Taylor-Russell tables provide an estimate of the Adverse impact - an employment practice that results

percentage of total new hires who will be successful in members of a protected class being negatively
employees if a test is adopted (organizational affected at a higher rate than members of the majority
success); class. Adverse impact is usually determined by the
both expectancy charts and the Lawshe tables four fifths rule.
provide a probability of success for a particular
applicant based on test scores (individual success); Predictive bias - situation in which the predicted level
and the utility formula provides an estimate of the of job success falsely favors one group over another.
amount of money an organization will save if it
adopts a new testing procedure. Single-group validity - the characteristic of a
test that significantly predicts a criterion for
Taylor-Russell Tables one class of people but not for another.

The philosophy behind the Taylor-Russell tables is Differential validity - the characteristic of a
that a test will be useful to an organization if test that significantly predicts a criterion for
(1) the test is valid, two groups, such as both minorities and
(2) the organization can be selective in its hiring nonminorities, but predicts significantly
because it has more applicants than openings, and better for one of the two groups.
(3) there are plenty of current employees who are not
performing well, thus there is room for improvement. Making the Hiring Decision

Selection ratio – the percentage of applicants an Multiple regression - a statistical procedure in which
organization hires. the scores from more than one criterion-valid test are
weighted according to how well each test score
Base rate - percentage of current employees who are predicts the criterion.
considered successful.
Linear approaches to hiring usually take one of four
Proportion of correct decisions – a utility method that forms: unadjusted top-down selection, rules of three,
compares the percentage of times a selection decision passing scores, or banding.
was accurate with the percentage of successful
employees. Top-down selection - selecting applicants in straight
rank order of their test scores (from highest to lowest)
*Determining the proportion of correct decisions is Advantage: highest utility
easier to do but less accurate than the Taylor- Disadvantage: Adverse impact and reduces
Russell tables. organizational flexibility by not using non-
test bases like references and organizational
Lawshe tables - tables that use the base rate, test fit
validity, and applicant percentile on a test to
determine the probability of future success for that Compensatory approach - a method of
applicant. making selection decisions in which a high
score on one test can compensate for a low
Tenure - the length of time an employee has been score on another test. For example, a high
with an organization. GPA might compensate for a low GRE
score.
Determining the Fairness of a Test
Rule of three - variation on top-down selection in
Although there is disagreement among I/O which the names of the top three applicants are given
psychologists regarding the definition of test fairness, to a hiring authority who can then select any of the
most professionals agree that one must consider three.
potential race, gender, disability, and other cultural
differences in both the content of the test Passing score - the minimum test score that an
(measurement bias) and the way in which scores from applicant must achieve to be considered for hire.
the test predict job performance (predictive bias;
Meade & Tonidandel, 2010). *reduces adverse impact and increases flexibility

Measurement bias - group differences in test scores Multiple-cutoff approach - a selection

that are unrelated to the construct being measured. strategy in which applicants must meet or
exceed the passing score on more than one
selection test. (The relationship is not linear
 between test and job performance) *not cost 360-degree feedback - a performance
effective appraisal system in which feedback is
obtained from multiple sources such as
*With a multiple-cutoff approach, the supervisors, subordinates, and peers.
applicants would be administered all of the *primarily used for training and
tests at one time. If they failed any of the development, and not used for salary
tests (fell below the passing score), they increase or termination and promotion.
would not be considered further for
employment. Multiple-source feedback - a performance
appraisal strategy in which an employee
Multiple-hurdle approach - selection receives feedback from sources (e.g., clients,
practice of administering one test at a time subordinates, peers) other than just his or her
so that applicants must pass that test before supervisor.
being allowed to take the next test.
*subordinate feedback is also called as
Banding – a statistical technique based on the upward feedback
standard error of measurement that allows similar test Step 4: Select the Best Appraisal Methods to
scores to be grouped. Accomplish Your Goals

EVALUATING EMPLOYEE PERFORMANCE Prior to developing the actual performance appraisal

instrument, two important decisions must be made:
Step 1: Determine the Reason for Evaluating the focus of the performance appraisal dimensions
Employee Performance and whether to use rankings or ratings.

