Tag: Business & Finance

  • [Solved] Phase 2 to 7 Leadership Strategic Plan

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    Instructions Final Paper Your final paper will consist of all the previous assignments you have submitted regarding the Strategic Leadership Plan. For this assignment, please incorporate all the feedback that has been given by the professor. Including corrections regarding punctuation, sentence stru…

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    Instructions
    Final Paper
    Your final paper will consist of all the previous assignments you have submitted regarding the Strategic Leadership Plan. For this assignment, please incorporate all the feedback that has been given by the professor. Including corrections regarding punctuation, sentence structure, etc. Also, when assembling the research, please remember to use subtopics that segments each section.

  • [Solved] Phase 3 to 7 Leadership Strategic Plan

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    In-depth study guidance and analytical solution covering Phase 3 to 7 Leadership Strategic Plan.

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    Assignment Prompt & Instructions

    Full assignment prompt and step-by-step guidance are included in the downloadable solution file.

  • [Solved] ECO-Map Design

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    **Project Artifact Deliverable 2**. **Eco-Map Design****Directions** – **Create an illustrative representatio** **n of the e** **cosystem relationships and connections,****applying your analysis from the Eco-Map Brief**. (Healthcare Ecosystem Mapping) – **Adhere to Map Requirements****1, 2, and 3** …

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    **Project Artifact Deliverable 2**. **Eco-Map Design****Directions**
    – **Create an illustrative representatio** **n of the e** **cosystem relationships and connections,****applying your analysis from the Eco-Map Brief**. (Healthcare Ecosystem Mapping)
    – **Adhere to Map Requirements****1, 2, and 3** listed below.
    – Choose a **simple design** that allows for clear identification of each map requirement.
    – **Submit** your **map** as a **PDF** with the three project deliverables for the healthcare ecosystem mapping bundle.
    – Use a **free software too** **l.** Any software you must be able to convert the map to a PDF.
    – Your professor cannot assist students with any software tool issues, learning how to use any software tools, or support with any troubleshooting issues.
    – Students will need to know how to use the software tool they selected or be able to independently learn how to use the selected tool on their own.
    – **Essential Learning Tool** (Downloads as a PDF): [**Ecosystem Mapping Resource**](https://learn.umgc.edu/content/enforced/1291424-027837-01-2255-GO1-9040/Resources%20for%20Ecosystem%20Mapping.pdf)
    **Map Requirement 1. Ecosystem Entities – Present the Ecosystem Entities from your Eco-Map Brief:**
    – **Your Personalized Healthcare Scenario**:
    – Your Primary Healthcare Setting
    – Your Primary Project (BIP/BIP Sub-Industry)
    – **External Healthcare Providers and Healthcare Organizations**:
    – Minimum of **three** (3) **external healthcare providers and/or healthcare organizations**
    – **External Business Partner:**
    – Minimum **one** (1) **external business partner**
    **Map Requirement 2.** **Map Markers Requirements**:
    **2.** **Map****Markers** **:**  Use map markers to identify the organizations, the connections between the different healthcare providers, healthcare services, and external business partner, and to show any potential relationships to one another. Map markers can include but are not limited to shapes, colors, lines, errors, images, letters, and/or similar visualizations to identify, define, and describe the information presented.
    – **The following map markers must be included**:
    – **2a.** **Shapes**: Use shapes to **identify all organizations** by **by name, type, and/or description** on the map
    – **2b****. Lines and/or Arrows**: Include lines or arrows to illustrate the **linkages, connections, and/or relationships** to the organizations and any other images presented on the map.
    – **2c.** **Colors**: Apply **colors or a color-coding to the shapes, lines, arrows**, and/or **details presented** on the map.
    – **2d.** **Optional Map Markers**: You may elect to use additional map markers on your map. Examples of other map markers can include icons, symbols, patterns, sizing, numerical codes, alphanumeric codes, bubbles, and/or similar visuals.
    **Map Requirement 3**. **Legend Criteria Requirements** **:**
    **3.** **Legend Criteria**: A map legend must be included that adheres to the Legend Criteria provided below.
    – **Legend Criteria A.** **Shape Explanations**. Shapes can serve several purposes and convey important information. **Each shape must** be **explained**. Each organizational **shape****must** clearly **identify each organization with text** that provides the **name**, **type**, and/or **description**.
    – **Legend Criteria B.** **Color Explanations** **.** Colors can serve multiple purposes in an ecosystem mapping project. **Each color**, or **color-coding system**, **must** be **explained**. Use colors purposefully and consistently throughout the ecosystem mapping project to ensure clarity and readability.
    – **Legend Criteria C.** **Lines and/or Arrows Explanations**. The lines and/or arrows on the map should represent the **relationships** to **one another**.**Each type** of **line and/or arrow** must be **explained**. Using different types of lines and/or arrows could represent some type of meaning various types relationships, interactions, or other influencing factors.
    – **Legend Criteria D.** **Additional Markers** (if applicable): If you elected to include **additional map markers, be sure to explain those markings** in the legend.
    \
    RiostakECOSMappingans.docx](https://www.sweetstudy.com/files/riostakecosmappingans-docx "RiostakECOSMappingans.docx")

  • [Solved] COVID-19: causes and responses PP

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    NO AI For this assignment, assume the role of an economic advisor to Steve Forbes. Using this week’s required resources and at least two additional credible sources, prepare an 8-10 slide audio PowerPoint presentation, with speaker notes, to communicate with Mr. Forbes about the pandemic’s causes an…

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    NO AI
    For this assignment, assume the role of an economic advisor to Steve Forbes. Using this week’s required resources and at least two additional credible sources, prepare an 8-10 slide audio PowerPoint presentation, with speaker notes, to communicate with Mr. Forbes about the pandemic’s causes and responses.
    Address the following questions in your presentation:
    – What was the economic impact of COVID-19? Address any monetary and fiscal policies used during or after COVID-19.
    – Has the crisis changed the structure of the U.S. economy?
    – Were there differences between countries on how they handled the crisis? Provide at least one economic policy example.
    – What economic advice would you give Mr. Forbes to avoid difficulties in similar situations?
    In this presentation include an additional section with the following:
    – Explain economic activity during or after COVID-19 using research from the library and/or an online article. Be sure to include the reference material for the article.
    – Analyze the underlining fiscal and monetary policies (if any) inherent within your selected article.
    – Summarize the economic principles you have learned from your selected article and how they could apply to modern government policy.
    The COVID-19: Causes and Responses MUST USE SPEAKERS NOTES
    Must be eight to ten (8-10) slides in length (not including title and references slides) and formatted according to APA
    – must include a separate title slide with the following in title case:
    – title of presentation in bold font
    – Space should appear between the title and the rest of the information on the title slide.
    – student’s name
    – name of institution
    – course name and number
    – instructor’s name
    – due date
    – must utilize academic voice.  must include an introduction and conclusion paragraph.
    – Your introduction paragraph needs to end with a clear thesis statement that indicates the purpose of your presentation.
    – TWO credible resources (scholarly)

  • [Solved] Values, Merit, and Worth

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    This week we focused on applying research. Engage in a conversation with your course community about **one** of the following: – For the article you found in Week 2, identify whether it is an empirical article with a method section or a standalone literature review. – If it is an empirical study, do…

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    Assignment Prompt & Instructions

    This week we focused on applying research. Engage in a conversation with your course community about **one** of the following:
    – For the article you found in Week 2, identify whether it is an empirical article with a method section or a standalone literature review.
    – If it is an empirical study, do the authors identify the specific method and design of the study in their method section? Or, if it is a standalone literature review, what conclusions do they make?
    – How would you apply these criteria to the program you chose? How would you be able to assess the program and its goals in terms of merit, worth, and values?
    – Your course readings discuss the values, merit, and worth of a program. Discuss those aspects of evaluation.
    – How would you apply these criteria to the program you chose? How would you be able to assess the program and its goals in terms of merit, worth, and values?
    As always, if you are relying on someone else's ideas when presenting yours, you should reference their paper, article, etc. This includes sharing references to your fellow students' ideas!
    ## **Response Guidelines**
    – **Your Participation:** This discussion is an opportunity for you to review the work of other learners to inform your own learning. Your interactions and anything you share should be courteous, succinct, professional, well-written, and organized. Communicating clearly with proper grammar and punctuation will foster more and better interactions with your classmates.
    – **Your Post:** Create a post responding to one of the discussion prompts. Do not create your post as a reply to another post.
    – **Responding to Peers:**As you respond to one of your classmates, please make sure your response is substantive by sharing your professional experiences and helpful thoughts and feedback about ideas they have shared. Try to comment on those where you feel you have the most useful information to share and consider the following:
    – How have your experiences resonated with their ideas?
    – What can you add to their ideas, building upon the connections you have made to the material so far? Supplement course resources and extend consideration of the topic by including new information or findings from current journal articles, discussing more in-depth critical thinking questions, or providing constructive or corrective feedback or an alternative viewpoint supported by empirical evidence.

  • [Solved] Applying Knowledge of Types of Research

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    ## **Preparation** This assignment involves applying your knowledge of the types of research by reading an original source of each type. Read the following theoretical study and program evaluation samples to complete your assignment: – [Week 3 Assignment: Applying Knowledge of Types of ResearchLinks…

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    Assignment Prompt & Instructions

    ## **Preparation**
    This assignment involves applying your knowledge of the types of research by reading an original source of each type. Read the following theoretical study and program evaluation samples to complete your assignment:
    – [Week 3 Assignment: Applying Knowledge of Types of ResearchLinks to an external site.](https://capella.alma.exlibrisgroup.com/leganto/public/01CAPELLA_INST/lists/2489927410006731?auth=SAML&section=2489927490006731 "Select this link to launch this material in a new window.") reading list.
    ## **Instructions**
    – Compare the similarities and differences between theoretical research and program evaluation.
    – What were the stated purposes of each study/evaluation?
    – What were the research questions for each study/evaluation?
    – What type of research design and type of evaluation was used for each study/evaluation?
    – Identify the sources of data the authors use to answer their question.
    – What were the specific data (e.g., qualitative, quantitative, mixed methods) and sources (e.g., general population, practitioners, clients) used for each study/evaluation?
    – How was data gathered for each study/evaluation?
    – Discuss how each study/evaluation could have involved practitioners, stakeholders, or community members.
    – What were some possible roles of potential stakeholders in developing and implementing the study/evaluation?
    – Evaluate the legal and ethical guidelines that may apply to the study/evaluation.
    – What are the ethical considerations when working with participants and potential stakeholders in each study/evaluation?
    – For example, what are the sources of potential harm (physical, psychological, financial) or distress to some participants (e.g., offensive culturally incompetent questions, threats to self-esteem, transportation costs)?
    – Are there any relevant laws or policies governing the source of data?
    ## **Additional Requirements**
    Your assignment should also meet the following requirements:
    – **Written Communication:**
    – Convey purpose in a well-organized text, incorporating appropriate evidence and tone in grammatically sound sentences.
    – Apply APA style and formatting to scholarly writing.
    – **Length:** 5–6 typed, double-spaced pages.
    – **Format:** Use current APA style and format for references, in-text citations, and headings as appropriate. Visit [Evidence and APALinks to an external site.](https://lat.strategiced.com/redirect?linkid=1540 "Select this link to launch this material in a new window.") for help with APA as needed.
    – **Font and Font Size:** Times New Roman, 12 points.
    **Competencies Measured**
    By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies and scoring guide criteria:
    – Competency 1: Explain the differences between action research and theoretical research.
    – Compare the similarities and differences between theoretical research and program evaluation.
    – Competency 2: Explain how laws, regulations, and ethical implications must be considered when conducting research.
    – Evaluate the legal and ethical guidelines that may apply to the study/evaluation.
    – Competency 3: Explain the difference between quantitative and qualitative methodologies and when to use each one in human services settings.
    – Identify the sources of data the authors use to answer their question.
    – Competency 4: Choose appropriate methodologies to investigate organizational and community concerns.
    – Discuss how each study/evaluation could have involved practitioners, stakeholders, or community members.
    – Competency 5: Convey clear meaning through appropriate word choice and usage.
    – Convey purpose in a well-organized text, incorporating appropriate evidence and tone in grammatically sound sentences.
    – Apply APA style and formatting to scholarly writing.

  • [Solved] managing people fi

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  • [Solved] marketing and UX fi

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  • [Solved] ECO 6301 V

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    – ## EconomicsforManagersECO6301UnitVDiscussionBoard.docx – ## UnitVStudyGuide.pdf **## EconomicsforManagersECO6301UnitVDiscussionBoard.docx** 2 Economics for Managers ECO 6301 **Unit V DB** Identify a real-world example of price discrimination (preferably not one from the unit lesson), and explain …

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    – ## EconomicsforManagersECO6301UnitVDiscussionBoard.docx

    – ## UnitVStudyGuide.pdf

    **## EconomicsforManagersECO6301UnitVDiscussionBoard.docx**

    2

    Economics for Managers ECO 6301

    **Unit V DB**

    Identify a real-world example of price discrimination (preferably not one from the unit lesson), and explain which type of price discrimination it is. Next, using the good from your chosen price discrimination as an example, illustrate how the good fits the criteria necessary for successful price discrimination. Finally, discuss how the price discrimination example leads to an increase in total benefit to society. Have you ever paid a higher price for something than somebody else did? Ever pay a lower price? How did those experiences make you feel?

    Should be at least 300 words in length.

    Should include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or quoted material.

    **## UnitVStudyGuide.pdf**

    ECO 6301, Economics for Managers 1

    Course Learning Outcomes for Unit V

    At the end of this unit, you should be able to:

    3. Analyze how price and output influence profit maximization under different market structures.
    3.2 Explain how market power affects different types of pricing strategies.

    4. Evaluate strategic pricing decisions.

    4.1 Explain the conditions necessary to price discriminate.

    Required Unit Resources

    Chapter 12: More Realistic and Complex Pricing (ULO 3.2)

    Chapter 13: Direct Price Discrimination (ULO 4.1)

    Chapter 14: Indirect Price Discrimination (ULO 4.1)

    Article: Public Subsidies and the Location and Pricing of Sports
    This article discusses sports subsidies and pricing by analyzing how sports teams make decisions.

