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Administrative Management Setting People Up for

Success 1st Edition Cassidy Solutions Manual

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Administrative Management Setting People Up for Success 1st Edition Cassidy Solutions Manual

CHAPTER 9 Appraising and Rewarding


Performance

9.1 LEARNING OUTCOMES


1. Distinguish formal performance appraisals from employee feedback.
2. Describe at least five appraisal techniques.
3. Explain the criteria that make a performance appraisal legally defensible, and discuss the
importance of record keeping and confidentiality.
4. Describe steps that can be taken to make the appraisal system relevant.
5. Explain why performance appraisals should include both quantitative and qualitative
measures.
6. Describe factors that influence compensation and the three basic types of decisions for
designing a compensation system.
7. Compare individualized and team rewards and provide examples of each.

9.2 CHAPTER OUTLINE


Performance Appraisal
Feedback Versus Formal Performance Appraisal
Performance Appraisal Techniques
Making Performance Appraisals Legally Defensible
Record Keeping and Confidentiality
Making the Appraisal System Relevant
Tell Employees What to Expect
Emphasize Performance Goals
Encourage a Productive Discussion
Performance Measures
Quantitative and Qualitative Measures
Frequency of Appraisals and Who Conducts Them
Compensation
Costs
Factors Influencing Compensation
Designing Compensation Systems
Benefits
Team Rewards
Individualized Rewards: Beyond the Annual Pay Raise

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 1

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9.3 CHAPTER TEACHING TIPS
To teach the material covered in Chapter 9 of the text, use the Comprehensive Lecture Outline
(see section 9.4 below). Supplement the Comprehensive Lecture Outline with some of the
following instructor’s resources:
 PowerPoint® slide presentation PowerPoint slides can be used for review purposes by
both instructors and students. Each presentation provides a basic framework for the
chapter. Instructors can access them on the instructor's companion website and on the
Instructor’s Resource CD. Students can access the slides on the CourseMate website for this
book.
 Knowledge to Action (text) Chapter 9 includes four Knowledge to Action features that
help students:
* Identify confidentiality issues in an office setting. (p. 196)
* Evaluate quantity and quality measures. (p. 199)
* Discuss extrinsic and intrinsic rewards as motivators. (p. 203)
* Apply work/life balance to individual personal situations. (p. 206)
(Note: See the Comprehensive Lecture Outline below for suggested answers to the
questions.)
 Videos (CourseMate) The authors have selected and recommend the following video clips
for Chapter 9:
* Allstate: In Good Hands
* McDonald's: Managerial Decision Making
* Pepsico: Performance Review & Appraisal
* Verizon Wireless
 Opening Vignette—Straight Talk from the Field (text) Rhonda VanHuss, an account
management executive for Anthem National Accounts, a WellPoint company in the
healthcare products and insurance industry, introduces students to performance appraisals.
Consider using the opener as an alternative to the icebreaker included in the
Comprehensive Lecture Outline.
 Leveraging Technology (text) This features looks at automating performance appraisal
records, with tips that may be helpful for small organizations.
 Questions for Reflection (text and section 9.5 below for suggested responses) Consider
using the questions for out-of-class assignments or to start in-class discussions to assess
student understanding and application of the most important concepts in the chapter.
Consider also using some of the questions as part of your tests or quizzes.
 Hands-on Activities (text and section 9.6 below for suggested responses) This section
includes two activities that may require students to do individual and/or group research

