3RD EXAM REVIEWER 6&7.pdf

TRAINING EMPLOYEES A rookie police officer accidentally shot himself in the leg during a training simulation. The simulation involved modified police equipment and was turned off by the trainer. The officers were introduced to the latest in crisis handling techniques, allowing them to intera...

TRAINING EMPLOYEES A rookie police officer accidentally shot himself in the leg during a training simulation. The simulation involved modified police equipment and was turned off by the trainer. The officers were introduced to the latest in crisis handling techniques, allowing them to interact with the on-screen action. Three-dimensional simulations are valuable for teaching high-risk jobs, such as police work and operating vehicles, by providing a realistic, cost-effective approach to training. Hospital emergency rooms also benefit from simulations, as they allow trainees to handle procedures without actual risks, saving lives during critical situations. Employers invest in talent-spending through simulations, which improve employee performance. Human resource professionals assist in establishing training programs, which help employees acquire job-related knowledge, skills, abilities, and behaviors. Training can range from formal classes to one-on-one mentoring, and can benefit organizations when linked to organizational needs and motivated employees. Training - is an organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job. [Training Linked to Organizational Needs] The modern business environment emphasizes the importance of training for employees due to rapid technological changes, the psychological contract, teamwork demands, and globalization. Successful organizations lead in developing these skills. Effective training programs teach specific skills and behaviors to help organizations achieve their goals. HR professionals use instructional design (a process of systematically developing training to meet specified needs) to develop training systematically to meet specified needs. The instructional design process involves assessing training needs, preparing employees for training, planning the program, implementing it, and evaluating results. Many organizations use learning management systems (a computer application that automates the administration, development, and delivery of training programs). to streamline this process. LMSs automate administration, development, and delivery of training programs, making them more accessible and cost-effective. They also track enrollments and completion, and can be linked to performance management systems to manage training needs, outcomes, and rewards. [Needs Assessment] - the process of evaluating the organization, individual employees, and employees' tasks to determine what kinds of training, if any, are necessary. As this definition indicates, the needs assessment answers questions in three broad areas: 1. Organization - What is the context in which training will occur? 2. Person - Who needs training? 3. Task - What subjects should the training cover? The answers to these questions provide the basis for planning an effective training program.An organization may need to conduct a needs assessment due to various reasons, such as employees lacking basic skills, new product or technology changes, or external forces like customer requests or legal requirements. This is common in many service businesses, where these changes often require new skills. Therefore, a comprehensive needs assessment is crucial for effective management. A needs assessment is a process that identifies and addresses issues that led to a problem. It may not necessarily involve a training program, as some problems can be resolved through other methods. For instance, if a company transports anesthetic gases to medical facilities, a driver accidentally hooks up the supply line, contaminating the oxygen supply. The hospital may decide to provide more training, depending on the driver's knowledge of the correct line hookup, anger over a denied pay raise, or mislabeled valves. Only the lack of knowledge can be corrected through training. Other outcomes of a needs assessment may include improved rewards, better hiring decisions, and improved safety precautions. Needs assessment indicates training needs. Possible actions include offering existing programs, developing new programs, and improving existing ones. Emphasizing detailed examination of needs assessment elements. Organization Analysis - a process for determining the appropriateness of training by evaluating the characteristics of the organization. Training needs are determined by the organization's strategy, resources, and management support. Training requirements vary based on strategy, customer base, and market segment. Specialized skills may be required for niche markets, job search training for laid-off employees, and cross-training for remaining employees. Training program planning must consider budget, time, and expertise. Training success is enhanced by assisting trainees in applying new knowledge. Training professionals must demonstrate it solves significant problems or improves efficiency. Managers appreciate training proposals with specific goals, timetables, budgets, and success measures. For example, to ensure computer-literate employees in a company installing computer-based manufacturing equipment, three options are available: having technical experts train affected employees, testing employees to determine their computer literacy, or purchasing training from an external source. Person Analysis - a process for determining individuals' needs and readiness for training. It involves answering several questions: 1. Do performance deficiencies result from a lack of knowledge, skill, or ability? (If so, training is appropriate; if not, other solutions are more relevant.) 2. Who needs training? 3. Are these employees ready for training? Managers should identify which employees need training, especially when addressing performance problems. Person analysis is crucial when training is considered in response to a performance problem. Primary variables influencing performance include the employee's ability and skills, attitudes and motivation, organizational input, performance feedback, and positive consequences. Training can only affect ability and skills, hence, it's crucial to ensure training is not wasted on knowledge and skills. The person analysis should also assess employees' readiness for training, ensuring they require additional knowledge and skill and are willing to learn. Task Analysis - the process of identifying the tasks, knowledge, skills, and behaviors that training should emphasize. Usually task analysis is conducted along with person analysis. Understanding shortcomings in performance usually requires knowledge about the tasks and work environment as well as the employee. HR professionals assess task conditions including equipment, environment, time constraints, safety, and performance standards. Interviews with employees and supervisors to prepare a list of tasks performed in a job. Validation of the list is done by presenting it to employees, supervisors, and subject-matter experts. Sliding scale (for example, 0 = task never performed, to 5 = task often performed) is used to rate the importance, frequency, and difficulty of each task. Information from these questionnaires determines which tasks will be the focus of training. Training is most needed for tasks that are important, frequent, and moderately difficult. Knowledge, skills, and abilities required for each task are identified, usually from interviews with current job-holders. [Readiness for Training] - a combination of employee characteristics and positive work environment that permit training. Effective training necessitates a program that addresses real needs and employee readiness, where employees are eager to learn and their organizations encourage it. Employee Readiness Characteristics Basic learning skills, particularly cognitive ability, are crucial for employees to be ready for training. Selection processes should identify job candidates with sufficient cognitive ability to handle job requirements and training. Companies may need to provide literacy training or math skills classes for employees lacking basic skills. Employees learn more from training programs when motivated to learn. Employees feel ready to learn if they believe they can see potential benefits, are aware of their need, see a fit between training and career goals, and have basic skills. Managers can influence readiness by providing encouraging feedback, establishing learning rewards, and communicating about the organization's career paths and future needs. X. Schweitzer Engineering Laboratories in Pullman, Washington, promotes learning through a library and classes in math, science, and writing. The company hires workers based on problem-solving skills, with entry-level employees like Roy Edwards becoming technicians. The company's approach is influenced by employees' experiences with technology. Work Environment Readiness for training also depends on two broad characteristics of the work environment: 1. Situational constraints - the limits on training's effectiveness that arise from the situation or the conditions within the organization. Training Constraints: Lack of funds for training Insufficient time for training Lack of proper tools and materials Trainees are likely to apply what they learn if: Organizations provide opportunities for skill application and rewards them for doing so 2. Social Support - refers to the ways the organization's people encourage training, including giving trainees praise and encouraging words, sharing information about participating in training programs, and expressing positive attitudes toward the organization's training programs. Peer support Knowledge sharing Encourage learning Reward learning [Planning the Training Program] Decisions about training are often the responsibility of a specialist in the organization's training or human resources department. When the needs assessment indicates a need for training and