    Unit Lesson

    Lesson: Pricing and Greater Profit (ULOs 3.2, 4.1)
    This lesson introduces you to the topics covered in this unit.

    Firms have to answer two important questions: How much of their product should they produce, and how
    much should they charge for their product? The two are certainly linked, but the pricing decision is generally
    more complicated and drives the production decision. In basic economics, price is determined by the
    intersection of supply and demand, with price (P) determined on output determined by marginal revenue (MR)
    equals marginal cost (MC). A pricing strategy given earlier in the course is to set price such that the following
    equation holds:

    In practice, however, pricing strategies often deviate from this standard theory. Sometimes, for example, firms
    have multiple products and this affects their pricing strategies. A firm might want to lower prices to sell more
    of a product, but if the increase in sales in one product simply comes from “stealing” sales from another of
    their products, then this is not really a net gain to the company. Also, owning more brands in a market gives
    the firm more market power, which means raising prices is more profitable. A potential problem with raising
    prices based on newfound market power is that it could attract the attention of the Antitrust Division of the
    Justice Department.

    The question is what to do strategically. A profit improving approach would be to raise the price on whichever
    product has a lower profit margin. With the lower margin product now being relatively more expensive,
    consumers will be more likely to purchase the higher profit margin.

    The preceding strategy is based on the goods being substitutes. If a single producer yields two products that
    are complements, then the profit maximizing action is to reduce the price on both products. By reducing the

    UNIT V STUDY GUIDE
    Pricing and Greater Profit

    ECO 6301, Economics for Managers 2

    UNIT x STUDY GUIDE
    Title

    price, the producer increases quantity demanded for one good, but as a result, increases demand for the
    other good. Increasing sales of both products increases total profit.

    Another pricing situation of interest is when producers have fixed capacity (think a cruise ship or concert). In
    these cases, lowering prices to sell more product does not necessarily work because there might not be the
    ability to provide more product. The result might be a situation where MR > MC, contrary to the standard profit
    maximizing rule that MR = MC.

    Promotional pricing is another instance where firms might deviate from the standard pricing rule. Advertising
    can serve two broad goals: promote based on price or promote based on quality. The type of advertising will
    determine the appropriate price strategy. If the advertising focuses on promoting products based on price,
    demand will become more elastic, so lowering price makes sense. If the advertising focuses on promoting
    product quality, the demand will become more inelastic so raising price makes sense. This second point is
    important because price can often convey information about product quality. Promoting product quality and
    lowering price can send conflicting messages to consumers.

    Following in a similar vein of consumers inferring information about a product based on price, consumers
    sometimes have price expectations. Managing price expectations is why businesses will sometimes set a
    “suggested retail price” and then give the price of the product they are selling. The goal is to set a high price
    in the customer’s mind so that they will be happy about the lower price. You might also see producers set a
    low price but end up selling at a higher price or generating revenue some other way. Musicians might set low
    concert prices but then hold back tickets to sell themselves on the secondary market. Sports teams might set
    low prices to build up a fan base but then leverage that popularity to receive government subsidies for
    stadiums. If you would like to learn more about sports subsidies and pricing, you can read the article “Public
    Subsidies and the Location and Pricing of Sports” by Porter and Thomas.

    Price Discrimination

    Up until now, the assumption has been that firms can only charge one price to all of their customers, but
    sometimes firms can charge different prices to different customers. This is called price discrimination.
    Examples of price discrimination are matinee ticket prices for movies and discounts for seniors and military
    members.

    Several criteria must be met for firms to successfully price discriminate. There must be consumers with
    different elasticities, that is different price sensitivity, and firms must be able to identify those different
    customers (consumers with more inelastic demands pay higher prices). As part of that identification, they
    must be able to implement different prices for those customers. Finally, firms must be able to prevent resale.
    If consumers who can buy at low prices are able to turn around and sell to the consumers willing to pay a high
    price, then firms lose their ability to sell to the high price consumers.

    Price discrimination comes in three different categories. First-degree price discrimination, also called perfect
    price discrimination, is when firms are able to charge each consumer their maximum willingness to pay. Car
    sales that involve negotiation are an attempt at first-degree price discrimination. Data mining is a growing tool
    to help firms toward first-degree price discrimination.

    Second-degree price discrimination involves things like volume discounts or frequent customer cards. The
    idea is not to charge different prices to every customer but to allow customers to self-select into different price
    points for the producer to increase profit.

    Third degree price discrimination alters prices based on demographics or other group characteristics. This is
    the category of price discrimination with student or military discounts or movie theaters changing prices by
    time of day.

    Firms can use a variety of ways to identify customers based on their elasticity. Take airline tickets, for
    example. There are certain days of the week to travel when ticket prices are lower, and people can often get
    tickets at a lower price if they purchase their tickets a few weeks in advance. Why? Because airlines are
    attempting to separate the elastic buyers (vacation travelers) from the inelastic buyers (business travelers).
    Who likely plans a trip at least a few weeks in advance? Vacation travelers. Who is more likely to need a

    ECO 6301, Economics for Managers 3

    UNIT x STUDY GUIDE
    Title

    ticket on short notice? Business travelers. Who is unlikely to travel over a weekend? Business travelers. Who
    can afford to pay more for their ticket? Business travelers.

    Firms can also sell different versions of a product. Consumers with a high value for a product will likely need
    all of the bells and whistles of the product, but consumers with a low value for a product might only need the
    basic. That is why you might see a “pro” version of software or a “student” or “home” version. Sometimes,
    businesses can separate high use customers, such as printers and ink or razors and razor blades. The cost to
    buy the printer or the razor might be low, but to continue using the product requires ink or razor blades and
    those are sold at a higher markup.

    Firms can also use bundling to extract extra revenue. This strategy led to the value meals at McDonald’s or
    computers with preloaded software. Bundling increases the value of the base product, allowing producers to
    sell the product for a higher price. Customers might also be more inclined to pay a higher price for an all-
    inclusive deal than to pay small amounts to continually add features or products. A similar approach is taken
    with all-inclusive resorts and wrist bands at fairs. There is comfort in knowing that you can pay one price and
    be done with paying.

    Price discrimination sounds bad, largely because of the word discrimination, but it can be beneficial to society.
    When people hear about price discrimination, they often think of charging higher prices to certain consumers,
    but in many cases, it is about lowering prices (coupons, student discounts, matinees, etc.). Since some
    consumers can pay a lower price, that brings them into the market and allows them to benefit from the
    exchange. When looking at value to society, economists generally look at the total amount of exchange that
    occurs. How much the consumer benefits and how much the producer benefits are certainly interesting, but
    ultimately it is the amount of exchange that occurs. With price discrimination, the amount of exchange
    certainly increases, though it does come with more benefit going to producers and less going to consumers.

    Just because producers benefit at the expense of consumers does not mean consumers cannot benefit from
    price discrimination. Take Uber’s surge pricing, for example. Surge pricing is a type of price discrimination.
    People who are going to use an Uber on a busy night, such as Friday or Saturday night are going to pay more
    for an Uber. However, by charging more, Uber also attracts more Uber drivers to work on those busy nights.
    Without these additional drivers, Uber customers looking for an Uber on Friday or Saturday night would likely
    have long waits for an Uber or may not be able to get an Uber at all.

    Similarly, hotels charging higher prices during conferences, sporting events, and even natural disasters
    discourages demand and encourages consumers to be efficient in their consumption. By encouraging efficient
    consumption, there will be more rooms available for other people. Without the higher prices, more people
    would be left out. Certainly, this all works to the benefit of the producers, but it also works to the benefit of the
    consumer, and that is an important feature of price discrimination that should not be overlooked. It is another
    benefit of a free market system. Even if producers are acting in their own best interest, the benefits of those
    self-interested actions help other people.

    Reference

    Porter, P. K., & Thomas, C. R. (2010). Public subsidies and the location and pricing of sports. Southern

    Economic Journal, 76(3), 693–710.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=47776241&site=ehost-live&scope=site

    **## UnitVStudyGuide.pdf**

    ECO 6301, Economics for Managers 1

    Course Learning Outcomes for Unit V

    At the end of this unit, you should be able to:

    3. Analyze how price and output influence profit maximization under different market structures.
    3.2 Explain how market power affects different types of pricing strategies.

    4. Evaluate strategic pricing decisions.

    4.1 Explain the conditions necessary to price discriminate.

    Required Unit Resources

    Chapter 12: More Realistic and Complex Pricing (ULO 3.2)

    Chapter 13: Direct Price Discrimination (ULO 4.1)

    Chapter 14: Indirect Price Discrimination (ULO 4.1)

    Article: Public Subsidies and the Location and Pricing of Sports
    This article discusses sports subsidies and pricing by analyzing how sports teams make decisions.

    Unit Lesson

    Lesson: Pricing and Greater Profit (ULOs 3.2, 4.1)
    This lesson introduces you to the topics covered in this unit.

    Firms have to answer two important questions: How much of their product should they produce, and how
    much should they charge for their product? The two are certainly linked, but the pricing decision is generally
    more complicated and drives the production decision. In basic economics, price is determined by the
    intersection of supply and demand, with price (P) determined on output determined by marginal revenue (MR)
    equals marginal cost (MC). A pricing strategy given earlier in the course is to set price such that the following
    equation holds:

    In practice, however, pricing strategies often deviate from this standard theory. Sometimes, for example, firms
    have multiple products and this affects their pricing strategies. A firm might want to lower prices to sell more
    of a product, but if the increase in sales in one product simply comes from “stealing” sales from another of
    their products, then this is not really a net gain to the company. Also, owning more brands in a market gives
    the firm more market power, which means raising prices is more profitable. A potential problem with raising
    prices based on newfound market power is that it could attract the attention of the Antitrust Division of the
    Justice Department.

    The question is what to do strategically. A profit improving approach would be to raise the price on whichever
    product has a lower profit margin. With the lower margin product now being relatively more expensive,
    consumers will be more likely to purchase the higher profit margin.

    The preceding strategy is based on the goods being substitutes. If a single producer yields two products that
    are complements, then the profit maximizing action is to reduce the price on both products. By reducing the

    UNIT V STUDY GUIDE
    Pricing and Greater Profit

    ECO 6301, Economics for Managers 2

    UNIT x STUDY GUIDE
    Title

    price, the producer increases quantity demanded for one good, but as a result, increases demand for the
    other good. Increasing sales of both products increases total profit.

    Another pricing situation of interest is when producers have fixed capacity (think a cruise ship or concert). In
    these cases, lowering prices to sell more product does not necessarily work because there might not be the
    ability to provide more product. The result might be a situation where MR > MC, contrary to the standard profit
    maximizing rule that MR = MC.

    Promotional pricing is another instance where firms might deviate from the standard pricing rule. Advertising
    can serve two broad goals: promote based on price or promote based on quality. The type of advertising will
    determine the appropriate price strategy. If the advertising focuses on promoting products based on price,
    demand will become more elastic, so lowering price makes sense. If the advertising focuses on promoting
    product quality, the demand will become more inelastic so raising price makes sense. This second point is
    important because price can often convey information about product quality. Promoting product quality and
    lowering price can send conflicting messages to consumers.

    Following in a similar vein of consumers inferring information about a product based on price, consumers
    sometimes have price expectations. Managing price expectations is why businesses will sometimes set a
    “suggested retail price” and then give the price of the product they are selling. The goal is to set a high price
    in the customer’s mind so that they will be happy about the lower price. You might also see producers set a
    low price but end up selling at a higher price or generating revenue some other way. Musicians might set low
    concert prices but then hold back tickets to sell themselves on the secondary market. Sports teams might set
    low prices to build up a fan base but then leverage that popularity to receive government subsidies for
    stadiums. If you would like to learn more about sports subsidies and pricing, you can read the article “Public
    Subsidies and the Location and Pricing of Sports” by Porter and Thomas.

    Price Discrimination

    Up until now, the assumption has been that firms can only charge one price to all of their customers, but
    sometimes firms can charge different prices to different customers. This is called price discrimination.
    Examples of price discrimination are matinee ticket prices for movies and discounts for seniors and military
    members.

    Several criteria must be met for firms to successfully price discriminate. There must be consumers with
    different elasticities, that is different price sensitivity, and firms must be able to identify those different
    customers (consumers with more inelastic demands pay higher prices). As part of that identification, they
    must be able to implement different prices for those customers. Finally, firms must be able to prevent resale.
    If consumers who can buy at low prices are able to turn around and sell to the consumers willing to pay a high
    price, then firms lose their ability to sell to the high price consumers.

    Price discrimination comes in three different categories. First-degree price discrimination, also called perfect
    price discrimination, is when firms are able to charge each consumer their maximum willingness to pay. Car
    sales that involve negotiation are an attempt at first-degree price discrimination. Data mining is a growing tool
    to help firms toward first-degree price discrimination.

    Second-degree price discrimination involves things like volume discounts or frequent customer cards. The
    idea is not to charge different prices to every customer but to allow customers to self-select into different price
    points for the producer to increase profit.

    Third degree price discrimination alters prices based on demographics or other group characteristics. This is
    the category of price discrimination with student or military discounts or movie theaters changing prices by
    time of day.

    Firms can use a variety of ways to identify customers based on their elasticity. Take airline tickets, for
    example. There are certain days of the week to travel when ticket prices are lower, and people can often get
    tickets at a lower price if they purchase their tickets a few weeks in advance. Why? Because airlines are
    attempting to separate the elastic buyers (vacation travelers) from the inelastic buyers (business travelers).
    Who likely plans a trip at least a few weeks in advance? Vacation travelers. Who is more likely to need a

    ECO 6301, Economics for Managers 3

    UNIT x STUDY GUIDE
    Title

    ticket on short notice? Business travelers. Who is unlikely to travel over a weekend? Business travelers. Who
    can afford to pay more for their ticket? Business travelers.

