Chapter 11: Employee Assessment

this is an effective way of evaluating employees with certain jobs in which productivity is most important; is a results-focused approach where a minimum level is set and the employee's performance evaluation is based on this level; works best in long term situations where a reasonable measure of performance can be over a certain period of time; used in manufacturing situations where production is extremely important

work standards approach

How can reliability issues be prevented?

write performance standards in a way that will make them measurable

What are some example mixed standard statements?

• 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.

this refers to encouraging the employee to talk and understanding what the employee feels he does well and what he thinks he needs to improve.

remember, it is a development opportunity

Give Customer/Client - advantages & disadvantages

-customers often have the best view of employee behavior -can enhance long-term relationships with the customer by asking for feedback -can be expensive to obtain this feedback -possible bias

Give Subordinate - advantages & disadvantages

-data garnered can include how well the manager treats employees -Can determine if employees feel there is favoritism within their department -Subordinates may not understand the "big picture" and rate low as a result -Can be used as a self-development tool for managers -If nothing changes despite the evaluation, could create motivational issues among employees -rating inflation -if confidential, may create mistrust within the organization

Give Self - advantages & disadvantages

-self analysis can help with employee growth -in the employee's interest to inflate his or her own ratings

Give Manager/Supervisor - advantages & disadvantages

-usually has extensive knowledge of the employee's performance and abilities; -favoritism and bias

Give Peer - advantages & disadvantages

-works well when the supervisor doesn't always directly observe the employee -can bring a different perspective, since peers know the job well -if confidential, may create mistrust within the organization -relationships can create bias in the review -if evaluations are tied to pay, this can put both the employee and the peer in an awkward situation

Name the criteria the Civil Service Reform Act created for performance appraisals:

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.

What were the 4 similar characteristics Holley and Field noticed with the cases that won?

1. Appraisers were given written instructions on how to complete the appraisal for employees. 2. Job analysis was used to develop the performance measures of the evaluation. 3. The focus of the appraisal was actual behaviors instead of personality traits. 4. Upper management reviewed the ratings before the performance appraisal interview was conducted.

These are the "ground rules" to ensure information is similar no matter which manager is writing the evaluations:

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.

Within the categories of performance appraisals, there are two main aspects to appraisal methods which are?

1. criteria 2. rating

following this important case, employers began to rethink their performance evaluation system and the legality of it; an employee was terminated based on a subjective performance evaluation

Brito vs. Zia in 1973

this set new standards for performance evaluation; although these standards related only to public sector employees; began an important trend toward making certain performance evaluations were legal

Civil Service Reform Act of 1978

These types of software allow the HR professional to set criteria and easily send links to customers, peers, or managers, who provide the information requested. Then the data are gathered and a report is automatically generated, which an employee can use for quick feedback.

Halogen 360 Carbon 360 Argos

Who addressed 3 types of appraisal interview styles in the book The Appraisal Interview?

Norman R. F. Maier

_____________________________ should be developed for managers filling out the performance ratings and criteria. The advantage of this is_________________________ and _______________________.

Set standards accuracy of data and limiting possible bias

True/False - A performance review process could be intricately detailed and organized, but if the meeting with the employee doesn't go well, the overall strategic objective of performance reviews may not be met.

True

True/False - An employee improvement plan works best if it is written with the employee, to obtain maximum buy-in. Once you have developed the process and your managers are comfortable with it, the process must be managed.

True

True/False - As HR professionals, we know the importance of performance evaluation systems in developing employees, but this may not always be apparent to the managers we work with on a daily basis. It is our job to educate managers and employees on the standards for completing performance evaluation forms as well as train them on how to complete the necessary documents (criteria and ratings), how to develop improvement plans when necessary, and how to deliver the performance appraisal interview.

True

True/False - Asking for feedback from managers and employees is also a good way to determine how often performance evaluations should be given.

True

True/False - Development of specific criteria can save an organization in legal costs. For example, in Thomas v. IBM, IBM was able to successfully defend accusations of age discrimination because of the objective criteria the employee (Thomas) had been rated on.

True

True/False - Different industries and jobs need different kinds of appraisal methods and many organizations will use these methods in combination, as opposed to just one method.

True

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

acceptability

What needs to be developed first and tied directly to employees' job descriptions?

actual forms that will be used to evaluate each job within the organization.

