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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
PERFORMANCE MANAGEMENT AND
THE EMPLOYEE APPRAISAL PROCESS
A properly planned and effectively utilized performance appraisal program should contribute
to improved employee performance. In this chapter there is an extensive discussion of the
development of an appraisal program, including various sources of appraisal information. In
addition, several performance appraisal methods are described within the categories of trait,
behavior, and results approaches. A summary of the major strengths and weaknesses of
various appraisal techniques is shown in Figure 8.8. The section on feedback of appraisal has
been expanded with some practical suggestions for appraisal interviews. A section on improving
performance, which includes an examination of sources of ineffective performance, concludes the
chapter. We have found that performance appraisal is one of the functions that most concerns
managers and about which they often have many questions. In this chapter we attempt to bring
out the issues about which questions are frequently raised.
It is important for students to realize that training employees will not eliminate many of the
differences found among employees at the time they are hired. For this reason, performance
appraisal should be viewed as one of the important HR functions that can contribute to the
continuing development of the individual employee. The need for standards of satisfactory job
performance should be emphasized, particularly in this era of downsizing and restructuring.
From their own job experiences, students may be asked to list such criteria for various jobs. This
listing can give you an opportunity to point out those worker qualities that can be objectively
determined versus those that are subjectively determined. For example, the quantity of production
can be objectively determined, whereas employee cooperativeness is largely a matter of
subjective interpretation.
CHAPTER LEARNING OUTCOMES
8
8
c
c h
h a
a p
p t
t e
e r
r
Explain what performance management is and how the establishment
of goals, ongoing performance feedback, and the appraisal process
are part of it.
LEARNING OUTCOME 1

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.
LECTURE OUTLINE
I. PERFORMANCE MANAGEMENT SYSTEMS
• Performance appraisal is a process, typically delivered annually by a supervisor to a
subordinate, that is designed to help employees understand their roles, objectives, and
expectations when it comes to contributing to the firm’s success. In addition, new
employees are often put on probationary status for a period of time and evaluated 30,
60, or 90 days after being hired, with their continued employment contingent upon
their performing satisfactorily.
• Performance management is the process of creating a work environment in which
employees can perform to the best of their abilities.
• Performance appraisal programs and merit rating systems are not new or unique to
organizations. From their early use in the federal government, performance
appraisals have become a major activity of HRM.
• Mention that most successful organizations use performance appraisals as a basis for
HR activity. Mention that recent interest in teamwork, continuous improvement,
learning, and the like has caused many organizations to rethink their approach to
performance appraisals.
II. ONGOING PERFORMANCE FEEDBACK
Because feedback is most useful when it is immediate and specific to a particular situation,
it should be a regularly occurring activity. For example, if you are a sales manager, should
Explain the purposes of performance appraisals and the reasons they
sometimes fail.
Describe the different sources of appraisal information.
Explain the various methods used to evaluate the performance of
employees.
Outline the characteristics of an effective performance appraisal
interview.
LEARNING OUTCOME 5
LEARNING OUTCOME 3
LEARNING OUTCOME 2
LEARNING OUTCOME 4

98 Part 3: Developing Effectiveness in Human Resources
you wait to appraise your employees once or twice a year? Probably not. Most likely you
would want to monitor their sales on a weekly and monthly basis. Has a particular
salesperson met his or her customer-contact numbers this week? Why or why not? Is the
salesperson closing deals with the people he or she does contact? If at the six-month mark,
the salesperson isn’t making his or her goals, how can you help the person if you haven’t
provided the individual with ongoing feedback? The lack of sales will be hard to make up
at this point.
III. PERFORMANCE APPRAISAL PROGRAMS
A. The Purposes of Performance Appraisal
Performance appraisal programs benefit both the employee and the organization.
1. Administrative Purposes—For the organization, performance appraisals
provide inputs for many other HR functions. The concept of “pay-for-performance”
has gained wide acceptance among employers. Emphasize the importance of
correctly administered performance appraisals as a key to the proper
compensation of employees.
2. Developmental Purposes
• For the employee, performance appraisals provide feedback about daily
performance while also stressing employee training, development, and growth
plans.
• Refer to Figure 8.2 in the textbook to illustrate the more common uses of
performance appraisals. Have students, in groups or individually, brainstorm
different objectives of an appraisal program. Discuss how they contribute to
organizational growth and employee job satisfaction. List the objectives on
the board and see if any of the objectives might conflict with one another. If
they do, ask the class what problems this might cause for supervisors.
B. Why Appraisal Programs Sometimes Fail
• Have students, in groups or individually, brainstorm why performance appraisal
programs fail. List their reasons on the board and compare them to those given in
the textbook.
• Stress that in order to be motivated, employees must perceive that their appraisals
are fair and accurate. Also, when employees are involved in the procedure rather
than play a passive role, they are more likely to believe their appraisals are fair.
Providing employees with feedback on a continual basis not only improves their
performance but helps them know where they stand, thereby lessening the anxiety
they feel during their formal appraisals.
• Ask students what influence “politics” may play in the performance appraisal
process.
IV. DEVELOPING AN EFFECTIVE APPRAISAL PROGRAM
• Developing an appraisal system is normally the joint responsibility of the HR
department and line and staff managers. The HR department is responsible for over-

