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1.1 Chapter Vocabulary
These terms are defined in the "Extended Chapter Outline" section.
Performance management
Performance appraisal
Performance feedback
Strategic congruence
Validity
Reliability
Acceptability
Specificity
Competencies
Competency model
Kaizen
Upward feedback
360-degree appraisals
Appraisal politics
Calibration meetings
1.1.1.1.1.1.1 Discussion Questions
1. What are examples of administrative decisions that might be made in managing the
performance of professors? Developmental decisions?
Examples of administrative decisions for professors include pay raises, promotions,
2. What would you consider the strategy of your university (e.g., research, undergraduate
Student answers may vary depending on the university, and some students may not be
3. What do you think is the most important step shown in the model of the performance
management process? Justify your answer.
Although responses can vary, it might be the best response to say that the first step of the
4. What sources of performance information would you use to evaluate faculty members'
performance?
5. What are the advantages and disadvantages of a performance management system that
evaluates values?
Advantages to using a performance management system that evaluates values includes
the linkage between business objectives and employee behaviors, as evidenced by
6. Think of the last time that you had a conflict with another person, either at work or
school. Using the guidelines for performance feedback, how would you provide effective
feedback to that person?
Students might suggest focusing on problem solving and trying a problem-solving
7. Explain what fairness has to do with performance management?
The three categories of fairness are procedural fairness, interpersonal fairness, and
outcome fairness. In procedural fairness, managers should give employees the
8. Why might a manager intentionally distort appraisal results? What would you
recommend to minimize this problem?
Managers might purposefully distort appraisal because managers are accountable for the
Train managers on the appropriate use of the system
9. Can electronic monitoring of performance ever be accepted to employees? Explain.
Student answers may vary. Explore with students both sides of the issue; Company side
10. A delivery driver contaminated a hospital’s oxygen supply by refilling the hospital’s main
oxygen supply line with trichloroerthane, a mild anesthetic. Following detection of the
contamination, all patients were switched to oxygen tanks and no patients were injured.
How would you diagnose the cause of this performance problem? Explain.
11. How can the use of social media such as Facebook and Twitter-like applications benefit
the performance management process?
Technology such as online performance management, and also, the use of social media
like Facebook and Twitter, can capture and then communicate performance in ways that
Self-Assessment Exercise
Refer to the text for the self-assessment exercise.
Exercising Strategy:
Cascading Goals
Baxter HealthCare Corporation has an automated goal-alignment system that about half of its
55,000 employees participate in. At Baxter the process starts with the company’s strategic goals
known as the four B’s (Best Team, Best Partner, Best Investments, Best Citizen). The executives
develop goals underneath each category, which are then collected in a performance management
system.
Questions
1. How does this type of goal-setting process contribute to effective performance
management?
This type of goal setting helps to create a systematic, consistent, strategically aligned
2. Baxter uses a website to provide guidance on how to write goals. What are the
characteristics of effective goals and objectives that should be emphasized on the
website?
3. What are the potential disadvantages of relying entirely on goals or objectives for
performance management? What recommendations would you give, if any, to Baxter to
increase the effectiveness of the system?
The reliance on goals and objectives may reduce or even eliminate the possibility for
creativity or innovation on the part of the supervisor in conducting the appraisal, or on the
Managing People:
Performance Management Helps Turn Around a Healthcare Organization
Scripps Health is a private, nonprofit community health system located in San Diego, California
and they had financial problems. Money was being lost, their CEO resigned, nursing turnover
was high, and employee morale was low. A key change that the company instituted was a new
online performance management system designed to focus on leadership development, metrics,
recognition of employees and business unit performance, and using compensation to motivate
employees. The initiative apparently worked - since 2008 Scripps has been named one of the
100 Best Companies to Work For by Fortune magazine.
Discussion Question
1. This chapter discusses five criteria for effective performance appraisals: Strategic
congruence, validity, reliability, acceptability, and specificity. Evaluate the Scripps
Health appraisal system on each criterion. That is, decide whether the appraisal system
meets the criterion, falls short of the criterion, or exceeds the criterion. Provide evidence
of each.
