Chapter 1

Human Resources Management (HRM)

It is the process of managing human resources (human capital and intellectual assets) to
achieve an organizations objectives.
Why Study HRM?
Staffing the organization,
designing jobs and teams,
developing skillful employees,
identifying approaches for improving their performance, and
rewarding employee successes
Core Competencies
Integrated knowledge sets within an organization that distinguishes it from its competitors
and delivers value to customers.
Sustained competitive advantage through people is achieved if these human
resources:
Have value.
Are rare and unavailable to competitors.
Are difficult to imitate.
Are organized.
Overall Framework for Human Resource Management

The most pressing competitive issues facing firms:
Going global
Embracing new technology
Managing change
Managing talent, or human capital
Responding to the market
Containing costs
Globalization
The trend toward opening up foreign markets to international trade and investment
Impact of globalization on HRM
When managers talks about going global, they have to balance a complicated set of issues
related to different geographies, cultures, laws and business practice
Issues:
Identifying capable managers and workers
Developing foreign culture and work practice training programs.
Adjusting compensation plans for overseas work
Human Resources Information System (HRIS) (embarrassing new technology)
It is a computerized system that provides current and accurate data for the purposes of
control and decision making.
Benefits:
Store and retrieve of large quantities of data.
Combine and reconfigure data to create new information.
Institutionalization of organizational knowledge.
Easier communications.
Lower administrative costs, increased productivity and response times.
Types of Change
Technology and globalization are only two of the forces driving change in organization and
HRM
1. Reactive change
Change that occurs after external forces have already affected performance
2. Proactive change
Change initiated to take advantage of targeted opportunities
Managing Change through HR
To manage change, executives and managers have to:
envision the future,
communicate this vision to employees,
set clear expectation for performance, and
develop the capabilities to execute by recognizing people and move assets
Human Capital
It is the knowledge, skills, and capabilities of individuals that have economic value to an
organization.
Valuable because capital:
Is based on company-specific skills.
Is gained through long-term experience.
can be expanded through development

Responding to market
Total Quality Management (TQM)
A set of principles and practices whose core ideas include understanding customer needs,
doing things right the first time, and striving for continuous improvement.
Reengineering and HRM
Fundamental rethinking and radical redesign of business processes to achieve dramatic
improvements in cost, quality, service, and speed.
Requires that managers create an environment for change.
Depends on effective leadership and communication processes.
Requires that administrative systems be reviewed and modified.

Containing Costs
There are many ways to lower labor Cost like:
downsizing,
The planned elimination of jobs
Out sourcing
Contracting outside the organization to have work done that formerly was done by
internal employees
employee leasing,
Employees who are hired away by a vendor firm but continue to work in their original
jobs
productivity enhancement
Performance =f(M,E,A)

Managing Diversity
Being aware of characteristics common to employees, while also managing employees as
individuals
The primary business reasons for diversity management include
Better utilization of talent
Increased marketplace understanding
Breadth of understanding in leadership positions
Enhanced creativity
Increased quality of team problem-solving

Demographic and Employee Concerns
Demographic Changes
Diversity of back ground
Age distribution of employee
Gender distribution of work force
Rising level of education
Culture Changes
Employee rights
Concern for privacy
Changing attitude toward work
Balancing work and family

Responsibilities of the HR Manager
Advice and counsel
Internal (policies, labor agreement, past practices, and the needs of employee)
External (economic and employment data, legal issue, and the like)
Service (recruiting, selecting, testing, planning, and conducting training programs)
Policy formulation and implementation
Employee support

HR Competencies
Business mastery
HR mastery
Change mastery
Personal credibility
















Chapter 3
What is a Job?
It is a group of related activities and duties.
What is a Position?
The different duties and responsibilities performed by only one employee.
What is Job Specification?
Statement of the needed knowledge, skills and abilities of the person who is to perform the
job.
What is Job Description?
Statement of the tasks, duties and responsibilities of a job to be performed.
HRM Functions
1. Recruitment
2. Selection
3. Training and Development
4. Performance Appraisal
5. Compensation Management

What is Job Analysis?
Is the process of obtaining information about jobs by determining what the duties or
activities or tasks of those jobs.
HR managers use the data to develop job descriptions and job specifications that
are the basis for employee performance appraisal and development.
The ultimate purpose of job analysis is to improve organizational performance
and productivity.