    Firms can also sell different versions of a product. Consumers with a high value for a product will likely need
    all of the bells and whistles of the product, but consumers with a low value for a product might only need the
    basic. That is why you might see a “pro” version of software or a “student” or “home” version. Sometimes,
    businesses can separate high use customers, such as printers and ink or razors and razor blades. The cost to
    buy the printer or the razor might be low, but to continue using the product requires ink or razor blades and
    those are sold at a higher markup.

    Firms can also use bundling to extract extra revenue. This strategy led to the value meals at McDonald’s or
    computers with preloaded software. Bundling increases the value of the base product, allowing producers to
    sell the product for a higher price. Customers might also be more inclined to pay a higher price for an all-
    inclusive deal than to pay small amounts to continually add features or products. A similar approach is taken
    with all-inclusive resorts and wrist bands at fairs. There is comfort in knowing that you can pay one price and
    be done with paying.

    Price discrimination sounds bad, largely because of the word discrimination, but it can be beneficial to society.
    When people hear about price discrimination, they often think of charging higher prices to certain consumers,
    but in many cases, it is about lowering prices (coupons, student discounts, matinees, etc.). Since some
    consumers can pay a lower price, that brings them into the market and allows them to benefit from the
    exchange. When looking at value to society, economists generally look at the total amount of exchange that
    occurs. How much the consumer benefits and how much the producer benefits are certainly interesting, but
    ultimately it is the amount of exchange that occurs. With price discrimination, the amount of exchange
    certainly increases, though it does come with more benefit going to producers and less going to consumers.

    Just because producers benefit at the expense of consumers does not mean consumers cannot benefit from
    price discrimination. Take Uber’s surge pricing, for example. Surge pricing is a type of price discrimination.
    People who are going to use an Uber on a busy night, such as Friday or Saturday night are going to pay more
    for an Uber. However, by charging more, Uber also attracts more Uber drivers to work on those busy nights.
    Without these additional drivers, Uber customers looking for an Uber on Friday or Saturday night would likely
    have long waits for an Uber or may not be able to get an Uber at all.

    Similarly, hotels charging higher prices during conferences, sporting events, and even natural disasters
    discourages demand and encourages consumers to be efficient in their consumption. By encouraging efficient
    consumption, there will be more rooms available for other people. Without the higher prices, more people
    would be left out. Certainly, this all works to the benefit of the producers, but it also works to the benefit of the
    consumer, and that is an important feature of price discrimination that should not be overlooked. It is another
    benefit of a free market system. Even if producers are acting in their own best interest, the benefits of those
    self-interested actions help other people.

    Reference

    Porter, P. K., & Thomas, C. R. (2010). Public subsidies and the location and pricing of sports. Southern

    Economic Journal, 76(3), 693–710.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=47776241&site=ehost-live&scope=site

    **## EconomicsforManagersECO6301UnitVDiscussionBoard.docx**

    2

    Economics for Managers ECO 6301

    **Unit V DB**

    Identify a real-world example of price discrimination (preferably not one from the unit lesson), and explain which type of price discrimination it is. Next, using the good from your chosen price discrimination as an example, illustrate how the good fits the criteria necessary for successful price discrimination. Finally, discuss how the price discrimination example leads to an increase in total benefit to society. Have you ever paid a higher price for something than somebody else did? Ever pay a lower price? How did those experiences make you feel?

    Should be at least 300 words in length.

    Should include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or quoted material.

    **## UnitVStudyGuide.pdf**

    ECO 6301, Economics for Managers 1

    Course Learning Outcomes for Unit V

    At the end of this unit, you should be able to:

    3. Analyze how price and output influence profit maximization under different market structures.
    3.2 Explain how market power affects different types of pricing strategies.

    4. Evaluate strategic pricing decisions.

    4.1 Explain the conditions necessary to price discriminate.

    Required Unit Resources

    Chapter 12: More Realistic and Complex Pricing (ULO 3.2)

    Chapter 13: Direct Price Discrimination (ULO 4.1)

    Chapter 14: Indirect Price Discrimination (ULO 4.1)

    Article: Public Subsidies and the Location and Pricing of Sports
    This article discusses sports subsidies and pricing by analyzing how sports teams make decisions.

    Unit Lesson

    Lesson: Pricing and Greater Profit (ULOs 3.2, 4.1)
    This lesson introduces you to the topics covered in this unit.

    Firms have to answer two important questions: How much of their product should they produce, and how
    much should they charge for their product? The two are certainly linked, but the pricing decision is generally
    more complicated and drives the production decision. In basic economics, price is determined by the
    intersection of supply and demand, with price (P) determined on output determined by marginal revenue (MR)
    equals marginal cost (MC). A pricing strategy given earlier in the course is to set price such that the following
    equation holds:

    In practice, however, pricing strategies often deviate from this standard theory. Sometimes, for example, firms
    have multiple products and this affects their pricing strategies. A firm might want to lower prices to sell more
    of a product, but if the increase in sales in one product simply comes from “stealing” sales from another of
    their products, then this is not really a net gain to the company. Also, owning more brands in a market gives
    the firm more market power, which means raising prices is more profitable. A potential problem with raising
    prices based on newfound market power is that it could attract the attention of the Antitrust Division of the
    Justice Department.

    The question is what to do strategically. A profit improving approach would be to raise the price on whichever
    product has a lower profit margin. With the lower margin product now being relatively more expensive,
    consumers will be more likely to purchase the higher profit margin.

    The preceding strategy is based on the goods being substitutes. If a single producer yields two products that
    are complements, then the profit maximizing action is to reduce the price on both products. By reducing the

    UNIT V STUDY GUIDE
    Pricing and Greater Profit

    ECO 6301, Economics for Managers 2

    UNIT x STUDY GUIDE
    Title

    price, the producer increases quantity demanded for one good, but as a result, increases demand for the
    other good. Increasing sales of both products increases total profit.

    Another pricing situation of interest is when producers have fixed capacity (think a cruise ship or concert). In
    these cases, lowering prices to sell more product does not necessarily work because there might not be the
    ability to provide more product. The result might be a situation where MR > MC, contrary to the standard profit
    maximizing rule that MR = MC.

    Promotional pricing is another instance where firms might deviate from the standard pricing rule. Advertising
    can serve two broad goals: promote based on price or promote based on quality. The type of advertising will
    determine the appropriate price strategy. If the advertising focuses on promoting products based on price,
    demand will become more elastic, so lowering price makes sense. If the advertising focuses on promoting
    product quality, the demand will become more inelastic so raising price makes sense. This second point is
    important because price can often convey information about product quality. Promoting product quality and
    lowering price can send conflicting messages to consumers.

    Following in a similar vein of consumers inferring information about a product based on price, consumers
    sometimes have price expectations. Managing price expectations is why businesses will sometimes set a
    “suggested retail price” and then give the price of the product they are selling. The goal is to set a high price
    in the customer’s mind so that they will be happy about the lower price. You might also see producers set a
    low price but end up selling at a higher price or generating revenue some other way. Musicians might set low
    concert prices but then hold back tickets to sell themselves on the secondary market. Sports teams might set
    low prices to build up a fan base but then leverage that popularity to receive government subsidies for
    stadiums. If you would like to learn more about sports subsidies and pricing, you can read the article “Public
    Subsidies and the Location and Pricing of Sports” by Porter and Thomas.

    Price Discrimination

    Up until now, the assumption has been that firms can only charge one price to all of their customers, but
    sometimes firms can charge different prices to different customers. This is called price discrimination.
    Examples of price discrimination are matinee ticket prices for movies and discounts for seniors and military
    members.

    Several criteria must be met for firms to successfully price discriminate. There must be consumers with
    different elasticities, that is different price sensitivity, and firms must be able to identify those different
    customers (consumers with more inelastic demands pay higher prices). As part of that identification, they
    must be able to implement different prices for those customers. Finally, firms must be able to prevent resale.
    If consumers who can buy at low prices are able to turn around and sell to the consumers willing to pay a high
    price, then firms lose their ability to sell to the high price consumers.

    Price discrimination comes in three different categories. First-degree price discrimination, also called perfect
    price discrimination, is when firms are able to charge each consumer their maximum willingness to pay. Car
    sales that involve negotiation are an attempt at first-degree price discrimination. Data mining is a growing tool
    to help firms toward first-degree price discrimination.

    Second-degree price discrimination involves things like volume discounts or frequent customer cards. The
    idea is not to charge different prices to every customer but to allow customers to self-select into different price
    points for the producer to increase profit.

    Third degree price discrimination alters prices based on demographics or other group characteristics. This is
    the category of price discrimination with student or military discounts or movie theaters changing prices by
    time of day.

    Firms can use a variety of ways to identify customers based on their elasticity. Take airline tickets, for
    example. There are certain days of the week to travel when ticket prices are lower, and people can often get
    tickets at a lower price if they purchase their tickets a few weeks in advance. Why? Because airlines are
    attempting to separate the elastic buyers (vacation travelers) from the inelastic buyers (business travelers).
    Who likely plans a trip at least a few weeks in advance? Vacation travelers. Who is more likely to need a

    ECO 6301, Economics for Managers 3

    UNIT x STUDY GUIDE
    Title

    ticket on short notice? Business travelers. Who is unlikely to travel over a weekend? Business travelers. Who
    can afford to pay more for their ticket? Business travelers.

    Firms can also sell different versions of a product. Consumers with a high value for a product will likely need
    all of the bells and whistles of the product, but consumers with a low value for a product might only need the
    basic. That is why you might see a “pro” version of software or a “student” or “home” version. Sometimes,
    businesses can separate high use customers, such as printers and ink or razors and razor blades. The cost to
    buy the printer or the razor might be low, but to continue using the product requires ink or razor blades and
    those are sold at a higher markup.

    Firms can also use bundling to extract extra revenue. This strategy led to the value meals at McDonald’s or
    computers with preloaded software. Bundling increases the value of the base product, allowing producers to
    sell the product for a higher price. Customers might also be more inclined to pay a higher price for an all-
    inclusive deal than to pay small amounts to continually add features or products. A similar approach is taken
    with all-inclusive resorts and wrist bands at fairs. There is comfort in knowing that you can pay one price and
    be done with paying.

    Price discrimination sounds bad, largely because of the word discrimination, but it can be beneficial to society.
    When people hear about price discrimination, they often think of charging higher prices to certain consumers,
    but in many cases, it is about lowering prices (coupons, student discounts, matinees, etc.). Since some
    consumers can pay a lower price, that brings them into the market and allows them to benefit from the
    exchange. When looking at value to society, economists generally look at the total amount of exchange that
    occurs. How much the consumer benefits and how much the producer benefits are certainly interesting, but
    ultimately it is the amount of exchange that occurs. With price discrimination, the amount of exchange
    certainly increases, though it does come with more benefit going to producers and less going to consumers.

    Just because producers benefit at the expense of consumers does not mean consumers cannot benefit from
    price discrimination. Take Uber’s surge pricing, for example. Surge pricing is a type of price discrimination.
    People who are going to use an Uber on a busy night, such as Friday or Saturday night are going to pay more
    for an Uber. However, by charging more, Uber also attracts more Uber drivers to work on those busy nights.
    Without these additional drivers, Uber customers looking for an Uber on Friday or Saturday night would likely
    have long waits for an Uber or may not be able to get an Uber at all.

    Similarly, hotels charging higher prices during conferences, sporting events, and even natural disasters
    discourages demand and encourages consumers to be efficient in their consumption. By encouraging efficient
    consumption, there will be more rooms available for other people. Without the higher prices, more people
    would be left out. Certainly, this all works to the benefit of the producers, but it also works to the benefit of the
    consumer, and that is an important feature of price discrimination that should not be overlooked. It is another
    benefit of a free market system. Even if producers are acting in their own best interest, the benefits of those
    self-interested actions help other people.

    Reference

    Porter, P. K., & Thomas, C. R. (2010). Public subsidies and the location and pricing of sports. Southern

    Economic Journal, 76(3), 693–710.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=47776241&site=ehost-live&scope=site

    **## EconomicsforManagersECO6301UnitVDiscussionBoard.docx**

    2

    Economics for Managers ECO 6301

    **Unit V DB**

    Identify a real-world example of price discrimination (preferably not one from the unit lesson), and explain which type of price discrimination it is. Next, using the good from your chosen price discrimination as an example, illustrate how the good fits the criteria necessary for successful price discrimination. Finally, discuss how the price discrimination example leads to an increase in total benefit to society. Have you ever paid a higher price for something than somebody else did? Ever pay a lower price? How did those experiences make you feel?

    Should be at least 300 words in length.

    Should include at least one APA-formatted scholarly, professional, or textbook reference with accompanying in-text citation to support any paraphrased, summarized, or quoted material.

    **## UnitVStudyGuide.pdf**

    ECO 6301, Economics for Managers 1

    Course Learning Outcomes for Unit V

    At the end of this unit, you should be able to:

    3. Analyze how price and output influence profit maximization under different market structures.
    3.2 Explain how market power affects different types of pricing strategies.

    4. Evaluate strategic pricing decisions.

    4.1 Explain the conditions necessary to price discriminate.

    Required Unit Resources

    Chapter 12: More Realistic and Complex Pricing (ULO 3.2)

    Chapter 13: Direct Price Discrimination (ULO 4.1)

    Chapter 14: Indirect Price Discrimination (ULO 4.1)

    Article: Public Subsidies and the Location and Pricing of Sports
    This article discusses sports subsidies and pricing by analyzing how sports teams make decisions.

    Unit Lesson

    Lesson: Pricing and Greater Profit (ULOs 3.2, 4.1)
    This lesson introduces you to the topics covered in this unit.

