CHAPTER 3: TRAINING AND DEVELOPMENT

CONTENTS
3.2. Performance Management and Appraisal
3.1. Training and developing
3.2.1. Basics of Performance Appraisal
Employees
3.2.2. Techniques for Apprising Performance
3.1.1. Orienting and Onboarding
New Employees 3.2.3. Dealing with Rater Error and Appraisal
Problems
3.1.2. Overview of the Training
3.2.3. Managing the Appraisal Interview
Process
3.2.4. Performance Management
3.1.3. Implementing the Training
3.3. Managing Careers and Retention
Program
3.3.1. Career Management
3.1.4. Implementing Management
Development Programs 3.3.2. Managing Employee Turnover and
Retention
3.1.5. Managing Organizational
3.3.3. Employee Life-Cycle Career Management
Change Programs
3.3.4. Managing Dismissals
3.1.6. Evaluating the Training Effort
OBJECTIVES OF 3.1
• Summarize the purpose and process of employee orientation.
• Give an example of how to design onboarding to improve employee engagement.
• List and briefly explain each of the steps in the training process.
• Explain how to use five training techniques.
• List and briefly discuss four management development methods.
• List and briefly discuss the importance of the steps in leading organizational change.
• Explain why a controlled study may be superior for evaluating the training program’s
effects
TRAINING DEVELOPMENT
3.1.1. Orienting and Onboarding New Employees
The Purposes of Employee Orientation/Onboarding
• provides new employees with the basic background information they need
to do their jobs;
• should also help them start becoming emotionally attached to and engaged
in the firm.
The manager:
1. Make the new employee feel welcome and at home and part of the team.
2. Make sure the new employee has the basic information to function
effectively (e-mail access, personnel policies and benefits, and expectations in
terms of work behavior)
3. Help the new employee understand the organization in a broad sense (its
past, present, culture, and strategies and vision of the future).
4. Start socializing the person into the firm’s culture and ways of doing things.
3.1.1. Orienting and Onboarding New Employees
The Orientation Process
The length of the orientation program depends on what you cover.
• The human resource specialist performs the first part of the orientation by
explaining basic matters like working hours and benefits.
• Then the supervisor continues the orientation by explaining the
department’s organization, introducing the person to his or her new
colleagues, familiarizing him or her with the workplace, and reducing first-
day jitters.
Note: The orientation should provide information on matters such a:
- employee benefits,
- personnel policies,
- safety measures and regulations,
- and a facilities tour; new employees should receive (and sign for) print or
Internet-based employee handbooks covering such matters.
3.1.2. Overview of the Training Process

Aligning Strategy and Training

• The employer’s strategic plans should govern its training goals
• The task is:
– to identify the employee behaviors the firm will need to
execute its strategy,
– and then from that deduce what competencies (for
instance, skills and knowledge) employees will need.
– Then, put in place training goals and programs to instill
these competencies
3.1.2. Overview of the Training Process

The ADDIE Five-Step Training Process

• The employer should use a rational training process.
• The gold standard here is still the basic analysis-design-develop-
implement-evaluate (ADDIE) training process model that training
experts have used for years.
As an example, one training vendor describes its training process as
follows:
- Analyze the training need.
- Design the overall training program.
- Develop the course (actually assembling/creating the training
materials).
- Implement training, by actually training the targeted employee group
using methods such as on-the-job or online training.
- Evaluate the course’s effectiveness.
3.1.2. Overview of the Training Process
Conducting the Training Needs Analysis
The training needs analysis may address the employer’s strategic/longer
term training needs and/or its current training needs.

