CH7 and CH 8 HR Management

Performance Management

The process through which managers ensure that employees' activities and outputs contribute to the organization's goals.

Simple Ranking

managers to rank employees in their group from the highest performer to the poorest performer.


assigns a certain percentage of employees to each category in a set of

Graphic Rating Scale

lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait.

Mixed-Standard Scales

uses several statements describing
each trait to produce a final score for that

Critical-Incident Method

based on managers' records of specific examples of the employee acting
in ways that are either effective or ineffective.

Behaviorally Anchored Rating Scale (BARS)

rates behavior in terms of a scale showing
specific statements of behavior that describe different levels of performance.

Behavioral Observation Scale (BOS)

A variation of a BARS which uses all
behaviors necessary for effective
performance to rate performance at a task.

Organizational Behavior Modification (OBM)

A plan for managing the behavior of
employees through a formal system
of feedback and reinforcement.

Management by Objectives (MBO)

people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization's overall goals; these goals become the standards for evaluating each employee's performance.

360-Degree Performance Appraisal

Performance measurement that combines information from the employee's managers, peers, subordinates, self, and

Calibration Meeting

Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.

Lack of ability

When a motivated employee lacks knowledge, skills, or abilities in some area, the manager may offer coaching, training, and more detailed feedback. Sometimes it is appropriate to restructure the job so the employee can handle it.

Strategic purpose

means effective performance management helps the organization achieve its business objectives.

Management-Fit with Strategy

Fit with strategy �A performance management system should aim at achieving employee behavior and attitudes that support the organization's strategy, goals, and culture. If a company emphasizes customer service, then its performance management system shoul

Paired-Comparison Method

compares each employee with each
other employee to establish rankings.

Specific OBM techniques vary, but most have four components:

1. Define a set of key behaviors necessary for job performance.
2. Use a measurement system to assess whether the employee exhibits the key
3. Inform employees of the key behaviors, perhaps in terms of goals for how often to
exhibit the behavio

An MBO system has three components:

1. Goals are specific, difficult, and objective.
2. Managers and their employees work together to set the goals.
3. The manager gives objective feedback through the rating period to monitor progress toward the goals.

Total Quality Management (TQM)

provide methods for performance measurement and management. Total quality management (TQM) differs from traditional performance measurement in that it assesses both individual performance and the system within which the individual works.

The feedback in TQM is of two kinds:

(1) subjective feedback
from managers, peers, and customers about the employee's personal qualities such as cooperation and initiative; and
(2) objective feedback based on the work process. The second kind of feedback
comes from a variety of methods calle

The administrative purpose

refers to the ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs

developmental purpose

serves as a basis for developing employees' knowledge and skills.


With regard to a performance measure, reliability describes the consistency of the results that the performance measure will deliver. Interrater reliability is consistency of results when more than one person measures performance.


Rating Individuals (characteristics or traits) believed to be desirable. Or the measurements may identify whether employees have behaved in desirable ways, such as closing sales or completing assignments.

Lack of Motivation

Managers with an unmotivated employee can explore way to demonstrate that the employee is being treated fairly and rewarded adequately. The solution may be as simple as more positive feedback (praise). Employees may need a referral for counseling or help

Lack of Both

Performance may improve if the manager directs the employee's attention to the significance of the problem by withholding rewards or providing specific feedback. If the employee does not respond, the manager may have to demote or terminate the employee.


is the extent to which a measurement tool actually measures what it is intended to measure. In the case of performance appraisal, validity refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of per


Whether or not a measure is valid and reliable, it must meet the practical standard of being acceptable to the people who use it. For example, the people who use a performance measure must believe that it is not too time consuming. Likewise, if employees

Specific Feedback

A performance measure should specifically tell employees what is expected of them and how they can meet those expectations. Being specific helps performance management meet the goals of supporting strategy and developing
employees. If a measure does not s


An organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job.

Instructional Design

A process of systematically developing training to meet specified needs.

Learning Management System (LMS),

a computer application that automates the administration, development, and delivery of a company's training programs

Needs Assessment

The process of evaluating the organization, individual employees, and
employees' tasks to determine what kinds of training, if any, are necessary.

