1. Paul L. Schumann, Ph.D. Professor of Management MGMT 440: Human Resource Management © 2008 by Paul L. Schumann. All rights reserved. 1

2.  Training & Development  Training Cycle ◦ Step 1: Needs Analysis (Needs Assessment) ◦ Step 2: Design & Develop Training Program ◦ Step 3: Deliver the Training ◦ Step 4: Training Evaluation 2

3.  What is training? What is development?  Training: enhances the capabilities of an employee to perform his or her current job ◦ Focuses on the current job  Examples for a bank teller:  Training program to correctly identify counterfeit currency  Training program in the bank’s new computer system used by tellers to process customer’s transactions 3

4. Development: enhances the capabilities of an employee to be ready to perform possible future jobs Focuses on future jobs Developmental education programs Examples for a bank teller: Bank sends the teller to a day-long workshop on “Emerging Issues in Finance & Banking” Bank pays for the employee to get his or her MBA degree Developmental job experiences Examples: job rotation or job enlargement Developmental interpersonal relationships Example: mentoring 4

5. Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 5

6.  Goal of needs analysis: Identify training needs  Summary of Needs Analysis: ◦ 3 Levels of Needs Analysis:  Organizational analysis  Job and task analysis  Individual analysis ◦ Training Objectives 6

7. 3 Levels of Needs Analysis: Organizational analysis: What are the training needs of the organization? What training will support the organization’s strategy? Example: Internal growth strategy (growth from new products or new markets) would be supported by training in: Creative thinking New product development Understanding & evaluating potential new markets Technical competence in jobs Example: What are the training needs for other strategies? Low-cost leadership, focused (niche) concentration, external growth (mergers & acquisitions), downsizing & divesting 7

8. 3 Levels of Needs Analysis (more): Organizational analysis (more) What training will support the organization’s culture, goals, & priorities? Some organization’s emphasize training more than others Learning organization: use training linked to strategic goals as a source of competitive advantage  Features: Learning culture, valuing employees, flexibility & experimentation, continuous learning, critical thinking, knowledge generation & sharing What’s your training budget? 8

9. 3 Levels of Needs Analysis (more): Organizational analysis (more) Use benchmarks of organizational health & success to identify training needs General examples: Headcount Productivity Costs Quality Specific examples for an airline: On-time rates Lost baggage rates Employee injury rates 9

10. 3 Levels of Needs Analysis (more): Job and task analysis: What are the training needs of each job in the organization? Examine the job descriptions: What tasks & duties are performed by each job? For each task: Do new hires already know how to perform the task or will they have to be trained? (Helps to identify training needs) What are the consequences of performing the task incorrectly? (Helps to set training priorities) Can the task be learned on the job, or should it be taught off the job? (Helps to identify training methods) 10

11.  3 Levels of Needs Analysis (more): ◦ Individual analysis: What are the training needs of each individual employee in the organization?  Examine each employee’s performance appraisal  Do certain employees, or groups of employees, have job performance that might be improved by training that is cost-effective? 11

12. Training Objectives: Use the 3 levels of needs analysis to establish the training objectives for the training program Training objectives answer the question: What will employees be able to do as a consequence of the training? Make the training objectives specific, concrete, & measurable Example for a bank teller training program in detecting counterfeit currency: Identify counterfeit currency correctly 100% of the time Example for a bartender training program on underage consumption: Check customer’s age, refuse service, and report attempts at underage consumption correctly 100% of the time 12

13. Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 13

14. 3 Stages of Learning: Design the training program to move employees up to Stage 3 Stage 1: Declarative knowledge (cognitive phase) Learn facts & concepts High demands on memory & attention Performance is slow & halting Errors are common Stage 2: Knowledge compilation (associative phase) Facts & behaviors get “chunked” into a routine Performance begins to improve Reduced concentration is required 14