Forced-choice rating scale - A method of Decision 1: Focus of the Appraisal Dimensions

performance appraisal in which a supervisor is given
several behaviors and is forced to choose which of Trait-Focused Performance Dimensions
them is most typical of the employee. A trait-focused system concentrates on such
employee attributes as dependability, honesty, and
*excellent for determining compensation but courtesy. Though commonly used, trait-focused
terrible for training purposes. performance appraisal instruments are not a good
idea because they provide poor feedback and thus
*360-degree feedback is an excellent source for will not result in employee development and growth.
improving employee performance but is not
appropriate for determining salary increases. Competency-Focused Performance Dimensions
Rather than concentrating on an employee’s
Goals for performance appraisal traits, competency-focused dimensions concentrate
on the employee’s knowledge, skills, and abilities.
1. employee feedback and training,
2. determining salary increases, Task-Focused Performance Dimensions
3. making promotion decisions, Task-focused dimensions are organized by
4. making termination decisions, and the similarity of tasks that are performed. The
5. conducting personnel research. advantage of this approach is that because
supervisors are concentrating on tasks that occur
Performance appraisal review – a meeting between a together and can thus visualize an employee’s
supervisor and a subordinate for the purpose of performance, it is often easier to evaluate
discussing performance appraisal results. performance than with the other dimensions. The
disadvantage is that it is more difficult to offer
Peter Principle - the idea that organizations tend to suggestions for how to correct the deficiency if an
promote good employees until they reach the level at employee scores low on a dimension.
which they are not competent—in other words, their
highest level of incompetence. Goal-Focused Performance Dimensions
The fourth type of performance dimension is
Step 2: Identify Environmental and Cultural to organize the appraisal on the basis of goals to be
Limitations accomplished by the employee.
-----------------------------------------------------------
Step 3: Determine Who Will Evaluate Performance Contextual Performance - the effort an employee
makes to get along with peers, improve the
organization, and perform tasks that are needed but
are not necessarily an official part of the employee’s Graphic rating scale – a method of
job description. performance appraisal that involves rating
employee performance on an interval or
Decision 2: Should Dimensions Be Weighted? ratio scale.

Decision 3: Use of Employee Comparisons, Behavioral checklists - consist of a list of

Objective Measures, or Ratings behaviors, expectations, or results for each
dimension. This list is used to force the
A. Employee Comparisons (Relative) supervisor to concentrate on the relevant
behaviors that fall under a dimension.
Rank order - a method of performance
appraisal in which employees are ranked *Contamination - the condition in
from best to worst. which a criterion score is affected
by things other than those under the
Paired comparison – a form of ranking in control of the employee.
which a group of employees to be ranked are
compared one pair at a time. Behaviorally Anchored Rating Scales
(BARS),
Forced distribution method - a performance Mixed-Standard Scales
appraisal method in which a predetermined Forced-choice Scales.
percentage of employees are placed into a
number of performance categories. Step 5: Train Raters

*also called as rank and yank Frame-of-reference training - method of

*least fair method of performance training raters in which the rater is provided
appraisal. with job-related information, a chance to
practice ratings, examples of ratings made
B. Objective Measures by experts, and the rationale behind the
expert ratings.
Quantity of Work - a type of objective
criterion used to measure job performance Step 6: Observe and Document Performance
by counting the number of relevant job
behaviors that occur. Critical incidents – a method of performance
appraisal in which the supervisor records
Quality of Work - a type of objective employee behaviors that were observed on
criterion used to measure job performance the job and rates the employee on the basis
by comparing a job behavior with a of that record.
standard.
Employee Performance
Attendance - a common method for Record - a standardized use of the critical-
objectively measuring one aspect of an incident technique developed at General
employee’s performance is by looking at Motors by Flanagan
attendance.
*this method consists of a two-color form
*Attendance can be separated into three *Half of the sheet is used to record
distinct criteria: absenteeism, tardiness, examples of good behaviors, and the other
and tenure. half to record examples of poor behaviors.

Safety - Another method used to evaluate

the success of an employee is safety. Step 7: Evaluate Performance
Obviously, employees who follow safety
rules and who have no occupational A. Obtaining and Reviewing Objective Data
accidents do not cost an organization as B. Reading Critical-Incident Logs
much money as those who break rules, C. Completing the Rating Form
equipment, and possibly their own bodies.
Distribution errors - rating errors in which a
C. Ratings of Performance rater will use only a certain part of a rating
scale when evaluating employee
performance.
 Fundamental attribution error - to attribute
Leniency error - a type of rating others’ failure or poor performance to
error in which a rater consistently personal rather than situational factors.
gives all employees high ratings,
regardless of their actual levels of Step 9: Terminate Employees
performance.
Employment-at-will doctrine - the opinion of courts
Central tendency error - a type of in most states that employers have the right to hire
rating error in which a rater and fire an employee at will and without any specific
consistently rates all employees in cause.
the middle of the scale, regardless
of their actual levels of Legal Reasons for Terminating Employees
performance.
A. Probationary Period
Strictness error - a type of rating B. Violation of Company Rules
error in which a rater consistently Progressive discipline - providing
gives all employees low ratings, employees with punishments of increasing
regardless of their actual levels of severity, as needed, in order to change
performance. behavior.
C. Inability to Perform
Halo error - occurs when a rater D. Reduction in Force (Layoff)
allows either a single attribute or an
overall impression of an individual Step 10: Monitor the Legality and Fairness of the
to affect the ratings that she makes Appraisal System
on each relevant job dimension.
Behaviorally Anchored Rating Scales - BARS use
Proximity errors - occur when a critical incidents (samples of behavior) to formally
rating made on one dimension provide meaning to the numbers on a rating scale.
affects the rating made on the
dimension that immediately follows Creating BARS
it on the rating scale. *Generation of Job Dimensions
*Generation of Critical Incidents
Contrast Errors - performance *Sorting Incidents
rating one person receives can be
influenced by the performance of a Forced-Choice Rating Scales - scales use critical
previously evaluated person (Bravo incidents and relevant job behaviors, as do BARS,
& Kravitz, 1996). but the scale points are hidden.
*used only when the major goal of the
Assimilation - a type of rating error performance appraisal system is accurate employee
in which raters base their rating of evaluation for purposes such as promotion and salary
an employee during one rating increases.
period on the ratings the rater gave
during a previous period. CHAPTER 8: DESIGNING AND EVALUATING
TRAINING SYSTEMS
Sampling Problems
Training – a planned effort by an organization to
Recency effect - recent behaviors are given facilitate the learning of job-related behavior on the
more weight in the performance evaluation part of its employees.
than behaviors that occurred during the first
few months of the evaluation period. 1. Determining Training Needs