Strategic Training Needs Analysis

Current Training Needs Analysis

Tasks Analysis For Analyzing new Employees’ Training Needs

Competency Profiles and Models in Training and Development

Performance Analysis: Analyzing Current Employees’ Training Needs

Can’t do/Won’t do
Conducting the Training Needs Analysis

• Strategic Training Needs Analysis:

- Strategic goals often mean the firm will
have to fill new jobs.
- identifies the training employees will
need to fill these future jobs
Conducting the Training Needs Analysis
• Current Training Needs Analysis
aim to improve current performance—specifically training new
employees, and those whose performance is deficient.
The main task for new employees is:
- to determine what the job entails and to break it down into
subtasks,
- each of which you then teach to the new employee.
Analyzing current employees’ training needs is more complex,
because:
- Must also ascertain whether training is the solution
Managers use task analysis to:
- identify new employees’ training needs, and performance
analysis to identify current employees’ training needs.
Conducting the Training Needs Analysis

• Task Analysis for Analyzing New Employees’ Training Needs

Task analysis is a detailed study of the job to determine what specific
skills (like reading spreadsheets for a clerk) the job requires.
- They list the job’s specific duties and skills, which are the basic
reference points in determining the training required.
- Managers also uncover training needs by reviewing performance
standards, performing the job, and questioning current jobholders
and their supervisors.
- Some managers supplement the job description and specification
with a task analysis record form.
Conducting the Training Needs Analysis

• Competency Profiles and Models in Training and Development

Competency model
A graphic model that consolidates, usually in one diagram, a precise
overview of the competencies (the knowledge, skills, and behaviors)
someone would need to do a job well.
- Many employers therefore design their training programs to
foster these competencies.
- With many competency-oriented training programs, trainees
don’t learn just by taking classes but through a mix of real-world
exercises, teamwork, and online resources, under a learning
coach; the aim is to show mastery of particular competencies
 Conducting the Training Needs Analysis
• Performance Analysis: Analyzing Current Employees’ Training Needs
Verifying that there is a performance deficiency and determining whether that
deficiency should be corrected through training or through some other means.
- begins with comparing the person’s actual performance to what it should be
- Ways to identify how a current employee is doing include:
- Performance appraisals
- Job-related performance data
- Observations by supervisors or other specialists
- Interviews with the employee or his or her supervisor
- Tests of things like job knowledge, skills, and attendance
- Attitude surveys
- Individual employee daily diaries
- Assessment center results
- Special performance gap analytical software
Conducting the Training Needs Analysis

• Can’t do/ Won’t do

The aim here is to distinguish between can’t-do and won’t-
do problems
- First, determine whether it is a can’t-do problem and, if
so, its specific causes
- it might be a won’t-do problem. Here employees could
do a good job if they wanted to
3.1.2. Overview of the Training Process
Designing the Training Program
Armed with the needs analysis results, the manager next designs the
training program.
• Design means planning the overall training program including training
objectives, delivery methods, and program evaluation.
• Sub-steps include setting performance objectives, creating a detailed
training outline, choosing a program delivery method, and verifying the
overall program design with management.
• The design should include summaries of how you plan to set a training
environment that motivates your trainees both to learn and to transfer
what they learn to the job.
• the manager reviews possible training program content (including
workbooks, exercises, and activities), and estimates a budget for the
training program.
• If the program is to use technology, the manager should include a
review of the technology he or she plans to use as part of the analysis
3.1.2. Overview of the Training Process
Designing the Training Program

Setting Learning Objectives

Creating a Motivational Learning Environment

Make the Learning Meaningful

Make Skills Transfer Obvious and Easy

Reinforce The Learning

Ensure Transfer of Learning to the Job

Other Training Design Issues

3.1.2. Overview of the Training Process
Developing the Program
- means actually assembling the program’s training content and
materials.
- means choosing the specific content the program will present, as well
as designing/choosing the specific instructional methods (lectures,
cases, Web-based, and so on) you will use.
- Training equipment and materials include:
- (for example) iPads, workbooks, lectures, PowerPoint slides, Web-
and computerbased activities, course activities, trainer resources
(manuals, for instance), and support materials
- Once you design, approve, and develop the program, management can
implement and then evaluate it:
- Implement means actually provide the training, using one or more
of the instructional methods (such as lectures) that we discuss
next
3.1.3. Implementing the Training Program
• On-the-job Training • Videoconferencing
• Apprenticeship Training • Computer-Based Training
• Informal Learning (CBT)
• Job Instruction Training • Simulated Learning and
• Lectures Gaming
• • Lifelong and Literacy
Programmed Learning
Training Techniques
• Behavior Modeling
• Team Training
• Audiovisual-Based Training
• Internet-Based Training
• Vestibule Training
• The virtual Classroom
• Electronic Performance
Support Systems (EPSS)
 ON THE JOB TRAINING