    Firms have to answer two important questions: How much of their product should they produce, and how
    much should they charge for their product? The two are certainly linked, but the pricing decision is generally
    more complicated and drives the production decision. In basic economics, price is determined by the
    intersection of supply and demand, with price (P) determined on output determined by marginal revenue (MR)
    equals marginal cost (MC). A pricing strategy given earlier in the course is to set price such that the following
    equation holds:

    In practice, however, pricing strategies often deviate from this standard theory. Sometimes, for example, firms
    have multiple products and this affects their pricing strategies. A firm might want to lower prices to sell more
    of a product, but if the increase in sales in one product simply comes from “stealing” sales from another of
    their products, then this is not really a net gain to the company. Also, owning more brands in a market gives
    the firm more market power, which means raising prices is more profitable. A potential problem with raising
    prices based on newfound market power is that it could attract the attention of the Antitrust Division of the
    Justice Department.

    The question is what to do strategically. A profit improving approach would be to raise the price on whichever
    product has a lower profit margin. With the lower margin product now being relatively more expensive,
    consumers will be more likely to purchase the higher profit margin.

    The preceding strategy is based on the goods being substitutes. If a single producer yields two products that
    are complements, then the profit maximizing action is to reduce the price on both products. By reducing the

    UNIT V STUDY GUIDE
    Pricing and Greater Profit

    ECO 6301, Economics for Managers 2

    UNIT x STUDY GUIDE
    Title

    price, the producer increases quantity demanded for one good, but as a result, increases demand for the
    other good. Increasing sales of both products increases total profit.

    Another pricing situation of interest is when producers have fixed capacity (think a cruise ship or concert). In
    these cases, lowering prices to sell more product does not necessarily work because there might not be the
    ability to provide more product. The result might be a situation where MR > MC, contrary to the standard profit
    maximizing rule that MR = MC.

    Promotional pricing is another instance where firms might deviate from the standard pricing rule. Advertising
    can serve two broad goals: promote based on price or promote based on quality. The type of advertising will
    determine the appropriate price strategy. If the advertising focuses on promoting products based on price,
    demand will become more elastic, so lowering price makes sense. If the advertising focuses on promoting
    product quality, the demand will become more inelastic so raising price makes sense. This second point is
    important because price can often convey information about product quality. Promoting product quality and
    lowering price can send conflicting messages to consumers.

    Following in a similar vein of consumers inferring information about a product based on price, consumers
    sometimes have price expectations. Managing price expectations is why businesses will sometimes set a
    “suggested retail price” and then give the price of the product they are selling. The goal is to set a high price
    in the customer’s mind so that they will be happy about the lower price. You might also see producers set a
    low price but end up selling at a higher price or generating revenue some other way. Musicians might set low
    concert prices but then hold back tickets to sell themselves on the secondary market. Sports teams might set
    low prices to build up a fan base but then leverage that popularity to receive government subsidies for
    stadiums. If you would like to learn more about sports subsidies and pricing, you can read the article “Public
    Subsidies and the Location and Pricing of Sports” by Porter and Thomas.

    Price Discrimination

    Up until now, the assumption has been that firms can only charge one price to all of their customers, but
    sometimes firms can charge different prices to different customers. This is called price discrimination.
    Examples of price discrimination are matinee ticket prices for movies and discounts for seniors and military
    members.

    Several criteria must be met for firms to successfully price discriminate. There must be consumers with
    different elasticities, that is different price sensitivity, and firms must be able to identify those different
    customers (consumers with more inelastic demands pay higher prices). As part of that identification, they
    must be able to implement different prices for those customers. Finally, firms must be able to prevent resale.
    If consumers who can buy at low prices are able to turn around and sell to the consumers willing to pay a high
    price, then firms lose their ability to sell to the high price consumers.

    Price discrimination comes in three different categories. First-degree price discrimination, also called perfect
    price discrimination, is when firms are able to charge each consumer their maximum willingness to pay. Car
    sales that involve negotiation are an attempt at first-degree price discrimination. Data mining is a growing tool
    to help firms toward first-degree price discrimination.

    Second-degree price discrimination involves things like volume discounts or frequent customer cards. The
    idea is not to charge different prices to every customer but to allow customers to self-select into different price
    points for the producer to increase profit.

    Third degree price discrimination alters prices based on demographics or other group characteristics. This is
    the category of price discrimination with student or military discounts or movie theaters changing prices by
    time of day.

    Firms can use a variety of ways to identify customers based on their elasticity. Take airline tickets, for
    example. There are certain days of the week to travel when ticket prices are lower, and people can often get
    tickets at a lower price if they purchase their tickets a few weeks in advance. Why? Because airlines are
    attempting to separate the elastic buyers (vacation travelers) from the inelastic buyers (business travelers).
    Who likely plans a trip at least a few weeks in advance? Vacation travelers. Who is more likely to need a

    ECO 6301, Economics for Managers 3

    UNIT x STUDY GUIDE
    Title

    ticket on short notice? Business travelers. Who is unlikely to travel over a weekend? Business travelers. Who
    can afford to pay more for their ticket? Business travelers.

    Firms can also sell different versions of a product. Consumers with a high value for a product will likely need
    all of the bells and whistles of the product, but consumers with a low value for a product might only need the
    basic. That is why you might see a “pro” version of software or a “student” or “home” version. Sometimes,
    businesses can separate high use customers, such as printers and ink or razors and razor blades. The cost to
    buy the printer or the razor might be low, but to continue using the product requires ink or razor blades and
    those are sold at a higher markup.

    Firms can also use bundling to extract extra revenue. This strategy led to the value meals at McDonald’s or
    computers with preloaded software. Bundling increases the value of the base product, allowing producers to
    sell the product for a higher price. Customers might also be more inclined to pay a higher price for an all-
    inclusive deal than to pay small amounts to continually add features or products. A similar approach is taken
    with all-inclusive resorts and wrist bands at fairs. There is comfort in knowing that you can pay one price and
    be done with paying.

    Price discrimination sounds bad, largely because of the word discrimination, but it can be beneficial to society.
    When people hear about price discrimination, they often think of charging higher prices to certain consumers,
    but in many cases, it is about lowering prices (coupons, student discounts, matinees, etc.). Since some
    consumers can pay a lower price, that brings them into the market and allows them to benefit from the
    exchange. When looking at value to society, economists generally look at the total amount of exchange that
    occurs. How much the consumer benefits and how much the producer benefits are certainly interesting, but
    ultimately it is the amount of exchange that occurs. With price discrimination, the amount of exchange
    certainly increases, though it does come with more benefit going to producers and less going to consumers.

    Just because producers benefit at the expense of consumers does not mean consumers cannot benefit from
    price discrimination. Take Uber’s surge pricing, for example. Surge pricing is a type of price discrimination.
    People who are going to use an Uber on a busy night, such as Friday or Saturday night are going to pay more
    for an Uber. However, by charging more, Uber also attracts more Uber drivers to work on those busy nights.
    Without these additional drivers, Uber customers looking for an Uber on Friday or Saturday night would likely
    have long waits for an Uber or may not be able to get an Uber at all.

    Similarly, hotels charging higher prices during conferences, sporting events, and even natural disasters
    discourages demand and encourages consumers to be efficient in their consumption. By encouraging efficient
    consumption, there will be more rooms available for other people. Without the higher prices, more people
    would be left out. Certainly, this all works to the benefit of the producers, but it also works to the benefit of the
    consumer, and that is an important feature of price discrimination that should not be overlooked. It is another
    benefit of a free market system. Even if producers are acting in their own best interest, the benefits of those
    self-interested actions help other people.

    Reference

    Porter, P. K., & Thomas, C. R. (2010). Public subsidies and the location and pricing of sports. Southern

    Economic Journal, 76(3), 693–710.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=47776241&site=ehost-live&scope=site

    – 1
    – 2

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    – ## HumanManagementResourceMethodsHRM6301UnitVDB.docx

    – ## UnitVStudyGuide.pdf

    **## HumanManagementResourceMethodsHRM6301UnitVDB.docx**

    2

    Human Resources Management Methods HRM 6301

    Unit V DB

    Besides feedback during an evaluation, what other measures can you employ to facilitate employee improvement when there are noted deficiencies? Offer three options, and explain which you feel would work best, and explain why.

    Initial post to be a minimum of 500 words and at least one supporting reference.

    **## UnitVStudyGuide.pdf**

    HRM 6301, Human Resource Management Methods 1

    Course Learning Outcomes for Unit V

    Upon completion of this unit, students should be able to:

    2. Discuss the impact of employment law on an organization's policy on equal employment opportunity.
    2.1 Consider the role of equal employment opportunity laws in the performance evaluation process.

    5. Evaluate performance-based review processes.

    5.1 Explore effective employer strategies to mitigate or resolve unmet employee performance
    expectations.

    5.2 Determine an effective process to evaluate employees that includes feedback on performance
    issues and an appropriate evaluation tool.

    Required Unit Resources

    In order to access the following resources, click the links below.

    The videos, articles, and webpages below offer valuable information on the role of equal opportunity
    employment laws in the employee performance evaluation process. Additionally, they offer insight on
    employer strategies to affect employee performance expectations and offer feedback on performance issues.

    In the following videos, transcripts and closed captioning are available once you access the videos.

    Gregg Learning. (2017, January 14). HR basics: Performance management [Video]. Cielo24.

    https://c24.page/4udsdbnm4jz3fzhjj6v8m8j3ek

    HR360Inc. (2016, February 15). Tips for having difficult conversations with employees [Video]. Cielo24.

    https://c24.page/5b7k89ckpre5wjh39uc8hcxdk2

    Read the following articles and webpage.

    Andersen, S. C., & Hjortskov, M. (2016). Cognitive biases in performance evaluations. Journal of Public

    Administration Research and Theory, 26(4), 647–662.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=118092397&site=ehost-live&scope=site

    Javitch, D. (2006). Appraising employee performance. Management Services, 50(3), 19–20.

    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=23508243&site=ehost-live&scope=site

    Meinert, D. (2015, April). Reinventing reviews. HR Magazine, 60(3), 36–40, 42. https://search-proquest-

    com.libraryresources.columbiasouthern.edu/docview/1670108793?accountid=33337

    Roberts, G. E. (2002). Employee performance appraisal system participation: A technique that works. Public

    Personnel Management, 31(3), 333–342.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=8737701&site=ehost-live&scope=site

    UNIT V STUDY GUIDE
    Evaluating Employee Performance

    HRM 6301, Human Resource Management Methods 2

    UNIT x STUDY GUIDE
    Title

    Segal, J. A. (2009, February). A warning about warnings. HR Magazine, 54(2), 67–70. https://search-
    proquest-
    com.libraryresources.columbiasouthern.edu/docview/205029010/CD0CAF798C4044FCPQ/7?accoun
    tid=33337

    U.S. Equal Employment Opportunity Commission. (n.d.). Making an employment decision?

    https://www.eeoc.gov/employers/small-business/making-employment-decision

    Unit Lesson

    You asked to see documentation from any meetings where performance was discussed, and the supervisor
    said that documentation is only completed once a year (on each employee’s hiring anniversary). No other
    documentation is required until then unless there are issues and an employee is put on a performance
    improvement plan. You were not satisfied with this response, so you talked to the chief executive officer
    (CEO). Guess what? Now you need to research and evaluate the performance management process to see
    how it can be improved. You start by evaluating the importance of performance evaluations.

    Importance of Performance Evaluations

    Haigh (2018) posits that performance evaluations involve a process that uses set standards to evaluate
    employee performance over a specified time frame. Performance evaluations serve to benefit the employee,
    the supervisor, the organization as a whole, and even the organization’s stakeholders. The performance
    evaluation is very important, as this is the time when employees get formal feedback about their performance,
    and the evaluation often sets the stage to determine pay increases, bonuses, incentives, and promotional
    opportunities. Evaluations may be used to discuss career planning and to identify opportunities for an
    employee’s future growth and development.

    If there are performance concerns, disciplinary action may be taken, which may include termination. From an
    employee’s perspective, when there is a process that is managed correctly, the employee will be more
    motivated and inspired to do his or her job.

    Performance Management

    As the human resources (HR) director, you understand that performance management focuses on the
    connectedness between monitoring employee performance and developing processes to improve employee
    performance so organizational objectives can be met. The first thing to remember is employee performance
    should be evaluated. Yes, this may be time consuming, but employees should understand what is expected of
    them as well as understand how their strengths and weaknesses are being perceived and contributing to their
    performance. Expectations for future job performance as well as any changes related to job responsibilities
    should be discussed so that the employee is clear on what is required of him or her.

    Should you focus on an annual evaluation process, or should you focus on an evaluation process that
    provides ongoing, real-time feedback? Is there a way to do both? Many companies still use the annual
    struggle to remember the details and facts. Annual evaluations focus more on past behaviors while ongoing
    evaluations focus on what is currently relevant through real-time reviews (Haigh, 2018). Real-time evaluations

    HRM 6301, Human Resource Management Methods 3

    UNIT x STUDY GUIDE
    Title

    are motivating, more effective, and can positively impact an employee’s focus. They also can keep the
    employee apprised of how he or she is progressing so that there are no surprises during the annual
    evaluation. Bolden-Barrett (2018) found that performance reviews are becoming shorter and more frequent as
    they provide a more forward-thinking perspective. If there is an issue, you are not waiting to address it in an
    annual review. You are addressing it when it happens, and then you will monitor the employee’s progress in
    resolving issues. This benefits both the employee and the organization.

    According to the U.S. Equal Employment Opportunity Commission (EEOC, n.d.), helping supervisors
    understand their role and responsibilities can prevent lawsuits. The importance of applying consistent
    performance expectations cannot be understated, as you do not want to put the organization in a position of
    having potential legal problems arise from unfair treatment. Performance evaluations must be based on job
    responsibilities, and if responsibilities change, this should be clearly documented and shared with employees.
    When employees are wrongfully terminated or there is a harassment lawsuit, Guerin (n.d.) supports the
    importance of evaluating employee performance without bias or retaliation. When bias or retaliation are found,
    there could be severe legal ramifications for the organization. As an example, Haigh (2018) shared a Silicon
    study of 250 performance reviews. The study found that three-quarters of the women were criticized for their
    personalities while men were praised for their aggressive behavior. Performance evaluations should be
    consistent and without bias.