employees are ready to learn, the person responsible for training should plan a training program that directly relates to the needs identified. Planning begins with establishing objectives for the training program. Based on those objectives the planner decides: 1. who will provide the training 2. what topics the training will cover 3. what training methods to use, and 4. how to evaluate the training Objectives of the Program Establishing Training Program Objectives Benefits: A training program based on clear objectives will be more focused and more likely to succeed. If trainers know the objectives, it facilitates effective communication between trainers and employees. Enhances employee learning by defining training goals. Provides basis for program success measurement. Effective training objectives have several characteristics: They include a statement of what the employee is expected to do, the quality or level of performance that is acceptable, and the conditions under which the employee is to apply what he or she learned (for instance, physical conditions, mental stresses, or equipment failure). They include performance standards that are measurable. They identify the resources needed to carry out the desired performance or outcome. Successful training requires employees to learn but also employers to provide the necessary resources. Training Program Participation and Discrimination: Training programs can be designed for all employees or team members. Some programs identify individuals lacking desirable skills or potential for promotion, then provide training in the areas of need that are identified for the particular employees. Training should not exclude members of protected groups like women, minorities, and older employees. Equal treatment and practice opportunities should be provided to all participants. Accommodations for trainees with disabilities should be provided, varying based on the type of training and disability. In-house or Contracted Out? Organizations can offer effective training programs, even without expertise, by utilizing outside experts, companies, consultants, and community colleges, as well as collaborating with employers to develop and present courses. An organization sends a Request for Proposal (RFP) to multiple vendors to select a training service. The RFP: outlines the type of service needed, type and number of references, number of employees to be trained, completion date of training, and proposal submission date. outlines funding for the project and the process by which the organization will determine its level of satisfaction. helps clarify objectives, compare vendors, and measure results. The organization reviews proposals from vendors meeting the RFP's requirements, compares qualified vendors, and selects a candidate based on experience, work samples, and training program effectiveness. The cost of hiring a contractor for training varies, with specialized training being more expensive and requiring significant time investment. Despite economic expansion, spending on outside training services remains stable. Even in organizations that send employees to outside training programs, someone in the organization may be responsible for coordinating the overall training program. Called training administration, this is typically the responsibility of a human resources professional. Training administration includes activities before, during, and after training sessions. Choice of Training Methods The organization should ensure that its training programs are relevant to its objectives, whether it's preparing its own or purchasing from others. This ensures that training money is well spent and improves trainees' learning experience. After determining the goals and content, planners must decide on how the training will be conducted. Training methods fall into the broad categories: presentation, hands-on, and group-building methods. Training programs may use these methods alone or in combination. In general, the methods used should be suitable for the course content and the learning abilities of the participants. The following section explores the options in greater detail. [Training Methods] - a wide variety of methods is available for conducting training. Figure 7.2 shows the percentage of training hours delivered to employees by each of several methods: instructor-led classrooms, computer-based instruction, virtual classrooms, mobile devices, and combinations of these methods. Although the share of instruction provided online has grown over the past few years, classroom training remains the most widely used of these methods. Classroom Instruction - often associated with school, is commonly used in the workplace for training. It involves a trainer lecturing, supplemented by slides, discussions, case studies, and role playing. Classroom instruction is cost-effective and time-efficient for presenting information to trainees. Enhancing lectures with job-related examples and hands-on learning enhances effectiveness. Audiovisual techniques like slides, video clips, and interactive links enhance message clarity and impact. Videos can show situations and equipment difficult to demonstrate in a classroom and recording videos ensures consistency in training objectives. Distance Learning and Communication Technology Distance learning allows trainees to attend programs online, viewing lectures, participating in discussions, and sharing documents. Technology applications include videoconferencing, email, instant messaging, document-sharing software, and web cameras. Distance learning provides benefits of classroom training without travel costs. Disadvantages include limited interaction between trainer and audience. To overcome this hurdle, distance learning usually provides a communications link between trainees and trainers. On-site instructors or facilitators are available to answer questions and moderate sessions. Computer-based Training - participants receive course materials and instruction on a computer or mobile device. Increasing popularity due to technological advancements and affordability. Allows for audiovisual content and control over presentation pace. Interactive materials allow participants to answer questions and try techniques. Online training programs allow for question submission and online discussions. Multimedia capabilities provide sounds, images, video presentations, and text. Cost-effective, flexible scheduling, smaller doses for better retention. Appreciated for multimedia capabilities which appeal to several senses, and the chance to learn from experts anywhere in the world. Easier to customize training for individual learners. Current applications of computer-based training can extend its benefits: E-learning Receives training via the internet or intranet. Combines web-based modules, distance learning, and virtual classrooms. Uses electronic networks for information delivery and sharing. Offers tools for trainee performance improvement. Includes links to online information resources and to trainees and experts for collaboration on problem solving. Processes enrollments, tests and evaluates participants, and monitors progress. Electronic performance support systems (EPSSs) Computer applications providing skills training, information, and expert advice. Provides guidance for employees to look up information they need such as detailed instructions on how to perform unfamiliar tasks. Faster, more relevant than attending classes (even online). Enables training access to a global workforce. X. Quicken Loans uses e-learning to encourage employees to learn from their peers' best customer service practices. The company creates an online contest called "Quicken's Got Talent," where employees rate their coworkers' performance on a scale of l to 5, with monthly prizes and a library of best-practice clips for future learning. X. Cathay Life Insurance equips sales agents with iPads equipped with learning apps for scheduling, performance assessment, multimedia courses, and short videos. The data gathered from these apps assists managers in coaching and providing additional training, enhancing their overall performance. The best e-learning combines the advantages of the Internet with the principles of a good learning environment. It takes advantage of the web's dynamic nature and ability to use many positive learning features, including hyperlinks to other training sites and content, control by the trainee, and ability for trainees to collaborate. On-the-Job Training - refers to training methods in which a person with job experience and skill guides trainees in practicing job skills at the workplace. This type of training takes various forms, including apprenticeships and internships: Apprenticeship - a work-study training method that teaches job skills through a combination of on-the-job training and classroom training. Apprenticeship OJT Component Apprentice assists certified tradesperson at work site. Classroom training provided by local schools, high schools, and community colleges. Government requirements vary by occupation, typically ranging from one to six years. Requirements may include minimum time, mastery of specific skills following classroom or online instruction plus on-the-job learning, or some combination of the two measures. Programs may be sponsored by individual companies or employee unions. Apprenticeship Benefits for Trainees Provides income while learning a trade. Effective due to hands-on learning and extensive practice. Employers worry about unionization and employee turnover. Unionization isn't strongly associated with employer-paid training. Apprenticeships can increase employee loyalty. Applicable for work outside construction trades. X. Zurich North America has launched a two-year apprenticeship program, offering apprentices three-day office work and Harper College courses, with company pay, tuition, and support from managers, mentors, and tutors. Internship - is on-the-job learning sponsored by an educational institution as a component of an academic program. Internship Regulation in Education Sponsoring schools collaborate with