• On-the-job training (OJT) means having a

person learn a job by actually doing it.
– Every employee, from mailroom clerk to
CEO, should get on-the-job training when
he or she joins a firm.
– In many firms, OJT is the only training
available
 APPRENTICESHIP TRAINING
Apprenticeship training is:
• a process by which people become skilled
workers, usually through a combination of
formal learning and long-term on-the-job
training,
• often under the tutelage of a master
craftsperson.
 INFORMAL LEARNING
• Surveys estimate that as much as 80% of what
employees learn on the job they learn through
informal means
• including performing their jobs while interacting
every day with their colleagues.
For example, one Siemens plant places tools in
cafeteria areas to take advantage of the work-related
discussions taking place
 JOB INSTRUCTION TRAINING
• Many jobs (or parts of jobs) consist of a sequence of
steps best learned step-by-step.
• Such step-by-step training is called job instruction
training (JIT).
– First, list the job’s required steps (let’s say for using a
mechanical paper cutter) each in its proper sequence.
– Then list a corresponding “key point” (if any) beside
each step.
– The steps in such a job instruction training sheet show
trainees what to do, and the key points show how it’s
to be done—and why,
 LECTURES
• Lecturing is a quick and simple way to present knowledge to
large groups of trainees, as when the sales force needs to
learn a new product’s features.
• Here are some guidelines for presenting a lecture:
– Don’t start out on the wrong foot, for instance, with an
irrelevant joke.
– Speak only about what you know well.
– Give your listeners signals. For instance, if you have a list of
items, start by saying something like,“There are four
reasons why the sales reports are necessary…. The first….”
– Use anecdotes and stories to show rather than tell.,
– ……
 PROGRAMMED LEARNING
Programmed learning is a step-by-step, self-learning
method that consists of three parts:
1. Presenting questions, facts, or problems to the
learner
2. Allowing the person to respond
3. Providing feedback on the accuracy of answers,
with instructions on what to do next
 BEHAVIOR MODELING
• is one of the most widely used, well researched, and highly regarded psychologically
based training interventions.
• involves (1) showing trainees the right (or “model”) way of doing something, (2) letting
trainees practice that way, and then (3) giving feedback on the trainees’ performance.
• The basic procedure is as follows:
1. Modeling. First, trainees watch live or video examples showing models behaving
effectively in a problem situation. Thus, the video might show a supervisor effectively
disciplining a subordinate, if teaching “how to discipline” is the aim of the training program.
2. Role-playing. Next, the trainees get roles to play in a simulated situation; here they are to
practice the effective behaviors demonstrated by the models.
3. Social reinforcement. The trainer provides reinforcement in the form of praise and
constructive feedback.
4. Transfer of training. Finally, trainees are encouraged to apply their new skills when they
are back on their jobs.
 AUDIOVISUAL – BASED TRAINING
• Although increasingly replaced by Web-based
methods, audiovisual-based training techniques like
DVDs, films, PowerPoint, and audiotapes are still
used.
Example:
The Ford Motor Company uses videos in its dealer
training sessions to simulate problems and reactions to
various customer complaints.
 VESTIBULE TRAINING
• is necessary when it’s too costly or dangerous to train
employees on the job.
• trainees learn on the actual or simulated equipment but are
trained off the job (perhaps in a separate room or
vestibule).
Example:
Putting new assembly-line workers right to work could slow
production, and when safety is a concern—as with pilots—
simulated training may be the only practical alternative.
 EPSS
• Electronic performance support systems (EPSS) are
computerized tools and displays that automate training,
documentation, and phone support..
• Performance support systems are modern job aids.
– Job aids are sets of instructions, diagrams, or similar
methods available at the job site to guide the worker.
– Job aids work particularly well on complex jobs that
require multiple steps, or where it’s dangerous to
forget a step
 VIDEO CONFERENCING
• involves delivering programs over broadband lines,
the Internet, or satellite.
Examples:
Vendors such as Cisco offer videoconference products
such as Webex and TelePresence.
- Cisco’s Unified Video Conferencing (CUVC) product
line combines Cisco group collaboration and decision-
making software with videoconferencing, video
telephony, and realistic “TelePresence” capabilities.
COMPUTER – BASED TRAINING (CBT)
• Computer-based training refers to
training methods that use interactive
computer-based systems to increase
knowledge or skills.
 SIMULATED LEARNING AND GAMING
• “Simulated learning” means different things to different people.
– Virtual reality puts the trainee in an artificial three-
dimensional environment that simulates events and
situations experienced on the job.
– Sensory devices transmit how the trainee is responding to
the computer, and the trainee “sees, feels and hears” what is
going on, assisted by special glasses.
• Employers also increasingly use computerized simulations
(sometimes called interactive learning) to inject realism into their
training.
• Training simulations are expensive to create, but for large
companies the cost per employee is usually reasonable
 LIFELONG AND LITERACY TRAINING TECHNIQUES