The ___________________________________ should be based on the key skills and responsibilities of the job, and these should be reviewed often to make sure they are still applicable to the ______________________ and _______________________.

aspects of performance job analysis and job description

this refers to the MBOs of the objective should not be impossible to attain; it should be challenging but not impossible

attainable

this refers to using examples to show where the employee has room for improvement and where the employee exceeds expectations, such as, "The expectation is zero accidents, and you have not had any accidents this year."

be direct and specific

this method is where the individual actions within a specific job are looked at

behavioral method

method first determines the main performance dimensions of the job, ex. interpersonal relationships. Then the tool utilizes narrative information, such as from a critical incidents file, and assigns quantified ranks to each expected behavior; a specific narrative outlining what exemplifies a "good" and "poor" behavior for each category; combines a graphic rating scale with a critical incidents system; performance is assessed along a scale with clearly defined scale points containing examples of specific behaviors

behaviorally anchored rating scale (BARS)

Before we begin to develop our performance review process, it is important to note some of the __________________that can occur during this process.

errors

this method for determining performance lessens the subjectivity, although subjectivity will still be present in this type of rating system; a series of questions is asked and the manager simply responds yes or not to the questions, which can fall into either the behavioral or the trait method or both; variation of the this method is the check mark in the criteria the employees meets, and a blank in the areas the employee does not meet

checklist scale

this method compares one employee with other employees

comparative method

this scale shows a scale and the manager puts a mark on the continuum scale that best represents the employee's performance;

continuous scale Poor — — — — — — — — Excellent

these are the aspects the employee is actually being evaluated on which should be tied directly to the employee's job description

criteria

this method of appraisal, while more time-consuming for the manager, can be effective at providing specific examples of behavior; the manager records examples of the employee's effective and ineffective behavior during the time period between evaluations, which is in the behavioral category. When it is time for the employee to be reviewed, the manager will pull out this file and formally record the incidents that occurred over the time period.

critical incident appraisal

Then what is the next decision after developing actual forms?

determining who should evaluate the performance of the employee

Who are the possible people to evaluate employees?

direct manager/supervisor (most common method) subordinates customers or clients self peers

this is a scale that shows a number of different points; ratings can include a scale of 1-10; excellent, average, or poor; meets, exceeds, or doesn't meet expectations

discrete scale

this refers to instead of saying, "You are too slow on the production line," say, the "expectations are ten units per hour, and currently you are at eight units."

do not be personal; always compare the performance to the standards

With the 2nd consideration in the development of a performance evaluation being pay increases tied to performance evaluations, research shows what?

employees have a greater acceptance of performance reviews if the review is linked to rewards

in this method of determining performance, the source answers a series of questions about the employee's performance in essay form; can be trait method or behavioral method depending on how the manager writes the essay; statements may include strengths and weaknesses about the employee or statements about past performance as well as specific examples of past performance

essay appraisal

Managers should constantly give feedback to employees, and this process is a more ______________ way of doing so. Some organizations choose to give performance evaluations __________per year, while others give them __________per year.

formal once twice

this step of the performance review system could mean showing the employee his/her performance appraisal criteria or sitting down with the employee to develop MBOs; basic idea is that the employee should know the expectations and how his/her job performance will be rated

goal setting with the employee

this is behavioral method of appraisal and is the most popular choice for performance evaluations; lists traits required for the job and asks the source to rate the individual on each attribute; inexpensive and easily understood by employees and managers

graphic rating scale

these can occur when the source or the rater feels one aspect of the performance is high and therefore rates all areas high; sometimes occurs because the rater is uncomfortable rating someone low on a performance assessment item

halo effects

Name some performance appraisal system errors:

halo effects rating mistakes validity issues reliability issues acceptability issues specificity issues

How can organizations keep the conversation two-way?

have the employee fill out the same evaluation, and answers from the employee and manager are compared and discussed in the interview.

When does the critical incident appraisal work well?

if the manager has the proper training to record incidents (ex. weekly diary) & when specific jobs vary greatly from week to week, unlike a factory worker who routinely performs the same weekly tasks

this should not be punitive, but the goal should be to help the employee succeed; coaching and development occurs throughout the employees tenure, and he or she should before the performance evaluation if expectations are not being met so this is not a surprise

improvement plan

this step of the performance review system is to work with the employee to develop improvement plans (if necessary) and offer any rewards as a result of excellent performance. The process then begins again, setting new goals with the employee.

improvement plans and/or rewards

Most people feel nervous about giving and receiving performance evaluations. What is onne way to limit this?

is to show the employee the written evaluation before the interview, so the employee knows what to expect.

is a concept developed by Peter Drucker in his 1954 book The Practice of Management 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.

management by objectives (MBOs)

this refers to the MBOs of 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"

measurable

this occurs when we compare one employee to another as opposed to the job description's standards

mistakes in rating

this scale is similar to the graphic rating 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 stated level), or "-" (performance is below the stated level)

mixed standard scale

this is a systematic way to examine how well an employee is performing in his or her job; the process should be a planned system that allows feedback to be given in a formal- as opposed to informal- sense; can also be called performance appraisals, performance assessments, or employee appraisals

performance evaluation system

this step of the performance review system ensuring the employee knows what he or she is doing well and is not doing well in a more informal manner will allow for a more productive employee.

