Developing and Retaining Talent

Assessing Employee Performance

Performance Measures
Output Performance Criteria:
Directly related to performance and organizational goals.
Can include quantity (e.g., sales volume) or quality (e.g., error rate).
Provide an objective basis for judgment.
Problematic when outputs are unclear or don't account for situational factors (e.g., lack of
resources).

Judgments About a Person:

Ratings on qualities like 'initiative' or 'creativity'.
Difficult to judge objectively.

Competency Assessment:
Assesses specific skills and behaviors required for success.
Integrates HR practices across the employee lifecycle (selection, appraisal, training,
development).

Behavioral Criteria:
Focus on directly observable and codable employee behaviors.
More useful than subjective personal judgments.

Methods of Performance Measurement

Standardized Measures:
Used to compare employees.
Rating Scales:
Graphical scales (e.g., marking performance on a line from Poor to Excellent).
Letter scales (e.g., E=Exceeds, M=Meets, B=Below Expectations).
Behaviorally Anchored Rating Scales (BARS): Anchored with specific, observable
behaviors to improve reliability and reduce subjective interpretation. Development is
complex.
Behavior Observation Scales (BOS): Rate the frequency of specific job-related
behaviors. Appraisee satisfaction can be higher. Requires ample opportunity for
observation.

Individualized Measures:
Useful when outcome measures are unclear or multiple ways to do the job exist.
Management by Objectives (MBO)/Goal-Setting:
Performance is based on jointly developed, specific goals.
Improves performance and links to organizational strategy.
Less effective for complex tasks where goals are hard to specify.
Less comparable across individuals.
 Research shows specific, challenging goals and employee commitment lead to higher
performance.

Comparison Methods
Simple Ranking: Ranks employees from best to worst. Difficult for middle performers.
Paired Ranking: Compares employees in pairs to determine the better performer. Time-
consuming and can force distinctions.
Forced Distribution: Assigns a predetermined percentage of employees to performance
categories (e.g., top 10% outstanding, bottom 10% to be managed out). Can lead to issues if
actual performance distribution differs.

Rating Reliability
Intra-rater reliability (consistency of one rater over time) is usually high.
Inter-rater reliability (agreement between different raters) is often lower.
Supervisors' ratings tend to be more reliable than peers', possibly due to less halo effect.
Performance ratings can be influenced by organizational citizenship behaviors, mental ability,
and conscientiousness, rather than just specific job skills.

Who Should Carry Out the Performance Appraisal?

Supervisors: Traditional approach.
360° or Multi-Source Feedback:
Includes ratings from supervisors, direct reports, peers, and sometimes external clients.
Benefits: Provides a rounded picture, useful for development.
Challenges: Complexity of data, potential disagreement between raters, can be
abandoned due to implementation issues.
Keys to Success: Use for development primarily, provide effective feedback in one-to-one
interviews, use regularly, evaluate the system's effectiveness.

Points of View in Performance Appraisal

Organization's View:
Improve performance through feedback.
Distribute rewards fairly.
Motivate staff.
Document poor performance.
Basis for development and training.

Appraisee's View:
May want to present themselves in the best light to gain rewards and avoid negative
outcomes.
Can lead to exaggeration of performance and inhibit honest discussion of weaknesses.

Appraiser's View:
May have conflicting motives (e.g., maintaining morale, avoiding conflict, political
 reasons).
May inflate ratings to avoid demotivating staff or inflating their own department's
performance.
Can also give overly negative ratings for punishment or to push employees out.

Cultural Effects on Performance Appraisals

National culture influences PA practices.
Low Power Distance: Increased use of 360° appraisals.
High Uncertainty Avoidance: More formal PA systems.
Collectivist Cultures: Prefer organization-development PAs over individual ones.
Fit between culture and PA practices improves organizational outcomes.
Key Observations:
360° appraisals are effective in low power distance countries.
PAs benefit future-oriented societies.
Individual-based PAs work in individualist societies; organization-development PAs in
collectivist cultures.
Formal PA systems benefit high uncertainty avoidance cultures.

Identifying Training Needs

Training Needs Analysis (TNA)
Organizational Level:
Align training with organizational goals and strategy.
Assess available resources for training.
Evaluate the organizational climate and support for learning.

Task/Job Level:
Identify knowledge, skills, and abilities (KSAs) required for effective task performance.
Conduct a job analysis to outline tasks and necessary individual characteristics.

Individual Level:
Identify individuals who need training and have the motivation and prerequisite skills to
undertake it.
Performance assessment on specific tasks is crucial.

Weakness vs. Strength Development

Deficit-Focused: Identifies and trains areas where performance is lacking.
Strength-Focused: Builds upon existing strengths to achieve excellence. This is an alternative
approach gaining traction.

Training, Development, or Learning?

Learning: The foundational psychological concept underpinning effective work performance.
 Training: Focuses on acquiring KSAs for current or near-future jobs.
Development: Broader growth in personal and professional life, preparing for future career.

The Psychology of Learning

Habituation:
Becoming accustomed to a stimulus and learning to ignore it.
Useful for understanding adaptation to environmental changes (e.g., office noise).
Changes in stimuli are more distracting than constant stimuli.