Chapter 8: Performance Management and the Employee Appraisal Process 99
seeing and coordinating the appraisal program while other managers assist in
establishing objectives for the program.
• Studies have shown that employees have greater trust and respect for appraisal systems
when they participate in the development of the rating instrument.
A. What Are the Performance Standards?
Before managers can appraise the performance of employees, appropriate
performance standards must be established and communicated to employees. These
standards, or criteria, must be job-related requirements. Discuss the basic
considerations for establishing performance standards. Use Figure 8.4 in the textbook
for this discussion.
1. Strategic Relevance—This refers to how the appraisal standards relate to the
strategic objectives of the organization. A strategy-driven performance appraisal
process results in the documentation HR managers need to justify various training
expenses in order to close any gaps between, employees’ current skills and those
they will need in the future to execute the firm’s strategy.
2. Criterion Deficiency
• Performance standards must capture the full range of a person’s job. When
standards focus on only one element of the job (e.g., sales), they are likely
leave out important evaluation criteria.
• You may choose relate the concept of criterion deficiency to content validity
discussed in Chapter 6.
3. Criterion Contamination—Performance standards should not be influenced
by factors outside the employee’s control. For example, if bad materials or poor
equipment affects an employee’s performance, his or her performance standards
may be contaminated.
4. Reliability
• This refers to the stability or consistency of a standard, or the extent to which
individuals tend to maintain a certain level of performance over time.
• Stress that performance standards should be written and that they should be
defined in quantifiable and measurable terms.
• A new process some companies are using to make sure managers are rating
employees consistently is called calibration. During calibration meetings, a
group of supervisors, led by their managers and facilitated by an HR
professional, discuss the performance of individual employees to ensure all
managers apply similar standards to all of the firm’s employees. Calibration
meetings can be particularly helpful after a merger or acquisition, especially
one that’s global.
• Have students develop quantifiable and measurable performance standards
for the jobs of (1) college recruiter, (2) college teacher, (3) sales clerk,
(4) computer operator, and/or (5) bus driver.

• Obtain some sample performance appraisal forms from organizations. Have
students critique (1) the characteristics on which individuals are evaluated in
terms of how relevant they are to the job, and (2) the evaluator’s probable
opportunity to observe the behaviors described on the forms.
B. Are You Complying with the Law?
Based on recent court rulings, HR managers recommend that performance
appraisals meet these legal guidelines:
1. Performance ratings must be job-related (based on job analysis).
2. Employees should have a copy of their job standards.
3. Employee performance should be observable.
4. Performance problems should be documented and referred to in employee
appraisals.
5. Supervisors should be properly trained in the appraisal process.
6. Managers should openly discuss performance with employees and offer help
where needed.
7. An appeals procedure should be developed whereby employees can voice
disagreement with the appraisal received.
C. Who Should Appraise an Employee’s Performance?
• Just as there are multiple standards by which to evaluate performance, there are
a multitude of persons with valuable information about a person’s work
effectiveness.
• Use Figure 8.5 in the textbook as a basis for discussion about multiple sources
of appraisal.
1. Manager/Supervisor Appraisal—Because managers and supervisors work
directly with their employees, they are the logical choice to appraise the
performance of their employees. Managers and supervisors can use daily work
records and the direct observation of employees to complete the appraisal review.
2. Self-Appraisal—Self-appraisals are used when managers seek to increase
employees’ involvement in the appraisal process. One problem with this method is
that appraisers may evaluate their performance higher than the supervisor would.
It can also lead employees to wrongly believe they have more influence over the
process than they really do.
3. Subordinate Appraisal—Appraisal by subordinates has been used when
supervisors seek feedback on how subordinates view them. Employees are in a
good position to evaluate the leadership, communications, planning, and
delegation of authority of their managers. Discuss with students why managers
may not favor this appraisal method.
4. Peer Appraisal—Have students discuss when peer appraisals can be most
effectively used. What are several advantages and disadvantages of this appraisal
method? Have students discuss why this appraisal approach is not widely used.

