Chapter 10

Conducting the Feedback Session

"Tell-and-Sell" - managers tell employees their ratings and then justify those ratings. "Tell-and-Listen" - managers tell employees their ratings and then let employees explain view. "Problem-Solving" - managers and employees work together to solve performance problems.

Types of Rating Errors

- contrast errors - distributional errors - rater bias

Scheduling Performance Feedback

- should be a regular, expected management activity. -Annual feedback is not enough. -Employees should receive feedback so often that they know what the manager will say during their annual performance review.

Making comparisons

- simple ranking (alternation ranking) - forced distribution - paired comparison (20 employees require 190 comparisons)

The Process of Performance Management Requires:

-Knowing what activities and outputs are desired -Observing whether they occur -Providing feedback to help employees meet expectations

Steps in the Performance Management Process

1. define performance outcomes for company division and department 2. develop employee goals, behavior, and actions to achieve outcomes 3. provide support and ongoing performance discussions 4. evaluate performance 5. identify improvements needed 6. provide consequences for performance results

Total Quality Management (TQM)

Assessment of both individual performance and the system within the individual works: -Yields subjective feedback from managers -Yields objective feedback based on work process; obtained from ma variety of methods called statistical quality control. Can result in system changes

Which statement about self-appraisals is true? Self-appraisals are not part of a 360-degree performance appraisal. There are no disagreements between a manager and an employee when self-appraisal is used. Employees have a tendency to inflate their self-assessments. Self-appraisals serve as an ideal basis for administrative decisions. Self-rating is the most preferred source of performance appraisal information.

Employees have a tendency to inflate their self-assessments.

Compared to a behavioral observation scale (BOS), a behaviorally anchored rating scale (BARS) makes it easier for providing feedback, maintaining objectivity, and suggesting training needs. t or f

False

In a performance appraisal, the term validity refers to whether the appraisal measures all aspects of performance, whether relevant or irrelevant. True False

False

In order to minimize distributional errors, raters should use only one part of the rating scale. True False

False

Lawsuits related to performance management usually involve performance issues on the part of the employee. True False

False

Self-ratings are appropriate as the basis for administrative decisions. True False

False

The forced-distribution method involves comparing each employee with each other employee to establish rankings. t or f

False

The paired-comparison method measures the consistency of results over time. True False

False

To rate employee behaviors, an organization begins by defining which behaviors are associated with the employee's personality traits. True False

False

Traditional performance management differs from total quality management (TQM) in that traditional performance management assesses both individual performance and the system within which the individual works. True False

False

Using an employee's manager for feedback is very useful because managers' own success depends so much on their employees' performance. True False

False

When Kaleem joined a company as its human resource manager, he was surprised to hear some of the executives repeatedly laughing over stories about how the company's founder ensured that his fraternity brothers moved into management positions. According to the stories, the executives embellished the performance appraisals of these employees, which also influenced later staffing decisions. Kaleem talked to some employees about performance management at the company and learned that the system was widely viewed as corrupt. What is the most effective thing Kaleem can do, besides discouraging the storytelling, to decrease the political behavior related to performance management? He should train managers to list only the accomplishments their employees are aware of. He should make sure appraisal results are directly linked to highly desirable rewards. He should learn to accept political behavior, because it occurs in every organization. He should persuade executives not to tolerate or ignore distorted ratings. He should make sure that raters are accountable to each employee being evaluated.

He should persuade executives not to tolerate or ignore distorted ratings.

Which statement accurately characterizes behavioral approaches to performance measurement? They have a low degree of acceptability. In most cases, they provide little feedback on areas of improvement. They have a low degree of validity and reliability. They work well for complex jobs and require few behaviors. They link the company's goals to the specific behavior required to achieve those goals.

In most cases, they provide little feedback on areas of improvement.

Which statement about effective performance management is accurate? It does not affect employees who meet expectations. It can evaluate employees without establishing standards. It can communicate to top performers that they are valued. It uses just one person as a source of information. It discourages communication between managers and their employees.

It can communicate to top performers that they are valued.

What is a benefit of using ranking as a measure of performance? It helps morale by telling employees what behaviors are not acceptable. It is usually linked to the organization's goals. It gives employees direct feedback on where they require improvement. It leaves the ranking open to interpretation by the person doing the ranking. It counteracts the tendency to avoid controversy by rating everyone favorably or near the center of the scale.