    Developing a Performance Evaluations Process and a Performance Evaluation Instrument

    After you have determined the frequency of the evaluations, the next thing you will do is to review the specific
    job description. Evaluations are job-based, not peer-based, which means that you must evaluate based on
    the employee’s performance of the job requirements vs. how he or she is doing compared to his or her peers.

    What are the knowledge, skills, and abilities (KSAs) that are documented and required to fulfil the job
    expectations? For example, if you were evaluating a director of safety, you may evaluate his or her
    contribution to accident prevention or occupational safety and health (OSH) compliance. Also, you must
    consider what competencies are required for the position. Competencies can include communication skills,
    teamwork, decision-making, multitasking, and ethical behavior.

    In determining the type of performance evaluation instrument to utilize, you need to develop and/or select one
    that is easy to use, is relevant, and is based on the employee’s job responsibilities. There are many choices,
    some of which are listed below.

    • Graphic rating scales: Evaluate performance based on characteristics on a continuum of low to high.
    • Behavior rating scales (BARS): Evaluate performance based on job behavior on a scale of

    performance.
    • Ranking: List employees, and rate them from lowest to highest based on performance.
    • Forced distribution: Rate performance based on a bell-shaped curve.
    • Narrative evaluations: Provide a written evaluation that is descriptive.
    • Management by objective: Managers and the employees develop performance goals together.

    When developing rating scales, the standards are typically expressed numerically (e.g., one to five, with five
    being the highest level of performance). Other numerical ratings may be used, but they should be consistent
    across the organization. Do not use a one-to-five scale in one department and a one-to-10 scale in another.
    Standards can also be expressed as a description, such as exceeds expectations, meets expectations, and
    does not meet expectations. Regardless of the scale used, descriptions and feedback should be provided in
    each area. A rating of five given by one supervisor may mean something different than a five given by another
    supervisor. Employees sometimes may have more than one supervisor; therefore, it is prudent to offer
    training to management and supervisors on the expectations of the performance evaluation process; this way,
    everyone is on the same page and evaluating consistently.

    Methods to Evaluate Employee Performance

    It is not uncommon for the lowest-level supervisor to evaluate an employee. Supervisors provide an
    assessment of the quality of the work being performed, as they may be the ones more familiar with an
    employee’s work. Root (2019) identified several methods, in addition to the traditional supervisor evaluation,
    that can be used during performance evaluations. These include evaluations by coworkers and 360-degree

    HRM 6301, Human Resource Management Methods 4

    UNIT x STUDY GUIDE
    Title

    evaluations. Such evaluations can have an advantage as the employee is provided with feedback from
    different stakeholders. Employees may also have the opportunity to evaluate their supervisors. Vranjes (2016)
    reported that it is also very helpful to have employees evaluate themselves; this way, the employee’s
    perspective about his or her performance is shared with the supervisor who plays an important role as an
    evaluator in the process.

    The Evaluator

    Vranjes (2016) discusses the importance of selecting the person who will review the employee. The evaluator
    should be objective and professional at all times. Evaluators should be trained as to how to conduct a
    performance evaluation meeting, what should or should not be said, and the importance of consistency
    across all evaluations. The evaluator should, whenever possible, be a direct supervisor and someone who
    understands and is familiar with the employee’s performance. The evaluator should not be a friend or a
    relative and should not be someone with a history of demonstrating bias or unfair practices. If the employee
    has ever filed a complaint or grievance against his or her supervisor or member of management, it is wise for
    another leader to be present or to conduct that employee’s evaluation. This protects both the employee and
    the organization.

    Potential Evaluator Bias

    The goal is to have an evaluation process that is consistent, fair, and unbiased. Even though best efforts can
    be made to keep the evaluation objective, it is not always possible. Knowing about the types of biases will
    allow you to develop training and development to address this.

    Recency effect: Consider the following scenario: An employee missed a deadline 2 weeks before the due
    date, which had an impact on customers. Previous to that, no deadlines had been missed. When evaluating
    the employee, the evaluator gave the employee a low score in this category because of this one incident. The
    supervisor only focused on this deadline and not others. This is an example of the recency effect.

    Pattern errors: Central tendency is a pattern exhibited by an evaluator who rates all of his or her direct
    reports as average. A strictness error is a pattern when everyone is rated on the low end of the rating scale
    (e.g., on a rating scale of one to five, all employees received all ones or twos). On the other end of the
    spectrum, you have what is called leniency error, which is where all employees receive all fives.

    Rater bias: If employees in a certain generation are rated as unreliable, then this is an example of rater bias.
    Allowing values or biases in the evaluation process is a problem. Kaplan et al. (2018) found that when the
    supervisor/evaluator exhibited rater bias, there was the increased risk for conflict between the supervisor and
    the employee. There could also be conflict and dysfunctional behavior when there are differences between a
    supervisor’s evaluation and the employee’s self-evaluation. However, it is important to note that these
    differences may not always lead to conflict.

    Halo and horn effect: If you have an employee who never misses work, is your go-to person, and is always
    willing to work extra hours, you might tend to overlook some minor performance issues. This is the halo effect,
    which is when one positive performance standard becomes the focus and primary influence on the evaluation.
    The horn effect is the opposite; this would be when an employee has a negative issue or habit (e.g., always
    late coming back from lunch, poor communication or interaction with coworkers), and the overall direction or
    tone of the evaluation is influenced and impacted as a result.

    Contrast error: Let’s say there are two different employees, and the supervisor compares and contrasts their
    performance when developing the evaluation for one of them. The evaluation and the feedback should be
    based on performance expectations and not what other employees do or do not do. This is contrast error
    bias, and it should be avoided.

    HRM 6301, Human Resource Management Methods 5

    UNIT x STUDY GUIDE
    Title

    Conducting the Evaluation

    A performance evaluation discussion should be scheduled well in advance for planning purposes and should
    allow adequate time so as not to rush through the discussion. Meeting over lunch while talking between bites
    or while walking to the parking lot are never preferable locations for the evaluation meeting. Try at all costs
    not to reschedule or postpone the evaluation, as this can create anxiety on the part of the employee. Ensure
    the evaluation is dated on the date it was actually conducted.

    A meeting should take place in a quiet and private location that allows the evaluator and employee to have an
    uninterrupted conversation. It is often helpful to suggest phones be muted and to offer a beverage to help put
    the employee at ease. Keep a pen and notepad available to take any notes needed (e.g., follow-up
    discussion, questions). The location should ideally be out of view of other employees. If possible, try to sit at a
    table as opposed to across the desk from the employee. This will often encourage more open conversation.
    Consider having another member of management (within that person’s chain of command) also attend the
    evaluation. Sometimes, having a witness present may be necessary (e.g., in the case of a negative review).
    Also, if an evaluation is between a supervisor and employee of the opposite sex, there may be circumstances
    in which you might consider having a person of the same sex as the employee in the room.

    Expectations for employee performance improvement should be discussed, as should be any warnings about
    further action that might occur if improvement is not gained. Having difficult conversations is never easy.
    Examples of performance shortcomings should be provided for any negative. More importantly, provide
    coaching, and suggest goals or remediation that the employee can use to improve his or her performance.

    Discussions during the meeting should not be one-sided. The employee should have the opportunity to
    provide feedback during the evaluation and on the evaluation form. It is important that the employee and the
    supervisor sign and date the evaluation form. If the employee refuses to do so, this should be clearly
    documented. Once the evaluation is complete, a copy should be provided to the employee, and the original
    should be placed in the employee’s official personnel file.

    Conclusion

    Now that you understand performance evaluations, your focus will shift in Unit VI to the importance of
    leadership and the impact that leaders have on motivation. As the HR director, you know this is critical since
    you have realized from your experience doing the performance evaluations that true leaders can and should
    inspire employees to reach high levels of performance.

    References

    Bolden-Barrett, V. (2018, December 14). Performance appraisals are getting shorter and more frequent. HR

    Dive. https://www.hrdive.com/news/performance-appraisals-are-getting-shorter-and-more-
    frequent/544287/

    Guerin, L. (n.d.). Avoid legal trouble when giving performance evaluation. Nolo. https://www.nolo.com/legal-

    encyclopedia/avoid-legal-trouble-when-giving-performance-evaluations.html

    Haigh. C. A. (2018, August). Rethinking the annual performance evaluation. Fire Engineering, 171(8), 41–48.

    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=tsh&AN=131636838&site=ehost-live&scope=site

    Kaplan, S. E., Petersen, M. J., & Samuels, J. A. (2018). Further evidence on negativity bias in performance

    evaluation: When does the evaluator’s perspective matter? Journal of Management Accounting
    Research, 30(1), 169–184.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=130981413&site=eds-live&scope=site

    Maslova, E. (n.d.). The badge of a glowing light bulb [Graphic]. Dreamstime.

    https://www.dreamstime.com/badge-glowing-light-bulb-original-image114704893

    HRM 6301, Human Resource Management Methods 6

    UNIT x STUDY GUIDE
    Title

    Root, G. N., III. (2019, March 8). Methods of performance evaluation. The Houston Chronicle.
    https://smallbusiness.chron.com/methods-performance-evaluation-1869.html

    Vranjes, T. (2016, February 19). Reduce the legal risks of performance reviews. Society for Human Resource

    Management.https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-
    updates/pages/reduce-the-legal-risks-of-performance-reviews.aspx

    **## UnitVStudyGuide.pdf**

    HRM 6301, Human Resource Management Methods 1

    Course Learning Outcomes for Unit V

    Upon completion of this unit, students should be able to:

    2. Discuss the impact of employment law on an organization's policy on equal employment opportunity.
    2.1 Consider the role of equal employment opportunity laws in the performance evaluation process.

    5. Evaluate performance-based review processes.

    5.1 Explore effective employer strategies to mitigate or resolve unmet employee performance
    expectations.

    5.2 Determine an effective process to evaluate employees that includes feedback on performance
    issues and an appropriate evaluation tool.

    Required Unit Resources

    In order to access the following resources, click the links below.

    The videos, articles, and webpages below offer valuable information on the role of equal opportunity
    employment laws in the employee performance evaluation process. Additionally, they offer insight on
    employer strategies to affect employee performance expectations and offer feedback on performance issues.

    In the following videos, transcripts and closed captioning are available once you access the videos.

    Gregg Learning. (2017, January 14). HR basics: Performance management [Video]. Cielo24.

    https://c24.page/4udsdbnm4jz3fzhjj6v8m8j3ek

    HR360Inc. (2016, February 15). Tips for having difficult conversations with employees [Video]. Cielo24.

    https://c24.page/5b7k89ckpre5wjh39uc8hcxdk2

    Read the following articles and webpage.

    Andersen, S. C., & Hjortskov, M. (2016). Cognitive biases in performance evaluations. Journal of Public

    Administration Research and Theory, 26(4), 647–662.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=118092397&site=ehost-live&scope=site

    Javitch, D. (2006). Appraising employee performance. Management Services, 50(3), 19–20.

    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=23508243&site=ehost-live&scope=site

    Meinert, D. (2015, April). Reinventing reviews. HR Magazine, 60(3), 36–40, 42. https://search-proquest-

    com.libraryresources.columbiasouthern.edu/docview/1670108793?accountid=33337

    Roberts, G. E. (2002). Employee performance appraisal system participation: A technique that works. Public

    Personnel Management, 31(3), 333–342.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=8737701&site=ehost-live&scope=site

    UNIT V STUDY GUIDE
    Evaluating Employee Performance

    HRM 6301, Human Resource Management Methods 2

    UNIT x STUDY GUIDE
    Title

    Segal, J. A. (2009, February). A warning about warnings. HR Magazine, 54(2), 67–70. https://search-
    proquest-
    com.libraryresources.columbiasouthern.edu/docview/205029010/CD0CAF798C4044FCPQ/7?accoun
    tid=33337

    U.S. Equal Employment Opportunity Commission. (n.d.). Making an employment decision?

    https://www.eeoc.gov/employers/small-business/making-employment-decision

    Unit Lesson

    You asked to see documentation from any meetings where performance was discussed, and the supervisor
    said that documentation is only completed once a year (on each employee’s hiring anniversary). No other
    documentation is required until then unless there are issues and an employee is put on a performance
    improvement plan. You were not satisfied with this response, so you talked to the chief executive officer
    (CEO). Guess what? Now you need to research and evaluate the performance management process to see
    how it can be improved. You start by evaluating the importance of performance evaluations.

    Importance of Performance Evaluations

    Haigh (2018) posits that performance evaluations involve a process that uses set standards to evaluate
    employee performance over a specified time frame. Performance evaluations serve to benefit the employee,
    the supervisor, the organization as a whole, and even the organization’s stakeholders. The performance
    evaluation is very important, as this is the time when employees get formal feedback about their performance,
    and the evaluation often sets the stage to determine pay increases, bonuses, incentives, and promotional
    opportunities. Evaluations may be used to discuss career planning and to identify opportunities for an
    employee’s future growth and development.

    If there are performance concerns, disciplinary action may be taken, which may include termination. From an
    employee’s perspective, when there is a process that is managed correctly, the employee will be more
    motivated and inspired to do his or her job.

    Performance Management

    As the human resources (HR) director, you understand that performance management focuses on the
    connectedness between monitoring employee performance and developing processes to improve employee
    performance so organizational objectives can be met. The first thing to remember is employee performance
    should be evaluated. Yes, this may be time consuming, but employees should understand what is expected of
    them as well as understand how their strengths and weaknesses are being perceived and contributing to their
    performance. Expectations for future job performance as well as any changes related to job responsibilities
    should be discussed so that the employee is clear on what is required of him or her.

