Chapters 10 + 11

This method of appraisal, while more time-consuming for the manager, can be effective at providing specific examples of behavior. With a ______ ______ _______, the manager records examples of the employee's effective and ineffective behavior during the time period between evaluations, which is in the behavioral category.

Critical incident appraisal

Internal factors that influences performance at work:

1. Career goals are not being met with the job. 2. There is conflict with other employees or the manager. 3. The goals or expectations are not in line with the employee's abilities. 4. The employee views unfairness in the workplace. 5. The employee manages time poorly. 6. The employee is dissatisfied with the job.

There are 2 main aspects to appraisal methods:

1. Criteria- aspects the employee is actually being evaluated on, which should be tied directly to the employee's job description 2. Rating- the type of scale that will be used to rate each criterion in a performance evaluation.

Whats included on a performance issue document: (8)

1. Date of incident 2. Time of incident 3. Location (if applicable) of incident 4. A description of the performance issue 5. Notes on the discussion with the employee on the performance issue 6. An improvement plan, if necessary 7. Next steps, should the employee commit the same infraction 8. Signatures from both the manager and employee

There are 6 main components to an employee improvement plan:

1. Define the problem. 2. Discuss the behaviors that should be modified, based on the problem. 3. List specific strategies to modify the behavior. 4. Develop long- and short-term goals. 5. Define a reasonable time line for improvements. 6. Schedule "check-in" dates to discuss the improvement plan.

Employee separation can occur in these 3 scenarios: (3)

1. Employee resigns and decides to leave the organization 2. employee is terminated for 1 or more of the performance issues listed previously. 3. Absconding is when the employee decides to leave the organization without resigning and following the normal process.

The steps in progressive discipline normally are the following: (5)

1. First offense: Unofficial verbal warning. Counseling and restatement of expectations. 2. Second offense: Official written warning, documented in employee file. 3. Third offense: Second official warning. Improvement plan (discussed later) may be developed. Documented in employee file. 4. Fourth offense: Possible suspension or other punishment, documented in employee file. 5. Fifth offense: Termination and/or alternative dispute resolution.

Some considerations in developing a severance package (preferably before anyone is terminated) might include the following: (5)

1. How the severance will be paid (i.e., lump sum or in x equal increments) 2. Which situations will pay a severance and which will not. For example, if an employee is terminated for violation of a sexual harassment policy, is a severance still paid? 3. A formula for how severance will be paid, based on work group, years with the organization, etc. 4. Legal documents, such as legal releases and noncompete agreements 5. How accrued vacation and/or sick leave will be paid, if at all

Some of the talking points an organization might express about unions include the following:(4)

1. Less ability to deal more informally with the organization 2. Possibility of strikes 3. Payment of union dues by employees 4. Emphasis on what positive aspects the employer has provided

Best practices in performance appraisals: (9)

1. Make sure evaluation has direct relation to job 2. Involve managers 3. consider employee self-evaluations 4. Use more than 1 eval method 5. Feedback should be continuous 6. Employee goals should tie into organization's strategic plan 7. Train managers on the system 8. Develop standards for each job to avoid bias 9. Review the eval often, as jobs and expectations change

This tells us that the following considerations should be met when developing our performance appraisal process:

1. Performance standards should be developed using the job analysis and should change as the job changes. 2. Provide the employees with a copy of the evaluation when they begin working for the organization, and even consider having the employees sign off, saying they have received it. 3. All raters and appraisers should be trained. 4. When rating, examples of observable behavior (rather than personality characteristics) should be given. 5. A formal process should be developed in the event an employee disagrees with a performance review.

(type of performance appraisal method) Graphic rating scale Advantages/disadvantages:

A: inexpensive to develop, Easily understood by employees and managers D: subjectivity, can be difficult to use in making compensation and promotion decisions

performance source: Manager/supervisor Advantages/disadvantages

A:Usually has extensive knowledge of the employees performance and abilities, favoritism D: Bias

______ is when the employee decides to leave the organization without resigning and following the normal process.

Absconding

_______ refers to how well members of the organization, manager and employees, accept the performance evaluation tool as a valid measure of performance

Acceptability

A variety of ramifications can occur, from the employee's earning a raise to possible dismissal, all of which should be determined _____ of the performance appraisal interview

Ahead

Another option in handling disputes, performance issues, and terminations is _____ ______ _____. This method can be effective in getting 2 parties to come to a resolution. The benefits of ADR are lower cost and flexibility, as opposed to taking the issue to court.