There are several reasons that the Scripps Health appraisal system exceeds the criterion
This exceeds the criterion of strategic congruence. The system results in valid appraisals,
because the performance appraisal evaluates employees on annual objectives and
2. What are the strengths and weaknesses of online appraisal systems such as the one used
by Scripps Health? What changes would you recommend for the system to improve its
weaknesses?
Student responses may vary. It is mostly a very strong web-based appraisal system that
exceeds the five criterion for effective performance appraisals. Weaknesses could
1.2
1.3
HR In Small Business:
Small Business Performance Management
Brian Conrad is the practice manager at the Meadow Hills Veterinary Center. He claims his staff
is his number one asset, and backs that claim up with how the performance management system
is managed at their two Washington state facilities. Performance interviews are conducted with
the practice’s owners and employees are full participants in the process. Evaluation forms are
given to employees a few months ahead of time so they have time to look them over and see
what measures are being evaluated, and the meetings are conducted twice each year.
Additionally, compensation discussions are separate from performance discussions so employees
can concentrate on feedback rather than worry about their raise. Feedback on performance
problems is given throughout the year, and gives positive feedback when possible.
Discussion Question
1. Based on the information given, discuss how well the performance management at
Meadow Hills Veterinary Center meets its strategic, administrative, and developmental
purposes.
The system apparently works based on their 10% turnover rate in an industry that
2. What methods for measuring employee performance do you think would be most
beneficial for Meadow Hills? Why?
Student answers will vary. It appears that performance should be measured there by
3. Evaluate Brian Conrad’s approach to appraisal interviews. Write a paragraph or two
summarizing what Conrad is doing well and how he might further improve the effort.
Student answers here will vary. It is apparent Conrad is doing a great job and students
Twitter Focus
Performance management is an important activity at Meadow Hills Veterinary Center in
Washington State. Each employee meets with the company’s practice manager and owners twice
a year to discuss performance. The company tries to keep appraisal meetings positive by not
waiting until meeting with employees to address performance problems. When employees don’t
perform up to expectations, managers evaluate whether changes are needed in training or hiring.
One result of this effective approach to performance management has reduced employee
turnover rate from 25 percent to 10 percent.
Question:
How do the elements of time and timeliness factor into the success of Meadow Hills’
performance management?
Manager’s Hot Seat Exercise: Project Management: Steering the Committee-Please refer
to the Asset Gallery on the OLC for Hot Seat videos and notes.
I. Introduction
Conflict among work groups is a common problem in organizations. This scenario
depicts an organizational conflict and highlights different conflict management styles. A
discussion of these styles and their effectiveness would be valuable for students in
Management or Organizational Behavior courses studying organizational conflict.
II. Learning Objectives
1. To assess students’ understanding of the sources of conflict and the conflict process.
2. To analyze and evaluate different conflict management styles.
3. To identify ways to ensure functional, rather than dysfunctional, conflict occurs.
III. Scenario Description:
Overview: Three months ago, Patrick was given goal of implementing a computerized
tracking system on the factory floor with the expectations that it would raise quality
control and workflow by a significant percentage. The team spends an enormous amount
of time revising/fixing chips after they fail quality control testing – mostly due to lack of
information. There would be a serious review of the project after the first phase is
complete – that is now.
Patrick is called to a meeting with three top executives. The tracking system project is
very costly and has not been proven, although the company was gung-ho, because their
competitors were using all sorts of computerized systems in their production facilities.
Patrick has spent a little time writing a report, but is feeling generally confident.
Profile:
Patrick Bennett is the Managing Supervisor of Production at TechBox, a desktop
design software house, who oversees production and supervises a floor of 50
employees.