    Should you focus on an annual evaluation process, or should you focus on an evaluation process that
    provides ongoing, real-time feedback? Is there a way to do both? Many companies still use the annual
    struggle to remember the details and facts. Annual evaluations focus more on past behaviors while ongoing
    evaluations focus on what is currently relevant through real-time reviews (Haigh, 2018). Real-time evaluations

    HRM 6301, Human Resource Management Methods 3

    UNIT x STUDY GUIDE
    Title

    are motivating, more effective, and can positively impact an employee’s focus. They also can keep the
    employee apprised of how he or she is progressing so that there are no surprises during the annual
    evaluation. Bolden-Barrett (2018) found that performance reviews are becoming shorter and more frequent as
    they provide a more forward-thinking perspective. If there is an issue, you are not waiting to address it in an
    annual review. You are addressing it when it happens, and then you will monitor the employee’s progress in
    resolving issues. This benefits both the employee and the organization.

    According to the U.S. Equal Employment Opportunity Commission (EEOC, n.d.), helping supervisors
    understand their role and responsibilities can prevent lawsuits. The importance of applying consistent
    performance expectations cannot be understated, as you do not want to put the organization in a position of
    having potential legal problems arise from unfair treatment. Performance evaluations must be based on job
    responsibilities, and if responsibilities change, this should be clearly documented and shared with employees.
    When employees are wrongfully terminated or there is a harassment lawsuit, Guerin (n.d.) supports the
    importance of evaluating employee performance without bias or retaliation. When bias or retaliation are found,
    there could be severe legal ramifications for the organization. As an example, Haigh (2018) shared a Silicon
    study of 250 performance reviews. The study found that three-quarters of the women were criticized for their
    personalities while men were praised for their aggressive behavior. Performance evaluations should be
    consistent and without bias.

    Developing a Performance Evaluations Process and a Performance Evaluation Instrument

    After you have determined the frequency of the evaluations, the next thing you will do is to review the specific
    job description. Evaluations are job-based, not peer-based, which means that you must evaluate based on
    the employee’s performance of the job requirements vs. how he or she is doing compared to his or her peers.

    What are the knowledge, skills, and abilities (KSAs) that are documented and required to fulfil the job
    expectations? For example, if you were evaluating a director of safety, you may evaluate his or her
    contribution to accident prevention or occupational safety and health (OSH) compliance. Also, you must
    consider what competencies are required for the position. Competencies can include communication skills,
    teamwork, decision-making, multitasking, and ethical behavior.

    In determining the type of performance evaluation instrument to utilize, you need to develop and/or select one
    that is easy to use, is relevant, and is based on the employee’s job responsibilities. There are many choices,
    some of which are listed below.

    • Graphic rating scales: Evaluate performance based on characteristics on a continuum of low to high.
    • Behavior rating scales (BARS): Evaluate performance based on job behavior on a scale of

    performance.
    • Ranking: List employees, and rate them from lowest to highest based on performance.
    • Forced distribution: Rate performance based on a bell-shaped curve.
    • Narrative evaluations: Provide a written evaluation that is descriptive.
    • Management by objective: Managers and the employees develop performance goals together.

    When developing rating scales, the standards are typically expressed numerically (e.g., one to five, with five
    being the highest level of performance). Other numerical ratings may be used, but they should be consistent
    across the organization. Do not use a one-to-five scale in one department and a one-to-10 scale in another.
    Standards can also be expressed as a description, such as exceeds expectations, meets expectations, and
    does not meet expectations. Regardless of the scale used, descriptions and feedback should be provided in
    each area. A rating of five given by one supervisor may mean something different than a five given by another
    supervisor. Employees sometimes may have more than one supervisor; therefore, it is prudent to offer
    training to management and supervisors on the expectations of the performance evaluation process; this way,
    everyone is on the same page and evaluating consistently.

    Methods to Evaluate Employee Performance

    It is not uncommon for the lowest-level supervisor to evaluate an employee. Supervisors provide an
    assessment of the quality of the work being performed, as they may be the ones more familiar with an
    employee’s work. Root (2019) identified several methods, in addition to the traditional supervisor evaluation,
    that can be used during performance evaluations. These include evaluations by coworkers and 360-degree

    HRM 6301, Human Resource Management Methods 4

    UNIT x STUDY GUIDE
    Title

    evaluations. Such evaluations can have an advantage as the employee is provided with feedback from
    different stakeholders. Employees may also have the opportunity to evaluate their supervisors. Vranjes (2016)
    reported that it is also very helpful to have employees evaluate themselves; this way, the employee’s
    perspective about his or her performance is shared with the supervisor who plays an important role as an
    evaluator in the process.

    The Evaluator

    Vranjes (2016) discusses the importance of selecting the person who will review the employee. The evaluator
    should be objective and professional at all times. Evaluators should be trained as to how to conduct a
    performance evaluation meeting, what should or should not be said, and the importance of consistency
    across all evaluations. The evaluator should, whenever possible, be a direct supervisor and someone who
    understands and is familiar with the employee’s performance. The evaluator should not be a friend or a
    relative and should not be someone with a history of demonstrating bias or unfair practices. If the employee
    has ever filed a complaint or grievance against his or her supervisor or member of management, it is wise for
    another leader to be present or to conduct that employee’s evaluation. This protects both the employee and
    the organization.

    Potential Evaluator Bias

    The goal is to have an evaluation process that is consistent, fair, and unbiased. Even though best efforts can
    be made to keep the evaluation objective, it is not always possible. Knowing about the types of biases will
    allow you to develop training and development to address this.

    Recency effect: Consider the following scenario: An employee missed a deadline 2 weeks before the due
    date, which had an impact on customers. Previous to that, no deadlines had been missed. When evaluating
    the employee, the evaluator gave the employee a low score in this category because of this one incident. The
    supervisor only focused on this deadline and not others. This is an example of the recency effect.

    Pattern errors: Central tendency is a pattern exhibited by an evaluator who rates all of his or her direct
    reports as average. A strictness error is a pattern when everyone is rated on the low end of the rating scale
    (e.g., on a rating scale of one to five, all employees received all ones or twos). On the other end of the
    spectrum, you have what is called leniency error, which is where all employees receive all fives.

    Rater bias: If employees in a certain generation are rated as unreliable, then this is an example of rater bias.
    Allowing values or biases in the evaluation process is a problem. Kaplan et al. (2018) found that when the
    supervisor/evaluator exhibited rater bias, there was the increased risk for conflict between the supervisor and
    the employee. There could also be conflict and dysfunctional behavior when there are differences between a
    supervisor’s evaluation and the employee’s self-evaluation. However, it is important to note that these
    differences may not always lead to conflict.

    Halo and horn effect: If you have an employee who never misses work, is your go-to person, and is always
    willing to work extra hours, you might tend to overlook some minor performance issues. This is the halo effect,
    which is when one positive performance standard becomes the focus and primary influence on the evaluation.
    The horn effect is the opposite; this would be when an employee has a negative issue or habit (e.g., always
    late coming back from lunch, poor communication or interaction with coworkers), and the overall direction or
    tone of the evaluation is influenced and impacted as a result.

    Contrast error: Let’s say there are two different employees, and the supervisor compares and contrasts their
    performance when developing the evaluation for one of them. The evaluation and the feedback should be
    based on performance expectations and not what other employees do or do not do. This is contrast error
    bias, and it should be avoided.

    HRM 6301, Human Resource Management Methods 5

    UNIT x STUDY GUIDE
    Title

    Conducting the Evaluation

    A performance evaluation discussion should be scheduled well in advance for planning purposes and should
    allow adequate time so as not to rush through the discussion. Meeting over lunch while talking between bites
    or while walking to the parking lot are never preferable locations for the evaluation meeting. Try at all costs
    not to reschedule or postpone the evaluation, as this can create anxiety on the part of the employee. Ensure
    the evaluation is dated on the date it was actually conducted.

    A meeting should take place in a quiet and private location that allows the evaluator and employee to have an
    uninterrupted conversation. It is often helpful to suggest phones be muted and to offer a beverage to help put
    the employee at ease. Keep a pen and notepad available to take any notes needed (e.g., follow-up
    discussion, questions). The location should ideally be out of view of other employees. If possible, try to sit at a
    table as opposed to across the desk from the employee. This will often encourage more open conversation.
    Consider having another member of management (within that person’s chain of command) also attend the
    evaluation. Sometimes, having a witness present may be necessary (e.g., in the case of a negative review).
    Also, if an evaluation is between a supervisor and employee of the opposite sex, there may be circumstances
    in which you might consider having a person of the same sex as the employee in the room.

    Expectations for employee performance improvement should be discussed, as should be any warnings about
    further action that might occur if improvement is not gained. Having difficult conversations is never easy.
    Examples of performance shortcomings should be provided for any negative. More importantly, provide
    coaching, and suggest goals or remediation that the employee can use to improve his or her performance.

    Discussions during the meeting should not be one-sided. The employee should have the opportunity to
    provide feedback during the evaluation and on the evaluation form. It is important that the employee and the
    supervisor sign and date the evaluation form. If the employee refuses to do so, this should be clearly
    documented. Once the evaluation is complete, a copy should be provided to the employee, and the original
    should be placed in the employee’s official personnel file.

    Conclusion

    Now that you understand performance evaluations, your focus will shift in Unit VI to the importance of
    leadership and the impact that leaders have on motivation. As the HR director, you know this is critical since
    you have realized from your experience doing the performance evaluations that true leaders can and should
    inspire employees to reach high levels of performance.

    References

    Bolden-Barrett, V. (2018, December 14). Performance appraisals are getting shorter and more frequent. HR

    Dive. https://www.hrdive.com/news/performance-appraisals-are-getting-shorter-and-more-
    frequent/544287/

    Guerin, L. (n.d.). Avoid legal trouble when giving performance evaluation. Nolo. https://www.nolo.com/legal-

    encyclopedia/avoid-legal-trouble-when-giving-performance-evaluations.html

    Haigh. C. A. (2018, August). Rethinking the annual performance evaluation. Fire Engineering, 171(8), 41–48.

    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=tsh&AN=131636838&site=ehost-live&scope=site

    Kaplan, S. E., Petersen, M. J., & Samuels, J. A. (2018). Further evidence on negativity bias in performance

    evaluation: When does the evaluator’s perspective matter? Journal of Management Accounting
    Research, 30(1), 169–184.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=130981413&site=eds-live&scope=site

    Maslova, E. (n.d.). The badge of a glowing light bulb [Graphic]. Dreamstime.

    https://www.dreamstime.com/badge-glowing-light-bulb-original-image114704893

    HRM 6301, Human Resource Management Methods 6

    UNIT x STUDY GUIDE
    Title

    Root, G. N., III. (2019, March 8). Methods of performance evaluation. The Houston Chronicle.
    https://smallbusiness.chron.com/methods-performance-evaluation-1869.html

    Vranjes, T. (2016, February 19). Reduce the legal risks of performance reviews. Society for Human Resource

    Management.https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-
    updates/pages/reduce-the-legal-risks-of-performance-reviews.aspx

    **## HumanManagementResourceMethodsHRM6301UnitVDB.docx**

    2

    Human Resources Management Methods HRM 6301

    Unit V DB

    Besides feedback during an evaluation, what other measures can you employ to facilitate employee improvement when there are noted deficiencies? Offer three options, and explain which you feel would work best, and explain why.

    Initial post to be a minimum of 500 words and at least one supporting reference.

    **## UnitVStudyGuide.pdf**

    HRM 6301, Human Resource Management Methods 1

    Course Learning Outcomes for Unit V

    Upon completion of this unit, students should be able to:

    2. Discuss the impact of employment law on an organization's policy on equal employment opportunity.
    2.1 Consider the role of equal employment opportunity laws in the performance evaluation process.

    5. Evaluate performance-based review processes.

    5.1 Explore effective employer strategies to mitigate or resolve unmet employee performance
    expectations.

    5.2 Determine an effective process to evaluate employees that includes feedback on performance
    issues and an appropriate evaluation tool.

    Required Unit Resources

    In order to access the following resources, click the links below.

    The videos, articles, and webpages below offer valuable information on the role of equal opportunity
    employment laws in the employee performance evaluation process. Additionally, they offer insight on
    employer strategies to affect employee performance expectations and offer feedback on performance issues.

    In the following videos, transcripts and closed captioning are available once you access the videos.

    Gregg Learning. (2017, January 14). HR basics: Performance management [Video]. Cielo24.

    https://c24.page/4udsdbnm4jz3fzhjj6v8m8j3ek

    HR360Inc. (2016, February 15). Tips for having difficult conversations with employees [Video]. Cielo24.

    https://c24.page/5b7k89ckpre5wjh39uc8hcxdk2

    Read the following articles and webpage.

    Andersen, S. C., & Hjortskov, M. (2016). Cognitive biases in performance evaluations. Journal of Public

    Administration Research and Theory, 26(4), 647–662.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=118092397&site=ehost-live&scope=site

    Javitch, D. (2006). Appraising employee performance. Management Services, 50(3), 19–20.

    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=23508243&site=ehost-live&scope=site

    Meinert, D. (2015, April). Reinventing reviews. HR Magazine, 60(3), 36–40, 42. https://search-proquest-

    com.libraryresources.columbiasouthern.edu/docview/1670108793?accountid=33337

    Roberts, G. E. (2002). Employee performance appraisal system participation: A technique that works. Public

    Personnel Management, 31(3), 333–342.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=8737701&site=ehost-live&scope=site

    UNIT V STUDY GUIDE
    Evaluating Employee Performance

    HRM 6301, Human Resource Management Methods 2

    UNIT x STUDY GUIDE
    Title

    Segal, J. A. (2009, February). A warning about warnings. HR Magazine, 54(2), 67–70. https://search-
    proquest-
    com.libraryresources.columbiasouthern.edu/docview/205029010/CD0CAF798C4044FCPQ/7?accoun
    tid=33337

    U.S. Equal Employment Opportunity Commission. (n.d.). Making an employment decision?

    https://www.eeoc.gov/employers/small-business/making-employment-decision

    Unit Lesson

    You asked to see documentation from any meetings where performance was discussed, and the supervisor
    said that documentation is only completed once a year (on each employee’s hiring anniversary). No other
    documentation is required until then unless there are issues and an employee is put on a performance
    improvement plan. You were not satisfied with this response, so you talked to the chief executive officer
    (CEO). Guess what? Now you need to research and evaluate the performance management process to see
    how it can be improved. You start by evaluating the importance of performance evaluations.

