Is Jennifer right about the need to evaluate the workers formally? Why or why not? If you think she is right, how do you explain away Mel's arguments?

Presentation

Training, Performance Evaluation, Change, and Fair Treatment

Employees are a significant resource for most companies.  As part of
managing these resources, training is an investment, and appraisals are
an evaluation of the application of the resources.  There are three
general kinds of training in organizations:  First, congruency and
clarity, helping employees to understand the company’s mission,
values, incentives and rewards.  Second, efficiency, which includes job
structures, work processes, procedures, practices, documentation and
standards. Third, resiliency and capability, which includes physical
facilities and space, physical strength, training and development of
specific job skills, and sufficient resources such as computers to
complete the work.

Everyday, managers are asked to evaluate the performance of their
staff.  Management wants better measures so they can decide who to
promote and how to reward performance fairly.  The lack of adequate
measures results in managers' having inadequate information to fairly
and accurately evaluate people's performance.  The irony is that people
measure one another all the time.  Performance measures communicate
what the organization values.  The appraisal process facilitates
communication about expectations, performance, and future growth. 
Everyone should have a formal written appraisal at least annually.

An effective five-step training and development process starts by first
understanding what are the needs or gaps in learning – this puts focus
on what type of training is necessary.  The instructional design is
critical, and should include multiple ways of learning the same
material, for example, audio, diagrams, and hands-on to learn mechanical
repairs.  Validation insures the training works, and allows for
adjustments prior to training events.  Implementation is the actual
training itself.  Last, use evaluation and follow-up to assess the
success of the program.  If the evaluation and follow-up are not going
to be done, training should not be made available.  It is a waste of
money to implement a training program and not know whether it was
successful.

Change is always a part of the business environment and brings about
organizational renewal.  How well a company adjusts to change
determines their long-term viability.  For example, the Penn Central
Railroad was one of the most successful of its time. Management saw
itself as a rail company, not a transportation company.  Had they
thought strategically, and seen themselves as a transportation company,
we would be flying on Penn Central today.  Business processes are
constantly changing and need to be re-evaluated in the context of where
the company is going, current technology, market changes, competition,
and cost efficiencies.  The human resources professional is now in the
role of internal consultant, conducting performance reviews,
organizational redesign, and recommending different alternatives to
staffing issues.

Careers are changing just as organizations are changing.  Futurists are
now saying we should expect to have 5-7 careers in a work life.  This
is the result of changes in jobs and working longer.  Today, many
professions get their "promotions" by changing companies with portal
pensions facilitating these career moves.  Companies can do a lot to
encourage employees to develop their skills, but the most important
element is the employee.

We all wanted to be treated fairly.  Fair treatment in the workplace
has the characteristics of respect, valuing, empowerment, and
responsibility.  When an organization dismisses an employee for poor
performance, it has the effect of affirming the fairness of the
organization. Organizations that "listen" to employees, through tools
like surveys and programs, are respecting them and at the same time are
getting insights that might be critical to the business's success.  In
one publishing company, the management empowered the production team to
set their own schedule.  Not only did they set a shorter schedule than
management had set formerly, but they met the shorter schedule.  This
is an example of what can happen when management empowers employees and
holds them responsible.



Activity

Performance Appraisal

Activity #1:

Performance appraisal means evaluating employee’s current or past
performance relative to the person’s performance standards. Appraisal
involves: 1) setting work standards; 2) assessing the employee’s
actual performance relative to these standards; and 3) providing
feedback to the employee with the aim of motivating that person to
eliminate deficiencies or to continue to perform above par.

Your textbook described several types of performance appraisals. Match
each the type of performance appraisal in the left column with its
description in the right column.

Graphic rating scale

Alternation ranking method

Paired comparison method

Forced distribution method

Critical incident method

Behaviorally anchored rating scale (BARS)

 

Management by objectives (MBO)

Ranking employees from best to worst on a particular trait, choosing
highest, then lowest, until all are ranked. (alternation ranking method)

Involves setting specific measurable objectives with each employee and
then periodically reviewing the progress made. (MBO)

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 performance for each trait. (graphic rating)

Ranking employees by making a chart of all possible pairs of the
employees for each trait and indicating which is the better employee of
the pair. (Paired comparison)

Similar to grading on a curve; predetermined percentages of ratees are
placed in various performance categories. (forced distribution)

An appraisal method that aims at combining the benefits of narrative and
quantified ratings by anchoring a quantified scale with specific
narrative examples of good and poor performance. (bars)