• Lifelong learning means

– providing employees with continuing learning experiences
over their tenure with the firm,
– with the aim of ensuring they have the opportunity to learn
the skills they need to do their jobs and to expand their
horizons.
• Lifelong learning may thus range from basic remedial skills (for
instance, English as a second language) to college.
 TEAM TRAINING
• Teamwork does not always come naturally.
• Companies devote many hours to training new employees to listen to each
other and to cooperate.
• Many employers use team training to build stronger management teams
• Team training focused on technical, interpersonal, and team management
issues.
– In terms of technical training, for instance, management encouraged
team employees to learn each other’s jobs, to encourage flexible
team assignments
– interpersonal skills training such as in listening, handling conflict, and
negotiating
– team management skills, for instance, in problem-solving, meetings
management, consensus decision making, and team leadership, and
the teams received such training as well
 INTERNET – BASED TRAINING
• Employers use Internet-based learning to
deliver almost all the types of training we
have discussed to this point.
 THE VIRTUAL CLASSROOM
• A virtual classroom uses collaboration software to enable
multiple remote learners, using their PCs, tablets, or
laptops, to participate in live audio and visual discussions,
communicate via written text, and learn via content such
as PowerPoint slides.
• The virtual classroom combines the best of Web-based
learning offered by systems like Blackboard and WebCT
with live video and audio.
 3.1.4. Implementing Management
Development Programs
Management development is any attempt to improve managerial
performance by imparting knowledge, changing attitudes, or increasing
skills.
• includes in-house programs like courses, coaching, and rotational
assignments; professional programs like those given by SHRM; online
programs from various sources; and university programs like executive
MBAs.
• Management development is important for several reasons.
– For one thing, promotion from within is a major source of
management talent, and virtually all promoted managers require
some development to prepare them for their new jobs.
– Furthermore, management development facilitates organizational
continuity, by preparing employees and current managers to
smoothly assume higher-level positions.
 3.1.5. Managing Organizational Change
Programs
Companies often find it necessary to change how they do things.
• Making changes is never easy, but the hardest part is often overcoming
employee resistance.
• Individuals, groups, and even entire organizations tend to resist change,
because they are accustomed to the usual way of doing things or because of
perceived threats to their influence
For example:
Microsoft changed its CEO a few years ago, then reorganized, changed its strategy
to include supplying hardware (tablets, etc.) as well as software, and made other
personnel changes.
- As here, organizational change may impact a company’s strategy, culture,
structure, technologies, or the attitudes and skills of its employees.
 3.1.6. Evaluating the Training Effort
• There are several things you can measure:
– participants’ reactions to the program,
– what (if anything) the trainees learned from the program,
– and to what extent their on-the-job behavior or results changed
as a result of the program
• There are two basic issues to address when evaluating training
programs.
– One is the design of the evaluation study and, in particular,
whether to use controlled experimentation.
– The second is, “What should we measure?”
 3.1.6. Evaluating the Training Effort
Designing the Study
• In deciding how to design the evaluation study, the basic concern is
this:
“How can we be sure that the training (rather than, say, a company-wide
wage increase) caused the results that we’re trying to measure?”  The
time series design is one option
• Controlled experimentation is therefore the gold standard.
– A controlled experiment uses a training group and a control
group that receives no training.
– Data (for instance, on quantity of sales or quality of service) are
obtained both before and after one group is exposed to training
and before and after a corresponding period in the control group
 3.1.6. Evaluating the Training Effort
Training Effects to Measure
The manager can measure four basic categories of training outcomes
or effects:
1. Reaction. Evaluate trainees’ reactions to the program. Did they like
the program? Did they think it worthwhile?
2. Learning. Test the trainees to determine whether they learned the
principles, skills, and facts they were supposed to learn.
3. Behavior. Ask whether the trainees’ on-the-job behavior changed
because of the training program.
4. Results. Most important, ask, “What results did we achieve, in
terms of the training objectives previously set?”
 3.2. Performance Management and
Appraisal
3.2.1. Basics of Performance Appraisal
3.2.2. Techniques for Apprising Performance
3.2.3. Dealing with Rater Error and Appraisal Problems
3.2.3. Managing the Appraisal Interview
3.2.4. Performance Management
OBJECTIVES OF 3.2.
• Describe the performance appraisal process.
• Discuss the pros and cons of at least eight performance appraisal methods.