    Importance of Performance Evaluations

    Haigh (2018) posits that performance evaluations involve a process that uses set standards to evaluate
    employee performance over a specified time frame. Performance evaluations serve to benefit the employee,
    the supervisor, the organization as a whole, and even the organization’s stakeholders. The performance
    evaluation is very important, as this is the time when employees get formal feedback about their performance,
    and the evaluation often sets the stage to determine pay increases, bonuses, incentives, and promotional
    opportunities. Evaluations may be used to discuss career planning and to identify opportunities for an
    employee’s future growth and development.

    If there are performance concerns, disciplinary action may be taken, which may include termination. From an
    employee’s perspective, when there is a process that is managed correctly, the employee will be more
    motivated and inspired to do his or her job.

    Performance Management

    As the human resources (HR) director, you understand that performance management focuses on the
    connectedness between monitoring employee performance and developing processes to improve employee
    performance so organizational objectives can be met. The first thing to remember is employee performance
    should be evaluated. Yes, this may be time consuming, but employees should understand what is expected of
    them as well as understand how their strengths and weaknesses are being perceived and contributing to their
    performance. Expectations for future job performance as well as any changes related to job responsibilities
    should be discussed so that the employee is clear on what is required of him or her.

    Should you focus on an annual evaluation process, or should you focus on an evaluation process that
    provides ongoing, real-time feedback? Is there a way to do both? Many companies still use the annual
    struggle to remember the details and facts. Annual evaluations focus more on past behaviors while ongoing
    evaluations focus on what is currently relevant through real-time reviews (Haigh, 2018). Real-time evaluations

    HRM 6301, Human Resource Management Methods 3

    UNIT x STUDY GUIDE
    Title

    are motivating, more effective, and can positively impact an employee’s focus. They also can keep the
    employee apprised of how he or she is progressing so that there are no surprises during the annual
    evaluation. Bolden-Barrett (2018) found that performance reviews are becoming shorter and more frequent as
    they provide a more forward-thinking perspective. If there is an issue, you are not waiting to address it in an
    annual review. You are addressing it when it happens, and then you will monitor the employee’s progress in
    resolving issues. This benefits both the employee and the organization.

    According to the U.S. Equal Employment Opportunity Commission (EEOC, n.d.), helping supervisors
    understand their role and responsibilities can prevent lawsuits. The importance of applying consistent
    performance expectations cannot be understated, as you do not want to put the organization in a position of
    having potential legal problems arise from unfair treatment. Performance evaluations must be based on job
    responsibilities, and if responsibilities change, this should be clearly documented and shared with employees.
    When employees are wrongfully terminated or there is a harassment lawsuit, Guerin (n.d.) supports the
    importance of evaluating employee performance without bias or retaliation. When bias or retaliation are found,
    there could be severe legal ramifications for the organization. As an example, Haigh (2018) shared a Silicon
    study of 250 performance reviews. The study found that three-quarters of the women were criticized for their
    personalities while men were praised for their aggressive behavior. Performance evaluations should be
    consistent and without bias.

    Developing a Performance Evaluations Process and a Performance Evaluation Instrument

    After you have determined the frequency of the evaluations, the next thing you will do is to review the specific
    job description. Evaluations are job-based, not peer-based, which means that you must evaluate based on
    the employee’s performance of the job requirements vs. how he or she is doing compared to his or her peers.

    What are the knowledge, skills, and abilities (KSAs) that are documented and required to fulfil the job
    expectations? For example, if you were evaluating a director of safety, you may evaluate his or her
    contribution to accident prevention or occupational safety and health (OSH) compliance. Also, you must
    consider what competencies are required for the position. Competencies can include communication skills,
    teamwork, decision-making, multitasking, and ethical behavior.

    In determining the type of performance evaluation instrument to utilize, you need to develop and/or select one
    that is easy to use, is relevant, and is based on the employee’s job responsibilities. There are many choices,
    some of which are listed below.

    • Graphic rating scales: Evaluate performance based on characteristics on a continuum of low to high.
    • Behavior rating scales (BARS): Evaluate performance based on job behavior on a scale of

    performance.
    • Ranking: List employees, and rate them from lowest to highest based on performance.
    • Forced distribution: Rate performance based on a bell-shaped curve.
    • Narrative evaluations: Provide a written evaluation that is descriptive.
    • Management by objective: Managers and the employees develop performance goals together.

    When developing rating scales, the standards are typically expressed numerically (e.g., one to five, with five
    being the highest level of performance). Other numerical ratings may be used, but they should be consistent
    across the organization. Do not use a one-to-five scale in one department and a one-to-10 scale in another.
    Standards can also be expressed as a description, such as exceeds expectations, meets expectations, and
    does not meet expectations. Regardless of the scale used, descriptions and feedback should be provided in
    each area. A rating of five given by one supervisor may mean something different than a five given by another
    supervisor. Employees sometimes may have more than one supervisor; therefore, it is prudent to offer
    training to management and supervisors on the expectations of the performance evaluation process; this way,
    everyone is on the same page and evaluating consistently.

    Methods to Evaluate Employee Performance

    It is not uncommon for the lowest-level supervisor to evaluate an employee. Supervisors provide an
    assessment of the quality of the work being performed, as they may be the ones more familiar with an
    employee’s work. Root (2019) identified several methods, in addition to the traditional supervisor evaluation,
    that can be used during performance evaluations. These include evaluations by coworkers and 360-degree

    HRM 6301, Human Resource Management Methods 4

    UNIT x STUDY GUIDE
    Title

    evaluations. Such evaluations can have an advantage as the employee is provided with feedback from
    different stakeholders. Employees may also have the opportunity to evaluate their supervisors. Vranjes (2016)
    reported that it is also very helpful to have employees evaluate themselves; this way, the employee’s
    perspective about his or her performance is shared with the supervisor who plays an important role as an
    evaluator in the process.

    The Evaluator

    Vranjes (2016) discusses the importance of selecting the person who will review the employee. The evaluator
    should be objective and professional at all times. Evaluators should be trained as to how to conduct a
    performance evaluation meeting, what should or should not be said, and the importance of consistency
    across all evaluations. The evaluator should, whenever possible, be a direct supervisor and someone who
    understands and is familiar with the employee’s performance. The evaluator should not be a friend or a
    relative and should not be someone with a history of demonstrating bias or unfair practices. If the employee
    has ever filed a complaint or grievance against his or her supervisor or member of management, it is wise for
    another leader to be present or to conduct that employee’s evaluation. This protects both the employee and
    the organization.

    Potential Evaluator Bias

    The goal is to have an evaluation process that is consistent, fair, and unbiased. Even though best efforts can
    be made to keep the evaluation objective, it is not always possible. Knowing about the types of biases will
    allow you to develop training and development to address this.

    Recency effect: Consider the following scenario: An employee missed a deadline 2 weeks before the due
    date, which had an impact on customers. Previous to that, no deadlines had been missed. When evaluating
    the employee, the evaluator gave the employee a low score in this category because of this one incident. The
    supervisor only focused on this deadline and not others. This is an example of the recency effect.

    Pattern errors: Central tendency is a pattern exhibited by an evaluator who rates all of his or her direct
    reports as average. A strictness error is a pattern when everyone is rated on the low end of the rating scale
    (e.g., on a rating scale of one to five, all employees received all ones or twos). On the other end of the
    spectrum, you have what is called leniency error, which is where all employees receive all fives.

    Rater bias: If employees in a certain generation are rated as unreliable, then this is an example of rater bias.
    Allowing values or biases in the evaluation process is a problem. Kaplan et al. (2018) found that when the
    supervisor/evaluator exhibited rater bias, there was the increased risk for conflict between the supervisor and
    the employee. There could also be conflict and dysfunctional behavior when there are differences between a
    supervisor’s evaluation and the employee’s self-evaluation. However, it is important to note that these
    differences may not always lead to conflict.

    Halo and horn effect: If you have an employee who never misses work, is your go-to person, and is always
    willing to work extra hours, you might tend to overlook some minor performance issues. This is the halo effect,
    which is when one positive performance standard becomes the focus and primary influence on the evaluation.
    The horn effect is the opposite; this would be when an employee has a negative issue or habit (e.g., always
    late coming back from lunch, poor communication or interaction with coworkers), and the overall direction or
    tone of the evaluation is influenced and impacted as a result.

    Contrast error: Let’s say there are two different employees, and the supervisor compares and contrasts their
    performance when developing the evaluation for one of them. The evaluation and the feedback should be
    based on performance expectations and not what other employees do or do not do. This is contrast error
    bias, and it should be avoided.

    HRM 6301, Human Resource Management Methods 5

    UNIT x STUDY GUIDE
    Title

    Conducting the Evaluation

    A performance evaluation discussion should be scheduled well in advance for planning purposes and should
    allow adequate time so as not to rush through the discussion. Meeting over lunch while talking between bites
    or while walking to the parking lot are never preferable locations for the evaluation meeting. Try at all costs
    not to reschedule or postpone the evaluation, as this can create anxiety on the part of the employee. Ensure
    the evaluation is dated on the date it was actually conducted.

    A meeting should take place in a quiet and private location that allows the evaluator and employee to have an
    uninterrupted conversation. It is often helpful to suggest phones be muted and to offer a beverage to help put
    the employee at ease. Keep a pen and notepad available to take any notes needed (e.g., follow-up
    discussion, questions). The location should ideally be out of view of other employees. If possible, try to sit at a
    table as opposed to across the desk from the employee. This will often encourage more open conversation.
    Consider having another member of management (within that person’s chain of command) also attend the
    evaluation. Sometimes, having a witness present may be necessary (e.g., in the case of a negative review).
    Also, if an evaluation is between a supervisor and employee of the opposite sex, there may be circumstances
    in which you might consider having a person of the same sex as the employee in the room.

    Expectations for employee performance improvement should be discussed, as should be any warnings about
    further action that might occur if improvement is not gained. Having difficult conversations is never easy.
    Examples of performance shortcomings should be provided for any negative. More importantly, provide
    coaching, and suggest goals or remediation that the employee can use to improve his or her performance.

    Discussions during the meeting should not be one-sided. The employee should have the opportunity to
    provide feedback during the evaluation and on the evaluation form. It is important that the employee and the
    supervisor sign and date the evaluation form. If the employee refuses to do so, this should be clearly
    documented. Once the evaluation is complete, a copy should be provided to the employee, and the original
    should be placed in the employee’s official personnel file.

    Conclusion

    Now that you understand performance evaluations, your focus will shift in Unit VI to the importance of
    leadership and the impact that leaders have on motivation. As the HR director, you know this is critical since
    you have realized from your experience doing the performance evaluations that true leaders can and should
    inspire employees to reach high levels of performance.

    References

    Bolden-Barrett, V. (2018, December 14). Performance appraisals are getting shorter and more frequent. HR

    Dive. https://www.hrdive.com/news/performance-appraisals-are-getting-shorter-and-more-
    frequent/544287/

    Guerin, L. (n.d.). Avoid legal trouble when giving performance evaluation. Nolo. https://www.nolo.com/legal-

    encyclopedia/avoid-legal-trouble-when-giving-performance-evaluations.html

    Haigh. C. A. (2018, August). Rethinking the annual performance evaluation. Fire Engineering, 171(8), 41–48.

    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=tsh&AN=131636838&site=ehost-live&scope=site

    Kaplan, S. E., Petersen, M. J., & Samuels, J. A. (2018). Further evidence on negativity bias in performance

    evaluation: When does the evaluator’s perspective matter? Journal of Management Accounting
    Research, 30(1), 169–184.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=130981413&site=eds-live&scope=site

    Maslova, E. (n.d.). The badge of a glowing light bulb [Graphic]. Dreamstime.

    https://www.dreamstime.com/badge-glowing-light-bulb-original-image114704893

    HRM 6301, Human Resource Management Methods 6

    UNIT x STUDY GUIDE
    Title

    Root, G. N., III. (2019, March 8). Methods of performance evaluation. The Houston Chronicle.
    https://smallbusiness.chron.com/methods-performance-evaluation-1869.html

    Vranjes, T. (2016, February 19). Reduce the legal risks of performance reviews. Society for Human Resource

    Management.https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-
    updates/pages/reduce-the-legal-risks-of-performance-reviews.aspx

    **## HumanManagementResourceMethodsHRM6301UnitVDB.docx**

    2

    Human Resources Management Methods HRM 6301

    Unit V DB

    Besides feedback during an evaluation, what other measures can you employ to facilitate employee improvement when there are noted deficiencies? Offer three options, and explain which you feel would work best, and explain why.

    Initial post to be a minimum of 500 words and at least one supporting reference.

    **## UnitVStudyGuide.pdf**

    HRM 6301, Human Resource Management Methods 1

    Course Learning Outcomes for Unit V

    Upon completion of this unit, students should be able to:

    2. Discuss the impact of employment law on an organization's policy on equal employment opportunity.
    2.1 Consider the role of equal employment opportunity laws in the performance evaluation process.

    5. Evaluate performance-based review processes.

    5.1 Explore effective employer strategies to mitigate or resolve unmet employee performance
    expectations.

    5.2 Determine an effective process to evaluate employees that includes feedback on performance
    issues and an appropriate evaluation tool.

    Required Unit Resources

    In order to access the following resources, click the links below.

    The videos, articles, and webpages below offer valuable information on the role of equal opportunity
    employment laws in the employee performance evaluation process. Additionally, they offer insight on
    employer strategies to affect employee performance expectations and offer feedback on performance issues.

    In the following videos, transcripts and closed captioning are available once you access the videos.

    Gregg Learning. (2017, January 14). HR basics: Performance management [Video]. Cielo24.

    https://c24.page/4udsdbnm4jz3fzhjj6v8m8j3ek

    HR360Inc. (2016, February 15). Tips for having difficult conversations with employees [Video]. Cielo24.

    https://c24.page/5b7k89ckpre5wjh39uc8hcxdk2

    Read the following articles and webpage.