15.  3 Stages of Learning (more): ◦ Stage 3: Procedural knowledge (autonomous phase)  Performance becomes automatic  Performance is fluid & correct  Little conscious concentration is required ◦ But if we want to design our training program to move the trainees up to Stage 3, how do we do that?  The answer involves putting together the following concepts 15

16.  Preconditions for learning: Design the training program to satisfy 2 key preconditions: ◦ Trainee readiness: What do the trainees already know?  We want to start the training program at the right level  We need to find out what they already know  Example: Does our newly hired bank teller know how to count money?  Design the training program to build on what the trainees already know 16

17. Preconditions for learning (more): Trainee motivation: Are the trainees motivated to learn? Involve employees in the needs analysis Show trainees how the training will enhance their job performance & their careers Use goal setting: Establish specific, concrete, & measurable training goals Make the goals difficult but achievable Set intermediate & end goals Build strong self-efficacy expectations: beliefs about success Persuasion: “You can do it!” Modeling: show trainees successful previous trainees Enactive mastery: lead trainees to early success in training 17

18. Practice: “practice makes perfect” One critical key to moving to Stage 3 of learning is providing the trainees with the right kinds of practice Take into consideration the task complexity: Simple task: practice the entire task Complex task: Break the complex task into simple pieces Practice each of the simple pieces As performance improves, combine the simple pieces and practice the entire complex task Distributed practice sessions work better than a massed practice session: spread the practice sessions out over multiple days with sleep between the practice sessions Overlearning is good: keep practicing well beyond the point of correct performance of the task 18

19. Knowledge of results: feedback is important Provide lots of feedback & encouragement, especially early in training Helps build self-efficacy expectations Guide the trainee to correct performance As performance improves, raise the performance level required for positive feedback Encourage the trainee to strive for better performance Show trainees how to evaluate their own performance Allows trainees to determine for themselves how they’re doing Gradually shift from trainer-provided feedback to the trainee’s own self-generated feedback Prepares the trainee to correctly use the training on the job without the close supervision of the trainers in the training program 19

20.  Overcome interferences: identify& resolve things that might interfere with learning ◦ Distractions in the training environment  Lighting problems  Noise problems  Temperature problems, etc. ◦ Bad habits that the trainees bring with them into training  Identify the bad habits of the trainees early in training  Correct the bad habits early in training so that the trainees practice the correct way, and not the wrong way 20

21.  Transfer of training: structure the training program to enhance the transfer of training from the training program back to the job ◦ Make the training setting similar to the work setting  Use the same equipment & processes in training that are used on the job ◦ Teach both tasks & principles  Both how to do the task and why it is done that way ◦ Overlearning is good: provide lots of practice ◦ Use a variety of job-relevant examples 21

22.  Transfer of training (more): ◦ Show the trainees the relevancy of the training to their jobs ◦ Build positive self-efficacy expectations ◦ Ask trainees to develop their own action plan with goals for how they will use the training on their jobs ◦ Relapse prevention: ask trainees to anticipate what might cause them to relapse to their bad habits, and to develop their own plans to avoid the relapse 22

23.  Transfer of training (more): ◦ Provide pre-planned opportunities for trainees to use their new skills on their jobs ◦ Supervisors and co-workers should support the new behaviors back on the job ◦ Train a team together as a team ◦ Give homework assignments that require trainees to apply what they are learning in training to their jobs ◦ Provide reminders (job aids) for trainees to take back with them to their jobs 23

24. Training Methods: decide which training method to use On-the-job training (OJT): training is at the actual work site using the actual work equipment Advantages: Enhances the transfer of training: the training setting and the work setting are the same May reduce costs: avoid the cost of a separate training facility Enhances trainee motivation: job-relevancy of training is more obvious to the trainees Disadvantages: May be disruptive to normal operations May have more distractions that interfere with learning May have safety concerns 24

25. Training Methods (more): Off-the-job training: training takes place off the job at a training facility designed for training Advantages: Avoids disruptions to normal operations Minimizes distractions Avoids safety concerns Disadvantages: Transfer of training may be more difficult due to differences between the training setting and the work setting Costs may be higher due to the cost of the training facility Trainee motivation may be reduced because the job- relevancy of the training is not as obvious 25

