SELECTION OF EMPLOYEES

INTRODUCTION

The selection of human resources determines the applicants who can meet the job requirements
and can be offered the organization's vacant position. It is the deciding point that determines who
among the applicants has the personal qualities that match the position's requirements.

The organization's different departments make a personal requisition to the Human Resource
Department to select the best workforce through personal requisition form. The HRD determines
the selection procedure on how to get the most qualified applicants. Managers and top executives
must approve these standard operating procedures.

This section deals with the selection of human resources. It is often to select candidates who
already have these skills rather than a hope a candidate will learn them after hiring.    

OBJECTIVES/ LEARNING COMPETENCIES:

At the end of the lesson, the students are expected to:

1.     Describe the selection process.

2.     Identify the primary purpose of selection activities.

3.     Discuss why organizations use application forms

4.     Explain the purpose of background investigations.

SELECTION OF EMPLOYEES
LESSON PROPER/ COURSE METHODOLOGY

Selection activities allow a standard pattern, starting with an initial screening, interview, and
concluding with the final employment decision. The selection process consists of eight steps: (1.)
initial screening interview, (2.) completing the application form, (3.) employment test, (4.)
comprehensive consultation, (5.) background investigation, (6.) conditional job offer, (7.)
medical and physical examination and (8.) permanent job offer. What is the selection process on
how to get the most qualified applicants?

 
Initial screening. It is a culminating effort, initiating a preliminary review of potentially
acceptable applicants. The initial screening is in effect, a two-way procedure such as screening
inquiries and screening interviews.

If our effort is to select the best applicant, it is better to use screening inquiries. We will have a
pool of potential applicants. We can eliminate some of these respondents based on the job
description and specification. The red flag includes gaps in the applicant’s job history, numerous
courses and seminars instead of appropriate education.

The screening interview is an excellent opportunity for the HR people to describe the job in
detail to consider if they are severe in his job application. Sharing job description information
frequently encourages the unqualified or marginally qualified to voluntarily withdraw from
candidacy with a minimum cost of an applicant or the organization. 

Another important thing during the initial screening phase is to identify a salary range. Most of
the applicants are concerned about their salaries, even if a job offer sounds exciting. 

They were completing the Application Form. After the initial screening is completed, the
applicants are asked to complete the application form. This may require only the applicant's
name, address and telephone number. Some companies may want more information or a more
comprehensive employment profile. The application form gives a job-performance related
synopsis of applicant's adult life, skills, and their accomplishments.

Applications obtain information the company wants. Completing also serves another hurdle; if
the job requires following directions, and individuals fail to do so. The applicant has the right to

Employment Tests. Organizations relied mainly on intelligence, aptitude test, and interest test to
provide significant input to the selection process. Handwriting and honesty tests have been used
to learn more about the applicant-information that leads to more effective selection.

Since, the 1970s to the early 1980s, the reliance on written tests for selection purposes decreased
significantly. This was attributed to legal bases that required employers to justify as job-related
to any test they used. Based on Decenzo and Robbins (2007), it is estimated that more than sixty
percent (60%) of all organizations use some type of employment test today. They realized that
some types of employment tests today.

Comprehensive Interview. Applicants who were able to pass with the initial screening test
typically receives an extensive interview. The applicant may be interviewed by the HRD
interviewers, senior managers, head and potential supervisor.

This interview is designed to probe areas not easily addressed by the application form or tests,
such as assessing one’s motivation, values, ability to work under pressure, and ability to fit in
with the organization. Employees are typically hired based on their competencies and how likely
they are to be successful performers. The majority that fail to do so because they cannot fit
within the organization’s culture. Accordingly, skills and attitudes may get applicants in the
door, how well they adapt to the organization determines how long they’ll stay.
Background Investigation. After the comprehensive interview, the next process is to undertake
background investigation of applicants who appear to offer potential as employees. Background
investigations or reference checks are intended to verify the information on the application form
is correct and accurate. This can include contacting the former employers to confirm the
applicant’s work record and performance.

According to Decenzo and Robbins (2007), negligent hiring occurs when an employer fails to
investigate an employee's background properly, and Employee is later involved in wrongful
conduct. Common sense dictates the HRM finds out as possible about its applicants before the
final hiring decision is made. Failure to do so can have a detrimental effect on the organization,
both in cost and morale. 

Conditional Job Offer. A conditional job offering is made if a job applicant has passed each step
of the selection process. Dependent job offers typically come from an HRM representative. The
conditional job offer implies that if everything checks out- such as passing a specific medical,
physical, or test. -the dependent nature of the job offer will be removed and the request will be
permanent. 

