ftoc.indd xii 18/02/12 4:38 PM

ftoc.indd xiiftoc.indd xii 18/02/12 4:38 PM18/02/12 4:38 PM

About Volume One

Why Is This Volume Important?

Volume One focuses on the multiple defi nitional terms related to the comprehensive func-

tioning of human resource management (HRM). From a more strategic sense, the introduction

section of this volume attempts to anchor these defi nitions in a common purpose related to

overall talent management—an important challenge facing organizations today. Therefore,

this volume is important in that it brings a current defi nitional perspective of incremental

HRM, yet seeks to apply them to a more progressive agenda of required business partnership

for HR professionals. While not inclusive of all of the accepted defi nitional terms related to

the practice of HRM, this volume provides a vast array of articles on updated and insightful

topics for the benefi cial use of modern-day HR professionals.

What Can You Achieve with This Volume?

The articles presented in Volume One were written to give readers a comprehensive perspec-

tive on the scope of today’s HR terminology and practices. Some of the terms that are defi ned

provide an in-depth focus of topics long-practiced in HRM, while others attempt to provide

a current defi nition for approaching a familiar practice. In all situations, they have been

designed to stimulate new thinking and knowledge in the reader.

How Is the Volume Organized?

Following a compelling introduction concerning effective talent management challenges

faced by modern HR professionals, the terms described in this volume are presented in alpha-

betical order. Each author begins with generally accepted defi nitions of the topic and brings

forth recent research for updating the scope of the topic and summarizes with a new and

progressive defi nition of the important term in the fi eld.

ffirs.indd iffirs.indd i 18/02/12 4:08 PM18/02/12 4:08 PM

About Pfeiffer Pfeiffer serves the professional development and hands-on resource needs of

training and human resource practitioners and gives them products to do their

jobs better. We deliver proven ideas and solutions from experts in HR devel-

opment and HR management, and we offer effective and customizable tools

to improve workplace performance. From novice to seasoned professional,

Pfeiffer is the source you can trust to make yourself and your organization

more successful.

Essential Knowledge Pfeiffer produces insightful, practical, and

comprehensive materials on topics that matter the most to training

and HR professionals. Our Essential Knowledge resources translate the expertise

of seasoned professionals into practical, how-to guidance on critical workplace

issues and problems. These resources are supported by case studies, worksheets,

and job aids and are frequently supplemented with CD-ROMs, websites, and

other means of making the content easier to read, understand, and use.

Essential Tools Pfeiffer’s Essential Tools resources save time and

expense by offering proven, ready-to-use materials—including exercises,

activities, games, instruments, and assessments—for use during a training

or team-learning event. These resources are frequently offered in looseleaf or

CD-ROM format to facilitate copying and customization of the material.

Pfeiffer also recognizes the remarkable power of new technologies in

expanding the reach and effectiveness of training. While e-hype has often

created whizbang solutions in search of a problem, we are dedicated to

bringing convenience and enhancements to proven training solutions. All our

e-tools comply with rigorous functionality standards. The most appropriate

technology wrapped around essential content yields the perfect solution for

today’s on-the-go trainers and human resource professionals.

Essential resources for training and HR professionalsw w w. p f e i f f e r . c o m

ffirs.indd iiffirs.indd ii 18/02/12 4:08 PM18/02/12 4:08 PM

THE ENCYCLOPEDIA OF HUMAN RESOURCE MANAGEMENT

Short Entries

VOLUME ONE

Executive EditorWilliam J. Rothwell, Ph.D., SPHR

Volume One EditorRobert K. Prescott, Ph.D., SPHR

Y

ffirs.indd iiiffirs.indd iii 18/02/12 4:08 PM18/02/12 4:08 PM

Copyright © 2012 by John Wiley & Sons, Inc. All Rights Reserved.

Published by Pfeiffer An Imprint of Wiley One Montgomery Street, Suite 1200, San Francisco, CA 94104-4594 www.pfeiffer.com

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifi cally disclaim any implied warranties of merchantability or fi tness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profi t or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Readers should be aware that Internet websites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.

For additional copies/bulk purchases of this book in the U.S. please contact 800-274-4434.

Pfeiffer books and products are available through most bookstores. To contact Pfeiffer directly call our Customer Care Department within the U.S. at 800-274-4434, outside the U.S. at 317-572-3985, fax 317-572-4002, or visit www.pfeiffer.com.