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 2
beyond the text. Consider using either or both of these activities after the completion of the
lecture for this chapter. For Chapter 9 the two activities are:
* Performance Appraisal Examples
* Rewards That Work!
 You Decide Case Study (text and section 9.7 below for suggested responses) This case
covers Evaluating and Rewarding Performance and gives students an opportunity to apply
the concepts covered in the chapter through answering questions about a hypothetical, yet
realistic, scenario. Students practice critical thinking, problem solving, and other skills as
part of a classroom discussion or as a graded assignment. This is a helpful case to begin the
study of performance appraisals.
 The Manager’s Toolkit (text and section 9.8 below for suggested responses) This
provides students with a structured opportunity to create a performance appraisal system.
Assign Manager’s Toolkit activities at the end of each chapter occasionally or consider
assigning all or most of them to help students create a Management Portfolio for use in the
workplace or interviews.
 Soft Skills for Success (text and section 9.9 below for suggested responses) This activity
provides students with the opportunity to evaluate their adaptability and flexibility. These
soft skills are high on the list desired by most companies. This should be assigned as an
individual activity. Remind students that their answers will not be seen by others, so they
need to be honest in their self-evaluations.
 Miscellaneous Activities (Instructor’s Manual, section 9.10) This activity, Appraisal Bingo,
should be used as a review at the end of the chapter. This in-class game (based off regular
bingo) helps students learn and remember the various terms associated with performance
appraisals as well as the terms used in this chapter.
 Learn It On the Web (Instructor’s Manual, section 9.11) This activity is geared to
instructors and provides supplemental readings on performance appraisals to complement
the lecture material. Instructors may distribute this information at any point while teaching
this chapter.

9.4 COMPREHENSIVE LECTURE OUTLINE


ICEBREAKER ACTIVITY
Ask students, “How many of you have had a formal performance evaluation at work?” and
“How was it handled by your supervisor?”
I. Performance Appraisal A common part of organizational life, performance appraisals are
the process of evaluating individual job performances as a basis for personnel decisions.
They are a formal method for exchanging feedback and instructions between supervisors
and their employees.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 3
A. Feedback Versus Formal Performance Appraisal A formal performance appraisal
differs from open day-to-day feedback on employee performance, which should occur
frequently.
B. Performance Appraisal Techniques Having a working knowledge of the most popular
appraisal techniques, a good manager can distinguish the strong appraisal techniques
from the weak. This section discusses the most commonly used.
a. Goal Setting (Management by Objectives) Also known as MBO, management-by-
objectives is an appraisal method in which performance is evaluated in terms of
formal goals or objectives. This allows for assessing individual, department, and
organizational goals.
b. Essays This method requires supervisors to write a narrative appraisal, sometimes
in response to predetermined questions. To be valid the essay must relate to specific
behaviors of the employee.
c. Critical Incidents This is an appraisal technique in which specific instances of
inferior and superior performances are documented by the supervisor when they
occur. An adequate number of incidents must be documented. Appraisal should
relate to specific behaviors and not personality traits.
d. Behaviorally Anchored Rating Scales (BARS) This appraisal technique uses
performance rating scales divided into increments of observable and measurable job
behaviors. BARS is considered one of the strongest performance appraisal
techniques.
e. Weighted Checklist This is an appraisal method in which evaluators check
appropriate adjectives or behavioral descriptions with predetermined weights.
Effective checklists are expensive and time-consuming to develop.
f. Forced Ranking System This system, often called stack ranking, compares or ranks
coworkers in a work group in head-to-head fashion according to specified
accomplishments or job behaviors. This technique points out the best performers,
but the absolute distance between evaluated employees is unknown. [Author note:
Although it was initially very popular, in recent years stack ranking has become more
controversial because employees in the bottom category of the stack were often
fired. Major users of the system, including Microsoft and General Electric (its
developer), have either totally dropped it or modified it significantly. (See: Sharon
Ovide and Rachel Feintzeig, “Microsoft Abandons Dreaded ‘Stack’,” Wall Street
Journal, November 13, 2013, pp. B1 and B5.)]
g. Multirater Appraisal This is a general label for a diverse array of appraisal
techniques involving more than one rater. One approach is the 360-degree review in
which a supervisor is evaluated by his or her boss, peers, and subordinates.
h. Continuous Improvement Review (CIR) This is a review process that focuses on
customers, the team, and the employer’s contribution to system improvements.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 4
Assessment focuses on productivity, quality measures (quality of product, services,
etc.), and customer satisfaction.
______________________________________________________________________________
DISCUSSION QUESTION
Which performance appraisal technique does your employer use to evaluate your
performance?
______________________________________________________________________________
C. Making Performance Appraisals Legally Defensible Supervisors need specific criteria
to develop legally defensible performance appraisal systems, which should be looked at
while developing a formal appraisal system. This section provides four criteria to follow
for employers to be able to legally defend their appraisal system.
D. Record Keeping and Confidentiality Documentation criteria for legally defensible
performance appraisals include data on attendance, productivity, and evidence of
superior or inferior work. Performance appraisals, related documents, and subsequent
conversations must remain confidential.
______________________________________________________________________________
KNOWLEDGE TO ACTION
Mary recently met with her manager, Nancy, for her annual performance appraisal. During the
meeting, Mary admitted she had made a few mistakes because she was working too fast. She
agreed to slow down and check her work more thoroughly. The following week, one of Mary’s
coworkers said to her, “I hear you agreed to slow down a little so you’ll make fewer mistakes!”
Mary is left to assume that Nancy must have discussed their conversation with others.
1. How do you think Mary feels?
Most likely Mary feels betrayed by Nancy. Mary’s steps for improvement are a confidential
matter between Nancy and Mary.
2. What impact do you think this will have on the relationship between Mary and Nancy?
The relationship will be strained. Because Nancy has broken trust, Mary will have a difficult
time discussing any issue with her as Mary will not know if the conversation will remain
private or if others in the office will hear about it.
3. What should Nancy do to resolve the situation?
Nancy must approach Mary and explain what happened and apologize. Nancy should
emphasize that this was a single error on her part and it will not occur again.
______________________________________________________________________________

