Organizational Behavior, 9/E

Schermerhorn, Hunt, and Osborn

Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

Chapter 8 Study Questions

What is goal setting?
What is performance appraisal?

What are compensation and rewards?

What are human resource

development and person-job fit?

Organizational Behavior: Chapter 8

Study Question 1: What is goal setting?

Organizational Behavior: Chapter 8

Study Question 1: What is goal setting?

Goal setting guidelines. Difficult goals are more likely to lead to higher performance than are less difficult ones. Specific goals are more likely to lead to higher performance than are no goals or vague or general ones. Task feedback, or knowledge of results, is likely to motivate people toward higher performance by encouraging the setting of higher performance goals.
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Study Question 1: What is goal setting?

Goal setting guidelines (cont.). Goals are most likely to lead to higher performance when the people have the abilities and the feeling of self-efficacy required to accomplish them. Goals are most likely to motivate people toward higher performance when they are accepted and there is commitment to them.

Organizational Behavior: Chapter 8

Study Question 1: What is goal setting?

Goal setting and MBO. Management by objectives (MBO) is a process of joint goal setting between a supervisor and a subordinate. MBO is consistent with the goal setting guidelines derived from the Locke and Latham model. MBO establishes performance goals consistent with higher level work unit and organizational objectives.
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Study Question 1: What is goal setting?

Organizational Behavior: Chapter 8

Study Question 1: What is goal setting?

Potential problems with MBO.
Too much paperwork. in documenting goals and

accomplishments.
Too much emphasis on:
Goal-oriented rewards and punishments. Top-down goals. Goals that are easily stated in objective terms.

Individual goals instead of group goals.

MBO may need to be implemented organization-wide.

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Study Question 2: What is performance appraisal?

Performance appraisal.
Helps both the manager and subordinate

maintain the organization-job-employee characteristics match

The process of systematically evaluating

performance and providing feedback upon which performance adjustments can be made.
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Study Question 2: What is performance appraisal?

Functions of performance appraisal. Define the specific job criteria against which performance will be measured. Measure past job performance accurately. Justify rewards, thereby differentiating between high and low performance. Define ratees needed development experiences.
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Study Question 2: What is performance appraisal?

Two general purposes of good

performance appraisal.
Evaluation.
Concerned with such issues as promotions,

transfers, terminations, and salary increases.

Feedback and development.

Let workers know their status relative to firms

expectations and performance objectives.

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Study Question 2: What is performance appraisal?

Who does the performance appraisal?
Traditionally done by ratees immediate

superior.
People other than immediate superior may

have better information on certain aspects of ratees performance.

360-degree evaluation provides appraisal

information from multiple perspectives.

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Study Question 2: What is performance appraisal?

Performance appraisal dimensions and

standards.
Output measures.
Quantity of work output.
Quality of work output.

Activity measures.
Behavioral measures that are typically obtained

from the evaluators observation and rating.

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Study Question 2: What is performance appraisal?

Comparative methods of performance

appraisal.
Ranking. Raters rank order people from best to worst. Paired comparisons. Raters compare each person with every other person. Forced distribution. Raters place a specific proportion of employees into each performance category.
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Study Question 2: What is performance appraisal?

Absolute methods of performance appraisal.
Graphic rating scales. Raters assign scores on a list of dimensions related

to high performance outcomes in a given job.

Critical incident diary records. Rater records incidents of unusual success or

failure in a given performance aspect.

Behaviorally anchored rating scales (BARS). Rater identifies observable job behaviors.
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Study Question 2: What is performance appraisal?

Absolute methods of performance appraisal

(cont.).
Behavioral observation scale (BOS).

Rater rates each observable job behavior on a five-

point frequency scale.

Management by objectives.

Jointly established goals used as standards against

which the subordinates performance is evaluated.

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Study Question 2: What is performance appraisal?

To be meaningful, an appraisal system must be:
Reliable provide consistent results across time. Valid actually measure people on relevant job

content.

Measurement errors can threaten the reliability or

validity of performance appraisals.

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Study Question 2: What is performance appraisal?

Measurement errors in performance appraisal. Halo errors. Raters evaluate on several different dimensions and give a similar rating for each dimension. Leniency errors. Raters tend to give everyone relatively high ratings. Strictness errors. Raters tend to give everyone relatively low ratings.
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Study Question 2: What is performance appraisal?

Measurement errors in performance appraisal

(cont.).
Central tendency errors. Raters lump everyone together around the average

or middle. Low differentiation errors. Raters restrict themselves to a small part of the rating scale. Examples include leniency, strictness, and central tendency errors.
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Study Question 2: What is performance appraisal?