26.  Training Methods (more): ◦ Off-the-job training (more):  Off-the-job training techniques:  Lectures  Discussions  Cases  Role-plays  Simulations ◦ Example: How should we set up a training program for newly hired bank tellers to teach them how to do their job? On-the-job or off-the-job? 26

27. Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 27

28.  Deliver the training that was planned 28

29. Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 29

30. 4 Levels of Evaluation (Kirkpatrick, 1983) Level 1: Reaction: measure the satisfaction of the trainees with the training program Satisfaction questionnaire Level 2: Learning: measure how much the trainees have learned Written tests Performance tests Simulation tests Source of figure: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.4, p. 405 30

31. 4 Levels of Evaluation (more) Level 3: Behavior: measure the trainees’ job performance back on their jobs Performance appraisals Level 4: Results: measure the impact on the organization Profits Costs Productivity Quality Injury rates, etc. Source of figure: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.4, p. 405 31

32. Evaluation designs: when do you collect data on reactions, learning, behavior, and results? One-shot posttest-only design: measure when training is finished: TRAIN → MEASURE Makes sense for Level 1 (Reaction) Ask the trainees to complete the satisfaction questionnaire at the end of the training program But it’s a poor design for the other levels of evaluation There’s no comparison group We wouldn’t know if learning, behavior, and results have changed for the better because of the training program 32

33. Evaluation designs (more): One-group pretest-posttest design: measure both before and after training: MEASURE → TRAIN → MEASURE Compute the change in the measures: Learning: Did the percentage correct on the test go up? Behavior: Did the employee’s job performance improve? Results: Did the company improve (profits, costs, etc.)? Weakness: We’re not sure if the training is the only thing that might have caused the measures to improve There might be other things that happened at the same time as the training that also affects employee behavior (job performance) and corporate results (profits, etc.) 33

34. Evaluation designs (more): Pretest-posttest control-group design: compare the changes in a control group to the changes in the training group Control:MEASURE → NO TRAIN→ MEASURE Training:MEASURE → TRAIN→ MEASURE Randomly divide employees into 2 groups: Control group: does not get training Training group: does get training Measure learning, behavior, & results in both groups before and after training is provided to the training group Compute the changes in the measures for both groups Did the training group improve more than the control group? Learning (test scores), behavior (job performance), & results (profits, costs, etc.) This is the strongest evaluation design 34

35.  Example: Sales training program to help our salespeople increase sales ◦ Training Group: randomly select some of the salespeople to be in the training program ◦ Control Group: the other salespeople are in the control group that doesn’t receive training (at least initially) ◦ Level 1 Evaluation: Reaction  One-shot posttest-only design: administer in the training group at the end of the training a questionnaire that measures the satisfaction of the trainees with the training program 35

36. Example: Sales training (more) Level 2 Evaluation: Learning Pretest-posttest control-group design: Control:MEASURE → NO TRAIN→ MEASURE Training:MEASURE → TRAIN→ MEASURE Develop a test that measures the extent to which individuals have achieved the learning objectives of the training program Before providing the training to the training group, administer the test to both the control and the training groups After training the training group, administer the test to both the control and the training groups Compare the average change in the test scores in the control group to the average change in the test scores in the training group 36

37. Example: Sales training (more) Level 3 Evaluation: Behavior Pretest-posttest control-group design: Control:MEASURE → NO TRAIN→ MEASURE Training:MEASURE → TRAIN→ MEASURE Use the organization’s performance appraisal system to measure the job performance of the salespeople Example: amount of sales, customer satisfaction ratings, etc. Before providing the training to the training group, measure the job performance of each salesperson in both the control and the training groups After training the training group, measure the job performance of each salesperson in both the control and the training groups Compare the average change in the job performances in the control group to the average change in the job performances in the training group 37