Keeping a record of uncommonly good or undesirable examples of an
employees work-related behavior and reviewing it with the employee at
predetermined times. (critical incident)

 

Answers:

Graphic rating scale - Ranking employees from best to worst on a
particular trait, choosing highest, then lowest, until all are ranked.
(alternation ranking method)

Alternation ranking method - An appraisal method that aims at combining
the benefits of narrative and quantified ratings by anchoring a
quantified scale with specific narrative examples of good and poor
performance. (bars)

Paired comparison method - Keeping a record of uncommonly good or
undesirable examples of an employees work-related behavior and reviewing
it with the employee at predetermined times. (critical incident)

Forced distribution method - 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 performance for each trait.
(graphic rating)

Critical incident method - Ranking employees by making a chart of all
possible pairs of the employees for each trait and indicating which is
the better employee of the pair. (Paired comparison)

Behaviorally anchored rating scale (BARS) - Similar to grading on a
curve; predetermined percentages of ratees are placed in various
performance categories. (forced distribution)

Management by objectives (MBO) - Involves setting specific measurable
objectives with each employee and then periodically reviewing the
progress made. (MBO)

Activity #2

Now consider the following case.

LearnInMotion.com: The Performance Appraisal

Jennifer and Mel disagree over the importance of having performance
appraisals. Mel says it’s quite clear whether any particular
LearnInMotion employee is doing his or her job. It’s obvious, for
instance, if the salespeople are selling, if the Web designer is
designing, if the Web surfer is surfing, and if the content management
people are managing to get the customers’ content up on the Web site
in a timely fashion. Mel’s position, like that of many small-business
managers, is that “we have 1,000 higher-priority things to attend
to” such as boosting sales and creating the calendar. And in any case,
he says, the employees already get plenty of day-to-day feedback from
him or Jennifer regarding what they’re doing right and what they’re
doing wrong.

This informal feedback notwithstanding, Jennifer believes that a more
formal appraisal approach is required. For on thing, they’re
approaching the end of the 90-day “introductory” period for many of
these employees, and the owners need to make decisions about whether
they should go or stay. And from a practical point of view, Jennifer
just believes that sitting down and providing formal, written feedback
is more likely to reinforce what employees are doing right, and to get
them to modify what they might be doing wrong. “Maybe this is one
reason we’re not getting enough sales,” she says.

Before you can help solve Mel and Jennifer’s problem, consider the
following question.

What is the purpose of a performance appraisal?

Answer:

The purpose of a performance appraisal is to provide employees with
feedback on how they are doing, as well as give them an opportunity to
give feedback. There are 4 reasons for appraising performance: 1)
appraisals provide information upon which promotion and salary decisions
are made; 2) they provide an opportunity for you and your subordinate to
review his or her work-related behavior; 3) it provides an opportunity
to review the subordinate’s career plans in light of his or her
strengths and weaknesses; and 4) they help you better manage and improve
your firm’s importance.

Several problems can occur during the appraisal process. Take a look at
the following scenarios. Determine what type of appraisal problem is
being described and indicate how this problem can be avoided.

You are the HR Director of a medium-sized computer software company. You
have received several complaints from employees about how they were
rated by certain managers.

Scenario 1: JoEllyn Kelly argues that her manager does not like her,
therefore she received a poor evaluation. After discussing the issue
with JoEllyn and her manager, you discover that while JoEllyn is a good
worker, she does not get along well with others.

What type of appraisal error is being described here? How can it be
avoided in the future?

Answer:

This scenario is describing the halo effect. Because JoEllyn is
unfriendly, she is being rated lower on all traits, rather than just for
the trait “gets along well with others.” Being aware of this problem
is a major step toward avoiding it. Supervisory training can also
alleviate this problem.

Scenario 2: Jeff Beyer is very angry at the evaluation he received from
his manager. In his opinion, he is the hardest and best worker on the
team. However, he received the same or similar evaluations as did his
co-workers.

What type of appraisal error could this be? How can it be avoided in the
future?

Answer:

This scenario is describing central tendency. Some supervisors stick to
the middle when filling in rating scales. This may distort evaluations,
making them less useful for promotion, salary, or counseling purposes.
Ranking employees instead of using graphic rating scales can reduce this
problem, since ranking means you can’t rate them all average.

Scenario 3: Jennifer Barrett is arguing that she was evaluated poorly
because she and her manager had different ideas about the definitions of
performance. For instance, she said that her manager rated her
“fair” at “quantity of work”, while Jennifer rated herself
“good”. What is meant by “fair,” “good,” and “quantity of
work” anyway? This conflict occurred in more than one instance in the
appraisal.

