—A three-step process is recommended to
correct poor employee performance. First, identify the source of poor
performance. Second, develop a course of action to improve performance.
Third, motivate the employee to correct undesirable job behavior.
Performance Diagnosis
HRM EXPERIENCE
1. Noting that Carl works very hard on the gopher problem, this may offer a clue
that his problem is not motivation or external issues, but that he lacks the skills
to address the situation. A potential solution would be to offer training courses
on how to deal with the problem.
2. Clark may be having external problems at home (e.g., his wife’s sister-in-law
and their family have decided to visit and stay at the house for a whole month—
putting extra financial and emotional strain on Clark). Obviously, we cannot be
sure of the problems Clark is facing, but finding out why he feels so dejected
about the bonus may offer clues to his poor performance. If the problems are
108 Part 3: Developing Effectiveness in Human Resources
external, maybe offering some time off will help Clark work out his problems at
home so he can better accomplish his assignment at work.
5. Poor performance should be detected during the daily observation of employees. The major
factors that influence performance are listed in Figure 8.8 in the textbook.
Question:
Visit the website of the U.S. Office of Personnel Management and conduct a search of “360-
degree assessment” for the organization’s training assistance program. Review the
organization’s 360-degree feedback procedures and list the sources of feedback. What questions
are considered for each feedback source?
Answer:
The feedback sources included in OPM’s 360-feedback process include the following:
• Superiors
• Self-assessment
• Peers
• Subordinates
• Customers
For each feedback source, the following two questions are covered:
• “What does this rating source contribute?”
• “What cautions should be addressed?”
Source:
http://www.opm.gov/perform/wppdf/360asess.pdf
Question:
Visit the U.S. Army Research Institute and conduct a search of “behaviorally anchored rating
scales” (BARS). Provide a summary of how the U.S. Army has used BARS to assess tactical
thinking.
110 Part 3: Developing Effectiveness in Human Resources
Answer:
An ongoing need exists in the Army to enhance combat leaders’ tactical thinking skills. A
Tactical Thinking Behaviorally Anchored Rating Scale (T-BARS) was generated and inter-rater
reliability was established. Eight themes of tactical thinking identified in the “Think Like A
Commander” program of research and training formed the basis of the scales. These included:
• Know and Use All Assets Available
• Focus on the Mission and Higher’s Intent
• Model a Thinking Enemy
• Consider Effects of Terrain
• Consider Timing
• See the Big Picture
• Consider Contingencies and Remain Flexible
• Visualize the Battlefield
Interviews were conducted with Army officers with a range of operational experience to elicit
patterns of thinking and behaviors within a set of tactical exercises. Interview data were utilized
to generate behavioral indicators to populate the five levels of cognitive performance within the
T-BARS.
Source:
http://www.hqda.army.mil/ari/pdf/RR1854.pdf
Chapter 8: Performance Management and the Employee Appraisal Process 111
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