Essential Functions
Statements in the job description of job duties and responsibilities that is critical for success
of the job.
A job function is essential if:
The position exists to perform the function.
A limited number of employees are available to perform the function.
The function is specialized, requiring needed expertise or abilities to complete the job.

Performing Job Analysis
Select jobs to study
Determine information to collect: Tasks, responsibilities, skill requirements
Identify sources of data: Employees, supervisors/managers
Methods of data collection: Interviews, questionnaires, observation, diaries and
records
Evaluate and verify data collection: Other employees, supervisors/managers
Write job analysis report
Gathering Job Information
Interviews
Questionnaires
Observation
Diaries

Job analysis methods
Functional Job Analysis (FJA)
Quantitative approach to job analysis that utilizes a compiled inventory of the various
functions or work activities that can make up any job
Position Analysis Questionnaire (PAQ)
A questionnaire covering 194 different tasks that, by means of a five-point scale, seeks to
determine the degree to which different tasks are involved in performing a particular job
Critical Incident Method
Job analysis method by which job tasks are identified that is critical to job success.
The job analyst writes five to ten important task statements for each job under study
Task Inventory Analysis
An organization-specific analysis developed by identifyingwith the help of employees and
managersa list of tasks and their descriptions that are components of different jobs.
HRIS and Job Analysis
Human resource information systems (HRIS) and specialized software help automate job
analysis.
Analyze jobs and write job descriptions and job specifications based on those
analyses.
Combine job analysis with job evaluation and the pricing of organizational jobs.
Preparing the Job Description

Key Elements of a Job Description
J ob Title
Indicates job duties and organizational level (it has psychological importance e.g. Sanitation
engineer and Garbage Collector, and it should provide some indication of the duties of
the job e.g. senior engineer and junior engineer)

J ob I dentification
Distinguishes job from all other jobs (it contains information of the department location,
reporting manager, how many employees performing the job and sometimes the payroll)

Essential Functions (J ob Duties)
Indicate responsibilities entailed and results to be accomplished (should indicate the weight
or value of each duty and responsibilities and the tools to accomplish success)

J ob Specifications
Skills required to perform the job and the physical demands of the job (the personal
qualifications an individual must possess)

Problems with job descriptions:
1. If they are poorly written, using vague rather than specific terms, they provide little
guidance to the jobholder.
2. They are sometimes not updated as job duties or specifications change.
3. They may violate the law by containing specifications not related to job success.
4. They can limit the scope of activities of the jobholder.


Job Design
An outgrowth of job analysis that improves jobs through technological and human
considerations in order to enhance organization efficiency and employee job satisfaction..
Basic Considerations of job design:
1. Organizational objectives (tasks and duties to be performed)
2. Industrial engineering considerations (efficient production process and work method
improvements)
3. Ergonomic concerns ( human capabilities and limitations)
4. Employee contributions ( work process improvements or enhanced, decentralized
decision making)

Increasing employee contribution to decision making offer a number of
advantages, including:
commitment to organizations goals,
consensus decision making and
Encouragement of a team approach to workplace tasks.
Here are some techniques to improve employee contribution:
Employee empowerment
Employee involvement groups
Employee teams
Job enrichment
Changes in job characteristics
Adjustments of traditional work schedules

Upward communication systems:
Suggestion system (covers methods and procedures, equipment design and safety
devices that help increase the efficiency of the organization)
Attitude survey (how employees feel about their jobs and wages and working
conditions)

Job Enrichment (Herzberg)
Enhancing a job by adding more meaningful tasks and duties (vertical expansion) to make
the work more rewarding or satisfying.
5 factors for enriching jobs:
1. Achievement
2. Recognition
3. Growth
4. Responsibility
5. Performance of the whole job versus only parts of the job
Job Characteristics Model (Hackman & Oldham):
It proposes that three psychological states of a jobholder result in improved work
performance and lower absenteeism and turnover;
1. Meaningfulness of work performed
2. Experience responsibility of outcomes
3. Having knowledge of the results
5 Core job dimensions to achieve these 3 psychological states:
1. Skill variety
2. Task identity
3. Task Significance
4. Autonomy
5. Feedback
Employee teams:
They are a logical outgrowth of employee involvement and the philosophy of empowerment.