38. Example: Sales training (more) Level 4 Evaluation: Results One-group pretest-posttest design: MEASURE → TRAIN → MEASURE Measure organizational results before training the training group Measure organizational results after training the training group Compute the change in organizational results Organizational results could include anything that the training might affect: profits, costs, productivity, injury rates, quality, employee morale, etc. Pretest-posttest control-group design might be possible if the organization has multiple business units Select some of the business units to be the training group that receives training initially 38

39. Source: Fisher, Schoenfeldt, & Shaw (2006), Figure 9.1, p. 377 39

40.  Training & Development  Training Cycle ◦ Step 1: Needs Analysis (Needs Assessment) ◦ Step 2: Design & Develop Training Program ◦ Step 3: Deliver the Training ◦ Step 4: Training Evaluation 40

41. 1 - 41

42. 1 - 42 1 1 Chapter Introduction: Training for Competitive Advantage

43. 1. Discuss the forces influencing the workplace and learning, and explain how training can help companies deal with these forces. 2. Discuss various aspects of the instructional system design model. 3. Describe the amount and types of training occurring in U.S. companies. 1 - 43

44. 4. Describe how much money is spent on training in U.S. companies and how the money is used. 5. Discuss the key roles and competencies required for training professionals. 6. Identify appropriate resources (e.g., journals, websites) for learning about training research and practice. 1 - 44

45.  Rosewood Hotels and Resorts, Kinko’s, and the Hard Rock Café illustrate how training can contribute to companies’ competitiveness.  Although they are in different types of businesses, they each have training practices that have helped them gain a competitive advantage in their markets. 1 - 45

46.  The training practices have helped Rosewood Hotels and Resorts, Kinko’s and the Hard Rock Café: ◦ Grow the business, and ◦ Improve customer service, by ◦ Providing employees with the knowledge and skills they need to be successful. 1 - 46

47.  Training refers to a planned effort by a company to facilitate employees’ learning of job-related competencies.  The goal of training is for employees to ◦ master the knowledge, skill, and behaviors emphasized in training programs, and ◦ apply them to their day-to-day activities 1 - 47

48. 1 - 48 Conducting Needs Assessment Ensuring Employees’ Readiness for Training Creating a Learning Environment Ensuring Transfer of Training Developing an Evaluation Plan Select Training Method Monitor and Evaluate the Program

49.  Training design is effective only if it helps employees reach instructional or training goals and objectives.  Measurable learning objectives should be identified before training.  Evaluation plays an important part in planning and choosing a training method, monitoring the training program, and suggesting changes to the training design process. 1 - 49

50.  Globalization  Need for leadership  Increased value placed on knowledge  Attracting and winning talent  Quality emphasis  Changing demographics and diversity of the work force  New technology  High-performance model of work systems 1 - 50

51.  Methods and processes are designed to meet the needs of internal and external customers.  Every employee in the company receives training in quality.  Quality is designed into a product or service so that errors are prevented from occurring, rather than being detected and corrected. 1 - 51

52.  The company promotes cooperation with vendors, suppliers, and customers to improve quality and hold down costs.  Managers measure progress with feedback based on data. 1 - 52

53.  Leadership 125 points  Information and Analysis 85 points  Strategic Planning 85 points  Human Resource Focus 85 points  Process Management 85 points  Business Results 450 points  Customer and Market Focus 85 points Total Points 1,000 1 - 53

54.  Communicating effectively with employees from a wide variety of backgrounds.  Coaching and developing employees of different ages, educational backgrounds, ethnicities, physical abilities, and races.  Providing performance feedback that is free of values and stereotypes based on gender, ethnicity, or physical handicap.  Creating a work environment that allows employees of all backgrounds to be innovative. 1 - 54

55. 1. Cost argument As organizations become more diverse, the cost of a poor job in integrating workers will increase. Those who handle this well will thus create cost advantages over those who don’t. 2. Resource- acquisition argument Companies develop reputations on favorability as prospective employers for women and minorities. Those with the best reputations for managing diversity will be the most attractive employers for women and minority groups. An important edge in a tight labor market. 3. Marketing argument The insight and cultural sensitivity that members with roots in other countries bring to the marketing effort should improve these efforts in important ways. 1 - 55