5. Team Appraisal—This is an extension of the peer appraisal. In a team setting,
it might be impossible to separate out an individual’s contribution. In such cases,
doing individual appraisals might detract from the critical mission of the team.
Team appraisals are designed to evaluate the performance of the team as a whole.
6. Customer Appraisal—Driven by TQM concerns, internal and external
customers are increasingly used as sources of performance appraisal information.
The opinions of vendors and suppliers are also sometimes utilized in the appraisal
process. Internal customers can include anyone within the organization who
depends on the employee’s work output.
D. Putting It All Together: 360-Degree Appraisal
• Over 25 percent of all U.S. companies and over 90 percent of Fortune 1000
companies use some form of 360-degree appraisal. The system is intended to
give employees the most accurate view of their performance because it solicits
input from multiple sources—their supervisors, peers, subordinates, customers,
and so forth.
• Use Figure 8.6: Pros and Cons of 360-Degree Appraisal to discuss the plusses
and minuses of 360-degree appraisal.
E. Training Appraisers
Although performance appraisal is widely practiced by organizations, many
managers must perform the process without the benefit of training. This point is
highlighted by the quote by the following quote in the textbook: “What’s important is
not the (appraisal) form or (measuring) scale. What’s important is that managers can
objectively observe people’s performance and give them objective feedback on that
performance.” To accomplish this goal, performance appraisal training programs
should focus on the following:
1. Establishing an Appraisal Plan—This systematic process covers (1) the
objectives of the performance appraisal system, and (2) the mechanics of the rating
system (including the method, frequency, and strengths and weaknesses of the
system).
2. Eliminating Rater Error
• Research has shown that appraisers are prone to make several different types
of rating errors.
• Distributional errors (e.g., central tendency, leniency, and strictness errors)
involve the arrangement of a group of ratings across several employees.
Forced distribution and peer rankings are techniques that some organizations
use to eliminate these types of errors. However, not all corporate cultures are
conducive to forced rankings systems. Firms that place a high-priority on
teamwork would probably find forced ranking to be counterproductive. In
addition, these ranking systems can sometimes adversely affect employee
morale and lead to lawsuits. Behavioral anchors may be a more effective
approach to minimizing distributional errors. (See section III for more about
behavioral anchors.)

• Temporal errors (e.g., recency) are the result of how a person evaluates
information over time.
• Contrast error occurs when an employee’s evaluation is biased either
favorably or unfavorably because of a previous employee’s performance
evaluation.
• Similar-to-me error occurs when an appraiser inflates the evaluation of a
person with whom they have something in common.
• Discuss how various stereotypes held toward minorities and women may
affect their performance review.
3. Feedback Training
• Feedback not only provides employees with knowledge of results, but it also
allows the manager and employee to discuss current problems and set future
goals. Managers need to realize that employees want feedback. That is, they
want know how they are doing and how they can improve. They are less eager
to be appraised or judged.
• Refer to Highlights in HRM 1: Supervisor’s Checklist for the Performance
Appraisal in the textbook. This piece provides excellent points for
scheduling, preparing for the review, and conducting the performance review
with the employee.
V. PERFORMANCE APPRAISAL METHODS
This section discusses the major contemporary methods of performance appraisal. Other,
less frequently used systems are also reviewed. Performance appraisal systems can be
broadly classified as trait methods, behavioral methods, or results-oriented methods.
A. Trait Methods
1. Graphic Rating Scales—In the graphic rating-scale method, traits or
characteristics are rated on a line or scale. Highlights in HRM 2 in the textbook
shows an example. Rating scale forms may differ between organizations based on
the dimensions to be appraised, the degree to which the performance dimensions
are defined, and the degree to which the points on the scale are defined.
2. Mixed-Standard Scales
• These scales are extensions of the basic rating scale. In the mixed-standard
scales method, the manager evaluates the trait under consideration (e.g.,
initiative) against three specific behavioral descriptions relevant to each trait to
be rated. An example is provided in Highlights in HRM 3 in the textbook.
• Each descriptor for the trait should reflect different levels of performance—
superior, average, or below average, for example. Managers appraise their
employees by indicating that the employees are better than, equal to, or worse
than the standard for each behavioral descriptor.
3. Forced-Choice Method—In the forced-choice method, the manager is
required to choose from a pair of statements that appear equally favorable or