local employers to provide students with relevant experience. Federal government regulates internships to prevent exploitation by employers. Recent rules provide guidance on meeting internship requirements and have relaxed previous regulations. New rules test if the internship benefits the intern, requiring companies to provide training "similar to that which would be given in an educational environment." The majority of apprenticeship programs are in skilled trades like carpentry, electrical work, and plumbing, as demonstrated on Table 7.3’s left column. While, a lot of internships prepare students for careers like those shown in Table 7.3's right column. To be effective, OJT programs should include several characteristics: The organization should issue a policy statement describing the purpose of OJT and emphasizing the organization's support for it. The organization should specify who is accountable for conducting OJT. This accountability should be included in the relevant job descriptions. The organization should review OJT practices at companies in similar industries. Managers and peers should be trained in OJT principles. Employees who conduct OJT should have access to lesson plans, checklists, procedure manuals, training manuals, learning contracts, and progress report forms. Before conducting OJT with an employee, the organization should assess the employee's level of basic skills. Simulations - is a training method that represents a real-life situation, with trainees making decisions resulting in outcomes that mirror what would happen on the job. Simulations in Training Provide trainees with a risk-free, artificial environment to understand their decisions. They are used for teaching production, process, management, and interpersonal skills. Include call centers and mock-ups of houses for cable installer training. Simulators must mimic real-world work environment elements and respond to trainee conditions. Despite high development costs and constant updates, simulators are beneficial for high job risk scenarios. Trainees are enthusiastic about learning and learn quickly, with lessons closely related to job performance. The benefits of simulator training are expected to increase as development costs are affordable. X. OhioHealth's hospitals have simulation centers for doctors, nurses, and first responders to learn emergency handling skills. These centers use patient simulators, which simulate human functions and even deliver babies. Trainers can make the simulators realistic by applying makeup, props, and arranging scenes. Paramedics appreciate the simulation method for practicing and making mistakes in low-pressure environments, preparing them for real emergencies. Online Simulations Trainees create avatars (computer depictions of trainees, which the trainees manipulate in an online role-play) for simulations, interacting with them on screen. Virtual reality (computer-based technology that provides an interactive, three dimensional learning experience) enhances the simulation experience. Specialized equipment or computer screen viewing allow trainees to interact with the simulated environment. Devices like audio interfaces, touch-sensitive gloves, treadmills, and motion platforms create a realistic environment. Devices also communicate trainee's movements to a computer. X. BNSF Railway employs virtual reality to train employees on brake safety inspections. Employees play avatars in a 3D simulation, examining critical parts like air hoses, angle cocks, and hand brakes. This simulation represents defects that are not included in on-the-job training, enhancing employees' ability to identify and correct malfunctions. Business Games and Case Studies - training programs use business games and case studies to develop employees' management skills. Case Study A detailed description of a situation for trainees to study and discuss. Cases are designed to develop higher-order thinking skills like information analysis and evaluation. Encourages risk-taking by providing practice in weighing and acting on uncertain outcomes. Sources include Harvard Business School, Darden Business School, and McGraw-Hill publishing company. Business Games Trainees gather information, analyze it, and make decisions that influence the game outcome. Stimulate learning by actively involving participants. Mimic competitive business nature. Realistic games may be more meaningful to trainees than classroom instruction. X. Humana's Winning Major program trains salespeople by assembling teams of five trainees who imagine themselves as robotics company salespeople. They play three rounds of simulations, with the team with the most revenue declared the winner. Training with case studies and games requires that participants come together to discuss the cases or the progress of the game. This requires face-to-face or electronic meetings. Also, participants must be willing to be actively involved in analyzing the situation and defending their decisions. Behavior Modeling - Research suggests that this is one of the most effective ways to teach interpersonal skills. It involves training sessions in which participants observe other people demonstrating the desired behavior, then have opportunities to practice the behavior themselves. X. A training program could involve several days of four-hour sessions, each focusing on one interpersonal skill, such as communicating or coaching. At the beginning of each session, participants hear the reasons for using the key behaviors; then they watch a video of a model performing the key behaviors. They practice through role-playing and receive feedback about their performance. In addition, they evaluate the performance of the model in the video and discuss how they can apply the behavior on the job. Experiential Programs - training programs in which participants learn concepts and apply them by simulating behaviors involved and analyzing the activity, connecting it with real-life situations. To develop teamwork and leadership skills, experiential training programs should follow several guidelines: A program should be related to a specific business problem. Participants should feel challenged and move outside their comfort zones but within limits that keep their motivation strong and help them understand the purpose of the program. Before requiring employees to participate in experiential programs, the organization should consider the possible drawbacks.: Physical demands and touching may lead to injuries. Employees may feel sexually harassed or privacy invaded. The Americans with Disabilities Act raises questions about requiring employees with disabilities to participate in physically demanding training experiences. X. Grant Thornton, a tax and auditing firm, employs CLEAR Engagement, an experiential program, to train employees in problem-solving and teamwork. Groups of five work through business decisions, fostering collaboration and fostering relationships for future work. This approach helps employees gain valuable perspectives and improves their work performance. Adventure learning - a form of experiential program that involves challenging outdoor activities like rafting or mountain climbing, as well as structured tasks like climbing walls, rope courses, ladders, or "trust falls" where trainees fall backward into each other's arms. Adventure Learning Program Impact Participants report improved self-understanding and co-worker interaction. Success hinges on group participation. Encourages discussion and correction of group performance issues. Organizational involvement is key. Team Training - A possible alternative to experiential programs which coordinates the performance of individuals who work together to achieve a common goal. An organization may benefit from providing such training to groups when group members must share information and group performance depends on the performance of the individual group members. Examples include the military, nuclear power plants, and commercial airlines. In those work settings, much work is performed by crews, groups, or teams. Success depends on individuals' coordinating their activities to make decisions, perhaps in dangerous situations. Ways to conduct team training: Cross Training - team members understand and practice each other's skills so that they are prepared to step in and take another member's place. X. In a factory, production workers could be cross-trained to handle all phases of assembly. This enables the company to move them to the positions where they are most needed to complete an order on time. Coordination Training - trains the team in how to share information and make decisions to obtain the best team performance. X. A group of managers from Thermo Fisher Scientific divided into five teams, each assigned to make one course for the night's dinner. Each team was given the ingredients for a particular dish but not a recipe, and the group members had to figure out how they would solve the problem together. Team Leader Training - training people in the skills necessary for team leadership. X. The training may be aimed at helping team leaders learn to resolve conflicts or coordinate activities. Action Learning - training includes teams getting an actual problem, work on solving it and commit to an action plan, and are accountable for carrying it out. Project efforts and results should be visible to participants and the organization. The visibility and impact of a task should make participation engaging, relevant, and exciting. Effectiveness of Action Learning Not formally evaluated. Training results in significant learning. Employees can apply learned knowledge. Action learning involves actual problems the organization is facing. Group approach helps identify behaviors affecting problem-solving. X. Keller William Realty's training program for real estate agents includes cold-calling sessions and a seven-week program for generating leads, resulting in an average of 14 contract signings. [Implementing the Training Program] Learning permanently changes behavior. For employees to acquire knowledge and skills in the training program, the