FAQ: Performance Management and Training

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1 Question 1: How do you know whether a performance appraisal method tests performance correctly? Answer 1: A test is valid if it shows a significant relationship between test performance and job performance. There are four basic types of validity, as follows: Predictive validity is calculated by giving a test and comparing the results with the job performance of those tested Concurrent validity is a test that is given to new employees; scores are correlated with their performance ratings In content validity, a person would perform a test, which is an actual sample of work done on the job Construct validity describes some measure of a variable that correlates with measures of other variables Question 2: What are the different types of rating scales? Answer 2: There are three types of rating scales: graphic, weighted, and behaviorally anchored criteria. With the graphic rating scale, a list of performance variables is determined for the particular job. Each performance variable lists levels of performance, ranging from exceptional to below normal. The individual merely circles the performance level that is believed to have been achieved. Scoring is calculated by simply adding the number of values assigned to each performance level, from exceptional to below normal. The graphic rating scale is the most widely used type of appraisal format. It may not actually evaluate job performance, however. This results in raters encountering the problems of central tendency and halo rating errors. The weighted graphical rating scale is similar to the graphic rating scale, except that performance variables receive different weights depending upon importance. Scoring is achieved by multiplying these numbers with the value of the performance levels. Rater subjectivity is still present, however, as is the tendency to overrate present behavior and group people within a narrow range. Behaviorally anchored rating scales, or BARS, are graphic scales with the performance variables anchored in descriptions of actual job performance. 1

2 BARS are constructed for each individual job category, and not for individual positions within these job categories. The first step in constructing BARS involves preparing job descriptions from recent job analyses. Job dimensions must be formed and anchors developed within each dimension. The descriptive anchors then rate the job behaviors. Question 3: What is the multirater or 360-degree feedback? Answer 3: Multirater or 360-degree feedback allows employees to receive constructive and accurate rating feedback. The rating information is gathered from a questionnaire with approximately 100 items to obtain ratings. It is then completed by a group of about 10 people. This group includes the person being rated, his or her supervisor, peers, and subordinates. Question 4: Why do some performance appraisals and merit rating plans sometimes fail? Answer 4: Performance appraisals and merit rating plans sometimes fail due to the following possible reasons: Employees may be more interested in the result. Pay raises and promotions should be discussed at later sessions when pay raises and promotions are linked to the appraisal Self-rating and supervisor ratings may differ, requiring further discussion Both parties will realize that little will result from the evaluation and therefore put little effort into the sessions when there is a lack of managerial support The major cause of evaluation problems is using seniority as the basis for pay increases, promotions, and other work-related benefits when the company is unionized Question 5: What is the appraisal interview? Answer 5: The appraisal interview provides managers the opportunity to discuss an employee s performance record and to explore areas of possible improvement and growth. It also provides the opportunity to identify employee attitudes and feelings more thoroughly to improve communication. 2

3 This interview format depends on the purpose of the interview, the type of appraisal system used, and the organization of the interview form. Most appraisal interviews attempt to give feedback to employees about how well they are performing and to make plans for future development. Fairness is critical in the appraisal interview. It increases the company s employee loyalty. The result is satisfied, committed employees who are willing to demonstrate extra job effort. The appraisal interview provides managers the opportunity to discuss an employee s performance record and to explore areas of possible improvement and growth. It also provides the opportunity to identify employee attitudes and feelings more thoroughly to improve communication. The company can lose its best people because highly motivated and committed people are more likely to burn out. Increasing acknowledgement and showing appreciation is a good way to reduce burnout. These rewards should be distributed fairly to employees, because an unfair allocation increases negativism. Question 6: What are some issues involved in creating training programs? Answer 6: It is important to get the most out of the time and dollar commitment that is given to training. If it is not done effectively, then it may be tough to get approval for the next session that is needed. Factors that need to be considered include the following: The type of training needed: Is it technical training (how to write a system program); is it soft-skill training (how to interview candidates)? Is it basic training for beginners, or is it a refresher for experienced staff? What is the best medium to use? For example: computer-based training, interaction in a group session, video-taping to provide individual coaching Should it be conducted in a concentrated time period consecutive days? Or should it be spread out in half-day sessions once a week for 6 weeks? 3

4 Select a style of training once these factors are considered, and again the choice will be affected by what you hope to accomplish. Question 7: What are the different styles of training, and how do you know which one to use? Answer 7: The different styles of training are as follows: Stand-up (typified by classroom training) Interactive (a lot of interaction with the instructor and with other participants) Tutoring (intense, personalized training) Computer-based training (conducted totally through a self-instructed computer model) Teleconference training (similar to stand-up training, but conducted remotely; can include live dialogue hook-ups during the sessions) Question 8: What is the "learning curve"? Answer 8: The learning curve is a problem in training, because people learn at different paces. Some people learn quickly early in the program, only to decrease their speed later in the program. The most common learning curve, however, starts out slow, then suddenly increases, only to slow down again at the end. The slowdown of learning can be a result of attempting to integrate or digest the learned information, or it may represent burnout or lack of motivation by the employee. Question 9: How can a training program be evaluated? Answer 9: There are three questions to ask when evaluating training, as follows: Was the need or objective met? The supervisor observes whether or not the training received translated back to the job to increased effectiveness. Was the teaching method effective? The trainee s test scores should indicate whether the employee is now more effective on the job. 4

5 Was the instructor effective? The student test scores and the supervisor s evaluation need to be reviewed for possible areas of course weakness and curriculum deficiencies Question 10: What about training workers with disabilities? Answer 10: Companies should consider special procedures for ensuring their job success when hiring disabled people. Management and coworkers need to know the disabled employee s qualifications and limitations. Managers should also be ready to provide counseling. Fairness should be the rule, but where the problems persist after counseling and standards are not met, the employee must be informed of one s responsibilities. All employees should be included in the training program to help make the disabled person become more productive. 5