unfavorable, selecting the one statement that best describes the employee’s
behavior. The manager selects the statement without knowing which statement
correctly describes successful job performance.
4. Essay Method
• The essay method of performance appraisal requires the supervisor to write
a statement that describes the employee’s behavior. Normally both strengths
and weaknesses are described, along with a plan for future employee
development.
• Have students discuss what they see as the advantages and weaknesses of
this appraisal method.
B. Behavioral Methods
1. Critical Incident Method—The critical incident method appraises employees
based on favorable or unfavorable critical incidents related to the job. Managers
keep a log on employees and note the critical incidents in the log as they occur.
Ask students to keep a list of favorable and unfavorable critical incidents of
students’ behavior in their various classes (without names). Discuss their entries in
class.
2. Behavioral Checklist Method—Checklists consist of groups of statements that
pertain to a given job. The rater checks those statements that apply to the ratee.
3. Behaviorally Anchored Rating Scale (BARS)
• A behaviorally anchored rating scale (BARS) is often mentioned as one
way to improve rating scales. It does this by providing a description of
behavior along the scale, or continuum. A BARS is based on critical incidents
of job performance. Normally, a BARS consists of a series of five to ten
vertical scales, one for each important dimension of job performance. High-
lights in HRM 4 in the textbook provides an example of a behaviorally
anchored rating scale for firefighters.
• While BARS instruments have been widely publicized as a more effective
way to appraise performance, at present there is no strong evidence that a
BARS reduces all of the rating errors mentioned earlier.
4. Behavior Observation Scales (BOS)—A behavior observation scale (BOS) is
similar to BARS but asks raters to evaluate how frequently each behavior has
been observed. In contrast to BARS, this approach allows the appraiser to play
more the role of observer than judge. Highlights in HRM 4 in the text-book show
an example of BOS for a sales representative.
C. Results Methods
1. Productivity Measures
• A number of measures can be used to assess results achieved. Salespeople,
for example, are evaluated based on sales volume. Production workers can be
evaluated based on output produced, scrap rate, defects, and the like.

• There are a number of potential problems with output measures. Recall the
earlier discussion of criteria contamination and criteria deficiency.
2. Management by Objectives
• Developed by Peter Drucker in 1954, management by objectives (MBO) is a
philosophy of management as well as a goal-setting and performance
appraisal system. At periodic time intervals, employees set goals with their
supervisors and are evaluated against those goals on specified review dates.
Figure 8.7 in the textbook illustrates how performance appraisal functions under
an MBO program.
• Ask the class if anyone has worked or is currently working under an MBO
system. Have students explain the MBO process at their organizations.
a. Requirements for a Successful MBO Program
• To be successful, MBO programs must meet several characteristics.
Established goals should be quantifiable and set for both the long run and
the short run. Goals must be realistically set and under the employee’s
control. Managers and employees must establish specific times when goals
are to be reviewed and evaluated. Accompanying the goals should be a
detailed description of how the goals will be achieved.
• Advantages of MBO include the following: (1) employees can measure
their own performance; (2) quantifiable goals are set; (3) goal setting is a
joint effort between the employee and the manager; and (4) employees
have the satisfaction of achieving mutually established objectives.
b. Criticisms of MBO. The disadvantages of MBO include (1) some studies
show that MBO programs have achieved only mediocre success; (2) goals
may be unrealistically set; (3) employees and managers may not be fully
committed to the MBO process; and (4) some goals may be hard to quantify
but, nevertheless, are important to employee job success.
3. The Balanced Scorecard
• Developed by Harvard professors Robert Kaplan and David Norton, the
Balanced Scorecard (BSC), discussed initially in Chapter 2, is a measurement
framework that helps managers translate strategic goals into operational
objectives. The logic of the BSC is that learning and people management help
organizations improve their internal processes.
• Discuss with students the importance of not only measuring performance in
terms of bottom-line, but in long-term measures that may not provide
immediate benefits to the organization.
• Similar in some ways to MBO, the BSC enables managers to translate broad
corporate goals into divisional, departmental and team goals. Highlights in
HRM 5 shows an example of a personal scorecard used for this process.