56. 4. Creativity argument Diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of creativity. 5. Problem-solving argument Heterogeneity in decisions and problem-solving groups potentially produces better decisions through a wider range of perspectives and more through critical analysis of issues. 6. System flexibility argument An implication of the multicultural model for managing diversity is that the system will become less determinant, less standardized, and therefore more fluid. The increased fluidity should create greater flexibility to react to environmental changes (i.e., reactions should be faster and cost less). 1 - 56

57.  Employees choose or select new employees or team members.  Employees receive formal performance feedback and are involved in the performance improvement process.  Ongoing training is emphasized and rewarded.  Rewards and compensation are linked to company performance. 1 - 57

58.  Equipment and work processes encourage maximum flexibility and interaction between employees.  Employees participate in planning changes in equipment, layout, and work methods.  Employees understand how their jobs contribute to the finished product or service. 1 - 58

59.  U.S. employers spend approximately $59 billion on formal training per year ◦ Approximately 1 to 2 percent of their payroll  Training Investment Leaders invest 3 to 5 percent of payroll in training ◦ They train almost all eligible employees ◦ Employees spend twice as much time training as those in Benchmark firms ◦ They make a larger investment in learning technologies. 1 - 59

60. RolesCompetencies Analysis/Assessment Role Industry understanding; computer competence; data analysis skill; research skill Development Role Understanding of adult learning; skills in feedback; writing, electronic systems, and preparing objectives Strategic Role Career development theory; business understanding; delegation skills; training and development theory; computer competence Instructor/Facilitator Role Adult learning principles; skills related to coaching, feedback, electronic systems, and group processes Administrator Role Computer competence; skills in selecting and identifying facilities; cost-benefit analysis; project management; records management 1 - 60

61. Jennifer Young Grant Thornton AFOA Conference Feb 2004 Calgary

62.  Human Resources Planning (in general)  HR Planning (in Aboriginal Communities)  Employee vs. Labour Relations  Training and Development  Occupational Safety & Health  Discipline, Grievance and Termination

63.  Job Descriptions  Performance Appraisals  Harassment  Organizational Charts & Governance Models  HR Management Information Systems  Leadership and employee motivation  HR Policy and Employee Handbooks  Hiring, pay & benefits (covered by Kathy Gaudry)

64.  Provide you with background information and a few key tools to take back to your communities  Best Practices and Options  Very brief overview of very complex area  Not a lawyer – presentation from perspective of HR Manager

66.  Planning HR Needs  Staffing organizations based on HR needs  Compensating and motivating employees  Appraising employee behaviour  Enhancing potential – training & development  Maintaining effective work relationships & work environment

68.  Entrepreneurial Strategy – high risk, short term  Dynamic Growth Strategy – balance between current work and potential future work  Extract Profit Strategy – focus on profit, cost cutting, frequent terminations  Liquidation Strategy – selling off assets, cutting further losses, workers a commodity  Turnaround Strategy – short term strategy for long term survival

69.  Preparation for Self Government – developing scope of skills required to manage all aspects of future government  Job Creation – only employer in town: lots of short term jobs rotated through portion of members  Economic Driver – supporting Economic Development Plan: nurturing business skills  Social Driver – supporting recovery and social wellbeing: nurturing counselling and cultural

70.  Linked to vision of community leaders and elders  Linked to reality of location – geography, rural/urban  Linked to resources – natural, financial, population size  Linked to previous & current investment in education

71.  In past, Band hiring was often directly linked to election cycle  However, employees tend to stay long after election and/or program runs out of money  Growing awareness of employee rights and employment standards  Few skilled and educated individuals available in some remote communities

72.  Articulate Vision and Long Term Strategy of Community; acknowledge political reality  Balance between long term vision and short term reality  Link HR with Education Committee Planning