Alternative dispute resolution (ADR)

A ____ _____ ____ ____ method first determines the main performance dimensions of the job, for example, interpersonal relationships. Then the tool utilizes narrative information, such as from a critical incidents file, and assigns quantified ranks to each expected behavior. In this system, there is a specific narrative outlining what exemplifies a "good" and "poor" behavior for each category. The advantage of this type of system is that it focuses on the desired behaviors that are important to complete a task or perform a specific job.

Behaviorally Anchored Rating Scale (BARS)

In unionized organizations, however, the employee is entitled to union representation at the investigative interview. This union representation is normally called ______ ______ ____ referring to a National Labor Relations Board case that went to the United States Supreme Court in 1975.

Interest based bargaining

One of the better strategies for negotiating a contract is called ____ _____ _____. In this type of bargaining, mutual interests are brought up and discussed, rather than each party coming to the table with a list of demands. This can create a win-win situation for both parties.

Interest-based bargaining

______ ______ _____: in this type of system, the performance issue is reviewed by consecutively higher levels of management, should there be disagreement by the employee in a discipline procedure.

Step-review system

____ _____ ______, the manager communicates feedback and then addresses the employee's thoughts about the interview.

Tell and listen

The ___ ____ ____ ____, the manager does most of the talking and passes his/her view to the employee.

Tell and sell interview

To provide the best feedback to the employee, consider the following:

1. Be direct and specific 2. Do not be personal; always compare the performance to the standard 3. remember, it is a development opportunity 4. thank the employee and avoid criticism

(type of performance appraisal method) BARS Advantages/disadvantages

A: focus is on desired behaviors, scale is for each specific job, desired behaviors are clearly outlined D: Time consuming to set up

The Reform Act in 1978 created the following criteria for performance appraisals in government agencies: (8)

1. All agencies were required to create performance review systems. 2. Appraisal systems would encourage employee participation in establishing the performance standards they will be rated against. 3. The critical elements of the job must be in writing. 4. Employees must be advised of the critical elements when hired. 5. The system must be based exclusively on the actual performance and critical elements of the job. They cannot be based on a curve, for example. 6. They must be conducted and recorded at least once per year. 7. Training must be offered for all persons giving performance evaluations. 8. The appraisals must provide information that can be used for decision making, such as pay decisions and promotion decisions.

guidelines on creation of rules and organization policies (5):

1. All rules or procedures should be in a written document. 2. Rules should be related to safety and productivity of the organization. 3. Rules should be written clearly, so no ambiguity occurs between different managers. 4. Supervisors, managers, and human resources should communicate rules clearly in orientation, training, and via other methods. 5. Rules should be revised periodically, as the organization's needs change.

Here are some things to consider to effectively manage organizing the performance appraisal process: (6)

1. Provide each manager with a job description for each employee. The job description should highlight the expectations of each job title and provide a sound basis for review. 2. Provide each manager with necessary documents, such as the criteria and rating sheets for each job description. 3. Give the manager instructions and ground rules for filling out the documents. 4. Work with the manager on pay increases for each employee, if your organization has decided to tie performance evaluations with pay increases. 5. Provide coaching assistance on objectives development and improvement plans, if necessary. 6. Give time lines to the manager for each performance review he or she is responsible for writing.

In management by objectives (MBOs), to write objectives, they should be SMART:

1. Specific - There should be one key result for each MBO. What is the result that should be achieved? 2. Measurable - At the end of the time period, it should be clear if the goal was met or not. Usually a number can be attached to an objective to make it measurable, for example "sell $1,000,000 of new business in the third quarter." 3. Attainable - The objective should not be impossible to attain. It should be challenging, but not impossible. 4. Result oriented - The objective should be tied to the company's mission and values. Once the objective is made, it should make a difference in the organization as a whole. 5. Time limited - The objective should have a reasonable time to be accomplished, but not too much time.

Normal R. F. Maier addresses 3 types of appraisal interview styles:

1. Tell and sell interview 2. Tell and listen 3. Problem solving interview

External factors influencing performance at work

1. The employee doesn't have correct equipment or tools to perform the job. 2. The job design is incorrect. 3. External motivation factors are absent. 4. There is a lack of management support. 5. The employee's skills and job are mismatched.

The result of a completed performance evaluation usually means there are a variety of ramifications that can occur after evaluating employee performance: (6)

1. The employee now has written, documented feedback on his or her performance. 2. The organization has documented information on low performance, in case the employee needs to be dismissed. 3. The employee has performed well and is eligible for a raise. 4. The employee has performed well and could be promoted. 5. Performance is not up to expectations, so an improvement plan should be put into place. 6. The employee hasn't done well, improvement plans have not worked (the employee has been warned before), and the employee should be dismissed.