• Give examples of potential appraisal problems and how to deal with them.
• List steps to take in the appraisal interview.
• Explain key points in how to use the appraisal interview to boost employee
engagement.
• Explain how you would take a performance management approach to appraisal.
WHY APPRAISE PERFORMANCE?
WHAT IS PERFORMANCE APPRAISALS?
3.2.1. Basics of Performance Appraisal
Performance appraisal
- means evaluating an employee’s current and/or past performance
relative to his or her performance standards.
- also requires setting performance standards, and assumes that the
employee receives the training, feedback, and incentives required to
eliminate performance deficiencies.
Performance appraisal always involves the three-step performance
appraisal process:
(1) setting work standards;
(2) assessing the employee’s actual performance relative to those standards
(this often involves some rating form);
(3) and providing feedback to the employee with the aim of helping him or
her to eliminate performance deficiencies or to continue to perform
above par.
3.2.1. Basics of Performance Appraisal
Why Appraise Performance?
● First, most employers base pay, promotion, and retention decisions on
the employee’s appraisal.
● Appraisals play a central role in the employer’s performance
management process.
- Performance management means continuously ensuring that each
employee’s performance makes sense in terms of the company’s
overall goals.
● The appraisal lets the manager and subordinate develop a plan for
correcting any deficiencies, and to reinforce the subordinate’s strengths.
● Appraisals provide an opportunity to review the employee’s career
plans in light of his or her exhibited strengths and weaknesses.
● Finally, appraisals enable the supervisor to identify if there is a training
need, and the remedial steps required.
3.2.1. Basics of Performance Appraisal
Defining the Employee’s Goals and Performance Standards
The performance appraisal should compare “what should be”
with “what is.”
Performance appraisal and management is
- to decide what should be—in other words, to let employees
know what you expect of them in terms of performance
standards.
 Managers use one or more of three bases—goals, job
dimensions or traits, and behaviors or competencies—to
establish ahead of time what the person’s performance standards
will be.
3.2.1. Basics of Performance Appraisal
Who Should Do the Appraising?
• Appraisals by the immediate supervisor are still the heart of
most appraisal processes.
• Getting a supervisor’s appraisal is relatively straightforward and
makes sense.
• The supervisor is usually in the best position to observe and
evaluate the subordinate’s performance, and is responsible for
that person’s performance.
• The human resources department serves an advisory role.
• The human resource team should also train supervisors to
improve their appraisal skills, monitor the appraisal system’s
effectiveness, and ensure that it complies with laws.
• However, relying only on supervisors’ appraisals isn’t advisable.
 3.2.1. Basics of Performance Appraisal
Who Should Do the Appraising?
Peer Appraisals—appraisals by one’s peers—are therefore
increasingly popular.
• Typically, an employee due for a peer appraisal chooses an
appraisal chairperson.
• The latter (perhaps with the employee’s input) then selects a
supervisor and several peers to evaluate the employee’s work.
• Peer appraisals can be effective.
- One’s peers see aspects of the person that the boss may never
see, so peers’ opinions can be useful developmentally.
- Knowing your colleagues will appraise you can also change
behavior.
 3.2.1. Basics of Performance Appraisal
Who Should Do the Appraising?
Rating Committees A rating committee usually consists of the
employee’s immediate supervisor and three or four other supervisors.
Using multiple raters is advantageous.
- helps cancel out problems such as bias on the part of individual
raters.
- can also provide a way to include in the appraisal the different
facets of an employee’s performance observed by different
appraisers
 3.2.1. Basics of Performance Appraisal
Who Should Do the Appraising?
Self – Ratings
Some employers obtain employees’ self-ratings, usually in conjunction
with supervisors’ ratings.
The basic problem, of course, is that employees usually rate
themselves higher than do their supervisors or peers
 3.2.1. Basics of Performance Appraisal
Who Should Do the Appraising?
Appraisal by Subrodinates
Many employers have subordinates rate their managers, usually for
developmental rather than for pay purposes.
Anonymity affects the feedback.
- Managers who receive feedback from subordinates who identify
themselves view the upward feedback process more positively.
- However, subordinates who identify themselves tend to give
inflated ratings.
- The evidence suggests that upward feedback improves
 3.2.1. Basics of Performance Appraisal
Who Should Do the Appraising?
360-degree feedback
With 360-degree feedback, the employer collects performance
information all around an employee
—from his or her supervisors, subordinates, peers, and internal or
external customers
—generally for developmental rather than pay purposes.
The usual process is to have the raters complete online ratee appraisal
surveys.
 3.2.2. Techniques for Apprising Performance