    Andersen, S. C., & Hjortskov, M. (2016). Cognitive biases in performance evaluations. Journal of Public

    Administration Research and Theory, 26(4), 647–662.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=118092397&site=ehost-live&scope=site

    Javitch, D. (2006). Appraising employee performance. Management Services, 50(3), 19–20.

    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=23508243&site=ehost-live&scope=site

    Meinert, D. (2015, April). Reinventing reviews. HR Magazine, 60(3), 36–40, 42. https://search-proquest-

    com.libraryresources.columbiasouthern.edu/docview/1670108793?accountid=33337

    Roberts, G. E. (2002). Employee performance appraisal system participation: A technique that works. Public

    Personnel Management, 31(3), 333–342.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=8737701&site=ehost-live&scope=site

    UNIT V STUDY GUIDE
    Evaluating Employee Performance

    HRM 6301, Human Resource Management Methods 2

    UNIT x STUDY GUIDE
    Title

    Segal, J. A. (2009, February). A warning about warnings. HR Magazine, 54(2), 67–70. https://search-
    proquest-
    com.libraryresources.columbiasouthern.edu/docview/205029010/CD0CAF798C4044FCPQ/7?accoun
    tid=33337

    U.S. Equal Employment Opportunity Commission. (n.d.). Making an employment decision?

    https://www.eeoc.gov/employers/small-business/making-employment-decision

    Unit Lesson

    You asked to see documentation from any meetings where performance was discussed, and the supervisor
    said that documentation is only completed once a year (on each employee’s hiring anniversary). No other
    documentation is required until then unless there are issues and an employee is put on a performance
    improvement plan. You were not satisfied with this response, so you talked to the chief executive officer
    (CEO). Guess what? Now you need to research and evaluate the performance management process to see
    how it can be improved. You start by evaluating the importance of performance evaluations.

    Importance of Performance Evaluations

    Haigh (2018) posits that performance evaluations involve a process that uses set standards to evaluate
    employee performance over a specified time frame. Performance evaluations serve to benefit the employee,
    the supervisor, the organization as a whole, and even the organization’s stakeholders. The performance
    evaluation is very important, as this is the time when employees get formal feedback about their performance,
    and the evaluation often sets the stage to determine pay increases, bonuses, incentives, and promotional
    opportunities. Evaluations may be used to discuss career planning and to identify opportunities for an
    employee’s future growth and development.

    If there are performance concerns, disciplinary action may be taken, which may include termination. From an
    employee’s perspective, when there is a process that is managed correctly, the employee will be more
    motivated and inspired to do his or her job.

    Performance Management

    As the human resources (HR) director, you understand that performance management focuses on the
    connectedness between monitoring employee performance and developing processes to improve employee
    performance so organizational objectives can be met. The first thing to remember is employee performance
    should be evaluated. Yes, this may be time consuming, but employees should understand what is expected of
    them as well as understand how their strengths and weaknesses are being perceived and contributing to their
    performance. Expectations for future job performance as well as any changes related to job responsibilities
    should be discussed so that the employee is clear on what is required of him or her.

    Should you focus on an annual evaluation process, or should you focus on an evaluation process that
    provides ongoing, real-time feedback? Is there a way to do both? Many companies still use the annual
    struggle to remember the details and facts. Annual evaluations focus more on past behaviors while ongoing
    evaluations focus on what is currently relevant through real-time reviews (Haigh, 2018). Real-time evaluations

    HRM 6301, Human Resource Management Methods 3

    UNIT x STUDY GUIDE
    Title

    are motivating, more effective, and can positively impact an employee’s focus. They also can keep the
    employee apprised of how he or she is progressing so that there are no surprises during the annual
    evaluation. Bolden-Barrett (2018) found that performance reviews are becoming shorter and more frequent as
    they provide a more forward-thinking perspective. If there is an issue, you are not waiting to address it in an
    annual review. You are addressing it when it happens, and then you will monitor the employee’s progress in
    resolving issues. This benefits both the employee and the organization.

    According to the U.S. Equal Employment Opportunity Commission (EEOC, n.d.), helping supervisors
    understand their role and responsibilities can prevent lawsuits. The importance of applying consistent
    performance expectations cannot be understated, as you do not want to put the organization in a position of
    having potential legal problems arise from unfair treatment. Performance evaluations must be based on job
    responsibilities, and if responsibilities change, this should be clearly documented and shared with employees.
    When employees are wrongfully terminated or there is a harassment lawsuit, Guerin (n.d.) supports the
    importance of evaluating employee performance without bias or retaliation. When bias or retaliation are found,
    there could be severe legal ramifications for the organization. As an example, Haigh (2018) shared a Silicon
    study of 250 performance reviews. The study found that three-quarters of the women were criticized for their
    personalities while men were praised for their aggressive behavior. Performance evaluations should be
    consistent and without bias.

    Developing a Performance Evaluations Process and a Performance Evaluation Instrument

    After you have determined the frequency of the evaluations, the next thing you will do is to review the specific
    job description. Evaluations are job-based, not peer-based, which means that you must evaluate based on
    the employee’s performance of the job requirements vs. how he or she is doing compared to his or her peers.

    What are the knowledge, skills, and abilities (KSAs) that are documented and required to fulfil the job
    expectations? For example, if you were evaluating a director of safety, you may evaluate his or her
    contribution to accident prevention or occupational safety and health (OSH) compliance. Also, you must
    consider what competencies are required for the position. Competencies can include communication skills,
    teamwork, decision-making, multitasking, and ethical behavior.

    In determining the type of performance evaluation instrument to utilize, you need to develop and/or select one
    that is easy to use, is relevant, and is based on the employee’s job responsibilities. There are many choices,
    some of which are listed below.

    • Graphic rating scales: Evaluate performance based on characteristics on a continuum of low to high.
    • Behavior rating scales (BARS): Evaluate performance based on job behavior on a scale of

    performance.
    • Ranking: List employees, and rate them from lowest to highest based on performance.
    • Forced distribution: Rate performance based on a bell-shaped curve.
    • Narrative evaluations: Provide a written evaluation that is descriptive.
    • Management by objective: Managers and the employees develop performance goals together.

    When developing rating scales, the standards are typically expressed numerically (e.g., one to five, with five
    being the highest level of performance). Other numerical ratings may be used, but they should be consistent
    across the organization. Do not use a one-to-five scale in one department and a one-to-10 scale in another.
    Standards can also be expressed as a description, such as exceeds expectations, meets expectations, and
    does not meet expectations. Regardless of the scale used, descriptions and feedback should be provided in
    each area. A rating of five given by one supervisor may mean something different than a five given by another
    supervisor. Employees sometimes may have more than one supervisor; therefore, it is prudent to offer
    training to management and supervisors on the expectations of the performance evaluation process; this way,
    everyone is on the same page and evaluating consistently.

    Methods to Evaluate Employee Performance

    It is not uncommon for the lowest-level supervisor to evaluate an employee. Supervisors provide an
    assessment of the quality of the work being performed, as they may be the ones more familiar with an
    employee’s work. Root (2019) identified several methods, in addition to the traditional supervisor evaluation,
    that can be used during performance evaluations. These include evaluations by coworkers and 360-degree

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    evaluations. Such evaluations can have an advantage as the employee is provided with feedback from
    different stakeholders. Employees may also have the opportunity to evaluate their supervisors. Vranjes (2016)
    reported that it is also very helpful to have employees evaluate themselves; this way, the employee’s
    perspective about his or her performance is shared with the supervisor who plays an important role as an
    evaluator in the process.

    The Evaluator

    Vranjes (2016) discusses the importance of selecting the person who will review the employee. The evaluator
    should be objective and professional at all times. Evaluators should be trained as to how to conduct a
    performance evaluation meeting, what should or should not be said, and the importance of consistency
    across all evaluations. The evaluator should, whenever possible, be a direct supervisor and someone who
    understands and is familiar with the employee’s performance. The evaluator should not be a friend or a
    relative and should not be someone with a history of demonstrating bias or unfair practices. If the employee
    has ever filed a complaint or grievance against his or her supervisor or member of management, it is wise for
    another leader to be present or to conduct that employee’s evaluation. This protects both the employee and
    the organization.

    Potential Evaluator Bias

    The goal is to have an evaluation process that is consistent, fair, and unbiased. Even though best efforts can
    be made to keep the evaluation objective, it is not always possible. Knowing about the types of biases will
    allow you to develop training and development to address this.

    Recency effect: Consider the following scenario: An employee missed a deadline 2 weeks before the due
    date, which had an impact on customers. Previous to that, no deadlines had been missed. When evaluating
    the employee, the evaluator gave the employee a low score in this category because of this one incident. The
    supervisor only focused on this deadline and not others. This is an example of the recency effect.

    Pattern errors: Central tendency is a pattern exhibited by an evaluator who rates all of his or her direct
    reports as average. A strictness error is a pattern when everyone is rated on the low end of the rating scale
    (e.g., on a rating scale of one to five, all employees received all ones or twos). On the other end of the
    spectrum, you have what is called leniency error, which is where all employees receive all fives.

    Rater bias: If employees in a certain generation are rated as unreliable, then this is an example of rater bias.
    Allowing values or biases in the evaluation process is a problem. Kaplan et al. (2018) found that when the
    supervisor/evaluator exhibited rater bias, there was the increased risk for conflict between the supervisor and
    the employee. There could also be conflict and dysfunctional behavior when there are differences between a
    supervisor’s evaluation and the employee’s self-evaluation. However, it is important to note that these
    differences may not always lead to conflict.

    Halo and horn effect: If you have an employee who never misses work, is your go-to person, and is always
    willing to work extra hours, you might tend to overlook some minor performance issues. This is the halo effect,
    which is when one positive performance standard becomes the focus and primary influence on the evaluation.
    The horn effect is the opposite; this would be when an employee has a negative issue or habit (e.g., always
    late coming back from lunch, poor communication or interaction with coworkers), and the overall direction or
    tone of the evaluation is influenced and impacted as a result.

    Contrast error: Let’s say there are two different employees, and the supervisor compares and contrasts their
    performance when developing the evaluation for one of them. The evaluation and the feedback should be
    based on performance expectations and not what other employees do or do not do. This is contrast error
    bias, and it should be avoided.

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    Conducting the Evaluation

    A performance evaluation discussion should be scheduled well in advance for planning purposes and should
    allow adequate time so as not to rush through the discussion. Meeting over lunch while talking between bites
    or while walking to the parking lot are never preferable locations for the evaluation meeting. Try at all costs
    not to reschedule or postpone the evaluation, as this can create anxiety on the part of the employee. Ensure
    the evaluation is dated on the date it was actually conducted.

    A meeting should take place in a quiet and private location that allows the evaluator and employee to have an
    uninterrupted conversation. It is often helpful to suggest phones be muted and to offer a beverage to help put
    the employee at ease. Keep a pen and notepad available to take any notes needed (e.g., follow-up
    discussion, questions). The location should ideally be out of view of other employees. If possible, try to sit at a
    table as opposed to across the desk from the employee. This will often encourage more open conversation.
    Consider having another member of management (within that person’s chain of command) also attend the
    evaluation. Sometimes, having a witness present may be necessary (e.g., in the case of a negative review).
    Also, if an evaluation is between a supervisor and employee of the opposite sex, there may be circumstances
    in which you might consider having a person of the same sex as the employee in the room.

    Expectations for employee performance improvement should be discussed, as should be any warnings about
    further action that might occur if improvement is not gained. Having difficult conversations is never easy.
    Examples of performance shortcomings should be provided for any negative. More importantly, provide
    coaching, and suggest goals or remediation that the employee can use to improve his or her performance.

    Discussions during the meeting should not be one-sided. The employee should have the opportunity to
    provide feedback during the evaluation and on the evaluation form. It is important that the employee and the
    supervisor sign and date the evaluation form. If the employee refuses to do so, this should be clearly
    documented. Once the evaluation is complete, a copy should be provided to the employee, and the original
    should be placed in the employee’s official personnel file.

    Conclusion

    Now that you understand performance evaluations, your focus will shift in Unit VI to the importance of
    leadership and the impact that leaders have on motivation. As the HR director, you know this is critical since
    you have realized from your experience doing the performance evaluations that true leaders can and should
    inspire employees to reach high levels of performance.

    References

    Bolden-Barrett, V. (2018, December 14). Performance appraisals are getting shorter and more frequent. HR

    Dive. https://www.hrdive.com/news/performance-appraisals-are-getting-shorter-and-more-
    frequent/544287/

    Guerin, L. (n.d.). Avoid legal trouble when giving performance evaluation. Nolo. https://www.nolo.com/legal-

    encyclopedia/avoid-legal-trouble-when-giving-performance-evaluations.html

    Haigh. C. A. (2018, August). Rethinking the annual performance evaluation. Fire Engineering, 171(8), 41–48.

    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=tsh&AN=131636838&site=ehost-live&scope=site

    Kaplan, S. E., Petersen, M. J., & Samuels, J. A. (2018). Further evidence on negativity bias in performance

    evaluation: When does the evaluator’s perspective matter? Journal of Management Accounting
    Research, 30(1), 169–184.
    https://libraryresources.columbiasouthern.edu/login?url=http://search.ebscohost.com/login.aspx?direc
    t=true&db=bsu&AN=130981413&site=eds-live&scope=site

    Maslova, E. (n.d.). The badge of a glowing light bulb [Graphic]. Dreamstime.

    https://www.dreamstime.com/badge-glowing-light-bulb-original-image114704893

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    Root, G. N., III. (2019, March 8). Methods of performance evaluation. The Houston Chronicle.
    https://smallbusiness.chron.com/methods-performance-evaluation-1869.html

    Vranjes, T. (2016, February 19). Reduce the legal risks of performance reviews. Society for Human Resource

    Management.https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-
    updates/pages/reduce-the-legal-risks-of-performance-reviews.aspx

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