Measurement errors in performance appraisal

(cont.).
Recency errors. Raters allow recent events to exercise undue

influence on ratings. Personal bias errors. Raters let personal biases, such as stereotypes, unduly influence the ratings. Cultural bias errors. Raters allow cultural differences of employees to influence the performance appraisal.
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Study Question 2: What is performance appraisal?

Ways to reduce rating errors in performance

appraisals.
Training raters to understand the evaluation process

and recognize errors. Ensuring that raters observe ratees on an ongoing basis. Not having the rater evaluate too many ratees. Ensuring the clarity and adequacy of performance dimensions and standards. Avoiding terms that have different meanings for different raters.
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Study Question 2: What is performance appraisal?

Guidelines for ensuring the legality of

performance appraisal systems.

Base appraisal on job requirements as

reflected in performance standards. Ensure that employees clearly understand the performance standards. Use clearly defined dimensions. Use behaviorally-based dimensions supported by observable evidence.
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Study Question 2: What is performance appraisal?

Guidelines for ensuring the legality of

performance appraisal systems (cont.).

Avoid abstract trait names. Ensure that scale anchors are brief and logically consistent. Ensure that the system is valid and psychometrically sound. Provide an appeal mechanism to handle appraisal disagreements.
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Study Question 3: What are compensation and rewards?

Pay as an extrinsic reward. Pay can help organizations attract and retain highly capable workers, and help satisfy and motivate these workers. High levels of job performance must be viewed as the path through which high pay can be achieved. Merit pay bases an individuals salary or wage increase on the persons performance.
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Study Question 3: What are compensation and rewards?

Pay as an extrinsic reward (cont.). Merit pay should be based on realistic and accurate measures of individual work performance. Some people argue that merit pay plans ignore the high degree of task interdependence among employees.

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Study Question 3: What are compensation and rewards?

Creative pay practices. Skill-based pay. Rewards people for acquiring and developing jobrelevant skills. Gain-sharing plans. Give workers an opportunity to share in productivity gains through increased earnings. Profit-sharing plans. Reward employees based on the entire organizations performance
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Study Question 3: What are compensation and rewards?

Creative pay practices (cont.). Employee stock ownership plans (ESOPs). Give company stock to employees or allow them to purchase it at a price below market value Lump-sum pay increases. Provide wage or salary increase in one or more lump-sum payments. Flexible benefit plans. Allow workers to select benefits according to their individual needs.
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Study Question 4: What are human resource development and person-job fit?
Human resource development (HRD) and

the person-job fit.

HRD and the person-job fit are key

contributing activities in performance management and rewards. Human resource strategic planning provides the foundation for HRD and the person-job fit. Staffing, training, and career planning and development are important functions in HRD and achieving a person-job fit.
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Study Question 4: What are human resource development and person-job fit?
Job analysis. The process and procedures used to collect and classify information about tasks the organization needs to complete. Identifies the worker characteristics needed to perform the job. Forms the basis for a job description and job specifications.
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Study Question 4: What are human resource development and person-job fit?
Recruitment.
The process of attracting the best qualified individuals

to apply for a given job.

Typical recruitment steps.
Advertisement of a position vacancy. Preliminary contact with potential job candidates. Preliminary screening to obtain a pool of candidates.

Recruitment approaches are external or internal.

Realistic job previews.
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Study Question 4: What are human resource development and person-job fit?
Selection. A series of steps from initial applicant screening to final hiring of the new employee. Selection process.

Completing application materials. Conducting an interview. Completing any necessary tests. Doing a background investigation. Deciding to hire or not to hire.
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Study Question 4: What are human resource development and person-job fit?
Socialization. Process that adapts employees to the organizations culture. Occurs during and after completion of the staffing process. Phases of socialization.
Anticipatory socialization. Encounter. Change and acquisition.
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Study Question 4: What are human resource development and person-job fit?
Training. A set of activities that provides the opportunity to acquire and improve job-related skills. Types of training.
On-the-job training involves job instruction while

performing the job in the actual workplace. Off-the-job training commonly involves lectures, videos, and simulations, and increasingly is done through e-training.
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Study Question 4: What are human resource development and person-job fit?

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34

Study Question 4: What are human resource development and person-job fit?
Adult life cycle and career stages. The different problems and prospects of the adult life cycle affect peoples work and careers. Career stages reflect the different responsibilities and achievements associated with peoples working lives. Life cycle and career stages. Entry and establishment or the provisional adulthood stage. Advancement or the first adulthood stage. Maintenance, withdrawal, and retirement or the second adulthood stage.
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