D. Which Performance Appraisal Method to Use?
• The choice of which appraisal method to use largely depends on the intended
purpose of the appraisal program. To discuss the major strengths and weaknesses
of the different appraisal methods refer to Figure 8.8 in the textbook. In addition,
HR managers can periodically administer a survey to the firm’s employees and
managers to get a sense of whether or not they think the organization’s performance
appraisal process is improving.
• It is common for a supervisor’s appraisal of an employee to be reviewed by higher
levels of management. This is often done by the supervisor’s superior. Review of
an evaluator’s appraisal helps to ensure objectivity and fairness. This method also
can serve to train new supervisors in the proper application of performance
appraisal. Additionally, performance appraisals shouldn’t be done for middle
managers and rank-and-file employees only but for top managers as well—
particularly if the organization’s goals are to cascade downward through the
company.
VI. APPRAISAL INTERVIEWS
Appraisal interviews are a very important part of the entire appraisal process. Unfortunately,
many supervisors do not devote the time or attention needed to conduct the interview
properly. Appraisers should remember that employees want and deserve an honest
appraisal of their performance. This only comes through a well-planned and well-
conducted appraisal interview. The form of the interview will depend mostly on the purpose
of the interview. Generally, feedback sessions will have a different approach from growth
and development interviews. Employees should have adequate time in the interview to
ask questions and provide additional input, if needed.
A. Three Types of Appraisal Interviews
Norman Maier, an authority on the appraisal interview, notes that there are three basic
appraisal interview types.
1. Tell-and-Sell Interview—This method requires that the supervisor use
persuasion to change an employee in a desired manner. This can be accomplished
by having the employee see how the changed behavior will benefit him or her.
2. Tell-and-Listen Interview—When using this method, the supervisor discusses
the employee’s strong and weak points during the first half of the interview.
During the second half of the interview, the employee’s feelings about the
interview are thoroughly explored. At this time the supervisor attempts to deal
with the objections of the employee through nondefensive behavior. It is
assumed that the opportunity to release frustrated feelings through catharsis will
help to reduce or remove unpleasant feelings.
3. Problem-Solving Interview—The supervisor who uses the problem-solving
method employs nondirective interviewing procedures, but in addition, the
supervisor seeks to develop a growth and development approach to the interview.
Maier recommends this method since the appraisal process should exist to help
employees grow and develop.

B. Conducting the Appraisal Interview
• The textbook provides several considerations for conducting the appraisal
interview. A guiding rule to follow is not to discuss too much information at one
time. Dividing the appraisal interview into two sessions, one for the performance
review and the other for future development plans, can reduce time constraints.
• By dividing the appraisal interview into two sessions, the supervisor can serve
as evaluator at one period and counselor at the other period. This relieves the
burden of performing both tasks during one session.
• Some specific guidelines about conducting an appraisal interview may
increase employees’ acceptance of feedback, their satisfaction with the interview,
as well as their intention to improve in the future. Many of the principles of
good selection interviewing (see Chapter 6) apply to appraisal interviews.
1. Ask for a Self-Assessment—Self-assessment gets employees thinking about
their performance and assures that they know the standards against which they
will be evaluated.
2. Invite Participation—Participation helps bring out some of the root causes of
performance problems and may increase an employee’s satisfaction with the
process.
3. Express Appreciation—Praise is a powerful motivator. However, avoid the
“sandwich technique.” With this method, positive statements are given first,
followed by negative statements, which are followed by more positive remarks.
For many years HR professionals recommended that managers use the sandwich
technique when giving appraisal information to employees. Currently, this
technique is not recommended for these reasons: (1) giving praise first signals to
the employee that bad news is on the way; (2) the final positive comments
indicate to the employee that no more negative comments will follow; and
(3) employees may simply see this approach as a way to ease through the appraisal
interview without any real communication between those involved.
4. Minimize Criticism—Criticism leads to defensiveness, and this may hurt the
chances of solving the problem. It’s hard to change a person’s behavior with a
single conversation, so “laying it on the line” isn’t probably a good idea.
5. Change the Behavior, Not the Person—Instead of focusing on traits that are
personal characteristics (and difficult to change) focus on behaviors that can be
corrected or improved.
6. Focus on Solving Problems—Rather than blaming, focus on remedying the
situation.
7. Be Supportive—Some of the best leaders are those who focus on finding ways to
help employees eliminate obstacles to successful performance.
8. Establish Goals—Try to focus the employee on the future rather than the past.
9. Follow Up Day to Day—Feedback is more powerful when it occurs
frequently. Informal talks reinforce the goals and objectives laid out in the
formal appraisal interview.

C. Improving Performance
Employees cannot improve their performance unless they know exactly what is
expected of them. Supervisors have the responsibility to inform employees of their
job standards at the start of the review period. By doing this, employees can adjust
their behavior to conform to performance criteria, and surprises can be avoided at the
appraisal interview.
1. Identifying Sources of Ineffective Performance
• Use Figure 8.9: Factors That Influence Performance and Figure 8.10:
Performance Diagnosis to talk about the major causes of ineffective job
performance, broken into three categories: (1) ability, (2) motivation, and
(3) environment. These ideas were first brought up in Chapter 1 under
discussions about productivity enhancement.
• It is recommended that ineffective employee job performance be diagnosed
according to three interactive factors: the employee’s skill, the employee’s
effort levels, and the external conditions surrounding the job.
2. Performance Diagnosis
• Although performance appraisal systems can often tell us who is not
performing well, they typically cannot reveal why. So, if someone is not
achieving desired results, it can be difficult to decide if it is due to ability,
motivation, or external constraints.
• It is thus important to compare various measures of performance to ensure
improvement. For example, if someone is demonstrating all the desired
behaviors but is not achieving the desired results, logic suggests that it may be
due to factors beyond his or her control.
3. Managing Ineffective Performance—A three-step process is recommended to
correct poor employee performance. First, identify the source of poor
performance. Second, develop a course of action to improve performance.
Third, motivate the employee to correct undesirable job behavior.
Performance Diagnosis
1. Noting that Carl works very hard on the gopher problem, this may offer a clue
that his problem is not motivation or external issues, but that he lacks the skills
to address the situation. A potential solution would be to offer training courses
on how to deal with the problem.
2. Clark may be having external problems at home (e.g., his wife’s sister-in-law
and their family have decided to visit and stay at the house for a whole month—
putting extra financial and emotional strain on Clark). Obviously, we cannot be
sure of the problems Clark is facing, but finding out why he feels so dejected
about the bonus may offer clues to his poor performance. If the problems are
HRM
EXPERIENCE