Medical/Physical Examination. Second to the last step is physical/ medical examination. It may

consist of having the applicant take the physical/medical assessment. Physical exams can only be
used as a selection device to screen out individuals who cannot physically comply with the
requirements of a job. Physical examination may be required only after a conditional job offer. It
also shows the minimum standards of health exist to enroll in company health and life insurance
programs. A company may use this exam to provide base data in case of an employee's future
injury claim on the job. This occurs after one has been hired. The exam is paid for by the
employer.

Job Offers. Individual who performs successfully in the preceding steps are now considered
eligible to receive the employment offer. Who makes the final employment depends on several
factors? The applicant will eventually work for this manager, which necessitates a good fit
between boss and Employee. If the decision is faulty, the hiring manager has no one else to
blame.

Metric in Recruitment and Selection

Careful consideration has to be made by the HRM department in choosing the recruitment and
selection methods to use, otherwise precious person-hours, effort, and company resources may
be wasted on a yield of applicants that is neither qualified nor sufficient in number. While it has
been pointed out that some methods are more popular or considered to be more effective by
practitioners than others, the recruitment experience of each company is different; There is no
"one size fits all" method to determine the best applicant. 

HR metrics relevant to talent acquisition include cost-per-hire, time-hire, applicant-to successful

hire ratio.
The cost per hires metric (CPH) aims to measure all the cost of all recruitment and selection
related activities needed to fill a vacancy in the organization. CPH is a ratio of the total amount
spent on the total number of hires in a specific period. It is considered a measure of cost-
efficiency. It is computed by taking the sum of all the expenses used for talent acquisition and
dividing this sum by the number of successfully hired candidates.

Time to hire metric is the cumulative amount of time needed to fill an organization's open
position. It is another measure of the efficiency of talent acquisition efforts. Timeliness is the key
to filling a vacancy. A job that is left vacant for an extended period can lead to a severe
disruption of an organization's work and operations.

The time to hire metric is influenced by such factors as the complexity of recruitment and
selection methods used, the availability of information needed to reach a hiring decision and the
organization effectively manage the recruitment, selection and hiring process.

Applicant Yield or Ratio of Applicant –hired to Employee

This ratio measures the proportion of applicants and applications received and processed. This
metric is relevant to measure since this ratio is a function of applicants' quality and quantity that
the recruitment efforts can yield. It can measure the overall capacity of recruitment. A high ratio
is not desirable and indicates inefficient talent acquisition since it means that much effort is
needed for the selection process to produce or to be able to hire good Employees.

TRAINING AND DEVELOPMENT OF EMPLOYEES

INTRODUCTION

At the beginning of the Stone Age, people started transferring knowledge through signs and
deeds to others. Vocational training began during the Industrial Revolution when apprentices
were provided direct instructions in the operation of machines. Training and development are
recognized now as the most critical organizational activity. Training, unlike experience, can
shorten the time required to reach full efficiency.

Training defines as the process where people acquire capabilities to help in the achievement of
organizational goals. It is a planned effort of the company to facilitate learning on the job-related
competencies. It includes knowledge, skills, and behavior that are critical for successful job
performance.

This unit focuses on the aspect of training and development of human resource management. The
training goal is for employees to master the knowledge, skills, and behaviors emphasized in
training programs and apply them in day-to-day activities. 
OBJECTIVES/ LEARNING COMPETENCIES:

At the end of the lesson, the students are able to:

1.     Enumerate and explain varied types of employee training.

2.     Give the difference between training and development.

3.     Discuss the training and development of employees for efficient continued membership in
the organization.

4.     Internalize the responsibilities of the personnel department and supervisors in the

orientation program.

LESSON PROPER/ COURSE METHODOLOGY

 Orientation is the planned introduction of new employees to their jobs, co-workers, and the
organization. The employees need to know the company's policies, rules, and regulations to
adapt to the new working environment.

According to Pereda and Pereda (2008), it was mentioned that orientation requires cooperation
among individuals in the HR unit and other managers and supervisors. The HRD has to design
the orientation program and integrate the following topics:

1.     Company policies, rules and regulations. These cover reporting for work, time in, time out,
policies related to employee discipline and behavior while at work, and other important company
regulations.

2.      Corporate Mission and Vision, company officers and corporate goals and objectives, its
products and services and other important clienteles.

