Organizational Behavior, 9/E Schermerhorn, Hunt, and Osborn Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

Organizational Behavior: Chapter 82 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 83 Study Question 1: What is goal setting?

Organizational Behavior: Chapter 84 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.

Organizational Behavior: Chapter 85 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 86 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.

Organizational Behavior: Chapter 87 Study Question 1: What is goal setting?

Organizational Behavior: Chapter 88 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.

Organizational Behavior: Chapter 89 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.

Organizational Behavior: Chapter 810 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 ratee’s needed development experiences.

Organizational Behavior: Chapter 811 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 firm’s expectations and performance objectives.

Organizational Behavior: Chapter 812 Study Question 2: What is performance appraisal?  Who does the performance appraisal? – Traditionally done by ratee’s immediate superior. – People other than immediate superior may have better information on certain aspects of ratee’s performance. – 360-degree evaluation provides appraisal information from multiple perspectives.

Organizational Behavior: Chapter 813 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 evaluator’s observation and rating.

Organizational Behavior: Chapter 814 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.

Organizational Behavior: Chapter 815 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.

Organizational Behavior: Chapter 816 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 subordinate’s performance is evaluated.

Organizational Behavior: Chapter 817 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.

Organizational Behavior: Chapter 818 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.

Organizational Behavior: Chapter 819 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.

Organizational Behavior: Chapter 820 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.

Organizational Behavior: Chapter 821 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.

Organizational Behavior: Chapter 822 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.

Organizational Behavior: Chapter 823 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.

Organizational Behavior: Chapter 824 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 individual’s salary or wage increase on the person’s performance.

Organizational Behavior: Chapter 825 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.

Organizational Behavior: Chapter 826 Study Question 3: What are compensation and rewards?  Creative pay practices. – Skill-based pay. Rewards people for acquiring and developing job- relevant 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 organization’s performance

Organizational Behavior: Chapter 827 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.

Organizational Behavior: Chapter 828 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.

Organizational Behavior: Chapter 829 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.

Organizational Behavior: Chapter 830 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.

Organizational Behavior: Chapter 831 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.

Organizational Behavior: Chapter 832 Study Question 4: What are human resource development and person-job fit?  Socialization. – Process that adapts employees to the organization’s culture. – Occurs during and after completion of the staffing process. – Phases of socialization. Anticipatory socialization. Encounter. Change and acquisition.

Organizational Behavior: Chapter 833 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.

Organizational Behavior: Chapter 834 Study Question 4: What are human resource development and person-job fit?

Organizational Behavior: Chapter 835 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 people’s work and careers. – Career stages reflect the different responsibilities and achievements associated with people’s 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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