MANG 330 QUIZ CH. 7,8,10

Rate Error & Biases

- A rater error is an error in the performance appraisal that reflects consistent biases on the part of the rater. -Personal biases may also cause errors in evaluation.

Rate Errors

- Halo - Horn - Restriction of Range

Team training

- Has become common in companies. - Team training can either be content task (related to team's goals) or group processes (pertaining to the way members function as a team).

Skills training

- The most common type of training - Set up to provide skills needed for specific tasks in the job.

Slides & Videos

- does not allow for questions or feedback. - It's static, but convenient.

Simulation

- information to be mastered is complex -the equipment used on the job is expensive, and the costs of wrong decisions are high. -used in the military, police force, airline industry, trucking industry, NASA, and other high-tech, high-stakes types of tasks that are critical to be correct and are expensive.

Benefits of Performance Appraisal: Employee

- informs the employee of performance and can motivate employees toward improving their performance.

Creativity training

-A common approach is brainstorming. -Critics argue that this type of training is hard to measure.

Organizational Politics

-Assumes that the value of a worker's performance depends on the agenda or goals of the supervisor. -Some say the appraisals in most organizations seem to be more political rather than a rational exercise.

Absolute Judgment

-Based on performance standards -Lessens conflict among workers - ask supervisors to make judgments about their employees' performance based solely on performance standards. - drawback s is that workers can receive the same rating if the supervisor makes no differentiation among the employees -advantage is that they help avoid conflict among employees because employees are ranked on their own merit instead of against each other.

Group Focus

-Dimensions for measuring team performance may be set at higher levels in the organization.

Individual Focus

-Individual contribution measures are best developed with the input of the team members. -Competencies are decided and evaluated at the individual level.

Relative Judgment

-Rank order -No absolute information -ask supervisors to compare an employee's performance to the performance of others. -advantage of forcing supervisors to differentiate among their workers -disadvantage is that it's not clear how great or small the differences between the employees are.

Challenges to Effective Performance Measurement

-Rate Errors & Bias -The Influence of liking -Organizational Politics -Individual or Group Focus -Legal Issues

Outcome Data

-Results achieved by workers -MBO=management by objectives -tends to eliminate subjectivity and instead provides clear criteria on which to be measured. - downfall is the mentality of "results at any cost." Ethics can then be a concern with this method.

Legal Issues

-Title VII of the Civil Rights Act of 1964, -Validity standards should be met and instruments/systems must not result in adverse impact. -The following are found to be favorable influences in court: (1) use of job analysis, (2) providing written instructions, (3) allowing employees to review appraisal results, ( 4) agreement among multiple raters, (5) the presence of rater training.

Behavioral Appraisal

-Worker Behavior -Behaviors are ranked across a behavioral scale in BARS, which is more legally defensible. Behavioral scales provide employees with specific examples of the types of behavior to engage in if they want to do well in the organization.

Trait Appraisal

-Worker Charachteristics - asks a supervisor to make judgments about worker characteristics (decisiveness, reliability, energy, and loyalty) that tend to be consistent and enduring. -subject to perceptual biases.

Tele Training

-access to equipment is crucial. -a two-way method in that it will allow for questions and immediate feedback. -Costs are usually a deterrent for organizations.

Development

-effort to provide employees with the abilities that organizations will need in the future. -focus on future job and current -team or organization as a whole -longterm

Benefits of Performance Appraisal: Employer

-improving performance that impacts the company -providing a sound legal defense if implemented correctly, -helping reach strategic goals and clarify performance expectations.

Decentralized Pay System

-pay decisions are delegated deep down into the firm, normally to managers of each unit, - better for large, diverse organizations

Training

-process of providing employees with specific skills or helping them correct deficiencies in their performance. -focus on current job -individual -immediate -specific defects

Key Training Issues How can trainees be motivated to learn?

-training is specific and relevant for them and their job.

Computers

-via CD-ROM or over the Internet. -cost-effective and convenient - one-way method that doesn't allow for questions or feedback.

360 Feedback

-well-rounded picture of the employee's performance from multiple perspectives (virtually everyone who has any connection to the employee, from peer to supervisor, customer, and self).

Peer Review

-workers at the same level in the organization rate one another.

Subordinate Review

-workers rate supervisors

Self Review

-workers rate themselves -provides a sense of accountability and the perspective of employee regarding his or her job position and responsibilities.

Two-pronged challenge in designing a compensation system that:

1. Enables the firm to achieve its strategic objectives 2. is molded to the firm's unique characteristics and environment

Restriction of Range Error

: Occurs when a manager restricts all of his or her ratings to a small portion of the rating scale. Three different forms of range restriction are common: (1) leniency errors (2) central tendency errors (3) severity errors

Virtual Reality

A relatively new an emerging technology that provides a "realistic" experience without it being real. This type of training is used in many high-tech training programs.

Uses of Performance Appraisals

Administrative and Developmental Purposes

Key Training Issues How can training keep pace with a changing organizational environment?

As products, sales procedures, and equipment change, online content can be easily created or changed and disseminated to employees. However, is poorer learning or application occurring?