II. Making the Appraisal System Relevant The best way to make the appraisal system
relevant and employees comfortable with it is to do an effective coaching job all year. The
manager can provide on-the-job training to help employees improve their performances
and document improvements rather than deficiencies.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 5
A. Tell Employees What to Expect At the time of the appraisal, or shortly thereafter, plan
for the next performance review. If employees know exactly what factors will be
considered in the review and know the performance expectations, they will be better
prepared to discuss the issues.
B. Emphasize Performance Goals Begin a review by discussing the goals set at the last
review or at the beginning of the evaluation period to set a tone for a performance-
based discussion. Then set goals for the next period. Remember good goals are SMART
goals.
C. Encourage a Productive Discussion During the review, encourage employees to talk
freely and offer constructive criticism that is specific, focuses on the desired behavior,
and identifies performance problems.
III. Performance Measures Managers need measures to determine how an employee’s
performance will be evaluated, including progress toward achieving their goals.
A. Quantitative and Qualitative Measures An effective appraisal system includes both
quantitative and qualitative measures. Quantitative measures focus on productivity or
results that can be counted and measured. Qualitative measures focus on the level of
excellence of a product or service.

______________________________________________________________________________
KNOWLEDGE TO ACTION
1. Do you agree or disagree with the suggestion that supervisors include a quality
component in the performance evaluation to measure quality as well as productivity
(quantity)? Explain.
Answers may vary based on the student’s opinion; however, it is a good idea to measure
both. In today’s organizations both indicators generally meet the organization’s objectives.
2. What are possible unintended consequences if a supervisor measures only productivity
without assessing quality?
If managers only measure productivity, employees may produce a lot, but the quality may
be poor.
3. What would happen if the supervisor evaluated only quality without regard for
productivity?
Managers measuring only quality will most likely have a few well-made pieces; however,
this may cause unfilled orders, cancellations, salespeople frustration, customer frustration,
loss of revenue, loss of profit, etc.
______________________________________________________________________________

B. Frequency of Appraisals and Who Conducts Them Performance reviews are usually
semi-annual or annual. Semi-annual reviews take place either at midpoint and end of

