I/O

• Performance Appraisal


  The process of assessing performance to make decisions (for example, about pay raises). The focus is on the administrative use of the information.
• Performance Development


  The assessment of performance with the goal of providing feedback to facilitate improved performance. The focus is on providing useful information that employees need to enhance their KSAOs to perform well in a current or future position.
• Performance Management


  The process that incorporates appraisal and feedback to make performance-based administrative decisions and help employees improve.
• Personnel Training


  • The main use of performance appraisal information is for employee feedback; this is the basis for the person analysis discussed in the preceding chapter
  • Feedback highlights employees' strengths and weaknesses. Of course, the appraisal should pertain to job-related characteristics only. Deficiencies or weaknesses then become the targets for training.
• Wage & Salary


  • The second most common use of performance appraisals is to determine raises. Pay increases are often made, in part, on the basis of job performance.
• Placement


  • By identifying the employee's strengths, performance appraisal indicates where the person's talents might best be used.
• Promotions


  • Appraisals identify the better-performing employees, and an employee who cannot perform well on his or her current job will not be considered for promotion.
• Discharge


  • Termination of employment must be predicated on just cause. A typical just cause is inadequate job performance, as determined through performance appraisal.
• Raters


  • Supervisors
  • 360-Degree Feedback
  • Peers
  • Subordinates
• Supervisors


  By far the most common source of performance appraisal. Though Supervisors may not see every minute of an employee's behavior, they do see the end result.
• 360-Degree Feedback


  A process of evaluating employees from multiple rating sources, usually including supervisor, peer, subordinate, and self. Also called multisource feedback.
• Peers


  Whereas supervisors see the results of an employee's efforts, peers often see the actual behavior. Peer ratings usually come from employees who work directly with an employee.
• Subordinates


  Subordinate feedback (also called upward feedback) is an important component of 360 degree feedback, as subordinates can provide a very different view about a supervisor's behavior; Subordinate ratings can be difficult to obtain because employees fear a backlash if they unfavorably rate their supervisor, especially when a supervisor has only one or two subordinates.
• Rating Errors


  • Halo Errors
  • Leniency Errors
  • Central Tendency Errors
• Halo Errors


  Evaluations based on the rater's general feelings about an employee. The rater generally has a favorable attitude toward the employee that permeates all evaluations of this person.
• Leniency Errors


  The rater assesses a disproportionately large number of ratees as performing well (positive leniency) or poorly (negative leniency) in contrast to their true level of performance.
• Central Tendency Errors


  The rater's unwillingness to assign extreme-high or low - ratings. Everyone is "average," and only the middle (central) part of the scale is used.
• Assessments


  • Graphic rating scales
  • Employee-comparison methods
  • Behavioral checklists and scales
• Graphic Rating Scales


  The most commonly used system in performance appraisal. Individuals are rated on a number of traits or factors. The rater judges "how much" of each factor the individual has.
• Employee-Comparison Methods


  Rating scales provide for evaluating employees against some defined standard. With employee-comparison methods, individuals are compared with one another; variance is thereby forced into the appraisals.
• Rank-Order Method


  The rater ranks employees from high to low on a given performance dimension. The person ranked first is regarded as the "best" and the person ranked last as the "worst."
• Paired-Comparison Method


  Each employee is compared with every other employee in the group being evaluated. The rater's task is to select which of the two is better on the dimension being rated.
• Forced-Distribution Method


  Most useful when the other employee-comparison methods are most limited - that is, when the sample is large. Forced distribution is typically used when the rater must evaluate employees on a single dimension, but it can also be used with multiple dimensions.
• Behavioral Checklists and Scales

  The key term is behavior. Behaviors are less vague than other factors. The greater the agreement on the meaning of the performance appraised, the greater the chance that the appraisal will be accurate.
• Critical Incidents


  Behaviors that result in good or poor job performance. Supervisors record behaviors of employees that greatly influence their job performance.
• Behaviorally Anchored Rating Scales (BARS)


  A combination of the critical incidents and rating- scale methods. Performance is rated on a scale, but the scale points are anchored with behavioral incidents. The development of BARS is time consuming but the benefits make it worthwhile.
• Behavioral-Observation Scale (BOS)


  Like BARS, it is based on critical incidents. With BOS the rater must rate the employee on the frequency of critical incidents. The rater observes the employee over a certain period, such as a month.
• Rater Training


  • Provides raters with job related information, practice in rating, and examples of ratings made by experts as well as the rationale behind those expert ratings
  • Increases rater accuracy and reduced rater errors
  • The better that employees understand the performance appraisal system, the greater is their satisfaction with the system
• Termination of Employees


  • Probationary Period
  • Violation of Company Rules
  • Inability to Perform
  • Reduction in Force (Layoffs)
• Probationary Period


  In many jobs, employees are given a probationary period in which to prove that they can perform well. And most probationary period last three to six months.
• Inability to Perform


  Employees can also be terminated for an inability to perform a job. An organization will need to prove that the employee could not perform the job.
• Violation of Company Rules

  • There are five factors in determining the legality of a decision to terminate an employee for violating company rules:
  • A Rule against a particular behavior must actually exist
  • Some organizations often have unwritten rules governing employee behavior
  • If a rule exists, a company must prove that the employee knew the rule
  • The ability of the employer to prove that an employee actually violated the rule
  • The extent to which the rule has been equally enforced
  • The extent to which the punishment fits the crime
• Reduction in Force (Layoffs)


  Employees can be terminated if it is in the best economic interests of an organization to do so.
• Changes in Personnel Status

  • Transfer
  • Promotion
  • Demotion
  • Separation
• Transfer


  • Takes place when an employee is moved from one job to another of equivalent rank or of the same pay class within the firm.
  • The reassignment of an employee to a job with similar pay, status, duties and responsibilities or to another work shift, or from one unit to another in the same company
  • Permanent - made to fill vacancies requiring the special skills or abilities of the employee being transferred
  • Temporary - made due to the temporary absence of an employee, e.g., in case of sick, leave, vacation leave, or shifts in the work load during peak periods.
• Promotion


  • Is the movement of the employee from one position to another of a higher level involving more difficult duties and greater responsibilities and carrying higher pay, higher status and/or offer privileges
  • An effective way to keep good employee in the firm
  • As recognition of and reward for good performance
  • To boost employee morale and encourage the employees to render to the company the best service they are capable of
  • Closed promotion system - the responsibility of the supervisor to identify promotable employees for the job to be filled
  • Open promotion system - also known as job posting enhance participation and the achievement of equal opportunity goals.
• Demotion


  • To reduce in grade, rank or status; occurs when a classified employee is reassigned to a position with a salary range that I slower than the salary range of the former position
  • Reduction in business so that the number of positions at certain levels must be reduced, or elimination of certain functions requiring a reduction in manpower. This demotion is not due to the fault of the employee
  • Failure of the employee either to qualify for work on the occupational level to which he has been assigned or to meet established job standards
  • As a form of disciplinary or punitive action against an employee found guilty of violating company policies or rules
  • Inability of the employee to meet the requirements of the job due to age, poor health, or physical disability.
• Separation


  • Is the termination of employment as a result of resignation, layoff, or discharge. Voluntary separation is better known as resignation or quit. Resignation or quit is the termination of employment, generally initiated by the employee
  • Dissatisfaction about wages and working conditions
  • Misunderstanding with supervisors or fellow workers
  • Inconvenient work hours are among the chief reasons for employee resignation
• Organization


  A coordinated group of people who perform tasks to produce goods or services, colloquially referred to as companies.
• Three Theories of Organizations

  • Classical Theory
  • Neoclassical Theory
  • Systems Theory