Morgan Baines is the Vice President of Distribution. He works at corporate
headquarters and builds relationships with potential clients in expanding markets.
Lucinda Bergen is the Director of Product Management. She oversees all
production at TechBox’s manufacturing factories. She works directly with the
factory managers and reports to corporate headquarters.
Sam Adelson is the VP of Operations. His responsibilities include overseeing
department managers at the manufacturing factories and corporate headquarters.
He also acts as a liaison between his company and the officers of a number of
high-end computer companies.
References: The references included in the DVD are:
Sources of Conflict (PPT 9-3)
The Conflict Process (PPT 9-4)
Conflict Management Styles (PPT 9-7)
Structural Approaches to Conflict Management (PPT 9-9)
Back History: TechBox produces a specialized computer chip for a large client base of
high-end computer companies such as Dell, IBM, and Compaq. Within the TechBox
compound are the manufacturing factories and the corporate headquarters.
Patrick Bennett is the new hotshot manager overseeing the production of the main
component of the chip. He has started to implement a computerized tracking system to
increase quality control and workflow. He supervises a floor of 50 workers. Patrick has
been working at TechBox for 2 years and has been widely praised for numerous successes
and improvements on the factory floor – improvements with very positive financial
results. He is young and motivated, possessing a unique comprehension of
production/engineering knowledge and management sensibilities. He is greatly admired
by his team and generally received well by top senior management.
Sam Adelson has worked his way up from the mailroom. He does not embrace change
and is skeptical of young hot shots and young people in general. He also does not
embrace computerized system enhancements, which is odd for a man in high tech. In a
nutshell, he’s stodgy, grumpy, and difficult.
Lucinda Bergen is the only female executive at TechBox. She is generally
compassionate, understanding, and easy going, but is quick to defend her position within
the company and over assert herself when she feels confronted. She is very comfortable
with young, talented people and has instituted many technological systems for workflow
improvement within her own department.
Morgan Baines is the class clown and jokester of the company. He speaks without
thinking – supports, attacks, and withdraws without rhyme or reason. Everyone always
has the impression that he’s on their side; the kind of guy who agrees with the last person
who spoke. He’s been around very many years, successfully overseeing product
distribution – between wisecracks.
Scene Set-up: A meeting is held with key stakeholders of Patrick’s project to discuss the
status of it in terms of time and budget.
Scene Location: TechBox conference room
The Meeting - Summary: Stakeholders in the project note their concern with the project
going over budget and missing deadlines. Patrick, the project manager, defends himself
and assures them that everything will work out because the longest phase of the project is
complete. He cites his past track record and says the budget may go over just a little but
it will be ok. The other team members say that going over budget is not an option. He
concedes and says he will take a look at exactly how he can improve the progress of the
project. They agree to meet again in a week for a status check.
One Week Later - Patrick assures the group that they are now firmly under budget and
plan to be done on time. Lucinda mentions that Frank, one of Patrick’s employees, said
he thought the project was going to be late. Patrick defends himself by saying that
Frank’s role would not allow him to be privy to all the information that Patrick knows
and that he has this job for a reason – his talent and prior track record. Sam suggests
supporting Patrick with an additional staff member. Patrick doesn’t think that would be
necessary. Instead he suggests a daily email to the group updating the project in terms of
budget and deadlines. They compromise by having the “1st deputy” be responsible for
sending those daily emails and keeping track of all the relevant numbers.
Afterthoughts – Summary: Patrick doesn’t think the meeting went very well. He says
he didn’t feel listened to and was upset that the group was more persuaded by people
indirectly involved in the project than by him. He felt he did ok and tried to work with
them on an individual basis. In the second meeting, he said if he hadn’t stood his ground
they would have “squished” him.
Dossier: The specific artifacts included in the DVD are:
1. Bennett’s Progress Report 5/6/02
2. Bennett’s Progress Report 5/31/02
3. Voice message from Frank Jambey to Lucinda Bergen