There are 3 main methods of determining performance:

1. Trait Method - managers look at an employee's specific traits in relation to the job, such as friendliness to the customer 2. Behavioral method - looks at individual actions with a specific job 3. Comparative method- compare one employee with other employees 4. Results method??? - are focused on employee accomplishments

Set standards should be developed for managers filling out the performance ratings and criteria. The advantage of this is accuracy of data and limiting possible bias. Consider these "ground rules" to ensure that information is similar no matter which manager is writing the evaluation:(5)

1. Use only factual information and avoid opinion or perception. 2. For each section, comments should be at least two sentences in length, and examples of employee behavior should be provided. 3. Reviews must be complete and shared with the employee before the deadline. 4. Make messages clear and direct. 5. Focus on observable behaviors.

Improvement plan and offer any rewards as a result of excellent performance (4)

1. goal setting with employees 2. Performance monitoring, feedback and coaching 3. The performance appraisal 4. improvement plans and/or rewards and repeat the process

We can view performance issues in 1 of 5 areas:

1. mandated issue 2. Single incident 3. Behavior pattern 4. Persistent pattern 5. Disciplinary Intervention

There are 3 main exceptions to the employment at will principle and whether they are accepted is up to various states:

1. public policy 2. Implied contract exception 3. Good faith and fair dealing exception

The American marketing association estimates $_____ is lost annually owing to employee theft, while the FBI estimates up to $_____ annually.

10 billion 150 billion

A _____ ____ ______ _____method is a way to appraise performance by using several sources to measure the employee's effectiveness

360-degree performance appraisal

Performance source: Customer/client Advantages/disadvantages

A: customers often have the best view of employee behavior, Can enhance long-term relationships with the customer by asking for feedback D: Possible Bias, can be expensive to obtain this feedback

Performance source: Subordinate Advantages/Disadvantages

A: data garnered can include how well the manager treats employees, can determine if employees feel there is favoritisim within the dept, subordinates may not understand the "big picture" and rate low as a result D: rating inflation, possible retaliation if results are not favorable, if confidential, may create mistrust within the organization

The US department of Labor says that _____% of industrial fatalities and ___% of industrial injury can be tied to alcohol consumption. Also employees who use substances are ____ to ____ percent less productive and miss work 3x more often than nonabusing employees

40 47 25-30

How to estimate the costs of performance evaluations: Narrow Span of control: Average span of control - 8 Average time to complete 1 written review - 1 hour Average time to discuss with employee- 1 hour Administrative time to set up meetings with employee - 1/2 hour

8 employee x 2 hours/employee + 1/2 hour administrative time = 16.5 hours of time for one manager to complete all performance reviews. Once you have the number multiply it by employees hourly pay = 16.5 x $50/hour = 825

(type of performance appraisal method) Work standards approach Advantages/disadvantages

A: Ability to measure specific components of the job D: Does not allow for deviations

(type of performance appraisal method) Ranking Advantages/disadvantages

A: Can create a high-performance work culture, validity depends on the amount of interaction between employees and manager, can negatively affect teamwork D: possible bias

(type of performance appraisal method) Essay Advantages/disadvantages:

A: Can easily provide feedback on the positive abilities of the employee D: Subjectivity, writing ability of reviewer impacts validity, time consuming (if not combined with other methods)

(type of performance appraisal method) Checklist scale Advantages/disadvantages

A: Measurable traits can point out specific behavioral expectations D: Do not allow for detailed answers or explanations (unless combined with another method)

(type of performance appraisal method) Management by objectives (MBOs) Advnatages/disadvantages

A: Open communication, employee may have more "buy-in" D: Many only work for some types of job titles

(type of performance appraisal method) Critical Incidents Advantages/disadvantages

A: Provides specific examples, time consuming for manager D: Tendency to report negative incidents

Performance source: Self Advantages/disadvantages

A: Self analysis can help with employee growth D: In the employee's interest to inflate his/her own ratings

Performance source: Peer Advantages/disadvantages

A: Works well when the supervisor doesnt always directly observe employee, can bring a different perspective, since peers know the job well, in confidential, may create mistrust within the organization D: If evaluations are tied to pay, this can put both the employee and peer in an awkward position, relationships can create bias in the review

Mediation is different from _____ which is a person reviews the case and makes a resolution or a decision on the situation.