performance monitoring, feedback, and coaching

this type of interview is when the employee and the manager discuss things that are going well and those things that are not going well which can make for a more productive discussion

problem solving interview

What is the advantage to giving an evaluation twice per year? Disadvantage?

provides more feedback and opportunity for employee development downside is the time costs it takes for the managers to write the evaluation and discuss it with the employee

this is also called a stack ranking and is where employees in a particular department are ranked based on their value to the manager or supervisor; comparative method; the managers 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

ranking method system

this is the type of scale that will be used to rate each criterion in a performance evaluation; examples, 1-5, essay ratings, or yes/no ratings

rating

this refers to how consistent the same measuring tool works throughout the organization (or job title).

reliability

this method focuses on employee accomplishments such as whether or not employees meet a quota

results method

this is when managers have a certain number of employees to control; 5 to 10 employees might require evaluations more than once per year since cost aren't high and 20 or more employees might not require evaluations more than once a year due to cost

span of control

this refers to the MBOs of there should be one key result for each MBO; what is the result that should be achieved

specific

this tells employees the job expectations and how they can be met

specificity

What will HR professionals keep that lists all employees, their manager, and time lines for completion of performance evaluations and makes it easier to keep track of when performance evaluations should be given?

spreadsheet or other document

What will make the ranking method system more valuable?

supervisors should use the same criteria to rank each individual

this implies the performance evaluation process should be a planned system allowing formal feedback to be given

systematic

this type of interview is when the manager communicates feedback and then addresses the employee's thoughts about the interview

tell and listen

this type of interview is where the manager does most of the talking and passes his or her view to the employee

tell and sell interview

this refers to instead of the interview being a list of things the employee doesn't do well (which may give the feeling of criticizing), thank the employee for what the employee does well, and work on action plans together to fix anything the employee isn't doing well. Think of it as a team effort to get the performance to the standard it needs to be

thank the employee and avoid criticism

this step of the performance review system is choosing the criteria, rating scale, and source of the evaluation are steps we have already discussed

the performance appraisal

this refers to the MBOs of the objective should have a reasonable time to be accomplished, but not too much time

time limited

What needs to be created and educated to managers and employees after reviewing considerations and errors possible to occur?

timeline on the performance evaluation system -done through formal training and communicated through company blogs or e-mails

after you have developed the new performance appraisal system (or adjusted an old one), consider offering ________________________on how to effectively use it. The training, if required, can save time later and make the process more ____________________. What we want to avoid is making it seem as if the performance appraisal process is "__________________________" for managers to do.

training valuable just one more thing

this is where managers look at an employee's specific traits in relation to the job such as friendliness to the customer

trait method

What are 4 methods of determining performances?

trait method behavioral method comparative method results methods

With 360 degree performance appraisals, what must organizations be careful of?

using peer-reviewed information

Many organizations use a graphic rating scale in conjunction with other appraisal methods to further solidify the tool's __________________.

validity

these are the extent to which the tool measures the relevant aspects of performance

validity issues

When halo effects and mistakes in rating occur, it makes the performance evaluation less what? Therefore, what is provided in order to manage a performance appraisal interview?

valuable for employee development training

Tied to the rating and criteria are ________________.

weights each item will be given

Name the 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.

Name the 9 most important things to remember when developing a performance evaluation system:

1. Make sure the evaluation has a direct relationship to the job. Consider developing specific criteria for each job, based on the individual job specifications and description. 2. Involve managers when developing the process. Garner their feedback to obtain "buy-in" for the process. train managers on the system 3. Consider involving the employee in the process by asking the employee to fill out a self-evaluation. 4. Use a variety of methods to rate and evaluate the employee. 5. Avoid bias by standardizing performance evaluations systems for each job. 6. Give feedback on performance throughout the year, not just during performance review times. 7. Make sure the goals of the performance evaluation tie into the organizational and department goals. 8. Ensure the performance appraisal criteria also tie into the goals of the organization, for a strategic HRM approach. 9. Review the evaluation for each job title often, since jobs and expectations change.

What are the 5 considerations that should be met when developing our performance appraisal process? PS PE RAT ROC FP

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.

Name 6 things to consider to effectively manage the performance appraisal process:

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.

Name 6 steps you may want to discuss with your managers who provide performance evaluations:

1. Review the employee's last performance evaluation. Note goals from the previous evaluation period. 2. Review the employee's file and speak with other managers who interface with this person. In other words, gather data about performance. 3. Fill out the necessary forms for this employee's appraisal. Note which areas you want to address in the appraisal interview with the employee. 4. If your organization bases pay increases on the performance evaluation, know the pay increase you are able to offer the employee. 5. Write any improvement plans as necessary. 6. Schedule a time and date with the employee.