3.     Explain company pay system, benefits, and other services available to employees and their
families.

4.     Provide an overview of job setting and work rules.

5.     Introduce the employee to co-workers and the company's working environment.

6.     Safety rules and health programs.

The purpose of orientation is to help new employees learn about the organization as soon as
possible so that they can begin contributing to the organization’s goals and objectives. The
orientation process has the following purposes:

1.     Productivity enhancement. The employer and the employee want to start right and become
productive as soon as possible.
2.     Turnover reduction. Employees with effective orientation programs tend to stay longer with
the company. Fast employee's turnover rate affects productivity and efficiency.

3.     Organizational effectiveness. Well, oriented employees can immediately contribute to the

goals and objectives of the organization.

4.     Favorable employee impression. A good orientation program creates a favorable impression

of the organization and its work.

5.     Enhance interpersonal acceptance. It tries to ease the employees' entry into the workgroups.
Employees are concerned about meeting new people in the workforce.

A Systematic Approach to Training

Training is moving its focus to teach employees specific skills to the broader focus of creating
knowledge. Exercise is used to gain a competitive advantage and viewed broadly as to create
intellectual capital. 

The development of intellectual capital includes the following:

1.     Basic skills. These are the skills needed to perform one’s job effectively.

2.     Advanced skills. The use of technology to share with other employees.

3.     Understanding of Customer Needs. The global market is quality competitive. 

Training Needs may consider the following questions:

1.     Is there a problem to be solved?

2.     Where does it exist? (which department)

3.     Who needs the training?

4.     What is the nature of the training? (remedial or improvement required by the situation)

  

Selecting the Training Methods 

Several different methods can be used to help employees acquire new knowledge, skills, and
behavior. Technology has a major impact on the delivery of training programs. Modern
technology allows trainees to see, feel, and hear how equipment and other persons respond to
their behavior. The multimedia has greatly changed the training landscape, and training now
could be less costly.
1.     Presentation Method. It is the passive receipt of information that includes the traditional
instructions, distance learning, and audiovisual techniques. These are ideal for presenting new
facts, information, different philosophies, and alternative solutions and processes.

2.     Hands-on Training. This term refers to training methods requiring on-the-job training,
simulation, business games, case studies and behavior modeling, interactive videos, and web-
based training.

3.     Group Building Method. It helps trainees share ideas and experiences, build group team
identity, understand the dynamics of interpersonal relationships, and know their strengths and
weaknesses and those of their co-inforers. Various training techniques are available to improve
work-group or team performance, establish new teams, and improve interactions among different
groups. All involve examinations of feelings, perceptions, and beliefs about the function of the
team. 

Evaluating the Training Program

The evaluation of the training program compares the post-training results to the higher up/
management, trainers, and trainees' objectives. Training is done without any thought of
measuring, evaluating, and seeing how well it works after. Training is both times- consuming
and costly, and therefore, an evaluation must be done. Training assessment will measure the
compensations derived from the activity.

The following are the benefits of training:

1.     Learning. It represents the level of how well the trainees have learned facts, ideas,
concepts, theories, and attitudes. Tests on training materials are commonly used for evaluating
learning and can be given before and after training to compare results.

2.       Behavior. There must be a change in the work attitude and behavior of the trainee after the
training. Observable behavior must be measured in terms of work improvement, increased work
output, and work effectiveness. The trainee must be able to display a better look at the work
environment, and increased productivity must be observed. Management should observe
performance as a gauge to the effectiveness of training.

3.     Results. Employers evaluate products by measuring the effects of training on the

achievement of organizational objectives. Because results such as productivity, turnover, quality
time sales volume and cost are relatively concrete, comparing records before and after the
training can do the evaluation.     

Human Resource Development 

Development refers to formal education, job experiences, relationships, and assessments of

personality and abilities to prepare for their future. The product can be thought of as growing
capabilities that go beyond those required by the current job. It represents the employee's ability
to handle a variety of assignments. Development helps the employee prepare them for other
positions and increase their ability to move into other jobs available in the future.

The following processes are used in the assessment:

1.     Assessment Centers. Employees are sent to assessment centers to take examinations

covering personality tests, communication skills, personal inventory assessments, benchmarking,
and other reviews. A group of teams operates the centers that assess the individual potential for
leadership and other capabilities r qualities that may be used by the organization in its future
operations.

2.     Psychological Testing. Pencil and paper tests have been used for years to determine
employees' development potentials and needs. Intelligence tests, verbal and mathematical
reasoning tests can furnish useful information about factors of motivation, reasoning abilities,
leadership styles, interpersonal response traits, and job preferences.