external, maybe offering some time off will help Clark work out his problems at
home so he can better accomplish his assignment at work.
3. There could be several explanations including lack of sales training or perhaps
his college degree is in a different field that is of greater interest to him.
Students will have various explanations.
ANSWERS TO END-OF-CHAPTER DISCUSSION QUESTIONS
1. The performance appraisal an employee receives is directly linked with other HR functions.
A poor appraisal review can limit promotional or transfer opportunities. A poor appraisal
may necessitate additional training to bring the employee up to acceptable performance
standards. Depending on the appraisal received, increases in salary may or may not be
recommended.
2. The courts have emphasized the importance of having carefully defined and measurable
criteria as a basis for appraising employee performance. They have insisted on employers
having some type of record of performance based on identifiable objective criteria rather than
vague descriptions such as attitude, cooperation, or initiative.
3. Some criteria that can be used to appraise performance in the following jobs are:
a. Sales representative: Volume of sales made, number of sales contacts made, and
customer complaints.
b. TV repairer: Number of repairs made in a specified period of time, and amount of
work that must be redone because of faulty workmanship.
c. Director of nursing in a hospital: Success in establishing standards of performance
and the cost-effective utilization of members of the nursing staff.
d. HR manager: Effectiveness of HR programs in relation to cost, employee effectiveness
and morale, and quality of response to special problems within the organization.
e. Air-traffic controller: skill in managing traffic, completion of required operational
procedures (updating weather reports, keeping records), coordination and communication
with pilots, and use of emergency equipment and procedures.
4. a. The tell-and-sell method requires the ability to persuade an individual to change in the
prescribed manner. The tell-and-listen method requires the ability to communicate the strong
and weak points of a subordinate’s performance and to explore the subordinate’s feelings
about the appraisal. The problem-solving method requires the ability to stimulate growth
and development through discussion.
b. The skills for the problem-solving type of interview can be developed by first adopting
the attitude that through discussion, new ideas and mutual interests can be developed. Training
and practice in listening and reflecting feelings, reflecting ideas, using exploratory questions,
and summarizing are essential.
c. Probably most students will agree that the tell-and-sell method is the least desirable
because it leads to suppressed defensive behavior and feelings of hostility.

5. Poor performance should be detected during the daily observation of employees. The major
factors that influence performance are listed in Figure 8.8 in the textbook.
ANSWERS TO USING THE INTERNET ACTIVITIES
Internet Exercise #1, page 358
U.S. Office of Personnel Management
http://www.opm.gov/
Question:
Visit the website of the U.S. Office of Personnel Management and conduct a search of “360-
degree assessment” for the organization’s training assistance program. Review the
organization’s 360-degree feedback procedures and list the sources of feedback. What questions
are considered for each feedback source?
Answer:
The feedback sources included in OPM’s 360-feedback process include the following:
• Superiors
• Self-assessment
• Peers
• Subordinates
• Customers
For each feedback source, the following two questions are covered:
• “What does this rating source contribute?”
• “What cautions should be addressed?”
Source:
http://www.opm.gov/perform/wppdf/360asess.pdf
Internet Exercise #2, page 368
U.S. Army Research Institute
http://www.hqda.army.mil/ari/
Question:
Visit the U.S. Army Research Institute and conduct a search of “behaviorally anchored rating
scales” (BARS). Provide a summary of how the U.S. Army has used BARS to assess tactical
thinking.