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 6
the fiscal year or at the six-month and annual anniversaries; annual reviews take place
on the anniversary of the date of the employee’s hiring or at the end of the year.
Managers usually perform the reviews unless a multirater system is used.
IV. Compensation This is the financial and nonfinancial awards an employee receives for
performing a job. Direct compensation includes wages, salary, commission, and bonuses.
Indirect compensation includes benefits, promotions, and recognition.
A. Costs Because the costs of compensation vary widely, it is helpful to know the U.S.
Bureau of Labor Statistics tracks employer costs for employee compensation monthly.
Managers should discuss with employees the real value of their benefits.
B. Factors Influencing Compensation Compensation is influenced by both external and
internal factors.
a. External Factors These are factors that management cannot control such as
employment laws, the labor market, geographic area, and the economy.
b. Internal Factors These are under the control of management. They include such
factors as the corporate culture and philosophy, performance, experience and
education, and potential.
C. Designing Compensation Systems Job evaluation is the process used to determine the
worth of a job and is considered when designing a compensation system. There are
three basic types of decisions involved in designing a compensation system: the salary
structure, variability of pay, and level of pay.
a. Salary Structure The salary or pay structure consists of all jobs at the various levels
within an organization and the total pay, including salaries, bonuses, equity, and all
benefits. Hourly wages may be considered as a separate pay structure.
b. Pay Variability or Flexibility This typically refers to types of compensation and the
amount of fixed versus variable compensation.
c. Level of Pay This relates to paying market rate, higher than market rate, or lower
than market rate. It is determined by benchmarking peers.
D. Benefits Employee benefits include insurance programs, fully compensated absences
(vacations, holidays, sick leave), retirement and stock ownership plans, and employer-
provided services such as child care. Some benefits are mandated by law.
a. Extensive Rewards These are payoffs granted to an employee by other people
such as promotions or recognition.
b. Intrinsic Rewards These are self-granted and internally experienced payoffs such
as the feeling of satisfaction gained from a job well done.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 7
______________________________________________________________________________
KNOWLEDGE TO ACTION
1. What extrinsic rewards motivate you to do a better job? Name at least two.
Answers will vary. Expect any of the following: promotion, pay raise, company recognition,
public praise, an expense account, or office with a view.
2. What intrinsic rewards motivate you to do a better job? Name at least two.
Answers will vary. They might include satisfaction from a job well done or pleasure in being
recognized for your work.
3. Are extrinsic or intrinsic rewards stronger motivators for you? Why do you think this is?
Answers will vary depending on student’s personal view.
4. Do you think your peers will respond the same way you did? Why or why not?
Answers will vary depending on student’s personal view and the view of their peers.
______________________________________________________________________________

E. Team Rewards These are identical rewards given to team members to recognize
team-based goal achievements. Team rewards are effective for high-performance
teams. Remember that not all work groups meet the goal of being a high-
performance team. Rewards can range from a meal brought in for teams working
late to a trip to an amusement park for team members and their families.
F. Individualized Rewards: Beyond the Annual Pay Raise These rewards are given to
individuals to recognize goal attainment unique to the employee. The reward should
be in alignment with the achievement and something the employee values.
______________________________________________________________________________
KNOWLEDGE TO ACTION
What are employees looking for in their careers? Two common answers are to be rewarded
financially for good performance and, more and more frequently, to have a balance of work
and life. Beyond the traditional category of working parents, Generation X and Y workers are
pressing for flexible working hours, and researchers predict baby boomers will soon be
demanding them as well.
1. How do you plan to achieve work/life balance in your career?
Answers will vary. Students might say they schedule time for their families or that they do
not take work home on weekends, for example.
2. Which is more important to you, more pay or more leisure time? Explain.
Answers will vary. Generally, younger employees prefer more leisure time.
3. From a manager’s perspective, what are the pros and cons of flextime and teleworking?

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 8
The benefits of flexible scheduling include employees choosing the hours that best work
with their personal schedule and more work being completed as office interruptions are
kept to a minimum. Drawbacks to this type of arrangement include the need for
preplanning to ensure all workers understand the changes and having to put control
mechanisms in place to verify that work is completed.
______________________________________________________________________________