training program must be implemented in a way that applies what is known about how people learn. Equally important, implementation of a training program should enable employees to transfer what they have learned to the workplace-in other words, employees should behave differently as a result of the training. Principles of Learning Researchers have identified a number of ways employees learn best. Table 7.4 summarizes ways that training can best encourage learning. In general, effective training communicates learning objectives clearly, presents information in distinctive and memorable ways, and helps trainees link the subject matter to their jobs. Linking Training to Job Experiences Employees are most likely to learn when training is linked to their current job experiences and tasks. Present material using familiar concepts, terms, and examples. Use training context (physical setting or images) mirroring work environment. Include both physical and emotional elements in the training context. X. Training expert Alan Landers takes into account the variety of experience levels that trainees may bring to the sessions. In classroom training, he advises identifying which participants have been working with the subject matter for less than a year, one to two years, and three or more years. Then he assigns a different role to each group. The most experienced participants become the group's "reality checkers," making sure the content is relevant. The middle group becomes the "progress experts," who are encouraged to share their experiences in learning the subject. And those new to the subject are urged to ask questions. In this way, all participants have a valued, engaging role. Training Content and Practice To fully understand and remember training content, employees need a chance to demonstrate and practice what they have learned. Trainers should involve trainees actively, practice repeatedly, and complete tasks within appropriate timeframes. Practice involves physically carrying out desired behaviors, not just describing them. Practice sessions can include role-playing, filling out forms, or operating job-specific machinery. More practice increases comfort in applying skills on the job. Benefits of practice are most pronounced over several sessions. For complex tasks, practice a few skills or behaviors at a time, then combine them in later sessions. Training Feedback Importance Trainees need to understand whether or not they are succeeding. Therefore, training sessions should offer feedback. Effective feedback focuses on specific behaviors for trainees to understand success. Delivered promptly after practice or demonstration. Videotaping can be used to show behaviors that match training outcomes. Feedback should include praise and guidance for improvement. Effective Training Design Well-designed training helps people remember the content. Breaking information into manageable chunks for better retention. Limiting attendance to four to five items per session. If a concept or procedure involves more than five items, the training program should deliver information in shorter sessions or chunks. Visualizing information and practicing tasks can make information more memorable Assessing Readability in Training Materials Written materials should have an appropriate reading level. A simple way to assess readability (the difficulty level of written materials) is to look at the words being used and at the length of sentences. Short sentences and simple words are easiest to read. If materials are too complex, rewrite to simplify. Approaches to Adjust Complex Training Materials Substitute simple, concrete words for unfamiliar or abstract words. Divide long sentences into two or more short sentences. Divide long paragraphs into two or more short paragraphs. Add checklists (like this one) and illustrations to clarify the text. Substitute video, hands-on learning, or other non written methods for some of the written material. A longer-term solution is to use tests to identify employees who need training to improve their reading levels and to provide that training first. Transfer of Training - on-the-job use of knowledge, skills, and behaviors learned in training. Ultimately, the goal of implementation is transfer of training. Transfer of training requires that employees actually learn the content of the training program. Then, for employees to apply what they learned, certain conditions must be in place: social support, technical support, and self-management. Social support - includes support from the organization and from trainees' peers. Managers should emphasize training importance, encourage attendance, and connect content to job requirements. Establishing practice-groups (communities of practice - groups of employees who work together, learn from each other, and develop a common understanding of how to get work accomplished) and assigning experienced employees as mentors can provide peer support and help employees understand and accomplish tasks. X. Social support significantly contributed to the success of safety training at Honda of America's East Liberty, Ohio assembly plant. Managers identified workers with a focus on quality and safety, who became "ergo coaches" (teach new employees proper techniques and share tips with their co-workers) after seven days of training, resulting in a decrease in the facility's injury rate. Technical Support - come from electronic performance support systems (EPSS- a type of computer-based training) where organizations provide technical resources that help people acquire and share information. Knowledge management systems including online and database tools also make it easy for employees to look up information they want to review or consult later. Self-Management - to ensure transfer of training, an organization's training programs should prepare employees to self-manage their use of new skills and behaviors on the job. The trainer should guide trainees in setting job-specific goals, identifying potential failure conditions, and highlighting the positive and negative consequences of using new skills. They should also encourage employees to monitor their use and emphasize the natural difficulty of learning new skills. They should also assist managers and peers in rewarding employees for applying their skills, ensuring they continue to try and improve their performance. [Measuring the Results of Training] After a training program ends, or at intervals during an ongoing training program, organizations should ensure that the training is meeting objectives. The stage to prepare for evaluating a training program is when the program is being developed. Along with designing course objectives and content, the planner should identify how to measure achievement of objectives. Depending on the objectives, the evaluation can use one or more of the measures shown in Figure 7.3: trainee satisfaction with the program knowledge or abilities gained use of new skills and behavior on the job (transfer of training) improvements in individual and organizational performance The usual way to measure whether participants have acquired information is to administer tests on paper or electronically. Trainers or supervisors can observe whether participants demonstrate the desired skills and behaviors. Surveys measure changes in attitude. Changes in company performance have a variety of measures, many of which organizations keep track of for preparing performance appraisals, annual reports, and other routine documents in order to demonstrate the final measure of success shown in Figure 7.3: return on investment. Evaluation Methods To measure whether the conditions are in place for transfer of training, the organization can ask employees three questions about specific training-related tasks: 1. Do you perform the task? 2. How many times do you perform the task? 3. To what extent do you perform difficult and challenging learned tasks? Frequent performance of challenging training tasks indicates great opportunities for learning. If there is low opportunity, the organization should conduct a needs assessment and reevaluate readiness to learn. The lack of transfer may indicate that employees have not fully learned the course material. Offering a refresher course can help provide more practice. Also, another reason for poor transfer of training is that the content of the training may not be important for the employee's job. Assessment of training also should evaluate training outcomes, that is, what ( if anything) has changed as a result of the training. The relevant training outcomes are the ones related to the organization's goals for the training and its overall performance. Possible Outcomes:  Information such as facts, techniques, and procedures that trainees can recall after the training. Skills that trainees can demonstrate in tests or on the job. Trainee and supervisor satisfaction with the training program. Changes in attitude related to the content of the training (for example, concern for safety or tolerance of diversity). Improvements in individual, group, or company performance (for example, greater customer satisfaction, more sales, fewer defects). Training is a significant part of many organizations' budgets. Therefore, economic measures are an important way to evaluate the success of a training program. Businesses that invest in training want to achieve a high return on investment-the monetary benefits of the investment compared to the amount invested, expressed as a percentage. X. The Sacramento Municipal Utility District (SMUD) implemented a training program for its strategic account advisers to improve their understanding of business strategies and customer needs. The program, costing $50,000, resulted in two deals with corporate customers, generating $800,000 in additional revenues, resulting in a return of 1,500%. Training Evaluation Methods Accurate but costly: Measure performance, knowledge, or attitudes of all employees before training and then train only part of the employees. After the training is complete, the performance, knowledge, or attitudes are again measured, and