It gives employees direct feedback on where they require improvement.

hat is an advantage of using results-oriented performance measurement? It is relatively easy to link to the organization's goals. It is highly acceptable to employees but not to managers. It tends to be highly valid. It is very effective in providing guidance on how an employee can improve. It is generally more subjective than other kinds of performance measurement.

It is relatively easy to link to the organization's goals.

Which statement about the mixed-standard scale is most accurate? It lists traits and asks employees to rate themselves on each trait. It is intended to define performance dimensions specifically using a sliding scale for different levels of performance. It uses several statements describing each trait to produce a final score for that trait. It involves comparing each employee with other employees to establish rankings. It may use 15 behaviors to define levels of performance.

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

Legal Requirements for performance management

Lawsuits often arise in two areas:• Uniform Guidelines on Employee Selection Procedures• Unjust dismissal• System should be legally defensible• Based on valid job analyses• Evaluations based on behaviors rather than traits• Uses multiple raters whose ratings can be appealed• Provides employees with feedback and coaching or training

Ways to reduce errors

Raters can be trained to avoid making errors using a variety of methods: • Rating fictional employees and discussing decisions • Studying actual examples of various performances • Focusing on complex nature of employee performance • Data analysts can be used to find patterns

Alternation ranking is a variation of __________ ranking. attribute paired distributed simple scalar

Simple

After a manager has conducted a performance evaluation, what is the next step? The manager provides employees with training, necessary resources and tools, and ongoing feedback between the employee and manager. The manager develops employee goals and actions to achieve desired outcomes. The manager identifies what the company is trying to accomplish. The manager and employee discuss and compare targeted goals and supporting behavior with actual results. The manager identifies what the employee can do to capitalize on performance strengths and address weaknesses.

The manager identifies what the employee can do to capitalize on performance strengths and address weaknesses.

What is one way an organization can protect itself against discrimination and unjust dismissal lawsuits? The organization should dismiss poor performers. Performance measures should evaluate personal traits. The organization should use a single rater to rate all the employees. The organization should provide a review of all top performance ratings by senior managers. The requirements for job success should be clearly communicated to employees.

The requirements for job success should be clearly communicated to employees.

Finding solutions to performance problems

The type of action called for depends on what the employee lacks. Lack of ability Lack of motivation Lack of both In general, employees who combine high ability with high motivation are solid performers.

What attitude do employees typically express toward performance feedback? They are most engaged when the company schedules feedback quarterly. They prefer to get all their feedback at one time, during an annual performance review. They prefer not to get feedback, because the experience feels awkward. They appreciate regular feedback, because they want to know if they are on track. They like to be surprised, especially if the feedback is positive.

They appreciate regular feedback, because they want to know if they are on track.

Appraisal politics are most likely to occur when a performance appraisal is directly linked to highly desirable rewards. True False

True

Behavioral approaches to performance measurement, such as organizational behavior modification and rating scales, tend to be biased and unreliable. True False

True

In a "tell-and-sell" approach, managers tell the employees their ratings and then justify those ratings. True False

True

Performance management systems are established to meet three broad purposes of the organization: strategic, administrative, and developmental. True False

True

The critical-incident method requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffective. True False

True

The improvement of an employee's performance varies according to the employee's ability and level of motivation. True False

True

The requirements for job success should be clearly communicated to employees to avoid lawsuits. True False

True

Errors in Performance Measurement

Type or rating errors: raters tend to give higher evaluations to people they consider similar to themselves

An entrepreneur believes in employee empowerment, so as soon as she began hiring managers, she made subordinate reviews part of her company's performance appraisal system. However, she and her human resource manager have realized that the managers don't always place enough emphasis on efficiency and results, perhaps out of fear that their employees will give them lower ratings. What would be the best way for the company to use subordinate feedback? Require that the employees giving subordinate feedback identify themselves. Discontinue subordinate feedback, because it has undesirable consequences. Use the results of subordinate feedback to identify avenues for employee development. Limit the information gathering by subordinates to short periods once a year. Give the employees greater opportunities to observe the behavior of their manager.

Use the results of subordinate feedback to identify avenues for employee development.

rating attributes mixed-standard scale

Uses several statements to describe each trait Employer scores employees in terms of how employee compares to statements

A company was preparing to roll out a new performance management system. The human resource executive insisted that for the new system to succeed, they must first explain it to employees. She said employees need to perceive the system as fair. Why would this effort make the performance management system more effective? A measurement tool should accurately measure what it was designed to measure. Low interrater reliability means the rating will differ depending on who is scoring the employees. The employees who receive feedback must believe that the process of preparing it was not too time consuming. Specific feedback helps meet the goals of supporting strategy and developing employees. When employees are more confident about performance measures, they are more likely to apply the feedback.