Pfeiffer publishes in a variety of print and electronic formats and by print-on-demand. Some material included with standard print versions of this book may not be included in e-books or in print-on-demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-in-Publication Data

The encyclopedia of human resource management / executive editor, William J. Rothwell. p. cm. Includes bibliographical references and index. ISBN 978-0-470-25773-9 (v. 1)—ISBN 978-0-470-25772-2 (v. 2)—ISBN 978-0-470-25771-5 (v. 3) — ISBN 978-0-470-59134-5 (set) 1. Personnel management—Encyclopedias. I. Rothwell, William J., 1951– HF5549.A23E53 2012 658.3003—dc23

2011043163

Acquiring Editor: Matthew DavisDirector of Development: Kathleen Dolan DaviesProduction Editor: Dawn KilgoreEditor: Rebecca TaffEditorial Assistant: Michael ZelenkoManufacturing Supervisor: Becky Morgan

Printed in the United States of AmericaHB Printing 10 9 8 7 6 5 4 3 2 1PB Printing 10 9 8 7 6 5 4 3 2 1

ffirs.indd ivffirs.indd iv 18/02/12 4:08 PM18/02/12 4:08 PM

v

CONTENTS

Introduction to Volume One xiii

Robert K. Prescott

1. The Evolving Practice of Talent Management 1

Brian E. Wilkerson

2. Multi-Rater (360-Degree) Feedback Instruments 7

Curtis D. Curry

3. Action Learning 13

Yongho Park

4. Age Discrimination in Employment Act of 1967 (ADEA) 17

Katy Lynn Wilson

5. Adverse Impact 24

Kyle E. Brink

6. Affi rmative Action 30

Wanda M. Costen

ftoc.indd vftoc.indd v 18/02/12 4:38 PM18/02/12 4:38 PM

vi Contents

7. Affi rmative Action Plans 35

M. Edward Krow

8. Appreciative Inquiry 42

Michele L. Newhard

9. Assessment 50

Mimi Hull

10. Background Investigation 57

Toni Arnold

11. Behavior Modeling 62

Yeonsoo Kim

12. Employee Benefi ts 68

Dawn Denniston Peterson

13. Burnout 75

Michele L. Newhard

14. Business Ethics 83

Thomas J. Horvath

15. Campus Recruiting 90

Erin G. Howarth

16. Career Development 98

Judy Y. Sun, Greg G. Wang

17. Change Management 103

Greg G. Wang, Judy Y. Sun

18. Child and Elder Care 107

Danielle Tavernier Spears

19. Civil Rights Acts 112

Emily R. Wilkins

20. Civil Rights Act of 1991 118

John M. Bagyi, Wendy S. Becker

ftoc.indd viftoc.indd vi 18/02/12 4:38 PM18/02/12 4:38 PM

Contents vii

21. Consolidated Omnibus Budget Reconciliation Act (COBRA) 123

Dawn M. Fleming

22. Collective Bargaining 127

William B. Werner

23. Comparable Worth 131

Wanda M. Costen

24. Compensation 136

Danielle Marie Bologna

25. Corporate University 143

Yongho Park

26. Crisis Management 147

Nellie J. Brown, Nancy J. Lampen

27. Corporate Social Responsibility 153

Philip H. Mirvis

28. Culture 160

Ken Hultman

29. Disciplinary Procedures 165

Wanda M. Costen

30. Drug Tests 169

Brandon Bruce Vargo

31. Employee Wellness Programs 174

Steven N. Waller, Lebron P. Moten

32. Employment-at-Will 180

Judith Kish Ruud, Wendy S. Becker

33. Employee Relations 186

Andrea Burns

ftoc.indd viiftoc.indd vii 18/02/12 4:38 PM18/02/12 4:38 PM

viii Contents

34. Equal Pay Act of 1963 191

Emily R. Wilkins

35. Executive Compensation 197

Traci M. Pauley

36. Executive Education 203

Gerri Hura

37. Executive Order 11246 209

Deborah Kaplan-Wyckoff

38. Executive Search Firms 213

John D. Piccolo

39. Flexible Benefi ts 217

Maurie Caitlin Kelly

40. Fair Labor Standards Act of 1938 222

Deborah Kaplan-Wyckoff

41. Glass Ceilings 227

Yongho Park

42. Global Supply Chain Management for HR 231

Martin K. Starr

43. Global Teams 239

Tracy H. Porter, Sharon E. Norris

44. Grievance 243

William B. Werner