Infrequent observation - the idea that Needs analysis - the process of determining the
supervisors do not see most of an training needs of an organization.
employee’s behavior.
Organizational analysis - the process of
Step 8: Communicate Appraisal Results to determining the organizational factors that
Employees will either facilitate or inhibit training
effectiveness.
 *A properly conducted organizational SYNCHRONOUS DISTANCE
analysis will focus on the goals the LEARNING
organization wants to achieve, the extent to
which training will help achieve those goals, Webinar - short for “web seminar,” an
the organization’s ability to conduct interactive training method in which training
training (e.g., finances, physical space, is transmitted over the Internet.
time), and the extent to which employees are
willing and able to be trained (e.g., ability, Webcast – a non-interactive training method
commitment, motivation, stress) in which the trainer transmits training
(McCabe, 2001). information over the Internet.

Task Analysis - if the results of the Blog – a website in which the host regularly
organizational analysis indicate that a posts commentaries on a topic that readers
positive organizational climate for training can respond to.
exists, the next step is to conduct a task
analysis. Wiki – a collection of web pages in which
users can create web pages on a topic and
Person analysis - The process of identifying readers can freely edit those pages.
the employees who need training and
determining the areas in which each Listserv – a program that automatically
individual employee needs to be trained. distributes e-mail messages to a group of
people who have a common interest.
2. Establishing Goals and Objectives
3. Choosing the Best Training Method Job rotation – a system in which employees
are given the opportunity to perform several
Case study - training technique in which different jobs in an organization.
employees, usually in a group, are presented
with a real or hypothetical workplace Cross-training - teaching employees how to
problem and are asked to propose the best perform tasks traditionally performed by
solution. other employees.

Living case - a case study based on a real Apprentice training – a training program,
situation rather than a hypothetical one. usually found in the craft and building
trades, in which employees combine formal
Simulation - an exercise designed to place coursework with formal on-the-job training.
an applicant in a situation that is similar to
the one that will be encountered on the job. Coaching - is another popular method of
training new employees and typically takes
Role-play - a training technique in which one of two forms: experienced employees
employees act out simulated roles. working with new employees and
professional coaches who work with all
Behavior modeling – a training technique in employees.
which employees observe correct behavior,
practice that behavior, and then receive Pass-through programs – a formal method of
feedback about their performance. coaching in which excellent employees
spend a period of time in the training
4. Delivering the Training Program department learning training techniques and
training employees.
Interactive video - a training technique in
which an employee is presented with a 5. Motivating Employees to Learn During
videotaped situation and is asked to respond Training
to the situation and then receives feedback
based on the response. Skill-based pay Compensating - an
employee who participates in a training
Programmed instruction - training method in program designed to increase a particular
which employees learn information at their job-related skill.
own pace.
 Transfer of training – the extent to which
behavior learned in training will be
performed on the job.
Overlearning - practicing a task even after it
has been mastered in order to retain
learning.

Employee reactions – a method of

evaluating training in which employees are
asked their opinions of a training program.

Employee learning – evaluating the

effectiveness of a training program by
measuring how much employees learned
from it.

Application of training – measurement of

the effectiveness of training by determining
the extent to which employees apply the
material taught in a training program.

Business impact – a method of evaluating

the effectiveness of training by determining
whether the goals of the training were met.

Return on investment
(ROI) - the amount of money an
organization makes after subtracting the cost
of training or other interventions.

CHAPTER 9: EMPLOYEE MOTIVATION