Adjustments in work schedules
The compressed workweek:
The number of days in the work week are shortened by lengthening the number of hours
worked per day. E.g. four-day, forty-hour week (4/10 or 4/40)
Flextime:
It's called flextime or flexible working hours, permits the employees the option of choosing
daily starting and quitting times, provided they work a certain number of hours.
Job sharing:
The arrangement whereby two part-time employees perform a job that otherwise would be
held by one full time employee.
Telecommuting:
It is the use of microcomputers, networks and other communications technology to do work
at home that is traditionally done in the workplace.





Chapter 4

Human resource planning (HRP):
process of anticipating and making provision for the movement of people into, within, and
out of an organization.
Strategic Planning:
Procedures for making decisions about the organizations long-term goals and strategies
Organizational capability:
the capacity to act and change in pursuit of sustainable competitive advantage.
Strategic Human Resources Management (SHRM)
The pattern of human resources deployments and activities that enable an organization to
achieve its strategic goals
Strategy formulation: providing input as to what is possible given the types and
numbers of people available.
Strategy implementation: making primary resource allocation decisions about
structure, processes, and human resources.



Forecasting involves:
forecasting the demand for labor
forecasting the supply of labor
balancing supply and demand considerations



Forecasting demand for employee:
Forecasting the number and the type of people needed to meet organizational objectives.
There are two approaches for HR forecasting: qualitative and quantitative:
Quantitative approach: involves the use of statistical or mathematical techniques Ex. trend
analysis: quantitative approach to forecast labor demand based on organizational index such
as sales. Sales(in thousands)/sales per employee= HR demand.

Qualitative approach: qualitative approach to forecasting are less statistical attempting to
reconcile the interests, abilities and aspirations of individual employees with the current and
future needs of an organization.
Ex:
Management forecasts: are the opinions of supervisors, department managers, experts
about the organization future needs.
Delphi Technique: An attempt to decrease the subjectivity of forecasts by soliciting and
summarizing the judgments of a preselected group of individuals.. The final forecast
represents a composite group judgment.

Forecasting supply of employees.
Internal labor supply.
Staffing Tables
Markov Analysis
Skill Inventories
Replacement Charts
Succession Planning

Staffing tables: Graphic representations of all organizational jobs, along with the
numbers of employees currently occupying those jobs and future (monthly or yearly)
employment requirements.
Markov analysis: shows the percentage and actual number of employees who remain in
each job from one year to the next as well as the proportions of those who are promoted,
demoted, transferred or exit the organization.
Skill Inventories: Files of personnel education, experience, interests, skills, etc., that
allows managers to quickly match job openings with employee backgrounds.
Replacement Charts: Listings of current jobholders and persons who are potential
replacements if an opening occurs.



Succession Planning : The process of identifying, developing, and tracking key
individuals for executive positions.
External labor supply
When an organization lacks an internal supply of employees for promotion or when it is
staffing entry level positions managers must consider the external supply of labor, many
factors influence the labor supply including the demographic changes in population, national
and regional economics, educational level of work force, demand for specific employees
skills, population mobility and government policy.
Balancing demand and supply considerations
Organizational downsizing: when the organization has a surplus of employees in certain
areas they have to find ways to reduce head counts
Recruitment
Labor Market
Area from which applicants are to be recruited.
Tight market: high employment, few available workers
Loose market: low employment, many available workers
Factors determining the relevant labor market:
Skills and knowledge required for a job
Level of compensation offered for a job
Reluctance of job seekers to relocate
Ease of commuting to workplace
Location of job (urban or nonurban)