Answer:
An ongoing need exists in the Army to enhance combat leaders’ tactical thinking skills. A
Tactical Thinking Behaviorally Anchored Rating Scale (T-BARS) was generated and inter-rater
reliability was established. Eight themes of tactical thinking identified in the “Think Like A
Commander” program of research and training formed the basis of the scales. These included:
• Know and Use All Assets Available
• Focus on the Mission and Higher’s Intent
• Model a Thinking Enemy
• Consider Effects of Terrain
• Consider Timing
• See the Big Picture
• Consider Contingencies and Remain Flexible
• Visualize the Battlefield
Interviews were conducted with Army officers with a range of operational experience to elicit
patterns of thinking and behaviors within a set of tactical exercises. Interview data were utilized
to generate behavioral indicators to populate the five levels of cognitive performance within the
T-BARS.
Source:
http://www.hqda.army.mil/ari/pdf/RR1854.pdf

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CHAPTER XV
HABIT OR LAW?
If it be true that the friction between the Jew and the civilization in
which he lives is aggravated by his habit of secrecy and by our
disingenuousness, by his expression of a sense of superiority which
galls us, and on our side by a lack of charity and of intelligence in
dealing with him, it would follow that no solution can be more than
approximate: that whatever arrangement be come to the contrast
will remain, and with it a certain latent friction, which always
accompanies contrast.
But there is between a simmering of that kind and the active boiling
of the question to-day (with the threat of its boiling over) all the
difference in the world. But even though the solution be imperfect, it
might be reasonably stable: we might at least have peace, though
not friendship. It further follows from the elements of the problem
that the solution lies along the lines of either party modifying
whatever in its action is an irritant to the other; whatever, that is,
can be modified by the will, and is not mixed up with something
ineradicable.
The Jew cannot help feeling superior, but he can help the expression
of that superiority—at any rate he can modify such expression. He
can certainly, though it be at a great expense of tradition and habit,
get rid of that pestilent pseudo-defence of secrecy which poisons all
the relations between him and ourselves. We on our side can drop
what is the converse of that secrecy, the disingenuousness, the lack
of candour, into which we are fallen in our relations with the Jew.
That cannot but mean a great breach with our tradition and with
habit also, but the advantage is worth the sacrifice. We can (it must
be the work of each individual, it cannot be a corporate work)
approach the Jew with more respect and yet with more frequency.

We can, I think, advance by many degrees from the lack of charity
we now show, even if we despair of living in real intimacy with a
people so different in their deepest qualities from ourselves.
Personally, I am not sure that such closer intimacy might not be
established; I have never found any difficulty in reaching and
retaining intimate acquaintance with the Jews of my own circle—but
I may have been fortunate. I know that with most of my fellows it is
not so, and perhaps the Jew will always remain to the mass of those
about him something strange and unapproachable, and I fear,
repulsive. But there is no reason, why we should mix with that
hesitation in our relations an element of indifference, still less of
contempt, still less, again, of cruelty.
I repeat the formula for a solution: it is recognition and respect.
Recognition is here no more than the telling of the truth: there is a
Jewish nation. Jews are citizens of that nation; and recognition
means not only the telling of this truth on special occasions but the
use of it as a regular habit in our relations on both sides.
This statement is, upon any just analysis of the Jewish question, so
obvious and so simple, that it needs neither insistence upon it nor
development. Its plain statement is sufficient. But there attaches to
a solution so determined a much more active and complicated
question, upon the uncertainty of which not only this reform but
many another has made shipwreck. The question must be answered
rightly, because, if we answer it wrongly, the whole scheme fails.
The question is this: Should the social habit, the general method in
writing and speaking and in all relations, precede in this case the
institutional action, legal changes, constitutional definitions? Or
should the legal changes, the new institutions, the constitutional
definitions come first?
To decide rightly is of great moment, for this reason, that a wrong
decision may destroy all the effect of goodwill.

In my judgment the wrong decision would be that which would give
precedence to legal change, to new definitions, to new institutions,
and attempt out of them to build a new spirit. I take it that this
reversal of the true order would make all stable peace impossible.
It must be admitted, of course, that changes suggested by the Jews
themselves, the development of their own institutions, a voluntary
segregation of their community in other fields than those in which
they have already effected that segregation, stand in another
category. These new and definitely Jewish institutions we should
always welcome. But the attempt at framing public regulations,
which are to defend the community as a whole against an alien
minority, when that minority must live with one permanently and as
a regular feature of the life of the community, invariably tends to
oppression, if such regulations are made the first steps in a
settlement instead of being left, as they should be, to the last. Any
separatist legislation should arise naturally out of a long practice and
full recognition of the Jews as a separate people and of the
accompaniment of that recognition with respect. If the advance is
made on our side, the Jew may refuse any such bargain. He may dig
his heels in and insist, as many another privileged class has insisted
before him, that he will continue to enjoy all that he has ever
enjoyed, that he will continue his demand for a dual allegiance, that
he will insist on the very fullest recognition as a Jew, and at the
same time on what is fatal to such recognition, the fullest
recognition as a member of our own community.
If he does that (and there are those who tell us he will certainly do
so, and will refuse all reform), then the community will be compelled
to legislate in spite of him. It will be perilous for him and for us; it
may even be the beginning of grievous trouble for both, but it will be
inevitable. It will appear in a mass of legislation all over Europe,
which will affect this country with the rest.
The present situation cannot last indefinitely. It is already uncertain
even here, in England; it has reached further stages on the road to
ruin elsewhere. But if the Jew sees the peril in time, and appreciates