the trained group is compared with the untrained group. Simpler but less accurate: Conduct pretest and posttest on all trainees, comparing their performance before and after training. This type does not rule out the possibility that change resulted from something other than training Simpler: Use only a posttest to show if trainees have reached a specified level of competency, knowledge, or skill. This type does not enable accurate comparisons, but may be sufficient depending on the cost and purpose of the training. Applying the Evaluation The purpose of evaluating training is to help with future decisions about the organization's training programs. Using the evaluation, the organization may identify a need to modify the training and gain information about the kinds of changes needed. The organization may decide to expand on successful areas of training and cut back on training that has not delivered significant benefits. X. Clearlink, a call center operator, conducted an evaluation after revamping its training for new employees. The company noticed a rise in employee quit rates within their first 90 days. A team of employees, managers, and coaches reviewed the training and developed a new program. After implementing the program, turnover and production levels decreased, and employees were more proficient in their jobs. Clearlink concluded that the new program was the right change. [Applications of Training] Training applications that have become widespread among U.S. companies include orientation and onboarding of new employees and training in how to manage workforce diversity. Orientation and Onboarding of New Employees - Many employees receive their first training during their first days on the job through orientation. Orientation - its training designed to prepare employees to perform their jobs effectively, learn about their organization, and establish work relationships. Provide familiarization with job tasks and organization's practices, policies, and procedures. Employers recognize that success in today's work environment requires more than employees being able to complete an orientation program, follow rules, and navigate around the workplace. Orientation programs may combine reading materials, classroom instruction, on-the-job training, and e-learning. Decisions depend on material type and number of new employees. Employers are now integrating onboarding into the orientation process. Onboarding - is an ongoing process that aims to prepare new employees for full participation in the organization. Aims to connect new employees with their employer. Encourages gathering information about the company, history, culture, and products/services. Helps new employees adjust to social and performance aspects of their jobs. Prepares employees in four areas: complying with policies and rules, clarifying job requirements, understanding the organization's culture, and connecting with co-workers. Addresses social and task-related aspects of work. An ongoing process with follow-ups to ensure successful transition. X. University Health System in San Antonio, Texas, developed a two-day onboarding program to retain healthcare professionals in a competitive labor market. The program combines classroom training and e-learning, with a preceptor in each department to guide new hires. Diversity Training - training designed to change employee attitudes about diversity and/ or develop skills needed to work with a diverse workforce. Organizations are prioritizing diversity management to foster an environment where all employees can contribute to the organization's goals and experience personal growth. This includes fair job access and fair treatment. To comply with Equal Employment Opportunity laws and market forces, organizations offer diversity training to teach attitudes and behaviors that support diversity management, focusing on cultural, ethnic, personal, and physical differences. Diversity Training and Orientation Programs Crucial for attracting and retaining employees. Emphasize respect and value for all employees to ensure a diverse workforce. Focus on behavior, aiming to change organizational policies and individual behaviors that inhibit employees' personal growth and productivity. Identify incidents discouraging employees from reaching potential. Involves group discussions on promotion opportunities or management practices. Teaches skills for constructive handling of communication barriers, conflicts, and misunderstandings. Cultural immersion is another form of diversity training, sending employees directly into communities where they interact with people from different cultures, races, and nationalities. This type of training may be more positive for trainees than other types. A U.S.-based consulting firm used a skills-based focus in its cross-culture training of consultants, focusing on understanding cultural differences within teams and among clients. The program involved case studies, small-group discussions, and small-group discussions. Research has not shown a direct relationship between diversity training and improved business performance. However, successful diversity programs contribute to an environment where employees learn from one another's differences, especially when part of management's long-term commitment to managing diversity. Successful diversity programs are not just training topics but also part of an organizational culture that expresses appreciation for diversity through recruiting, hiring, and developing diverse employees. X. Starbucks has announced a diversity training program for over 175,000 employees following an incident in a Philadelphia store where two black men were arrested for loitering. The training program aims to address unconscious racial bias and ensure all customers feel welcome in any Starbucks store. Starbucks CEO Kevin Johnson apologized for the incident and dropped charges against the two men. X. The University Corporation for Atmospheric Research is offering a four-part training program to promote diversity and inclusion, focusing on addressing harassment and bias, with over three-quarters of participants implementing the training. PERFORMANCE MANAGEMENT Sales performance is crucial for a company's success, with top performers often selling high-profit products. However, ensuring sales performance is complex, as managers must trust salespeople to describe their work effectively. Bain & Company uses software to analyze salespeople's activities, identify top performers, and identify areas for development. This data helps set targets, such as serving profitable customer groups or building organizational connections, and provides salespeople with progress data, ultimately improving sales performance. Identifying desired behaviors and targets, and then measuring how well employees are carrying out the behaviors and hitting the targets are elements of performance management. Performance management is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals. This process requires knowing what activities and outputs are desired, observing whether they occur, and providing feedback to help employees meet expectations. In the course of providing feedback, managers and employees may identify performance problems and establish ways to resolve those problems. [The Process of Performance Management] Performance management can provide numerous benefits to employees and organizations, including valuing top performers, fostering communication, establishing consistent standards, and identifying strengths and weaknesses. Companies should view performance management as a process, not an event. Figure 10.1 outlines the six steps of the performance management process, emphasizing the importance of feedback and formal evaluation. However, it also emphasizes the need for visible support from the CEO and senior managers to ensure consistent use, timely appraisals, and recognition of ongoing feedback as part of the company's culture. The process should be reviewed annually to align employee measurements with company, division, and departmental goals and objectives. 1. identifying what the company is trying to accomplish (its goals or objectives). 2. developing employee goals and actions to achieve these outcomes. (Outcomes benefit customers, employees, peers, and the organization. Measuring goals, behaviors, and activities should be part of job descriptions.) 3. providing employees with training, necessary resources and tools, and ongoing feedback between the employee and manager, which focuses on accomplishments as well as issues and challenges that influence performance. (Effective performance management requires regular feedback exchange between managers and employees, with managers dedicating time to provide ongoing feedback and learning how to give and receive it.) 4. evaluating performance. (the manager and employee discuss and compare targeted goals and supporting behavior with actual results like the annual formal performance review.) 5. identifying what the employee can do to capitalize on performance strengths and address weaknesses.  6. providing consequences for achieving ( or failing to achieve) performance outcomes (such as pay increases, bonuses, or action plans). (The final steps in the performance management process involves both the employee and manager, involving identifying training needs, adjusting feedback frequency, clarifying performance outcomes, and discussing areas for improvement.) [Purposes of Performance Management] Organizations establish performance management systems to meet three broad purposes. The strategic purpose is aimed at meeting business objectives. The system does this by helping to link employees' behavior with the organization's goals. The administrative purpose of performance management is to provide information for day-to-day decisions about salary, benefits, recognition, and retention or termination. The developmental purpose of performance management is using the system as a basis for developing employees' knowledge and skills. [Criteria of Effective Performance Management] The criteria for measuring the effectiveness of a performance system is necessary for a system to be considered as good and effective. This includes fit with strategy, validity, reliability, acceptability, and specific feedback. Fit with strategy - performance measures should be strategic-fitting with the organization's strategy by supporting its goals and culture. Validity - performance measures should be valid, so they measure all the relevant and do not measure irrelevant aspects of performance.  - Contamination (irrelevant but measured). - Deficiency (relevant but not measured). Reliability - these measures should also provide interrater and test-retest reliability, so that appraisals are consistent on the results it delivers. - Inter-rater - consistency of results when more than one person measures performance. - Test-retest - consistency of results over time. Acceptability - performance measurement systems should be acceptable to the people who use them or receive feedback from them. Specific Feedback - performance measure should be specific, telling employees what is expected of them and how they can meet those expectations. [Methods for Measuring Performance] Organizations have developed a wide variety of methods for measuring performance. Some methods rank each employee to compare employees' performance. Other methods break down the evaluation into ratings of individual attributes, behaviors, or results. Many organizations use a measurement system that includes a variety of the preceding measures, as in the case of applying total quality management to performance management. Table 10.l compares these methods in terms of our criteria for effective performance management. Making Comparisons The performance appraisal method may require the rater to compare one individual's performance with that of others. This method involves some form of ranking, in which some employees are best, some are average, and others are worst. The usual techniques for making comparisons are simple ranking, forced distribution, and paired comparison. Simple Ranking - requires managers to rank employees in their group from the highest performer to the poorest performer. Another variation is Alternation Ranking wherein the manager works from a list of employees, deciding which employee is best and worst then crosses their names off the list and rank the remaining employees accordingly. The major downside of ranking involves validity. To state a performance measure as broadly as "best" or "worst" doesn't define what exactly is good or bad about the person's contribution to the organization. Ranking therefore raises questions about fairness. Forced-Distribution Method - assigns a certain percentage of employees to each category in a set of categories. For example, the organization might establish the following percentages and categories:(Exceptional-5% - Exceeds standards-25% - Meets standards-55% - Room for improvement-10% - Not acceptable-5%). This approach is effective when group performance varies significantly, avoiding conflict. Research shows it improves performance when combined with goals and rewards. However, a skilled manager may struggle to assign employees to the bottom categories, potentially hurting morale and accuracy. Paired Comparison Method compares each employee with each other to establish rankings. When the manager has compared every pair of employees, the manager counts the number of points for each employee. The employee with the most points is considered the top-ranked employee. Clearly, this method is time consuming if a group has more than a handful of employees. For a group of 15, the manager must make 105 comparisons. Ranking employees offers benefits such as countering controversy and erasing stricter behavior evaluations. It can support decisions on pay raises or layoffs. However, rankings often lack alignment with organizational goals and can be interpreted, potentially harming employee development and causing legal challenges. They are often easy to use and acceptable to managers. Rating Individuals Instead of focusing on arranging a group of employees from best to worst, performance measurement can look at each employee's performance relative to a uniform set of standards. The measurement may evaluate employees in terms of attributes (characteristics or traits) believed desirable. Or the measurements may identify whether employees have behaved in desirable ways, such as closing sales or completing assignments. For both approaches, the performance management system must identify the desired attributes or behaviors, then provide a form on which the manager can rate the employee in terms of those attributes or behaviors. Typically, the form includes a rating scale, such as a scale from 1 to 5, where 1 is the worst performance and 5 is the best. Rating Attributes:  Graphic Rating Scale - lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait. A rating scale can either circle points or display a range of scores, with managers marking their place along the line. However, this approach leaves decisions about what is "excellent knowledge" or "commendable judgment" or "poor interpersonal skills" to the manager, leading to low reliability as managers may arrive at different judgments. Mixed-Standard Scales - uses several statements describing each trait to produce a final score for that trait. The manager scores an employee based on their performance on a mixed-standard scale. The scale consists of sentences describing high, medium, and low levels of initiative, intelligence, and relations with others. The manager reads each sentence and indicates whether the employee performs above, at, or below the level described. The manager uses pluses, zeros, and minuses to score performance, with high performers receiving a 7 score and low performers receiving a 1 score. Rating attributes is the most popular way to measure performance in organizations. Attribute-based performance measurement methods are widely used in organizations to measure job performance. These methods are easy to develop and can be applied to various jobs. However, appraisal forms often fail to meet these standards and are rarely linked to the organization's strategy. Employees may be defensive about receiving numerical ratings, as they may feel arbitrary and lack guidance on how to improve. Therefore, it is crucial for organizations to carefully define high-performing attributes. Rating Behaviors: One way to overcome the drawbacks of rating attributes is to measure employees' behavior. To rate behaviors, the organization begins by defining which behaviors are associated with success on the job. Which kinds of employee behavior help the organization achieve its goals? The appraisal form asks the manager to rate an employee in terms of each of the identified behaviors. Critical-Incident Method - an approach that requires managers to keep a record of specific examples of the employee acting in ways that are either effective or ineffective. Evaluating performance in this way provides employees with feedback on their strengths and weaknesses, and managers can relate incidents to helping the company achieve its goals. However, keeping a daily or weekly log of critical incidents can be challenging for managers, and their uniqueness may not facilitate comparisons among employees. X. A critical incident in the performance evaluation of an appliance repair person: A customer reported a refrigerator issue with no cooling and clicking noises. The technician diagnosed the problem, checked his truck for necessary parts, and if not available, stocked them from inventory, ensuring the refrigerator would be repaired on the first visit.This incident provides evidence of the employee's knowledge of refrigerator repair and concern for efficiency and customer satisfaction.  Behaviorally Anchored Rating Scale (BARS) - rates behavior in terms of a scale showing specific statements ("anchors" of the performance levels) of behavior that describe different levels of performance. The organization categorizes critical incidents into effective and ineffective performance levels, using statements as anchors to guide raters. While BARS improves inter-rater reliability, it can bias the manager's memory, as it may help remember similar behaviors at the expense of other critical incidents. X. Consider the various levels of behavior associated with a patrol officer preparing for duty: The 7-point scale indicates that the highest rating involves early work, gathering necessary equipment, and previewing previous shift activities. The lowest rating (rating 1) describes poor performance behaviors, such as lateness for roll calls, equipment failure, and lack of preparation for shift activities, based on past performance data. Behavioral Observation Scale (BOS) - a variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task. Like BARS, BOS is a rating scale developed from critical incidents, defining all necessary behaviors for effective performance or ineffective performance. BOS is a performance rating system that uses 15 behaviors to define performance levels and requires managers to rate their frequency over a 6- to 12-month period. Despite its complexity, BOS is preferred by managers and employees for its ease of use, feedback, objectivity, and suggestion of training needs compared to BARS and graphic rating scales. Organizational Behavior Motivation (OBM) - a plan for managing the behavior of employees through a formal system of feedback and reinforcement. Another approach to assessment builds directly on a branch of psychology called behaviorism, which holds that individuals' future behavior is determined by their past experiences, specifically, the ways in which past behaviors have been reinforced. People tend to repeat behaviors that have been rewarded in the past. Providing feedback and reinforcement can therefore modify individuals' future behavior. Specific OBM techniques vary, but most have four components: 1. Define a set of key behaviors necessary for job performance. 2. Use a measurement system to assess whether the employee exhibits the key behaviors. 