What type of appraisal error could this be? How can it be avoided in the
future?

Answer:

This scenario is describing unclear standards. The graphic rating scale
may result in unfair appraisals because the traits and degrees of merit
are ambiguous. For example, different supervisors would probably define
“good” performance, “fair” performance, and so on, differently.
To avoid this problem, develop and include descriptive phrases that
define each trait. For example, “good = competent and dependable level
of performance. Meets performance standards of the job.”





Questions and Answers

Question #1

What is the best way to measure and evaluate training outcomes?

There are four ways to measure training effectiveness:

Reaction:  Evaluate trainee’s reactions to the program.

Learning:  Test the trainees to determine whether they learned the
principles, skills, and facts they were supposed to learn

Behavior:  Ask whether the trainee’s on-the-job behavior changed
because of the training program.

Results:  What final results were achieved in terms of the training
objectives previously set?

Question #2

What is the purpose of Total Quality Management (TQM)?

Total Quality Management is aimed at maximizing quality and customer
satisfaction through continuous improvements. A company undertaking TQM
should anticipate significant training and changes in the incentive plan
to focus on quality as compared with quantity.

Question #3

Discuss the supervisor’s role in the appraisal process.

The supervisor is involved in and responsible for employee appraisals.
He or she communicates goals and objectives, insures the employee has
the skills to be successful in the job, and evaluates their performance
against the goals. Numeric goals are easier to determine how successful
the employee has been, but they are not always available. Supervisors
must be familiar with the basic appraisal techniques, understand and
avoid problems that can cripple appraisals, and know how to conduct
appraisals fairly.

Question #4

Describe the various considerations used in promotion decisions.

Considerations used in promotion decisions include: the basis for
promotion meaning is it seniority or competence or a combination; how
competency is measured; and whether the process formal or informal.

Question #5

What is the difference between a wrongful discharge suit and grounds for
dismissal?

Wrongful discharge is a complaint that an employee dismissal does not
comply with the law or does not comply with the contractual arrangement
stated or implied by the firm via its employment application forms,
employee manuals or other promises. The grounds for dismissal affirm the
company’s right to involuntarily terminate an employee’s employment
with the firm. Generally there are four reasons for dismissal:
unsatisfactory performance, misconduct, lack of qualifications for the
job, and changed requirements of the job. Most employment applications
ask for specific education and experience. At the end of the
application, it states that if the information is misrepresented, it is
grounds for dismissal.

Question #6

Discuss the ways effective communication can provide for fair treatment
of employees.

Communication supports fair treatment of employees in these ways:

Engagement:by involving individuals in the decisions that affect them by
asking for their input and allowing them to refute the merits of
other’s ideas and assumptions about their job performance.

Explanation:by ensuring that everyone understands why final decisions
are made and of the thinking that underlies the decisions.

Expectation:clarity is making sure everyone knows up front what
standards they’ll be judged against and the penalties for failure.





Resource Links

 Society for Human Resource Management

(http://www.shrm.org/)

The Society for Human Resource Management (SHRM) is the world's largest
association devoted to human resource management. Representing more than
170,000 individual members, the Society serves the needs of HR
professionals by providing the most essential and comprehensive set of
resources available. As an influential voice, SHRM is committed to
advancing the human resource profession to ensure that HR is an
essential and effective partner in developing and executing
organizational strategy. Founded in 1948, SHRM currently has more than
500 affiliated chapters within the United States and members in more
than 120 countries.

 Performance Management in the Federal Government

(http://www.opm.gov/perform/overview.htm)

The federal government has played a very important role in the
development of the legislation and performance management processes that
have influenced how we do business today. The U.S. Office of Performance
Management gives a definition and overview of performance management.
Take a look at the five points for employee performance management.

 360-Degree Feedback

(http://www.360-degreefeedback.com/)

This website provides numerous resources and information on 360-Degree
Feedback methods.



 Employment and Labor Law

(http://www.legal-database.com/laborlaw.htm)

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e on this page by Legal-Database.com.

 Equal Employment Opportunity Commission

(http://www.eeoc.gov/abouteeoc/35th/index.html)

Provides history, milestones, the law, important advocates, and the
mission of the EEOC.

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(http://www.hrps.org)

From the Web Site: Founded in 1977, the Society is a non-profit
organization dedicated to providing current perspectives on complex and
challenging human resource and business issues.