• Graphic Rating Scale Method

• Alternation Ranking Method
• Paired Comparison Method
• Forced Distribution Method
• Critical Incident Method
• Narrative Form
• Behaviorally Anchored Rating Scales
• Mixed Standard Scales
• Management by Objectives
• Computerized and Web-based Performance Appraisail
• Electronic Performance Monitoring
• Conversation Days
• Appraisal in Practice: Using Multiple Methods
 Graphic Rating Scale Method

• is the simplest and most popular method for appraising

performance
• A scale that lists a number of traits and a range of performance
for each. The employee is then rated by identifying the score
that best describes his or her level of performance for each
trait.
 Alternation Ranking Method

Ranking employees from best to worst on a particular trait,

choosing highest, then lowest, until all are ranked.
• First, list all subordinates to be rated,
• And then cross out the names of any not known well enough to
rank.
• Then, on a form which indicate the employee who is the highest
on the performance dimension being measured and the one who
is the lowest.
• Then choose the next highest and the next lowest, alternating
between highest and lowest until all employees have been
ranked.
 Paired Comparison Method
The paired comparison paired comparison method
method makes the ranking Ranking employees by making a
method more precise. chart of all possible pairs of the
employees for each trait and
For every trait (quantity of
indicating which is the better
work, quality of work, and so
employee of the pair
on), you compare every
employee with every other
employee.
 Forced Distribution Method
forced distribution method
Similar to grading on a curve; predetermined percentages of ratees
are placed in various performance categories.
Examples:
GE used top 20%, middle 70%, and bottom 10% for its managers,
and most of the bottom 10% lost their jobs.
Forced distribution’s big advantage
 prevents supervisors from rating all or most employees
“satisfactory” or “high.”
 reflects the fact that top employees often outperform average or
poor ones by as much as 100%.
 Critical Incident Method

critical incident method

Keeping a record of uncommonly good or undesirable examples of
an employee’s work-related behavior and reviewing it with the
employee at predetermined times.
With the critical incident method, the supervisor keeps a log of
positive and negative examples (critical incidents) of a
subordinate’s work-related behaviors
 Narrative Form

• All or part of the written appraisal may be in narrative form.