Organization Analysis

A process for determining the appropriateness of training by evaluating
the characteristics of the organization.

Person Analysis

A process of determining individuals' needs and readiness for training.

Task Analysis

The process of identifying and analyzing tasks to be trained for.

Readiness for Training

A combination of employee characteristics and positive work environment that permit training.

Objectives of the Program

Effective training objectives have several characteristics:
� They include a statement of what the employee is expected to do, the quality or level of performance that is acceptable, and the conditions under which the employee is to apply what he or she l

Presentation methods:

trainees receive information provided by others Lectures, workbooks, CD-ROMs, DVDs, podcasts, Web sites Conveying facts or comparing alternatives

Hands-on methods:

Trainees are actively involved in trying out skills
On-the-job training, simulations, role-plays,computer games
Teaching specific skills; showing how skills are related to job or how to handle interpersonal issues

Group-building methods:

Trainees share ideas and experiences, build group identities, learn about
interpersonal relationships and the group
Group discussions, experiential programs,team training
Establishing teams or work groups; managing performance of teams or
work groups

Distance Learning

trainees at different locations attend programs online, using their computers to view lectures, participate in discussions, and share documents. Technology applications in distance learning may
include videoconferencing, e-mail, instant messaging, documen


Receiving training via the Internet or the
organization's intranet.

Electronic performance support systems (EPSSs)

provide access to skills training, information, and expert advice when a problem occurs on the job.

On-the-job Training (OJT)

Training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace.


A work-study training method that teaches job skills through a combination of on-the-job training and classroom training.


On-the-job learning sponsored by an educational institution as a component of an academic program. The sponsoring school works with local employers to place students in positions where they can gain experience related to their area of study.

To be effective, OJT programs should include several characteristics:

� The organization should issue a policy statement describing the purpose of OJT and emphasizing the organization's support for it.
� specify who is accountable for conducting OJT.
� review OJT practices at companies in similar industries.
� Managers and


A training method that represents a real-life situation, with trainees
making decisions resulting in outcomes that mirror what would happen on the job.Simulations enable trainees to see the impact of their decisions in an artificial, risk-free environment


Computer depictions of trainees, which the trainees manipulate in an online role-play.

Virtual Reality

A computer-based technology that provides an interactive, three dimensional learning experience.

Experiential Programs

Training programs in which participants learn concepts and apply them by
simulating behaviors involved and analyzing the activity, connecting it with real-life situations.

Adventure Learning

A teamwork and leadership training program based on the use of challenging, structured outdoor activities.


Team training in which team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

Coordination Training

Team training that teaches the team how
to share information and make decisions to obtain the best team

Team Leader Training

Training in the skills necessary for effectively leading the organization's teams.

Action Learning

Training in which teams get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying it out.


The difficulty level of written materials.
The basic approach is to rewrite the material looking for ways to simplify it.
� Substitute simple, concrete words for unfamiliar or abstract words.
� Divide long sentences into two or more short sentences.
� Div

Transfer of Training

On-the-job use of knowledge, skills, and behaviors learned in training.

The organization can measure this by asking employees three questions about specific training-related tasks:

1. Do you perform the task?
2. How many times do you perform the task?
3. To what extent do you perform difficult and challenging learned tasks?

Assessment of training also should evaluate training outcomes

that is, what (if anything) has changed as a result of the training.

The relevant training possible outcomes include the following:

Information such as facts, techniques, and procedures that trainees can recall after the training.


Training designed to prepare employees to perform their jobs effectively, learn about their organization, and establish work relationships.

Diversity Training

Training designed to change employeeattitudes about diversity and/or develop skills needed to work with a diverse workforce.

Finally, some organizations provide diversity training in the form of cultural immersion,

sending employees directly into communities where they have to interact with persons from different cultures, races, and nationalities.

The relevant training possible outcomes include the following:

Skills that trainees can demonstrate in tests or on the job.

Performance management system

� Knowing what activities are required
� Observe whether they actually occur
� Provide feedback

Contrast Error

Rater comparison individual, not against an objective standard, but against other employees

Distributional Errors

Rater tends to use only one part of a rating scale