Behaviorism and Conditioning:

Focuses on how environmental stimuli influence behavior.
Classical Conditioning (Pavlov):
Learning through association. A neutral stimulus (CS) becomes associated with an
unconditioned stimulus (US) that elicits an unconditioned response (UR), eventually
eliciting a conditioned response (CR) on its own.
Example: Hearing a computer 'ping' (CS) associated with receiving an email (US),
leading to glancing at the screen (CR) upon hearing the ping.

Operant Conditioning (Skinner):

Learning through consequences of behavior.
Reinforcement:
Increases the likelihood of a behavior.
Positive Reinforcement: Adding a desirable stimulus (e.g., bonus for good
performance).
Negative Reinforcement: Removing an aversive stimulus (e.g., stopping reprimands
when performance improves).

Punishment: Decreases the likelihood of a behavior (e.g., receiving a shock for an

action).

Reinforcement Schedules:
Fixed Ratio: Reinforcement after a set number of behaviors (e.g., piece-rate pay). High
work rate, quick extinction if stopped.
Variable Ratio: Reinforcement after a variable number of behaviors (e.g., slot
machines, team bonuses). High work rate, resistant to extinction.
Fixed Interval: Reinforcement after a set time period (e.g., weekly paychecks). Variable
effort, peaks before reinforcement.
Variable Interval: Reinforcement at unpredictable times (e.g., random manager check-
ins). Constant, low level of effort.

Social Learning Theory (Bandura):

Learning through observing others (models) and their behaviors and consequences.
Emphasizes cognitive processes: hypothesizing, feedback, reflection.
Allows for learning complex behaviors, attitudes, and language without direct trial-and-
error.
Behavior Modelling Training (BMT):
Define behaviors.
Provide models (live or video).
Allow practice.
 Provide feedback and reinforcement.
Maximize transfer of learning.
Effective for procedural and declarative knowledge, modest impact on attitudes and
job behavior.

Enhancing Learning Effectiveness

Practice:
Learning is a process, not a single event.
Spaced Practice: Rest periods between practice sessions. Generally leads to better
learning, especially for complex tasks.
Massed Practice: Continuous practice without rest. Can be effective for simpler tasks, but
spaced practice is often superior.

Transfer of Learning:
Applying learned knowledge/skills to new situations.
Factors Influencing Transfer:
Content: Type of skill, type of performance change, memory demands.
Context: Near transfer (similar situations) is easier than far transfer (dissimilar
situations).
Personal Characteristics: Cognitive ability, conscientiousness, self-efficacy, motivation,
voluntary participation.
Environmental Factors: Positive transfer climate, management and peer support.
Learning Outcomes: Increased self-efficacy and knowledge.

Formal vs. Informal Learning:

Formal Learning: Organized, structured training (e.g., workshops, courses).
Informal Learning: Unorganized learning that occurs naturally at work (e.g., from
colleagues, experience). Can account for a significant portion of learning.
Enhancing Informal Learning: Clear planning, active learning promotion, positive
relationships, focus on application.
Integration of formal and informal learning is recommended. E-learning can bridge this
gap.

Training Methods and Evaluation

Training Methods
Case Study: Analyzing a scenario to develop solutions. Allows deep thinking but may not
reflect reality.
Coaching and Mentoring: One-to-one guidance from an expert. Tailored and holistic but
resource-intensive.
Demonstration: Trainer shows how to perform a task. Effective for simple tasks but can be
less effective for complex ones and shows only one way.
Group Discussion: Trainees share perspectives and best practices. Promotes diverse
viewpoints but can be time-consuming and unproductive.
 Job Rotation/Placements: Temporary assignments in different roles. Develops multi-skilling
and new perspectives but can be costly.
Lecture: Presenting information verbally to a group. Efficient for large groups but lacks
interaction and individual tailoring.
Role Play: Acting out specific situations. Good for practicing interpersonal skills in a safe
environment but depends on feedback quality and can make participants uncomfortable.
Simulation: Recreating tasks or environments (e.g., simulators, in-tray exercises). Excellent
for practicing high-risk skills but can be expensive and may not perfectly replicate reality.
E-learning: Delivering training via digital platforms. Cost-effective, flexible access, but
requires high-quality initial development.

Training Evaluation (Kirkpatrick's Four Levels)

1. Reaction: Trainees' feelings and satisfaction with the training. Assessed via feedback forms.
2. Learning: Extent of knowledge and skill acquisition. Assessed via tests or interviews.
3. Behavior: Change in work behavior as a result of training. Assessed via interviews and
observations.
4. Results: Impact of training on organizational outcomes (e.g., productivity, quality). Most
difficult to assess due to multiple contributing factors.
Meta-analysis shows training has a substantial impact at all four levels.
Choosing the right training technique for the skill type (psychomotor, interpersonal, cognitive)
is crucial for effectiveness.

Retaining Talent
Employer Branding
Applying marketing principles to HR to enhance an organization's reputation as an employer.
Creates unique employment experiences, brand associations, and loyalty.
The psychological contract between employer and employee is key, influencing expectations
and attitudes.
Themes Contributing to a "Top Employer" Status:
Inspired leadership.
Strategic plan for employer branding.
Open and consistent communication.
Effective performance management.
High priority on training and development.
Best-practice employee benefits (individualized, flexible, work-life balance).
Appealing physical workplace.
Focus on corporate citizenship.

A strong employer brand also aids in attracting talent.