Sources of external recruiting:
Advertisements
Public employment agencies.
Private employment agencies.
Executive search firms
Educational institutions
Employee referrals
Unsolicited applications and resumes
Professional organizations
Labor unions
Temporary help agencies
Employees leasing


Yield Ratio
Percentage of applicants from a recruitment source that make it to the next stage of the
selection process.
Cost of Recruitment (per employee hired)

SC = source cost
AC = advertising costs, total monthly expenditure (example: $28,000)
AF = agency fees, total for the month (example: $19,000)
RB = referral bonuses, total paid (example: $2,300)
NC = no-cost hires, walk-ins, nonprofit agencies, etc. (example: $0)
H = total hires (example: 119)

Realistic Job Previews (RJP)
Informing applicants about all aspects of the job, including both its desirable and undesirable
facets.
Recruiting within organization:
Advantages:
An organization can capitalize on its own investment it has made in recruiting,
selecting, training and developing its current employees.
Promotion serves to reward employees for past achievement and encourage them to
continue their effort.

Method of locating qualified job candidate:
Computerized record systems: Database systems containing the records and
qualifications of each employee that can be accessed to identify and screen candidates
for an internal job opening.

Job posting and bidding: Posting vacancy notices and maintaining lists of employees
looking for upgraded positions.

Limitations of recruiting from within:
Certain jobs at the middle and top level that require specialized training and
experience and cant be filled from within.
Some jobs require hiring individuals from outside who gained experience from other
employers.
Risk of employee cloning.
Attempt to gain secrets from competitors by hiring away their employees


Calculating Turnover and Absenteeism
H
NC RB AF AC
H
SC

Turnover rate



Computing Absenteeism Rates




Chapter 5
Selection
The process of choosing individuals who have relevant qualifications to fill existing or
projected job openings.
Selection Considerations
Person-job fit: job analysis identifies required individual competencies (KSAOs) for
job success.
Person-organization fit: the degree to which individuals are matched to the culture
and values of the organization.
Steps of the Selection Process
1- Completion of application form
2- Initial interview in HR department
3- Employment tests
4- Background investigation
5- Preliminary selection in HR department
6- Supervisory or team interview
7- Medical examination/ drug testing
8- Hiring decision
Obtaining Reliable and Valid Information
Reliability
The degree to which interviews, tests, and other selection procedures yield comparable data
over time and alternative measures.
Validity
Degree to which a test or selection procedure measures a persons attributes.
Approaches to validation
Criterion-related validity
Content validity
Construct validity


Criterion-related Validity
The extent to which a selection tool predicts, or significantly correlates with, important
elements of work behavior.
A high score indicates high job performance potential; a low score is predictive of low job
performance.
Types Of Criterion-related Validity
1. Concurrent Validity
The extent to which test scores (or other predictor information) match criterion data obtained
at about the same time from current employees.
High or low-test scores for employees match their respective job performance.
2. Predictive Validity
The extent to which applicants test scores match criterion data obtained from those
applicants/ employees after they have been on the job for some indefinite period.
A high or low-test score at hiring predicts high or low job performance at a point in time
after hiring.
3. Cross-validation
Verifying the results obtained from a validation study by administering a test or test battery
to a different sample (drawn from the same population).
Validity (or Correlation) Coefficient (r)
A number ranging from 0.00, denoting a complete absence of relationship, to 1.00 and to -
1.00, indicating a perfect positive and perfect negative relationship, respectively.