• Here the person’s supervisor assesses the employee’s past
performance and required areas of improvement.
• The supervisor’s narrative assessment helps the employee
understand where his or her performance was good or bad, and
how to improve that performance.
 Behaviorally Anchored Rating Scales

behaviorally anchored rating scale (BArS)

An appraisal method that aims at combining the benefits of narrative
critical incidents and quantified ratings by anchoring a quantified
scale with specific narrative examples of good and poor performance.
 Behaviorally Anchored Rating Scales
Developing a BARS typically involves five steps:
1. Write critical incidents. Ask the job’s jobholders and/or supervisors to
write specific illustrations (critical incidents) of effective and ineffective
performance on the job.
2. Develop performance dimensions. Have these people cluster the
incidents into 5 or 10 performance dimensions, such as “salesmanship
skills.”
3. Reallocate incidents. To verify these groupings, have another team who
also knows the job reallocate the original critical incidents to the cluster
they think it fits best. Retain a critical incident if most of this second team
assigns it to the same cluster as did the first.
4. Scale the incidents. This second group then rates the behavior described
by the incident as to how effectively or ineffectively it represents
performance on the dimension.
5. Develop a final instrument. Choose about six or seven of the incidents as
the dimension’s behavioral anchors
 Mixed Standard Scales
• Mixed standard scales are somewhat similar to behaviorally
anchored scales.
• However they are called mixed scales because the employer
“mixes” together sequentially the good and poor behavioral
example statements when listing them.
• The aim is to reduce rating errors by making it less obvious to the
appraiser
(1) what performance dimensions he or she is rating;
(2) and whether the behavioral example statements represent high,
medium, or low performance.
 Management by Objectives (MBO)

• The term management by objectives (MBO) usually refers to a

multistep companywide goal-setting and appraisal program.
• MBO requires the manager to set specific measurable,
organizationally relevant goals with each employee, and then
periodically discuss the latter’s progress toward these goals
• Formal MBO programs require numerous time-consuming
meetings, and their use has diminished
 Management by Objectives (MBO)

1. Set the organization’s goals. Establish a company-wide plan for next year and
set goals.
2. Set departmental goals. Department heads and their superiors jointly set
goals for their departments.
3. Discuss departmental goals. Department heads discuss the department’s goals
with their subordinates and ask them to develop their own individual goals.
4. Define expected results (set individual goals). Department heads and their
subordinates set short-term performance targets for each employee.
5. Conduct performance reviews. After a period, department heads compare
each employee’s actual and expected results.
6. Provide feedback. Department heads hold periodic performance review
meetings with subordinates. Here they discuss the subordinates’ performance and
make any plans for rectifying or continuing the person’s performance.
 Computerized and Web-based Performance Appraisal

• Employers increasingly use computerized or Internet-based

appraisal systems.
• Most enable managers to compile computerized notes on
subordinates during the year, and then to merge these with
ratings for the employee on several performance traits.
• Most such appraisals combine several appraisal tools, usually
graphic ratings anchored by critical incidents
 Electronic Performance Monitoring

• Electronic performance monitoring (EPM) systems use

computer network technology to allow managers to monitor their
employees’ computers.
• They allow managers to monitor the employees’ rate, accuracy,
and time spent working online.
• EPM can improve productivity, but also seems to raise employee
stress
• Similarly, some employers digitally track workers’ performance
through wearables.
 Conversation Days
• When employees at Juniper Networks Inc. expressed concerns
about their annual performance reviews and the lack of positive
feedback, Juniper changed the process.
• Instead of once-a-year performance reviews, there are now
semiannual “conversation days.”
• The stress in these manager employee conversations is on
areas for improvement and growth, and on setting stretch
goals that align with the employee’s career interests.
• There are no explicit performance ratings.
• In 2015, GE similarly began experimenting with substituting
frequent conversations for traditional appraisals.
 Appraisal in Practice: Using Multiple Methods