9.5 QUESTIONS FOR REFLECTION


1. Why is assessing job performance necessary?
Appraisals are an important aspect of a manager’s job because job review can serve as a
motivational tool and provide measurable indicators for rewards. Appraisals should include
formal measures, scoring method, weighting factors for each component, assessment
criteria, frequency, who conducts the appraisal, links to rewards and compensation, and
goals.
2. Why is it important to document routine performance feedback provided to employees?
Routine performance feedback, in a positive constructive way, helps employees improve
their performance and makes them feel better about the work they are doing. It also
prepares them for the formal performance appraisal because they will know the criteria and
what is expected of them.
3. Describe a formal method for assessing job performance.
Formal assessments take place between a manager and employee and occur either semi-
annually or annually. An essential communication tool, it is a formal method for exchanging
feedback and instructions. The specific method described will depend on the appraisal
technique chosen by the student. Students may choose from any of the examples provided:
goal setting, essays, critical incidents, BARS, weighted checklists, forced ranking system,
multirater appraisal, and continuous improvement review.
4. In this chapter, you learned about several performance appraisal techniques. Which do
you think is best? Explain your answer.
Students may choose from any of the examples provided in answer 3.
5. List four criteria that should be satisfied for a performance appraisal system to be legally
defensible.
The criteria include: a job analysis was used to develop the performance appraisal system;
the appraisal system was behavior-oriented and not trait-oriented; evaluators followed
specific written instructions when conducting appraisals; and evaluators reviewed the
results with the employees being evaluated.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 9
6. Many employees and managers have a negative perception of performance appraisals.
What suggestions do you have for making this important process a positive, motivational
experience?
Steps to make appraisals more positive include telling the employee what to expect,
emphasizing performance goals, and encouraging a productive discussion by offering
constructive feedback in a positive manner.
7. Explain the difference between quantitative and qualitative measures. Provide an
example of each.
Qualitative measures describe the level of excellence of a product or service while
quantitative measures are quantifiable results (something to measure). Students’ examples
will vary. Using a clothing manufacturer as an example, a quality measure is if the sweaters
were produced defect free (buttons sewn on so they won’t fall off, sleeves the same length,
no pulls in the fabric, label in place, and replacement buttons sewn to the underside of the
garment). The number of sweaters produced on a given day would be a quantitative
measure.
8. Should performance appraisals be linked to compensation? Explain why or why not.
Answers will vary depending on students’ views. Students may state that employees should
be compensated for a job well done, or they may state that doing a good job is an intrinsic
value. They should note that linking performance to pay is easier in some jobs than others.
For example, earning a commission at a specified rate in a sales position is directly linked to
compensation.

Questions for Reflection


9.6 HANDS-ON ACTIVITIES
1. Performance Appraisal Examples Ask students to contact companies and obtain a copy
of their performance appraisal system. As examples, students may wish to contact 3M,
Starbucks, Whole Foods, or Chick-Fil-A. Have teams work together to review and decide
which is the most effective, and then prepare a brief explanation of the team’s decision.
2. Rewards that Work! This activity permits students to practice brainstorming to develop
a list of additional rewards that have not been mentioned in the chapter. Encourage
students to share examples from their place of employment. Students are to identify
rewards that are easy for supervisors to distribute with little costs, and three major
rewards that would be distributed on a limited basis because of the cost.

9.7 YOU DECIDE: CASE STUDY Evaluating and Rewarding


Performance
1. If you were Margaret, what recommendations would you make to the owners regarding
performance appraisals?

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 10
The owners need to develop a formal appraisal system for their employees. The method of
appraisal should be discussed with the management team, but because the company has
grown, a formal system will evaluate the workers’ performance as well as tie performance
into the company’s strategic goals and objectives. Because the company has grown rapidly
in a short period of time, the owners may wish to discuss hiring a HR manager.
2. What recommendations would you make regarding employee compensation?
The compensation system needs to be addressed and depending on the position, a new pay
plan may be implemented. The employer may want to compensate Margaret, and others,
for long-time loyalty.
3. What specific recommendations would you make regarding recognition and reward
systems?
The owners should meet with employees to determine what rewards would be meaningful
to them. Additionally, a decision should be made if the rewards will be individual or group
(or combination) or extrinsic versus intrinsic.
4. What approach would you suggest for implementing your recommendations so that both
the employees and the owners support the new performance appraisal system,
compensation plan, and reward program?
The compensation and reward program should satisfy employee’s individual needs and the
system should be structured so the effort by the employee does lead to a reward (goals are
not set too high). The rewards should be equitable and perceived as fair by the employees
and the reward should be linked to performance.

9.8 MANAGER’S TOOLKIT


The Chapter 9 Manager’s Toolkit asks students to create a job performance appraisal system
that includes a document that outlines the performance appraisal techniques they will use, an
appraisal form, and a list of steps they will take to make the appraisal system relevant. After
students have completed this activity individually, have them meet with the team members to
help each other refine their work. This is a great activity to include in the student portfolio as it
demonstrates application of subject matter taught in the chapter.