Content validity
The extent to which a selection instrument, such as a test, adequately samples the knowledge
and skills needed to perform a particular job.
Example: typing tests, drivers license examinations
Construct validity
The extent to which a selection tool measures a theoretical construct or trait.
Are difficult to validate
Example: creative arts tests, honesty tests
Sources of Information about Job Candidates
Application Forms
Online Applications
Biographical Information Blanks (BIB)
Background Investigations
Integrity and Honesty Tests
Graphology
Medical Examinations
Employment Tests
Interviews
Employment Test
An objective and standardized measure of a sample of behavior that is used to gauge a
persons knowledge, skills, abilities, and other characteristics (KSAOs) in relation to other
individuals.
Classification of Employment Tests
1- Cognitive ability tests
2- Personality and interest inventories
3- Physical ability tests
4- Job knowledge tests
5- Job sample tests
1. Cognitive Ability Tests
Aptitude tests
Measures of a persons capacity to learn or acquire skills.
Achievement tests
Measures of what a person knows or can do right now.
2. Personality and Interest Inventories
Big Five personality factors:
Extroversion, agreeableness, conscientiousness, neuroticism, openness to experience.
3. Physical Ability Tests
Must be related to the essential functions of the job.
4. Job Knowledge Tests
An achievement test that measures a persons level of understanding about a particular job.
5. Work Sample Tests
Require the applicant to perform tasks that are actually a part of the work required on the job
Interviewing Methods
1- The nondirective interview
2- The structured interview
3- The situational interview
4- The behavioral description interview
5- The panel interview
6- The computer interview

1. Nondirective Interview
The applicant determines the course of the discussion, while the interviewer refrains from
influencing the applicants remarks.
2. Structured Interview
An interview in which a set of standardized questions having an established set of answers is
used.
3. Situational Interview
An interview in which an applicant is given a hypothetical incident and asked how he or she
would respond to it.
4. Behavioral Description Interview (BDI)
An interview in which an applicant is asked questions about what he or she actually did in a
given situation.
5. Panel Interview
An interview in which a board of interviewers questions and observes a single candidate.
6. Computer Interview
Using a computer program that requires candidates to answer a series of questions tailored to
the job.
Answers are compared either with an ideal profile or with profiles developed on the basis of
other candidates responses.
7. Video interviews
Using video conference technologies to evaluate job candidates technical abilities, energy
level, appearance, and the like before incurring the costs of a face-to-face meeting.
Basic Approaches to Selection
1- Clinical (personal judgment) approach
2- Statistical approach

Compensatory Model
Permits a high score in one area to make up for a low score in another area.
Multiple Cutoff Model
Requires an applicant to achieve a minimum level of proficiency on all selection
dimensions.
Multiple Hurdle Model
Only applicants with sufficiently high scores at each selection stage go on to
subsequent stages in the selection process.








Chapter 6
Training
Effort initiated by an organization to foster learning among its members.
Tends to be narrowly focused and oriented toward short-term performance concerns.
Development
Effort that is oriented more toward broadening an individuals skills for the future
responsibilities
Phases of the System Approach
1- Conducting the needs assessment
2- Designing the training program
3- Implementing the training program
4- Evaluating the training program

Phase 1: Conducting the Needs Assessment
Organization Analysis
An examination of the environment, strategies, and resources of the
organization to determine where training emphasis should be placed.
Task Analysis
The process of determining what the content of a training program should be on
the basis of a study of the tasks and duties involved in the job.
Person Analysis
A determination of the specific individuals who need training.
Competency assessment
Analysis of the sets of skills and knowledge needed for decision-oriented and
knowledge-intensive jobs.
Phase 2: Designing the Training Program
a- Instructional objectives
b- Trainee readiness and motivation
c- Principles of learning
d- Characteristics of instructors

a. Instructional Objectives
Represent the desired outcomes of a training program
Provide a basis for choosing methods and materials and for selecting the means
for assessing whether the instruction will be successful.
b. Trainee readiness and motivation
Strategies for Creating a Motivated Training Environment:
Use positive reinforcement.
Eliminate threats and punishment.
Be flexible.
Have participants set personal goals.
Design interesting instruction.
Break down physical and psychological obstacles to learning.

c. Principle of learning
Focus on learning and transfer
1- Goal setting
2- Meaningfulness of presentation
3- Modeling
4- Individual differences

Focus on method and process
1- Active practice and repetition
2- Whole-versus-part learning
3- Massed-versus-distributed learning
4- Feedback and knowledge of progress
5- Rewards and reinforcement

d. Characteristics of Instructors
Knowledge of subject
Adaptability
Sincerity
Sense of humor
Interest
Clear instructions
Individual assistance
Enthusiasm