74.  Non-unionized vs. Unionized  Employee Relations: (in general, the topics we are talking about during this workshop) covers overall management and balanced of employer and employee rights and responsibilities  Labour Relations: covered under collective agreements

75.  VERY CLEAR regulations in each province on how employer and employees can/must act during unionization process as well as during bargaining  Avoid – threats, reactionary firing, political positioning  Seek legal advice from Labour specialist  First Nations are currently targets of Labour Unions

76. Direct connection between employment/HR strategy and tendency of staff to want to Unionize  Breakdown in communication  Lack of clear vision or leadership  Taking away power from small group in effort to make system fairer – hiring decisions by policy/committee  Power = Money; Money = Power (Taking away an individual or groups ability to make money)

78. Enhancing Human Potential:  training and development  career management and planning Determining, defining and implementing a training & development program is key to increasing employee abilities & performance, as well as the community’s ability to be prepare to meet long term goals

79.  Balance between individual needs, departmental needs, and community needs  Long term vision vs. short term reality  Developing a Learning Culture  Job specific vs. culturally specific program (language training)  Requires Assessment of skills, knowledge and attitude of individuals and community to ensure efficient use of funds

80.  Conduct a needs analysis of organization and compare skills across group – develop training program based on organizational needs  Conduct individual skills assessment part of personal career planning. Link to organization by making training a condition of hire, pay increases, promotions

82.  The idea behind all OS&H programs is “to make the workplace as hazard free as possible”  OS&H policies articulate an interlocking set of rights and responsibilities on the part of the employee and the employer

83.  Canada Labour Code  Canada Occupational Safety and Health Regulations  Provincial legislation & regulations similar in all provinces but each has unique elements Note: Bands covered by federal code, but depending on set-up may also be required to meet provincial requirements

84. 1. OS&H committee or worker representative in place 2. OS&H training for all staff completed 3. OS&H program or policy written and in place 4. Injury reporting system in place 5. Early and safe return-to-work program or policy in place

85.  Key is not just written policy but all staff must be fully trained and aware of program/policy  Documentation of regular meetings, evaluations, reports must be kept  Most successful programs involve staff and in someway are staff driven

86.  In almost every province there are penalties for non-compliance  Ignorance not acceptable  Hazards can include such things as: building safety, electrical, emergencies, fire protection, lighting, materials handling, ventilation  Sometimes also linked to Harassment Policy

88.  Almost impossible to cover these topics in such a short time!  These topics should be understood from the perspective of: Maintaining a healthy and effective work environment and work relationships (carrot rather than stick)

89.  Before you can discipline, the employee needs to know what they were supposed to do and/or not supposed to do:  Job descriptions, OS&H policies, HR policy,…  Need to have clear process and policy for measuring performance (good and bad):  Performance Appraisal System

90.  Disciple problems often result of poor management, poor instructions, and/or inconsistency in application of policies  All policies and procedures must be followed consistently and fairly  Application of discipline must occur in a timely manner, too late to wait until annual review

91. Generally three stages (based on written/published policy that states authority to discipline and resulting action at each stage) 1. Verbal warning (with note put into employee file) 2. Written notice (original of letter given to employee, copy to file) 3. Written final notice (followed by immediate dismissal for cause)

92.  Recommended that the Manager inform HR Manager of discipline issue before first warning (if no HR Manager – Band Manager, CEO)  Sometimes HR Manager sits in on verbal warning but definitely for second and third warning – witness and record keeper

93.  Some policies allow employee to bring along a friend  not recommended; at least for first 2 stages. This is a matter between employee/employer and should not be confused with Grievance which is an employee/employee matter

94.  Some offences are cause for immediate dismissal and should not go through discipline process – ask lawyer  Conditions for “Dismissal with Cause” should be clearly stated in HR Policy

95.  Where discipline deals with an employee not meeting employer/employment standards; Grievance is designed to address a problem between two (or more) employees  The two employees can be co-workers (peer to peer) or subordinate to supervisor/manager