When employees are more confident about performance measures, they are more likely to apply the feedback.

The ways in which organizations use the performance management system to provide information for day-to-day decisions about salary, benefits, and recognition programs falls under the __________ purpose of a performance management system. developmental deciding strategic structured administrative

administrative

Barb, a supervisor in a shoe store, observes Carl, an employee, becoming anxious and defensive when a customer complains about some shoes. The customer reacts to Carl's behavior by raising her voice and demanding to talk to a manager. When should Barb give Carl performance feedback related to his handling of customer complaints? during the next month in which performance appraisals are scheduled within the next few weeks, whenever she has time for a formal meeting with Charles as soon as she is finished talking with the complaining customer as soon as she has time to list all of Charles' areas for improvement at Charles' annual performance appraisal

as soon as she is finished talking with the complaining customer

Development Purpose

basis for developing employees knowledge and skills

The __________ performance management method requires managers to rate the frequency with which an employee has exhibited a behavior during a rating period. behavioral observation scale forced-distribution scale mixed-standard scale behaviorally anchored rating scale graphic rating scale

behavioral observation scale

How can data analytics improve the measurement of employees' performance? by training raters to look at many aspects of performance by preventing raters from making distributional errors by indicating all the circumstances, intentions, and outcomes associated with an employee's behavior by showing raters how errors affect their rating decisions by finding patterns in an employee's behavior

by finding patterns in an employee's behavior

Methods for Measuring Performance

comparative, attribute, behavior, results, quality

Subordinate evaluations are the most appropriate to use for which purpose? administrative strategic executive investigative developmental

developmental

Organizational behavior modification (OBM) is a plan for managing the behavior of employees through an informal system of feedback and reinforcement. True False

false

Besides a discussion of the employee's past behavior, what other topic(s) is/are most important to include in a performance feedback meeting? the supervisor "telling and selling" the ratings goal setting and a decision about when to follow up a description of the employee's personality opinions about other employees in the organization strategic planning and a link to personal goals

goal setting and a decision about when to follow up

What is the name of the rating error that leads employees to believe that no aspect of their performance needs improvement? contrast error halo error strictness error horn error central tendency error

halo error

Strategic Purpose of Performance Management

helps the organization achieve its business objectives

What is one way in which an organization can promote fairness and reduce political behavior in the appraisal system? require that managers give feedback on the performance management system once a year during the annual appraisal hold a calibration meeting in which managers discuss employee performance ratings and provide evidence supporting their ratings use different performance standards to evaluate different employees encourage managers to recognize accomplishments that only employees have identified discourage employees from discussing their weaknesses during the appraisal process.

hold a calibration meeting in which managers discuss employee performance ratings and provide evidence supporting their ratings

What is the first step in the performance management process? providing consequences for performance results evaluating performance developing employee goals, behavior, and actions to achieve outcomes identifying what the company is trying to accomplish

identifying what the company is trying to accomplish

How can managers improve employee satisfaction with the feedback process? avoiding decisions about following up on goals as these tend to intimidate the employee using the tell-and-sell approach during the feedback session letting employees voice their opinions and discuss performance goals during the feedback process focusing on the employee's personality keeping the feedback session short and concentrating on only the positive aspects of performance

letting employees voice their opinions and discuss performance goals during the feedback process

Rating attributes: 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

The __________ method of performance measurement uses several statements describing each trait to produce a final score for that trait. behavioral observation scale behaviorally anchored rating scale mixed-standard scale graphic rating scale behavior-response scale

mixed-standard scale

Rohanna, a supervisor, is meeting with an employee whose performance has deteriorated since the previous year. The employee used to do the same work well, so Rohanna believes the problem is not likely to be related to ability. Which response would be most likely to help in this situation? investigating whether the employee feels she has been treated fairly directing the employee's attention to the significance of the problem demoting the employee into a lower paying position offering to make coaching available so the employee can learn new skills enrolling the employee in a training program

offering to make coaching available so the employee can learn new skills

Management by Objectives (MBO)

people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization's overall goals. Set goals become standards for evaluating employee performance: -Specific, difficult, objective Set collaboratively by managers and employees -Ongoing feedback

360-Degree Performance Appraisal

performance measurement that combines information from a variety of sources, results in most complete assessment possible.