Phase 3: Implementing the Training Program
Training Methods for Non-managerial Employees
On-the-Job Training (OJT)
Apprenticeship Training
Cooperative Training, Internships, and Governmental Training
Classroom Instruction
Programmed Instruction
Audiovisual Methods
Computer-based Training and E-Learning
Simulation Method

On-the-job training (OJT)
Method by which employees are given hands-on experience with instructions from their
supervisor or other trainer.
Apprenticeship training
A system of training in which a worker entering the skilled trades is given thorough
instruction and experience, both on and off the job, in the practical and theoretical aspects of
the work.
Cooperative Training
A training program that combines practical on-the-job experience with formal educational
classes.
Internship Programs
Are jointly sponsored by colleges, universities, and other organizations that offer students
the opportunity to gain real-life experience while allowing them to find out how they will
perform in work organizations.
Classroom Instruction
Enables the maximum number of trainees to be handled by the minimum number of
instructors.
Blended learninglectures and demonstrations are combined with films, DVDs, and
videotapes or computer instruction.
Programmed Instruction
Referred to as self-directed learninginvolves the use of books, manuals, or computers to
break down subject matter content into highly organized, logical sequences that demand
continuous response on the part of the trainee.
Audiovisual Methods
Technologies, such as CDs and DVDs, are used to teach skills and procedures by illustrating
the steps in a procedure or interpersonal relations.
E-Learning
Learning that takes place via electronic media such web and computer-based training (CBT)
Allows the firm to bring the training to employees
Allows employees to customize their own learning in their own time and space
Simulation
The simulation method emphasizes realism in equipment and its operation at minimum cost
and maximum safety.
Used when it is either impractical or unwise to train employees on the actual equipment used
on the job.
Training Methods for Management Development
On-the-Job Experiences
Seminars and Conferences
Case Studies
Management Games
Role Playing
Behavior Modeling

Phase 4: Evaluating the Training Program
Reactions
Learning
Behavior
Results








Chapter 7
Performance Appraisal
A process, typically performed annually by a supervisor for a subordinate, designed to help
employees understand their roles, objectives, expectations, and performance success.
Purposes of Performance Appraisal
It gives the employee the opportunity to discuss performance regularly with their
supervisor.
Provides the supervisor with a mean to identify the strengths and weaknesses of an
employee.
Provides a format enabling the supervisor to recommend a specific program designed
to help an employee improve performance.
Provides a basis for salary recommendations.



Reasons Appraisal Programs Sometimes Fail
Manager lacks information concerning an employee's actual performance.
Standards by which to evaluate an employee's performance are unclear.
Manager does not take the appraisal seriously.
Manager is not honest during the evaluation.
Manager lacks appraisal skills.
Employee does not receive feedback.
Manager feel that little or no benefit will be delivered from the time and energy spent
in the process.
Manager dislike the face to face confrontation of appraisal interviews.

Performance Standards Characteristics
Strategic Relevance: Individual standards directly relate to strategic goals.
Criterion Deficiency: Standards capture all of an individuals contributions.
Criterion Contamination: Performance capability is not reduced by external factors-
factors outside an employees control can influence his or her performance.
Reliability (Consistency): Standards are quantifiable, measurable, and stable.
Sources of Performance Appraisal
Manager and/or Supervisor
Appraisal done by an employees manager and reviewed by a manager one level
higher.
Self-Appraisal
Appraisal done by the employee being evaluated, generally on an appraisal form
completed by the employee prior to the performance interview.
Subordinate Appraisal
Appraisal of a superior by an employee, which is more appropriate for
developmental than for administrative purposes.
Peer Appraisal
Appraisal by fellow employees, compiled into a single profile for use in an
interview conducted by the employees manager.
Team Appraisal
based on TQM concepts, that recognizes team accomplishment rather than
individual performance
Customer Appraisal
A performance appraisal that, like team appraisal, is based on TQM concepts
and seeks evaluation from both external and internal customers
Putting All Together : 360-Degree Appraisal
Providing the employee with an accurate view of their performance by getting
input from all angels: supervisors, peers, subordinates, customers and the like.