9.9 SOFT SKILLS FOR SUCCESS


Chapter 9 focuses on adaptability and flexibility. Students are asked to honestly evaluate
themselves on their abilities to be adaptable and flexible and to ask a peer and their managers
to evaluate them. They are also asked to list routine tasks and commit to try something new
every week, among other things. Remind students this is a self-evaluation and will be seen by
their eyes only.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 11
9.10 MISCELLANEOUS ACTIVITIES
APPRAISAL BINGO
Purpose: The terms surrounding performance appraisals are difficult to remember. Using the
game of "bingo," the students will gain repeated exposure to the evaluation phrases, and the
information will be applicable as they study this chapter.
Procedure:
 Break students into dyads or triads and provide each group with one bingo card. (Note: Ten
different bingo cards are located at the end of this chapter’s Instructor’s Manual file.)
 Ask students to review the terms on their cards.
 The instructor will read the definition out loud and the students must find the term on their
bingo card (not all students will have all terms). Do not provide students with the term.
 If the student has the term on his/her card, place a marker on the spot (check, x, poker chip,
small paper square, etc.).
 Traditional wins for bingo involve a diagonal, across or straight down pattern where all
boxes in a given row are covered. To increase the length of the game, consider using an “I,”
“T,” or “H” letter shape instead of one of the traditional patterns.
Materials Needed:
 Bingo cards (located at the end of this file).
 Markers of some sort (poker chips, pieces of paper, or a pen to mark the squares).
Terms to Review: Note—the answer is in parenthesis () on each line. Try not to read in order as
the definitions follow the order of appearance in the text.
 The process of evaluating individual job performances as a basis for personnel decisions
(performance appraisal).
 (MBO) stands for management-by-objectives.
 (Essays) is a performance appraisal technique where the supervisor describes the
employee’s performance in a narrative form.
 Specific instances of inferior and superior performance are documented by the supervisor
as they occur. This performance appraisal technique is known as (critical incidents).
 (Behaviorally anchored rating scales (BARS)) are performance appraisal scales that are
divided into increments of observable and measurable job behavior.
 Ranking employees in a head-to-head fashion according to specific job behavior is known as
(forced ranking system).
 (Continuous improvement review) focuses on customers, the team, and the employee’s
contribution to system improvements and identifies employees who have helped improve
the organization as a whole.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 12
 An appraisal technique in which the supervisor is evaluated by his or her boss, peers, and
subordinates is called a (360-degree review).
 Keeping employee’s private information secret is known as (confidentiality).
 (Performance measures) determine how an employee’s performance will be evaluated.
 Measuring the level of excellence of a product or service is known as (qualitative measures).
 (Quantitative measures) are measured as quantifiable results. For example, management
has determined that the production line should produce 3,000 game consoles per day.
 The financial and non-financial awards an employee receives for performing a job
(compensation).
 The process used to determine the worth of a job (job evaluation).
 (Benchmarking peers) is comparing salary structure to that of similar companies.
 (Extrinsic rewards) include payoffs such as money and benefits, which are granted by
others.
 Self-granted and internally experienced payoffs, such as feelings of accomplishment, are
known as (intrinsic rewards).
 (Compensation factors) are common elements of many different jobs that merit
compensation.
 (Pay structure) consists of all jobs at the various levels within an organization and total pay,
including salaries, bonuses, equity, and benefits.
 Types of compensation and the amount of fixed versus variable compensation is (pay
variablility).
 (Level of pay) relates to paying market rate, higher than market rate, or lower than market
rate.
 (Cafeteria compensation) is a plan that allows employees to select their own mix of
benefits.
 (Team rewards) are given to a group of employees to recognize team-based goal
attainment.
 (Individualized rewards) are given to individuals to recognize goal attainment unique to the
employee.
 (Gain Sharing) is a distribution of a specified percentage of productivity gains and/or cost
savings.
 Bonus and/or raise granted for outstanding performance is known as (merit pay).
 A fixed percentage of sales revenue paid to employees is called (sales commission).
 (Profit sharing) is a distribution of specified percentage of profits and given to the
employees as an incentive.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 13
9.11 LEARN IT ON THE WEB
Use the websites listed below as readings to supplement material covered in the text.
http://managementhelp.org/employeeperformance/performance-appraisals.htm (Discusses
the basics of conducting an appraisal.)
http://www.performance-appraisal.com/intro.htm (reviews a brief history of performance
appraisal systems. Note that the icons on the left lead to other links concerning evaluations.)
http://www.businessmanagementdaily.com (Click through the site for informational articles.)
http://performance-appraisals.org/ (Click through the site for informational articles.)