3.     Performance Appraisal. It measures the employees' potential when done correctly, could be
a good source of development information. Observable and measurable output, attitude and
behavior, data on productivity, employee relations, job knowledge, and leadership behavior are
essential sources of employee information. These are usually available in the personnel file.

Human Resource Development Approaches

In-House or Company Site – the planned activities that could be developed within the company
are those activities that will enhance employees' potential to assume other jobs that the company
needs in its operation. The managers and supervisors must plan and coordinate development
efforts so that the desired developments occur. The following are the In-house Approaches:

1.     Management Coaching. The immediate supervisor coaches the subordinate employee in

performing certain functions that are necessary for his advancement. It combines observations
and suggestions. This is best when it involves good relationships.

2.     Committee Assignments. Assigning promising employees to important committees can give

the employees a broadening exercise and help them understand the organization's personality
issues and processes.

3.     Job Rotation. This is the process of shifting employees from one job to another. Substantial
managerial time is needed when trainees change positions. The trainees must be acquainted with
different people and techniques.

4.     Assistant –to-the Position. This is the assignment of an assistant to the position who works
directly under the manager. He is allowed to deal with challenging tasks and activities.

5.     Job Enlargement.  It refers to adding challenges or new responsibilities to the employer's

current jobs. This could include such activities as special project assignments, switching roles
within a work team.
6.     Mentoring. Employees can also develop skills and increase their knowledge about the
company and its operations by interacting with more experienced organizations members.
Mentoring helps new members bring together successful senior employees with less experienced
members.

Off-site or Outside Development Interventions

This technique refers to the individual who are given the opportunity to get away from the job
and concentrate solely on what is to be learned.  The following are some of the development
programs. 

1.     Formal education. The company sends the employee to legal seminars, workshops, and
other training programs offered by training consultants and agencies. Some of the companies
send their employees to take courses in foreign countries.

2.     Team building. These organizational interventions are usually conducted away from work
for about 3-4 days. The employees are organized into teams and solve common problems related
to relationships.

3.     Case Studies. This is a classroom type of training technique that provides a medium

through management behavior concepts and analyses. Cases are either through multimedia or
case problems that are developed similar to those existing in the work environment.

4.     Role-Playing. It is a developmental technique requiring the trainee to assume a role in a

given situation and act on it. The facilitators provide the script, and the group evaluates the
performance. OtherS participate/offer comments and suggestions after each performance.

5.     Simulations. These are business games developed by human resource experts that require
the participants to analyze a situation and decide the course of action based on the given data.

Q1
REFERENCES

1.     Pereda, Pedrito and Pereda Pusima (2007). Human Resource Management. Mindshapers,
Co.

2.     Decenzo, David A. and Robbins, Stephen P. (2007). Fundamentals of Human Resource

Management. John Willey & Sons, Co.

PERFORMANCE REVIEW AND APPRAISAL

INTRODUCTION 
One of the most important activities of an HR manager is maintaining and enhancing the
workforce. With all the efforts and costs that recruiting and selection entail, it is important to
develop employees for them to use their fullest capabilities, thus, improving the effectiveness of
the organization.

Performance appraisal system is a useful management tool which helps to gain feedback, review
and estimate whether the performance is effective and discuss what needs to be done for it to
become so. Managers perform evaluations to benefit both employees and the employer. The
most significant benefit of the appraisal system for the manager or the head of department is that
it provides a document of employee performance over a specific period.

OBJECTIVES/COMPETENCIES

At the end of the lesson, the students are expected to:

1.     Understand the importance of performance appraisal as an effective tool for employee

development;

2.     Understand the value of establishing criteria in evaluating employee performance;

3.     Illustrate the different indicators in measuring employee performance;

4.     Identify who should evaluate employee performance;

5.     Discuss the process involved in performance evaluation;

6.     Identify the various methods of performance appraisal; and

7.     Describe the performance appraisal problems and solutions.

PERFORMANCE REVIEW AND APPRAISAL

Performance Review and Appraisal

Performance Review

•       Is the ongoing process of evaluating and improving employees’ performance.

•       It is a process by which an individual’s work performance is assessed and evaluated.

•       It answers the question, “How well has the employee performed during the period of time
in question?”

•       It also entails determining and communicating to an employee how he/she is performing on
the job and ideally, establishing a plan of improvement.
Performance

•       Is measured in terms of result.