PROS of 360 degree appraisal
The system is more comprehensive in that responses are gathered from multiple
perspectives.
Quality of information is better. (Quality of respondents is more important than
quantity.)
It complements TQM initiatives by emphasizing internal/external customers and
teams.
It may lessen bias/prejudice since feedback comes from more people, not one
individual.
Feedback from peers and others may increase employee self-development.

CONS of 360 degree appraisal
The system is complex in combining all the responses.
Feedback can be intimidating and cause resentment if employee feels the respondents
have ganged up.
There may be conflicting opinions, though they may all be accurate from the
respective standpoints.
The system requires training to work effectively.
Employees may collude or game the system by giving invalid evaluations to one
another.
Appraisers may not be accountable if their evaluations are anonymous.

Training Performance Appraisers
Common rater-related errors:
Error of central tendency
Leniency or strictness errors
Similar-to-me errors
Recency errors
Contrast and halo errors

Error of Central Tendency
A rating error in which all employees are rated about average.
Leniency or Strictness Error
A rating error in which the appraiser tends to give all employees either
unusually high or unusually low ratings.
Recency Error
A rating error in which appraisal is based largely on an employees most recent
behavior rather than on behavior throughout the appraisal period
Contrast Error
A rating error in which an employees evaluation is biased either upward or
downward because of comparison with another employee just previously
evaluated.
Similar-to-Me Error
An error in which an appraiser inflates the evaluation of an employee because
of a mutual personal connection.
Rating Error Training
Observe other managers making errors
Actively participate in discovering their own errors
Practice job-related tasks to reduce the errors they tend to make
Feedback Skills Training
Communicating effectively
Diagnosing the root causes of performance problems
Setting goals and objectives

Performance Appraisal Methods
a. Trait Methods:
Graphic Rating Scale
Mixed Standard Scale
Forced-Choice
Essay

b. Behavioral methods:
Critical Incident
Behavioral Checklist
Behaviorally Anchored Rating Scale (BARS)
Behavior Observation Scale (BOS)

a. Trait Methods:
Graphic Rating-Scale Method
A trait approach to performance appraisal whereby each employee is rated
according to a scale of individual characteristics.
Mixed-Standard Scale Method
An approach to performance appraisal similar to other scale methods but based
on comparison with (better than, equal to, or worse than) a standard.
Forced-Choice Method
Requires the rater to choose from statements designed to distinguish between
successful and unsuccessful performance.
1. ______ a) Works hard _____ b) Works quickly
2. ______ a) Shows initiative _____ b) Is responsive to customers
3. ______ a) Produces poor quality _____ b) Lacks good work habits
Essay Method
Requires the rater to compose a statement describing employee behavior
b. Behavioral methods:
Critical Incident Method
Critical incident
An unusual event that denotes superior or inferior employee
performance in some part of the job
The manager keeps a log or diary for each employee throughout the
appraisal period and notes specific critical incidents related to how well
they perform.
Behavioral Checklist Method
The rater checks statements on a list that the rater believes are characteristic
of the employees performance or behavior.
Behaviorally Anchored Rating Scale (BARS)
Consists of a series of vertical scales, one for each dimension of job
performance; typically developed by a committee that includes both
subordinates and managers.
Behavior Observation Scale (BOS)
A performance appraisal that measures the frequency of observed behavior
(critical incidents).
Preferred over BARS for maintaining objectivity, distinguishing good
performers from poor performers, providing feedback, and identifying
training needs.

Results Methods
Evaluate employee accomplishments according to the results they achieve through their
work.
Productivity Measures
Appraisals based on quantitative measures (e.g., sales volume) that directly link
what employees accomplish to results beneficial to the organization. People are
evaluated on the basis of their sales volume or the number of units they produce
Criterion contamination
Focus on short-term results
Management by Objectives (MBO)
A philosophy of management that rates performance on the basis of employee
achievement of goals set by mutual agreement of employee and manager.