Arbitration

(performance issue model) Often when single incidents are not immediately corrected, they involve into a _____ ____. This can occur when the employee doesn't think the incident is a big deal because he hasn't been correct before or may not even realize his is doing something wrong. In this case, it's important to talk with the employee and let him know what is expected.

Behavior patter.

With a ______ ________, a series of questions is asked and the manager simply responds yes or no to the questions, which can fall into either the behavioral or the trait method, or both. Another variation to this scale is a check mark in the criteria the employee meets, and a blank in the areas the employee does not meet. The challenge with this format is that it doesn't allow more detailed answers and analysis of the performance criteria, unless combined with another method, such as essay ratings

Checklist scale

The ______ _____ _____ is the process of negotiating an agreement between management and employees. This process ultimately defines the contract terms for employees.

Collective bargaining process

A ______ ______ means the employee resigned, but only because the work conditions were so intolerable that he or she had no choice

Constructive d/c

A ______ _______shows a scale and the manager puts a mark on the continuum scale that best represents the employee's performance. The disadvantage of this type of scale is the subjectivity that can occur. This type of scale focuses on behavioral traits and is not specific enough to some jobs

Continuous scale

_____ is defined as the process that corrects undesireable behavior

Discipline

A ______ ______ is one that shows a number of different points. The ratings can include a scale of 1-10; excellent, average, or poor; or meets, exceeds, or doesn't meet expectations, for example.

Discrete scale

Because of the _____ - ____ _____Act of 1988, some federal contractors and all federal grantees must agree they will provide a drug-free workplace, as a condition of obtaining the contract.

Drug-free workplace

In the United States, the ______ _____ ____ ____ is the right of an employer to fire an employee or an employee to leave an organization at any time, without any specific cause. The EAW principle gives both the employee and employer freedom to terminate the relationship at any time.

Employment at will principle (EAW)

In an _______ _______, the source answers a series of questions about the employee's performance in essay form. This can be a trait method and/or a behavioral method, depending on how the manager writes the essay. These statements may include strengths and weaknesses about the employee or statements about past performance. They can also include specific examples of past performance. The disadvantage of this type of method (when not combined with other rating systems) is that the manager's writing ability can contribute to the effectiveness of the evaluation. Also, managers may write less or more, which means less consistency between performance appraisals by various managers

Essay appraisal

In the ____ _____ ___ ___ _____ _____, the discharged employee contends that he was not treated fairly. This exception to the employment-at-will doctrine is less common than the first two (public policy exception and implied contract exception

Good faith and fair dealing exception ex: firing or transferring of employees to prevent them from collecting commissions, misleading employees about promotions and pay increases, and taking extreme actions that would force the employee to quit.

_____ ____ _____, a behavioral method, is perhaps the most popular choice for performance evaluations. This type of evaluation lists traits required for the job and asks the source to rate the individual on each attribute.

Graphic rating scale

_______ _______ is a formal way by which employees can submit a complaint regarding something that is not administered correctly in the contract. Usually, the grievance process will involve discussions with direct supervisors first, discussions with the union representative next, and then the filing of a formal, written grievance complaint.

Grievance process

In a breach of an implied contract, the discharged employee can prove that the employer indicated that the employee has job security. The indication does not need to be formally written, only implied

Implied contract exception

_______ _______ should not be punitive, but the goal of an improvement plan should be to help the employee succeed.

Improvement plans

Once the issue has been documented, the manager and employee should meet about the infraction. This type of meeting is called an _______ _____ and is used to make sure the employee is fully aware of the discipline issue.

Investigative interview

_______ ____ _______ is a concept developed by Peter Drucker in his 1954 book The Practice of Management (Drucker, 2006). This method is results oriented and similar to the work standards approach, with a few differences. First, the manager and employee sit down together and develop objectives for the time period. Then when it is time for the performance evaluation, the manager and employee sit down to review the goals that were set and determine whether they were met. The advantage of this is the open communication between the manager and the employee. The employee also has "buy-in" since he or she helped set the goals, and the evaluation can be used as a method for further skill development. This method is best applied for positions that are not routine and require a higher level of thinking to perform the job

Management by objectives (MBOs)

(performance issue model) The ____ issue is serious and must be addressed immediately. Usually, the mandated issue is one that goes beyond the company and could be a law. Examples of mandated issues might include an employee sharing information that violates privacy laws, not following safety procedures, or engaging in sexual harassment.

Mandated

In _____, the 3rd party facilitates the resolution process, but the results of the process are not binding for either party.