•       The accomplishment of the employee or manager’s assigned duties and outcomes produced
on a specified job function or activity during a specified time period.

Performance Review or Evaluation

•       Refers to a systematic description and review of an individual’s job performance.

•       Assesment of employees’ job performance level during a given period on a basis of

sytematic unifrom performance standard.

Performance Management- An HRM Job

Performance Management

•       Its major contribution is its focus on achieving results – useful products and services for
customers inside and outside the organization.

•       It is an HRM activity where the individual worker’s is observed and appraised during a
given period on the basis of a systematic uniform performance standard.

•       It helps in identifying, collecting, sharing, and using information about the performance of
people at work.

Performance management is an ongoing communication process, undertaken in partnership

between an employee and his/her immediate supervisor. It involves establishing clear
expectations and understanding about the following:

a. The essential job functions the employees is expected to do.

b. How well the employee’s job contributes to the goals of the organization.
c. What “doing the job well” means in concrete terms.
d. How the employee and the supervisor will work together to sustain, improve, or build on
existing employee performance.
e. How job performance will be measured
f. Identifying barriers to performance and removing them
g. Refers to the total system of gathering information, the review and feedback to the
individual, and storing information to improve organization effectiveness

Why Measure Performance?

1.     It allows management to specify what must be done and to combine feedback with goal
setting.

2.     Managers cannot manage and define what is expected and gives feedback and recognition
without defining the basis or performance measures. On the part of the employee, he/she cannot
improve on what he/she is supposed to do without the necessary data without before and after to
see if performance is actually improving.

3.     Employee cannot improve on what he is supposed to do without the necessary data before
and after to see if performance is actually improving.

4. Creating high performance requires a definition of clear goals so you will know when
you see it.
5. Pay for performance requires metrics.

Objectives of Performance Appraisal

1. It provides information upon which promotion, transfer demotion, layoff, discharge, and
salary decisions can be made.
2. It provides an opportunity for the supervisor and his/her subordinates to review and
identify their strengths and weaknesses or work-related behavior.
3. It forms the basis in identifying the training needs of employees as well as evaluating the
success of training.
4. It helps in the firm’s career planning process because it provides a good opportunity to
review the person’s career plans in light of his/her exhibited strengths and weaknesses.
5. It allows easy monitoring and supervision.
6. It helps evaluate the individual’s share relative to the team’s contribution in achieving the
organization’s goal.
7. It provides information to evaluate effectiveness of selection and placement decisions.

Performance Criteria

Deciding what to evaluate reflects the personal values of the individuals who design the
evaluation system. Most people agree that quality and quantity of performance are important
dimensions to evaluate but there is less about traits such as appearance, initiative, enthusiasm,
and the like.
3 Criteria in Construction of Performance Evaluation

1. Relevance – relevant performance dimensions are determined by the duties and

responsibilities contained in the job description.
2. Reliability – produced consistent and repeatable evaluation.
3. Freedom from contamination – should measure each employee’s performance without
being contaminated by factors that an employee cannot control such as economic
conditions, material shortage, or poor equipment.

Indicators or Matrix that Help Measure Employee Performance

1. Quantity
2. Quality
3. Timeliness
4. Cost Effectiveness
5. Absenteeism/Tardiness
6. Creativity
7. Adherence to Policy
8. Gossiping and other Personal Habits
9. Personal Appearance/Grooming

Who Should Evaluate the Performance?

1. Manager/Supervisor Appraisal – They are in the best position to observe employees, and
they should have a better understanding of the job being performed.
 2. Self-appraisal – The employee appraises his/her own performance, in many cases
comparing the self- appraisal to management’s review.
3. Subordinates Appraisal – Provides unique information because subordinates know better
than anyone else whether leadership is good or bad.
4. Peer Appraisal – This method is based on the assumption that co-workers are most
familiar with an employee’s performance.
5. Customer/Supplier – Customers, vendors, or suppliers can be potential evaluators.
6. Team Appraisal - Similar to peer appraisal in that member of a team, who may hold
different positions, are asked to appraise each other’s work and work styles.
7. Assessment Center – The employee is appraised by professional assessors who may
evaluate simulated or actual work activities.
8. 360-Degree or “Full Circle” Appraisal – The employee’s performance is appraised by
everyone with whom he or she interacts, including managers, peers, customers, and
members of other departments.