96.  Issues between employees and clients or outsiders generally, should be handled through a customer service policy  If however, an employee complains of outside treatment and nothing is done, the employee may Grieve the supervisors lack of response

97.  Like Discipline – need to have clearly stated policy and process for dealing with Grievance issues  Policy must protect subordinate from unfair treatment/ retribution as a result of filing a complaint  Policy must also protect accused of unfair/false claim

98. Policy should set out  Steps for hearing Grievance  Progression of hearing process  Who should be involved at each stage of process  Rights to external assessment/arbitration if internal process unsatisfactory

99.  With cause and without cause  Organizational restructuring  Loss of funding  Terms and conditions of employment contract  HR Policy …all will impact ability to terminate

101. Note: Grant Thornton offers a comprehensive three module - three week Aboriginal Human Resources Management Training Program: Developed for senior managers that have responsibility for HR issues working in Aboriginal or Band environment. Customized for and taught in your community. (See me for details)

102. Jennifer Young Senior Consulting Manager jenniferyoung@GrantThornton.ca 709-778-8820

103. 103

104. 104  System of review and evaluation of job performance  Assesses accomplishments and evolves plans for development

105. 105  Process that significantly affects organizational success  Managers and employees work together to set expectations, review results and reward performance.

106. 106  Strategic ◦ Aligning employee performance with organizational objectives  Administrative ◦ Making employment-related decisions  Developmental ◦ Aiding employee growth

107. 107  Performance appraisal process cuts into manager’s time  Experience can be unpleasant when employee has not performed well

108. 108  Creates anxiety for appraised employee Rationale for Performance Appraisal  Provides legal and other benefits for employers

109. 109  Conduct job analysis  Set performance standards  Appraise performance  Feedback information to employee

110. 110  Traits  Behaviors  Competencies  Goal Achievement  Improvement Potential

111. 111  Immediate supervisor  Subordinates  Peers  Rationale for evaluations conducted by team members  Self-appraisal  Customer appraisal

112. 112  Multi-rater evaluation  Input from multiple levels with firm and external sources  Focuses on skills needed across organizational boundaries  More objective measure of performance  Process more legally defensible

113. 113  Strategic congruence  Reliability  Validity  Acceptability  Specificity

114. 114  Prepared at specific intervals  Usually annually or semiannually  Period may begin with employee’s date of hire  All employees may be evaluated at same time

115. 115  Comparative ◦ Ranking (Simple, alternation) ◦ Forced distribution ◦ Paired comparison  Attribute ◦ Graphic rating scale  Behavioral ◦ Critical incidents ◦ BARS ◦ BOS  Results ◦ MBO  Quality

116. 116  Lack of objectivity  Halo error  Leniency/strictness  Central tendency  Recent behavior bias  Personal bias  Manipulating the evaluation

117. 117  Believe accurate ratings would have a damaging effect on subordinate’s motivation and performance.  Improve employee’s eligibility for merit raises.  Avoid airing department’s “dirty laundry.”  Avoid creating negative permanent record that might haunt employee in the future.  Protect good workers whose performance suffered because of personal problems.  Reward employees displaying great effort even when results were relatively low.  Avoid confrontation with hard-to- manage employees.  Promote a poor or dislike employee up and out of the department.  Scare better performance out of an employee.  Punish a difficult or rebellious employee.  Encourage a problem employee to quit.  Create a strong record to justify a planned firing.  Minimize the amount of merit increase a subordinate receives.  Comply with an organizational edict that discourages managers from giving high ratings. Inflating RatingsLowering Ratings

118. 118  Job-related criteria  Performance expectations  Standardization  Trained appraisers  Continuous open communication  Performance reviews  Due process

119. 119  With enactment of Americans with Disabilities Act and civil rights legislation, employers must prepare for more discrimination lawsuits and jury trials related to performance appraisals

120. 120  Scheduling the interview  Interview structure  Use of praise and criticism  Employees’ role  Use of software  Concluding the interview