3. Inform employees of the key behaviors, perhaps in terms of goals for how often to exhibit the behaviors. 4. Provide feedback and reinforcement based on employees' behavior. X. A community mental health agency utilized OBM to enhance critical job behaviors by demonstrating the link between these behaviors and the agency's achievements. This process identified administration, record keeping, and client service behaviors, enhancing staff performance through feedback and reinforcement.  Behavioral approaches, such as organizational behavior modification and rating scales, can effectively link company goals to specific behavior and generate feedback for improvement. These methods are valid and reliable when well-trained raters. However, they may not be as effective in complex jobs where it's difficult to see a link between behavior and results or there's multiple ways to achieve success. For instance, women in high-tech and professional-services firms often receive feedback focusing on their communication style, which may be relevant due to peer judgments. Focusing on communication style overlooks the value of the communicator's messages, and it's unclear whether the problem behavior in communication breakdowns lies with the speaker, hearers, or both. Measuring Results Performance measurement involves managing objective, measurable results of a job or work group, such as sales, costs, or productivity. Popular methods include productivity measurement and management by objectives. Productivity is a key success measure that boosts a company's profits by achieving more with less resources. It can be used as a performance measure, identifying desired products or objectives. For instance, a repair shop might track "quality of repair" by tracking return and inspections. Despite being time-consuming, research suggests that this type of performance measurement can improve productivity. Management by Objectives - a system in which people at each level of the organization set goals in a process that flows from top to bottom, so employees at all levels are contributing to the organization's overall goals; these goals become the standards for evaluating each employee's performance. An MBO system has three components: 1. Goals are specific, difficult, and objective. The goals listed in the second column of Table 10.2 provide two examples for a bank. 2. Managers and their employees work together to set the goals. 3. The manager gives objective feedback through the rating period to monitor progress toward the goals. The two right-hand columns in Table 10.2 are examples of feedback given after one year. MBO can have a very positive effect on an organization's performance. In 70 studies of MBO's performance, 68 showed that productivity improved. The productivity gains tended to be greatest when top management was highly committed to MBO. Also, because staff members are involved in setting goals, it is likely that MBO systems effectively link individual employees' performance with the organization's overall goals. Results-oriented performance measurement is less subjective and acceptable for employees and managers. It links to organizational goals but has validity issues as results may be influenced by circumstances beyond each employee's performance. Focusing on measured aspects may neglect significant skills or behaviors, and evaluation based on results lacks guidance for improvement. Total Quality Management This is a performance measurement and management approach that evaluates both individual and system performance. It involves employees and customers working together to set standards and measure performance, aiming to improve customer satisfaction through continuous feedback and avoiding individual ratings based on uncontrollable outcomes. With TQM, performance measurement essentially combines measurements of attributes and results. The feedback in TQM is of two kinds: 1. subjective feedback from managers, peers, and customers about the employee's personal qualities such as cooperation and initiative; and 2. objective feedback based on the work process (the kind of feedback comes from a variety of methods called statistical quality control (SQC)). The SQC method uses charts to identify causes of problems, performance measures, and work-related relationships. Employees track these measures to identify areas for improvement. This feedback may lead to system changes, but it doesn't support decisions about work assignments, training, or compensation. [Sources of Performance Information] Performance measurement methods involve selecting who will collect and analyze performance information. To qualify, one must understand job requirements and observe employees performing. Traditional managers gather performance data for ratings. However, various sources, including managers, peers, subordinates, self, and customers, can be used to gather information. Using one person for information can bias employee perception and limit the number of situations one person can observe. To ensure comprehensive assessments, organizations use a 360-degree performance appraisal, combining information from multiple sources. Managers ○ The most-used source of performance information is the employee's manager. ○ Supervisors are assumed to have extensive knowledge of job requirements and sufficient observation opportunities. ○ Managers are incentivized to provide accurate and helpful feedback due to their own success reliant on employee performance. ○ Managers' feedback can improve performance and employees perceive it as accurate. ○ However, some situations limit the opportunity for supervisors to observe employees performing job duties. For instance, a sales manager with many outside salespeople may not have enough time to observe their performance at all times. Peers ○ Peers provide valuable performance data in jobs where supervisors rarely observe, such as law enforcement and sales.  ○ Peers have expert knowledge of job requirements and provide valid assessments of performance. ○ Peer reviews align with social media's trend of rating experiences and messages. ○ Potential disadvantages include potential bias due to friendships or rivalries. ○ Peers may be uncomfortable rating employees for decisions that may affect them. ○ Peers generally favor participation in reviews for employee development and teamwork strengthening. Subordinates ○ Subordinates provide valuable information on a manager's treatment of employees. ○ Managers with low scores in feedback delivery and coaching receive training for improvement. ○ Power dynamics can hinder subordinate evaluations. Subordinates prefer anonymous feedback, but managers respond positively when identified. ○ Managers may prioritize employee satisfaction over productivity when ratings are used for administrative decisions. ○ Subordinate evaluations are most suitable for developmental purposes. ○ To protect employees, anonymous processes and at least three employees should be used. Self ○ Employees have a greater chance to observe their own behavior on the job. ○ Self-ratings can provide valuable information about performance. ○ Employees often evaluate their own performance before feedback sessions. ○ Disagreements between self-appraisals and other evaluations can be fruitful topics for feedback sessions. ○ Self-ratings can inflate assessments, especially for administrative decisions. ○ Social psychologists suggest people often blame external circumstances for failures while taking credit for successes. ○ Frequent feedback can soften this tendency, but self-appraisals are not suitable for administrative decisions. Customers ○ Customers often directly observe service performance, making them the best source of performance information. ○ Companies like Marriott Corporation use customer satisfaction cards and surveys to gauge service quality. ○ Customer evaluations are useful when an employee's job requires direct service to the customer or links them to other services. ○ They help determine what products and services the customer wants, contributing to the organization's goals.  ○ Customer evaluations can help improve customer service by enabling HRM to support marketing activities. ○ The expense of traditional surveys for performance measurement is a weakness, leading to short-term information gathering. [Errors in Performance Management] One reason for gathering information from several sources is that performance measurements are not completely objective and errors can occur. People observe behavior without knowing all circumstances, intentions, and outcomes. They interpret what they see, making judgment calls and potentially distorting information. To ensure fairness in rating performance and interpreting appraisals, managers must understand common distortions and understand how to prevent distortions in performance appraisals. Types of Rating Errors Several kinds of errors and biases commonly influence performance measurements: People often evaluate others based on their perceived effectiveness, but this can lead to discriminatory decisions when similarity is based on race or sex. (Similar to me error) Contrast errors occur when a rater compares an individual against other employees, leading to a competent performer being rated lower due to the contrast. Other errors involve using only part of the rating scale (Distributional Errors): Giving all employees ratings at the high end of the scale is called leniency error. Rating everyone at the low end of the scale is called strictness error. Rating all employees at or near the middle is called central tendency. Distributional errors hinder comparison of employees rated by the same person. Different raters' distributional errors prevent comparing scores. The halo error refers to rating employees positively in all areas because of strong performance observed in one area and the horns error is rating employees negatively in all areas because of weak performance observed in one area. (Overall impression) Ways to Reduce Errors Training raters to avoid rating errors through watching videos that lead to specific errors. Discussing rating decisions and the impact of these errors. Training programs offering tips for avoiding future errors. Focusing on the complex nature of employee performance. Studying actual performance examples to understand various performance dimensions and standards. Increasing use of data analytics in the rating process. Analytic software like Perception can analyze supervisor's performance evaluations and identify patterns in performance. Political Behavior in Performance Appraisals Unintentional errors and appraisal politics can lead to inaccurate performance measurement.  