• In practice, the rating form will probably

merge several approaches
 3.2.3. Dealing with Rater Error and Appraisal Problems

• In a perfect world, all employers would use performance appraisal systems

with clear goals, fair appraisals, swift feedback, and useful coaching.
• Graphic-type rating forms in particular are susceptible to several “rater
error” problems;
– unclear standards: An appraisal that is too open to interpretation
– halo effect: occurs when a supervisor’s rating of a subordinate on one
trait biases the rating of that person on other traits
– central tendency: rate all employees the same way, such as rating them
all average.
– leniency or strictness: occurs when a supervisor has a tendency to rate
all subordinates either high or low.
– and bias: The tendency to allow individual differences such as age, race,
and sex to affect the appraisal ratings employees receive.
3.2.3. Managing the Appraisal Interview
• The traditional periodic appraisal typically culminates in an
appraisal interview - An interview in which the supervisor and
subordinate review the appraisal and make plans to remedy
deficiencies and reinforce strengths
– Here the manager and the subordinate review the appraisal
and make plans to remedy deficiencies and reinforce
strengths.
– These interviews are often uncomfortable.
• Few people like to receive—or give—negative feedback.
 Adequate preparation and effective implementation are
essential
3.2.3. Managing the Appraisal Interview
• Supervisors face four types of appraisal situations, each with its unique
objectives:
– Satisfactory—Promotable is the easiest interview
– Satisfactory—Not promotable is for employees whose performance is
satisfactory but for whom promotion is not possible.
– When the person’s performance is unsatisfactory but correctable, the
interview objective is to lay out an action/development plan for
correcting the unsatisfactory performance.
– Finally, the interview where the employee is unsatisfactory and the
situation is uncorrectable may be particularly tense. Dismissal is often the
preferred option
How to conduct the Appraisal Interview
• Beforehand, review the person’s job description, compare
performance to the standards, and review any previous
appraisals.
• Give the employee at least a week’s notice to review his or
her work.
• Set a time for the interview.
– Interviews with lower-level personnel like clerical
workers should take less than an hour.
– Interviews with management employees often take 1 or
2 hours.
 Conduct the interview privately with no interruptions.
How to conduct the Appraisal Interview
Useful guidelines include:
1. Talk in terms of objective work data. Use examples such as
absences, tardiness, and productivity.
2. Don’t get personal.
- Need to compare the person’s performance to a standard.
- Don’t compare the person’s performance to that of other people
3. Encourage the person to talk. Stop and listen to what the person
is saying; ask open-ended questions
4. Get agreement. Make sure the person leaves knowing specifically
what he or she is doing right and doing wrong and with agreement
on how things will be improved, and has an action plan with targets
and dates
3.2.4. Performance Management

Some proponents of the total quality management (TQM)

movement even argued for eliminating performance appraisals
altogether.
Total quality management (TQM) programs are organization wide
programs that integrate all functions and processes of the business
(design, planning, production, distribution, and field service)
 aim to maximize customer satisfaction through continuous
improvements.
3.2.4. Performance Management

TQM programs are built on a philosophy encapsulated by

several principles:
- cease dependence on inspection to achieve quality;
- aim for continuous improvement;
- institute extensive training;
- drive out fear so that everyone may work effectively;
- remove barriers that rob employees of their pride of
workmanship
- and institute a vigorous program of self-improvement
3.2.4. Performance Management

performance management
The continuous process of identifying, measuring, and developing the
performance of individuals and teams and aligning their performance
with the organization’s goals.
Six basic elements of performance management:
● Direction sharing
● Goal alignment
● Ongoing performance monitoring
● Ongoing feedback
● Coaching and developmental support
● Recognition and rewards