Name the 5 objectives with MBOs: They should be SMART.

1. Specific. 2. Measurable. 3. Attainable. 4. Result oriented. 5. Time limited.

What are the 6 ramifications that can occur resulting from a completed performance evaluation?

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.

Name the 4 things to consider when trying to provide the best feedback to the employee:

1. be direct and specific 2. do no be personal; always compare the performance to the standard 3. remember it is a development opportunity 4. thank the employee and avoid criticism

What are the 4 steps to the performance review system?

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

What are 3 things to consider before designing or revising an existing performance appraisal system?

1. how often performance appraisals should be given? 2. should pay increases be tied to performance evaluations? 3. what goals does the organization hope to achieve with the performance appraisal process?

What are the 3 types of appraisal interview styles?

1. tell and sell interview 2. tell and listen 3. problem solving interview

What are the 4 reasons as to why a systematic performance evaluation system should implemented?

1. the evaluation process should encourage positive performance and behavior 2. it is a say way to satisfy employee curiosity as to how well they are performing in their job 3. can be used as a tool to develop employees 4. it can provide a basis for pay raises, promotions, and legal disciplinary actions

What would a wider span of control be?

25 employees × 2 hours per employee + 1 hour administrative time to set up times to meet with employees = 51 hours

this method is a way to appraise performance by using several sources to measure the employee's effectiveness

360 degree performance appraisal

What would a narrow span of control be?

8 employees × 2 hours per employee + 1/2 hour administrative time to set up times to meet with employees = 16.5 hours of time for one manager to complete all performance reviews

Who analyzed 66 legal cases that involved discrimination and performance evaluation; of the cases, defendants won 35 of the cases?

Holley and Field

True/False - If job expectations are not specific enough, the performance appraisal tool is not useful to the employee for development or to the manager to ensure the employee is meeting expectations.

True

True/False - Management of this process can be time-consuming for the HR professional. That's why there are many software programs available to help administer and assess 360 review feedback.

True

True/False - Numerous types of software are available that allow the HR professional to manage key job responsibilities and goals for every employee in the organization. This software tracks progress on those goals and allows the manager to enter notes (critical incidents files) online.

True

True/False - Of course, as with any new system, it can be time-consuming to set up and train managers and employees on how to use the system. However, many organizations find the initial time to set up software or web-based performance evaluation systems well worth the easier recording and tracking of performance goals.

True

True/False - Once the frequency, rewards, and goals have been determined, it is time to begin to formalize the process.

True

True/False - Once you have the number of hours it takes, you can multiply that by your manager's hourly pay to get an estimated cost to the organization 16 hours × $50 per hour = $850 51 hours × $50 per hour = $2550

True

True/False - Once your managers are trained, understand how to fill out the forms, and are comfortable with the ground rules associated with the process, we can coach them on how to prepare for performance evaluations

True

True/False - Planning in advance of the performance appraisal interview is important, so all information is available to communicate to the employee.

True

True/False - Some researchers suggest that the performance appraisal system is perhaps one of the most important parts of the organization, while others suggest that performance appraisal systems are ultimately flawed, making them worthless.

True

True/False - The point, of course, is to use performance evaluations as a development tool, which will positively impact employee motivation.

True

True/False - The software can track 360 reviews and send e-mail reminders when it is time for an employee or manager to complete evaluations. This type of software can allow for a smoother, more streamlined process.

True

True/False - To make MBOs an effective performance evaluation tool, it is a good idea to train managers and determine which job positions could benefit most from this type of method. You may find that for some more routine positions, such as administrative assistants, another method could work better.

True

True/False - When the manager meets with the employee to discuss the performance evaluation, the manager should be clear, direct, and to the point about positives and weaknesses. Manager should also discuss goals for the upcoming period, as well as any pay increases or improvement plans as a result of the evaluation. The manager should also be prepared for questions, concerns, and reasons for an employee's not being able to meet performance standards.

True

True/False - When we look at reliability in performance appraisals, we ask ourselves if two raters were to rate an employee, how close would the ratings be? If the ratings would be far apart from one another, the method may have reliability issues.

True

True/False - While it will be up to the individual manager to give performance appraisals to employees, as an HR professional, it will be up to you to develop the process (which we have already discussed) and to manage the process.

True

True/False -You will then determine the source for the performance evaluation data, and then create criteria and rating scales that relate directly to the employee's job description. Once this is done, the successful functioning of the performance evaluation system largely depends on the HR professional to implement and communicate the system to managers and employees.

True

this refers to the MBOs of 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

result oriented

The MBOs method is best applied for positions that are not _____________________ and require a higher ________________________ to perform the job. And to be effective, managers and the employee should write strong ___________________________.

routine level of thinking objectives