Indirect Compensation (Benefits)

Benefits encompass a variety of programs, including health insurance, vacations, and unemployment compensation (42% of the workers' compensation package). Compensation is the single most important cost in most firms.

Ethics Training

Can clarify the policies and help employees apply them to their everyday work.

Key Training Issues Should training be in the classroom or on the job (OTJ)?

Classroom training is traditional, yet can be tricky in physically arranging because of geographic constraints. One downside is that it's not as realistic as OTJ training, but OTJ training can slow things down.

Diversity Training

Designed to teach employees about specific cultural and gender differences and how to respond to them appropriately.

Person Analysis

Determines which employees need training by examining how well employees are carrying out the tasks that make up their jobs. Training is often necessary when there is a discrepancy between a worker's performance and the organization's expectations or standards

Crisis Training

Done either to avoid or prepare for crisis or as an after-the-fact response to a crises.

The Evaluation Phase (Four Level Framework)

Evaluates if training was effective 1. Reaction of the trainees (feedback & surveys) 2. How much the trainees learn (skill exercise) 3. Trainees' behavior (observers of the work operation) 4. Results (Financial Measure of Return on Investment)

Organizational Analysis & Task Analysis?

Examines broad factors such as the -organization's culture -mission -business climate - long- and short-term goals, -structure. - purpose is to identify both overall organizational needs and the level of support for training.

Retraining

Gives the employees the skills needed to keep pace with a job's changing requirements.

Customer Service Training

Helps employees understand how to meet customer needs and avoid and handle conflicts.

Horn Error

If our first impression about a person is negative, we tend to ignore his positive characteristics and concentrate only on the negative ones. We tend to see the person in the light of the negative first impression and hence there is higher probability that we will not like the person. This is called horn effect. Eg, if an interview starts with a negative statement from the interviewee, there is higher chance that he would be rejected due to horn effect.

Challenges in Training Will it work?

In order for training to be effective, goals need to be clearly defined and articulated before training is set up

Classroom Instruction & Role Play

Interpersonal skills training is one example of this type of training.

Challenges in Training

Is training the solution to the problem? Are the goals of training clear and realistic? Is training a good investment? Answers to these questions depend on - organizational goals -budget - time frame needed. Thorough insight into all that is transpiring within the organization needs to be identified and determined to see if training is truly needed.

The influence of liking

Liking can cause errors in performance appraisals when raters allow their like and dislike of an individual to influence their assessment of that person's performance.

Management

Management is the overriding goal of any appraisal system. Appraisals should be more than a past-oriented activity that criticizes or praises worker performance. Rather, it should take a future-oriented view of what workers can do to achieve their potential.This will mean managers must provide immediate and frequent feedback.

Levels of Needs Assessment

Organizational Analysis Task Analysis Person Analysis

Administrative Purposes

Performance appraisals are used administratively whenever they are the basis for a decision about the employee's work conditions, including promotions, termination, and rewards

Measurement

Rationally and legally defensible identification requires a measurement system based on job analysis. Measurement (the centerpiece of the appraisal system) entails making managerial judgment of how good or bad employee performance was. Measurement must be consistent throughout the organization in order to avoid legal ramifications. .

Measuring Performance: Type of Judgement

Relative and Absolute

Cross-functional training

Teaches employees to perform operations in other areas other than their current positions

Performance Appraisal

The identification, measurement, and management of human performance in an organizations Identification > Measurement > Management

Halo Error

The tendency to rate similarly across dimensions. Two Causes: (1) a supervisor makes an overall judgment about a worker and then conforms all dimensional ratings to that judgment and/or (2) a supervisor may make all ratings consistent with the worker's performance level on a dimension that is important to the supervisor.

Key Training Issues How can training be effectively delivered worldwide?

This may require learning advanced skills or interpersonal skills that require classroom and face-to-face interactions. Heavy costs can be associated with this type of training.

Literacy training

Trains people to either write, speak, or read in a language. It is training the mastery of a basic skill.

Measuring Performance: additional

Trait Appraisal Behavioral Appraisal Outcome Data

Pay Incentives

designed within a compensation program to reward employees for good performance.

Identification

determining what areas of work the manager should be examining when measuring performance.

How does compensation effect a person

economically, sociologically, and psychologically.

Open Pay

fosters trust, fairness, and commitment

Secret Pay

leads to dissatisfaction with pay.

Centralized Pay System

pay decisions are tightly controlled in a central location, normally the HR department at corporate headquarters. Maximize internal equity

Internal equity External equity

perceived fairness internally in the company perceived fairness externally.is the perceived fairness in pay relative to what other employers are paying for the same type of labor.

Severity Error

ratings at the low end of the scale

Central Tendency Error

ratings in the middle of the scale

Leniency Error

restricting ratings to the high portion of the scale

Base Compensation Pay

the fixed pay an employee receives on a regular basis, either in the form of a salary or as an hourly wage.

Total Compensation

the package of quantifiable rewards an employee receives for his or her labors. It includes three components: base compensation pay incentives, indirect compensation and benefits.

Developmental Purposes

uses of appraisal, which are geared toward improving employees' performance and strengthening their job skills, include providing feedback, counseling employees on effective work behaviors, and offering them training and other learning opportunities