the nature of that change, the beginnings of which we have all seen
and which is proceeding at so great a pace, then relations can be
established out of which (later) formal rules, acceptable to both
parties, should proceed. And in that case it would be, I repeat, the
gravest of errors to initiate new positive laws and a new status
before a foundation had been prepared by the re-establishment of
honest relations; and that can only be done by a frank admission of
reality, by the open and continual admission everywhere that Israel
is a nation apart, is not, and cannot be, of us, and shall not be
confounded with ourselves.
There is great temptation to delay, because the acuteness of the
problem is not felt here as yet, among the well-to-do, and still more
because it differs in different communities. The peril seems still far
distant from us, though it may be at the very door of our
neighbours. Routine, the inheritance of the immediate past, the false
security produced by the conventions of that past, may well tempt
those who dislike the effort of a change to shirk that change. But I
would ask any intelligent and thoughtful Jew who still thinks he can
rely upon the false position of the nineteenth century whether the
same forces are there to support him to-day as were present then?
Take a particular example. In Poland and in Roumania the old fiction
has been temporarily imposed by force. The Jew, who in both these
countries is felt to be more alien than any other foreign European
could be, is imposed upon the Government and society of each
country by the Western Governments as a full citizen. The strain
here is immensely aggravated because it arose not from the nature
of society but from the action of outsiders; the English, the French,
the American Governments (but particularly the American and the
English) have erected in Eastern Europe this unstable, unjust and
artificial state of affairs. It cannot last, for it is unreal.
The communities in question may make no laws which recognize the
Jew; alternatively, the door is open for oppression: and the moment
the hated foreign interference weakens, oppression will come.

Well, when under the pressure of a real social difficulty and a crucial
one, the unreal settlement is torn up, by the passing of new laws
recognizing the Jew (but harshly, and under no agreement with him)
or by actual hostility, does the Jew in his heart of hearts think that
he would have the same support from the West now as he would
have had thirty years ago? He knows very well he would not.
Thirty years ago you would have got from all the traditional
Liberalism of France, from the great bulk of its governing class and
the whole of its academic organization, from what was then the solid
and still respected body of old Republicans, an immediate answer to
the Jewish appeal. In England that answer would have been
unanimous and enthusiastic. You would have had torrents of leading
articles, great public meetings, Cabinet Ministers speechifying all
over the place in the sacred cause of toleration. Every one knows
that to-day the appeal of the Eastern Jews, though it might still be
supported officially, would be received by the public with
indifference. Ten years hence it may be received with derision.
Or take another example. Let us suppose—it is highly probable—that
the Zionist experiment breaks down, that Englishmen refuse to have
their soldiers' lives risked in a quarrel which is not their own and
refuse to support out of their inordinate taxation a top-heavy colony
which gives them no advantage and concerns them not at all. On
the breakdown of that experiment, should it come soon, would there
still be the support for its re-establishment that you would have had
even ten years ago? There certainly would not. Ten years hence it is
probable enough that you would get, not indifference to such re-
establishment, but the most active hostility. All over the world the
stream has turned in the same direction.
Unfortunately the effect of that change has been to excite hatred
rather than a desire for a settlement and to move men towards blind
action rather than towards a reasoned examination of the difficulty.
That is why the thing seems to me urgent, although there are still
large areas of Western society in which its urgency is masked and
half forgotten.

When I say "urgent" I mean that this my essay, which is to-day still
to the point, and the solution recommended in which is still feasible,
may very well, within the lifetime of its writer, become old-fashioned
out of all recognition. The peaceful settlement here proposed with
deliberate vagueness and softness of outline may seem in a few
years as out of date, as unreal through the intervening change, as
do to-day the old tags about the purity of parliamentary life and the
seriousness of party politics.
My solution may appear at the end of this generation as mildly
inapplicable to the acute situation then arisen between the Jews and
ourselves as appear to-day the old debates on the very tentative
demand for Home Rule in the '80's. Let us act as soon as possible
and settle the thing while there is yet time. For in the swirl and
rapids of the modern world, which grow not less as towards a calm,
but more intense as towards a cataract, every great debate takes on
with every year a stronger form, a nearer approach to conflict; and
none more than the immemorial debate, still unconcluded, between
Islam and Christendom and the Beni-Israel.
But for my part, I say, "Peace be to Israel."
Printed in Great Britain by Butler & Tanner, Frome and London.

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