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 14
Performance Appraisal Bingo

continuous
MBO job evaluation improvement critical incidents
review

performance
extrinsic rewards compensation pay variable measures

cafeteria-style
confidentiality qualitative measures benefits benchmarking peers

performance team rewards level of pay intrinsic rewards


appraisal

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 15
Performance Appraisal Bingo

continuous
360-degree review MBO improvement review critical incidents

performance performance
measures job evaluation team rewards appraisal

cafeteria-style quantitative
confidentiality benefits pay variable measures

qualitative measures level of pay intrinsic rewards forced ranking


system

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 16
Performance Appraisal Bingo

forced ranking
pay structure 360-degree review system intrinsic rewards

qualitative measures pay variable job evaluation critical incidents

individualized
extrinsic rewards confidentiality compensation rewards
factors

continuous performance
benchmarking peers improvement review measures level of pay

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 17
Performance Appraisal Bingo

forced ranking
compensation system critical incidents intrinsic rewards

performance
MBO appraisal job evaluation profit sharing

individualized continuous
rewards improvement pay structure pay variable
review

level of pay BARS benchmarking peers compensation


factors

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 18
Performance Appraisal Bingo

quantitative
compensation pay structure essays measures
factors

performance
critical incidents appraisal extrinsic rewards 360-degree review

individualized
qualitative measures level of pay compensation rewards

confidentiality job evaluation BARS job evaluation

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 19
Performance Appraisal Bingo

cafeteria-style
qualitative measures team rewards benefits job evaluation

intrinsic rewards pay variable critical incidents confidentiality

forced ranking individualized


system extrinsic rewards MBO rewards

continuous performance
improvement review job evaluation measures compensation

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 20
Performance Appraisal Bingo

forced ranking
critical incidents level of pay job evaluation system

confidentiality pay structure quantitative extrinsic rewards


measures

individualized performance
pay variable rewards MBO measures

continuous
improvement review intrinsic rewards benchmarking peers performance
appraisal

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 21
Performance Appraisal Bingo

MBO performance pay variable confidentiality


appraisal

cafeteria-style
intrinsic rewards job evaluation team rewards benefits

quantitative
measures job evaluation forced ranking 360-degree review
system

level of pay BARS essays benchmarking peers

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 22
Performance Appraisal Bingo

compensation pay variable job evaluation critical incidents

intrinsic rewards performance BARS confidentiality


appraisal

performance
team rewards job evaluation essays measures

quantitative
extrinsic rewards measures qualitative benchmarking peers
measures

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 23
Performance Appraisal Bingo

forced ranking
compensation system job evaluation pay variable

performance intrinsic rewards confidentiality continuous


appraisal improvement review

critical incidents MBO team rewards essays

individualized qualitative performance BARS


rewards measures measures

10

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 24
PLAYER INSTRUCTIONS (HANDOUT OR PPT)

RED CHIP/WHITE CHIP

 Break into teams of two.

 Each Team tries to collect as many points as possible.

 Each player receives a red and white poker chip.

 Round 1: Show one chip.

 Compute scores according to the Payoff Matrix.

 Play is the same for all rounds.

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 25
SCORE SHEET FOR (HANDOUT OR PPT)

RED CHIP/WHITE CHIP

Round Person A Person B

Total Team Points:

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 26
Administrative Management Setting People Up for Success 1st Edition Cassidy Solutions Manual

PLAYOFF MATRIX FOR (HANDOUT OR PPT)

RED CHIP/WHITE CHIP

Person A shows Person B shows


Points Points

5 Red White 0

0 White Red 5

3 White White 3

0 Red Red 0

Instructor's Manual for Administrative Management © 2015 Cengage Learning. All Rights Reserved. 27

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