Process Involved in Performance Evaluation

1. Goal Setting
2. Performance Standard Setting
3. Information Dissemination
4. Actual Performance Measurement
5. Feedback Evaluation Results
6. Rewarding Exemplary Performance
7. Correcting Substandard Performance

Sources of Data in Appraisal

 1. Production Data - evaluate the degree of dependable task accomplishment by measuring
quantity and quality of performance.
2. Personnel Data – type of information found in an individual’s personnel files.
3. Judgment of Others – Many of the spontaneous and innovative behavior that are
important to organizational effectiveness can only be assessed by the judgments of others
and ought to be obtained in every evaluation.

Performance Appraisal Methods

A. Multiple Person Evaluation Methods

1. Ranking Method – ranking the employees from the most efficient to the least capable on
each trait or quality to be used in judging the employee’s performance or just simply
ranking the employee from best to worst.

2. Paired Comparison Method – consists of asking an evaluator to consider only two

individuals at one time and to decide who is better. Then another pair of names is
presented to the evaluator for another evaluation.

3. Forced Distribution – Forced ranking is a method of performance appraisal that rank

employees through forced distribution. The rater is asked to rate employees in some fixed
distribution of categories such as superior, above average, average, below average, and
poor.

B. Individual Evaluation Methods

 1. Critical Incident Report – The critical incident for performance appraisal is a method in
which the manager writes down positive and negative performance behavior of
employees throughout the performance period. Requires recording of events that
represent either effective or ineffective performance for each employee being rated.

2. Checklist and Weighted Checklist Method – Checklist is a set of objectives or

descriptive statements. If the rater believes that the employee possesses a trait listed, the
rater checks the item; if not, the rater leaves it blank. This method describes a
performance appraisal method where the rater, familiar with the jobs being evaluated,
prepares a large list of descriptive statements about effective or ineffective behavior on
jobs.

3. Graphic Rating Scales – This is the oldest and most widely used method for performance
appraisal. The scales may specify five points, so a factor such as job knowledge might be
rated from 1 (poorly informed about work duties) to 5 (has complete mastery of all
phases of the job).

4. Behaviorally Anchored Rating Scales (BARS) – This method is used to describe

performance rating that is focused on specific behaviors or sets as indicators of effective
or ineffective performance. It is a combination of the rating scale and critical incident
techniques of employee performance evaluation.

5. Management by Objectives (MBO) – MBO is a process in which managers and their

subordinates’ set objectives for the employee to achieve within a specific rating period. It
focuses on attention on what must be accomplished (goals) rather than how it is
accomplished (methods). Reward is given based on the result of the output. For MBO to
be effective, it must be SMART – the objective must be specific, measurable, attainable,
results-oriented, and time-bound.

6. Multi-Rater Assessment or the 360-degree Performance Feedback – The 360-degree

feedback is a system or process in which employees receive confidential, anonymous
 feedback from people who work around them, their immediate superior, peers,
customers, or suppliers. The strength of this method lies on the fact that more people are
involved in the evaluation instead of just relying on the supervisor, hence bias is
prevented.

Performance Appraisal Problems and Solutions

1.       Halo Effect. Managers allow a general favorable impression of an employee to influence
his judgement on each separate factor in the performance appraisal process. 

2.       Recency Effect. Recent events tend to have an unusally strong influence on performance
evaluation.

3.       Previous Performance Bias. Employee who has performed well in the distant past is
assumed to be acceptable in the recent past also.

4.       Leniency/Harsness/Strictness Error. Some managers tend to give mostly favorable

ratings while others tend to evaluate the same performance levels unfavorably.

5.       Central Tendency. When manager rates all employees as average by choosing the middle
rating, thus, failing to discriminate between employees.

6.       Carelessness. Managers make quick guesses based on first impressions of an employees’
performance.

7. Bias. Individual differences among ratees in terms of characteristics, like age, race, sex,
religious, and political affiliations.

Tips for Creating a World-class Appraisal System

a.                     Design the form first.

b.                     Build your company’s values into your form.

c.                     Assure ongoing communication during development.

d.                     Train all appraisers.

e.                     Orient all appraises.

f.                      Use the results.

g.                     Monitor and revise the program.

Feedback Interview or Appraisal Review

The supervisor and subordinates review the appraisal and makes plans to remedy deficiencies
and reinforce strengths. It includes:

1.   Review of over-all progress.

2.   Discussions of problems that were encountered.

3.   Discussions of sources of ineffective performance.

4.   Agreement about how performance can be improved.

5.   Discussions on how current performance fits with long-range career goals.

6.   Specific action plans for the coming year and how to reach short-and long-term    objectives.