Mediation

some organizations use a ______ ______ ______, which is similar to a graphic rating scale. This scale includes a series of mixed statements representing excellent, average, and poor performance, and the manager is asked to rate a "+" (performance is better than stated), "0" (performance is at stated level), or "−" (performance is below stated level)

Mixed standard scale

Another type of ADR is called the _______ ______. In this system, a person is selected (or elected) to be the designated individual for employees to go to should they have a complaint or an issue with a discipline procedure. In this situation, the ombudsman utilizes problem-solving approaches to resolve the issue

Ombudsman system

Some organizations also implement a ______ ______ _____. In this type of system, a committee of management and employees is formed to review employee complaints or discipline issues. In this situation, the peer review system normally involves the peer group reviewing the documentation and rendering a decision

Peer resolution system

______ _______ _____is a systematic way to examine how well an employee is performing in his or her job. If you notice, the word systematic implies the performance evaluation process should be a planned system that allows feedback to be given in a formal—as opposed to informal—sense.

Performance evaluation system

(performance issue model) If the employee has been corrected for a behavior pattern but continues to exhibit the same behavior, we call this a _____ ____. Often you see employees correct the problem after an initial discussion but then fall back into old habits. If they do not self-correct, it could be they do not have the training or the skills to perform the job. In this phase of handling performance issues, it is important to let the employee know that the problem is serious and further action will be taken if it continues.

Persistent pattern

______ - _______ _____ the employee and the manager discuss the things that are going well and those that are not going well, which can make for a more productive discussion.

Problem-solving interview

Our last phase of dealing with employee problems would be a disciplinary intervention. Often this is called the ________ ______ _____. It refers to a series of steps taking corrective action on nonperformance issues.

Progressive discipline process

With a ______ ______ _____, an employer may not fire an employee if it would violate the individual state's doctrine or statute

Public policy exception

In a ______ ______ _____ (also called stack ranking), employees in a particular department are ranked based on their value to the manager or supervisor. This system is a comparative method for performance evaluations. The manager will have a list of all employees and will first choose the most valuable employee and put that name at the top. Then he or she will choose the least valuable employee and put that name at the bottom of the list. With the remaining employees, this process would be repeated. Obviously, there is room for bias with this method, and it may not work well in a larger organization, where managers may not interact with each employee on a day-to-day basis.

Ranking method system

_____ _____ means punishment of an employee for engaging in a protected activity, such as filing a discrimination charge or opposing illegal employer practices. F

Retaliatory d/c

________ refers to the process of reducing the total size of employees, to ultimately save on costs. Downsizing ultimately means the same thing as rightsizing, but the usage of the word has changed in that rightsizing seems to define the organization's goals better, which would be to reduce staff to save money, or rightsize. When a company decides to rightsize and, ultimately, engage in layoffs, some aspects should be considered.

Rightsizing

A _______ _______ can include pay, benefits, or other compensation for which an employee is entitled when they leave the organization. The purpose of a severance plan is to assist the employee while he or she seeks other employment.

Severance package

(performance issue model) ____ _____ is Perhaps the employee misspeaks and insults some colleagues or perhaps he or she was over budget or late on a project. These types of incidents are usually best solved with a casual conversation to let the employee know what he or she did wasn't appropriate. Consider this type of misstep a development opportunity for your employee. Coaching and working with the employee on this issue can be the best way to nip this problem before it gets worse.

Single incident

e, if most of your managers have five or ten people to manage (this is called _____ ___ _____), it might be worthwhile to give performance evaluations more than once per year, since the time cost isn't high. I

Span of Control

________ tells employees the job expectations and how they can be met. If they are not specific enough, the tool is not useful to the employee for development or to the manager to ensure the employee is meeting expectations

Specificity

_______ refers to an employee's telling the public about ethical or legal violations of his/her organization. This protection was granted in 1989 and extended through Sarbanes-Oxley Act of 2002.

Whistleblowing

The _____ _____ ___ _____ _____ requires organizations with more than one hundred employees to give employees and their communities at least sixty days' notice of closure or layoff affecting fifty or more full-time employees. This law does not apply in the case of unforeseeable business circumstances

Worker adjustment and retraining act (WARN)

When one of the exceptions (public policy, implied contract, and good faith and fair dealing exceptions) can be proven, _____ ____ accusations may occur.

Wrongful discharge

______ _____ means an employer has fired or laid off an employee for illegal reasons, such as violation or antidiscrimination laws or violation of oral and/or written employee agreements.

Wrongful termination

Mixed standard statements might include the following: (4)

• The employee gets along with most coworkers and has had only a few interpersonal issues. • This employee takes initiative. • The employee consistently turns in below-average work. • The employee always meets established deadlines