These distortions can be intentional to advance personal goals, causing frustration and retribution. Organizations strive to identify and discourage appraisal politics. Appraisal politics often occur when raters are accountable to the employee, rating goals are not compatible, and performance appraisal is linked to desirable rewards. Top executives may tolerate or ignore distorted ratings, and senior employees often share company "folklore" about distorted ratings. To minimize appraisal politics, organizations can establish a fair appraisal system. Calibration meetings can help identify undervalued employees and improve ratings. Information systems can provide data analytics for rating calibration. Training managers to use the appraisal process, recognizing unidentified accomplishments, and fostering openness can help managers give accurate appraisals. [Giving Performance Feedback] Managers and employees must receive feedback after measuring an employee's performance to plan corrections. This process is essential for performance management, but it can be uncomfortable for both parties. Providing feedback feels like judging others, while receiving criticism can be even worse. Managers can help smooth the process and make it more effective. Scheduling Performance Feedback Annual feedback is insufficient for correcting performance deficiencies as managers are responsible for correcting them promptly. Frequent feedback is most effective when information is not surprising to the employee. Employees are motivated and directed by regular feedback, promoting engagement. Vapotherm, a medical-device manufacturer, shifted from annual reviews to quarterly reviews, where employees summarize their performance and discuss it with their supervisor. Preparing for a Feedback Session Managers should create a neutral, open context for feedback sessions. The meeting should discuss the employee's role, the manager's role, and their relationship. Open dialogue is encouraged, with the content and language used determining the success of the meeting. Employees should be prepared by completing a self-assessment to understand their performance and strengths and weaknesses. Self-assessment can help identify areas for development and differences between the manager's and the employee's rating can be fruitful areas for discussion. Conducting the Feedback Session During the feedback session, managers can take any of three approaches:  1. Tell-and-sell approach, managers tell the employees their ratings and then justify those ratings. 2. Tell-and-listen approach, managers tell employees their ratings and then let the employees explain their side of the story. 3. Problem-solving approach, managers and employees work together to solve performance problems in an atmosphere of respect and encouragement. Research shows that problem-solving focuses as much on the future as on the past., making it superior, and most managers rely on the tell-and-sell approach. Managers can improve employee satisfaction with the feedback process by letting employees voice their opinions and discuss performance goals. This requires careful listening as well as clear speaking. Open-ended questions that seek the employee's view can help get a two-way conversation off the ground. The following questions are some examples: - What have you learned? - What skills would you like to develop? - What do you think the next steps should be? Feedback Effectiveness and Importance Feedback should be specific, focusing on behavior rather than personalities. Goal setting and follow-up decisions should be part of the feedback session. While managers often assume feedback should focus on problem areas, research suggests that the most impact comes from focusing on strengths. Employees perceive managers as supportive and trustworthy, leading to openness to both praise and criticism. Criticism can motivate employees to seek feedback from positive sources, avoiding criticism sources. Managers may struggle with giving positive feedback, leading to a reluctance to give critical feedback. Feedback should conclude with goal setting, including timelines for progress reviews and goal attainment. Goal setting is a key motivator of high performance, resulting in increased satisfaction and performance improvement. [Finding Solutions to Performance Problems] When performance evaluation indicates that an employee's performance is below standard, the feedback process should launch an effort to correct the problem. Even when the employee is meeting current standards, the feedback session may identify areas in which the employee can improve in order to contribute more to the organization in a current or future job. In sum, the final feedback stage of performance management involves identifying areas for improvement and ways to improve performance in those areas. The most effective way to improve performance varies according to the employee's ability and motivation. In general, when employees have high levels of ability and motivation, they perform at or above standards. But when they lack ability, motivation, or both, corrective action is needed. The type of action called for depends on what the employee lacks: Lack of ability - When a motivated employee lacks knowledge, skills, or abilities in some area, the manager may offer coaching, training, and more detailed feedback. Sometimes it is appropriate to restructure the job so the employee can handle it. Lack of motivation - Managers with an unmotivated employee can explore ways to demonstrate that the employee is being treated fairly and rewarded adequately. The solution may be as simple as more positive feedback (praise). Employees may need a referral for counseling or help with stress management. Lack of both - Performance may improve if the manager directs the employee's attention to the significance of the problem by withholding rewards or providing specific feedback. If the employee does not respond, the manager may have to demote or terminate the employee. Lack of neither - As a rule, employees who combine high ability with high motivation are solid performers. However, the manager should by no means ignore these employees. They are likely to want opportunities for development and may be able to contribute even more than they already are. Furthermore, such valuable employees are apt to leave if they see no potential for growth. To maintain high motivation levels, the manager should use rewards, direct feedback, and growth opportunities. Of course, some performance problems cannot be pinned simply on the employee's characteristics. Managers also should consider whether the organization can address the problem with better resources, systems, and management. Figure 10. 7 identifies some questions for managers to ask when identifying other possible remedies. [Legal and Ethical Issues in Performance Management] In developing and using performance management systems, human resource professionals need to ensure that these systems meet legal requirements, such as the avoidance of discrimination. In addition, performance management systems should meet ethical standards, such as protection of employees' privacy. Legal Requirements for Performance Management Because performance measures play a central role in decisions about pay, promotions, and discipline, employment-related lawsuits often challenge an organization's performance management system. Lawsuits related to performance management usually involve charges of discrimination or unjust dismissal. Discrimination Claims in Performance Management Systems Discrimination claims often involve performance management systems discriminating against employees based on race or sex. Performance measures are subjective and measurement errors can occur. The U.S. Supreme Court has ruled that the selection guidelines in the federal government's Uniform Guidelines on Employee Selection Procedures apply to performance measurement. Organizations should avoid using race and age as a basis for employment decisions. Stereotypes play a role in how raters score a person on measures of traits such as leadership. Lawsuits for Unjust Dismissal The usual claim is that the person was dismissed for reasons other than the ones stated by the employer. Courts generally focus on the employer's performance management system to see if the firing could have been based on poor performance. To defend against these lawsuits, a legally defensible performance management system is essential. The system should be based on valid job analyses, clear job success requirements, and evaluation of behaviors or results rather than traits. The organization should use multiple raters and train raters in using the system. The system should include a process for coaching or training employees to improve, rather than dismissing poor performers. Electronic Monitoring and Employee Privacy Computer technology supports performance management systems, storing employee performance ratings, disciplinary actions, and work-rule violations in electronic databases. Companies like GE use computers, sensors, and mobile devices to monitor productivity and performance measures electronically. Critics argue that electronic monitoring can improve productivity but also generates privacy concerns. Some argue that performance should be measured by accomplishments, not just time spent at desks. Electronic systems should not replace careful management, and monitoring should be communicated when necessary. Monitoring can be used positively for coaching and skill development. Organizations must protect the privacy of performance measurements.