Which approach to performance feedback is generally most effective? problem-solving tell-and-sell tell-and-listen listen-and-sell tell-and-train

problem-solving

Measuring Results

productivity: getting more done with smaller amount of resources increases company's profits.

What is the final step in performance management process? identifying improvements needed defining performance outcomes for company division and department evaluating performance developing employee goals, behavior, and actions to achieve outcomes providing consequences for performance results

providing consequences for performance results

contrast error

rater compares an individual, not against an objective standard, but against other employees

distributional errors

rater tends to use only one part of a rating scale. Leniency: the reviewer rates everyone near the top Strictness: the rater favors lower rankings Central tendency: the rater puts everyone near the middle of the scale

rater bias

raters often let their opinion of one quality color their opinion of others halo error: favorable ratings Horns: Negative ratings

What is the most popular way to measure performance in organizations? rating attributes rating outcomes rating behaviors ranking rating technical skills

rating attributes

A supervisor wants to compare the performance of the employees. If they do this by listing the employees from best to worst performer, which term describes the method? organizational behavior modification mixed-standards scale simple ranking critical-incident method graphic rating scale

simple ranking

Rating Behaviors - Critical incident method

specific instances of effective and ineffective employee behavior documented Employees receive feedback about what they do well and what they do poorly

Which step in the performance management process involves giving employees training and ongoing feedback from managers? step 5 Identify improvements needed step 2 Develop employee goals step 1 Define performance outcomes step 3 Provide support step 4 Evaluate performance

step 3 Provide support

The process through which managers ensure that employees' activities and outputs contribute to the organization's goals is the definition of performance management. strategic management. functional assessment. developmental review. employee goal evaluation.

strategic management.

The __________ approach to performance feedback is used by most managers. tell-and-listen listen-and-sell tell-and-train problem-solving tell-and-sell

tell-and-sell

In the context of performance management, which term refers to a measure that obtains consistency of results over time? validity specificity test-retest reliability acceptability interrater reliability

test-retest reliability

Which performance management system has as a drawback the fact that it requires a lot of information that needs to be remembered by the manager conducting the evaluation? the behavioral observation scale the critical incidence method the behaviorally anchored rating scale the graphic rating scale simple ranking

the behavioral observation scale

The strategic purpose of effective performance management is to help shareholders gain insight into company practices. customers' needs be met. employees learn new skills to make them better at their jobs. employees learn new behaviors so they assimilate better within the company. the organization achieve its business objectives.

the organization achieve its business objectives.

Performance management requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. True False

true

in the simple ranking method of performance measurement, managers rank employees in their group from the highest performer to the poorest performer. True False

true

What term is defined as the extent to which a measurement tool actually measures what it is intended to measure? validity acceptability specificity dependability reliability

validity

What term refers to whether an appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance? reliability contamination interrater reliability acceptability validity

validity

Administrative Purpose

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

Under which circumstance is appraisal politics most likely to occur? when senior employees tell newcomers stories about distorted ratings when top executives forbid distorted ratings when performance appraisal results are directly linked to developmental programs when performance appraisal is not directly linked to highly desirable rewards when the goals of rating are compatible with one another

when senior employees tell newcomers stories about distorted ratings

A vice president of human resources wants to ensure that his company's performance management process is effective, so he sets up an annual review of the process. What should that review measure? whether performance discussions are taking place when the employee requests them how well performance standards are tailored to each individual employee how effectively the company has defined performance management as an event, not a process whether measures of individual performance support the department's and company's objectives whether the performance management process includes all seven steps

whether measures of individual performance support the department's and company's objectives

effective performance measures

• Fit with strategy: support company's goals • Validity: measure what it is intended to • Reliability: yield consistent results over time • Acceptability: accepted by those who use it • Specific feedback: give specific expectations and methods to achieve goals

Political Behavior in Performance Appraisals

• Sometimes raters are political, they distort evaluations to advance their own personal goals • Calibration meetings can be used to minimize politics - Managers discuss performance ratings and provide evidence supporting their ratings with goal of eliminating intentional errors

Behavioral Observation Scale (BOS)

•A variation of BARS •Rating scale includes all critical behaviors •Asks the manager to rate frequency with which employee has exhibited each behavior during period

Rating Behaviors- Behaviorally Anchored Rating Scale (BARS)

•Builds on critical-incidents •Behaviors rated in terms of scale showing specific statements that describe behaviors at different levels of performance

Preparing for a Feedback Session

•Managers should be well prepared for each session •Managers should ask each employee to complete a self-assessment ahead of time