45. Guilds 247

Maurie Caitlan Kelly

46. HR Metrics and Analytics 252

Donald P. Rogers

47. Human Resources Compliance 258

Peter M. Wald, Marcus Winterfeldt

ftoc.indd viiiftoc.indd viii 18/02/12 4:38 PM18/02/12 4:38 PM

Contents ix

48. Human Resource Strategy 264

Laura A. Mindek

49. Mergers and Acquisitions 270

Jim Bowles

50. Human Resource Management 275

Donald P. Rogers

51. Internships 279

Jennifer Belinda DeSormoux

52. Job Analysis 284

Katy Lynn Wilson

53. Job Design 288

Sharon E. Norris, Tracy H. Porter

54. Job Satisfaction 292

Wanda M. Costen

55. Leadership Development 296

Robert K. Prescott, Keri Laine Williamson

56. Learning and Development 302

Karen L. Milheim

57. Leisure Counseling 305

Steven N. Waller

58. Loyalty 310

Andrea Burns

59. Merit Pay 314

Karen McMillen Dielmann

60. National Labor Relations Act 317

Cory Smith

61. National Labor Relations Board 321

William B. Werner

ftoc.indd ixftoc.indd ix 18/02/12 4:38 PM18/02/12 4:38 PM

x Contents

62. Negligent Hiring 324

David Washington

63. New Employee Orientation 327

Jim Bowles

64. Ombuds 331

John Dolan

65. Organizational Citizenship 336

Victoria Derderian

66. Outsourcing 341

Ashley Snyder

67. Pay Grades 346

Karen McMillen Dielmann

68. Performance Aids 348

Robert D. Jackson

69. Performance Management 353

D. Renee Tanner

70. Progressive Discipline 359

Wanda M. Costen

71. Project Management 363

Lynda Carter, Gerri Hura

72. Quality Circles 370

Eric Bergstrom

73. Recreation Programs 373

Steven N. Waller, Ni-Eric D. Perkins

74. Recruitment and Selection 379

Wanda M. Costen

75. Self-Directed Work Teams 388

Wendy S. Becker

ftoc.indd xftoc.indd x 18/02/12 4:38 PM18/02/12 4:38 PM

Contents xi

76. Social Responsibility 395

Peggy B. Fayfi ch

77. Strategic Human Resource Management 403

Donald P. Rogers

78. Succession Planning and Management 410

Lori A. Johnson-Vegas, Kathleen E. Wolfhope

79. Training Needs Analysis 417

William J. Rothwell

80. Virtual Teams 421

Wendy L. Bedwell, Eduardo Salas

81. Work Values 426

Agata Dulnik

82. Work/Family Balance 432

Michele L. Newhard

83. Workplace Chaplaincy 443

Steven N. Waller

84. Wrongful Discharge 448

David Washington

Contributors 453

Subject Index 473

Name Index 487

ftoc.indd xiftoc.indd xi 18/02/12 4:38 PM18/02/12 4:38 PM

ftoc.indd xiiftoc.indd xii 18/02/12 4:38 PM18/02/12 4:38 PM

xiii

INTRODUCTION TO VOLUME ONE

This volume of The Encyclopedia of Human Resource Management consists of approximately eighty-four defi nitional papers that discuss myriad topics in

a specifi c, yet comprehensive, approach of the body of knowledge related to human resource management (HRM).

Readers of this volume will fi nd in-depth research and discussions of specifi c topics related to HRM. However, we should not become myopic in the study of these defi nitions that we lose site of the bigger picture. All of what comes together (defi nitions included) to become a comprehensive body of knowledge of HRM should drive forward an agenda of progress for organizations that implement such practices.

It is my opinion that “talent management” is the proverbial “stake in the ground” around which all modern HRM action creates the greatest impact for organizations. Thus, the fi rst article serves as a beacon of direction in moving HR practices from a designated point toward a better educated sense of destination—and as a worthy introduction for this volume of work.

Dr. Robert K. Prescott, SPHREditor, Volume One

September 2011

cintro.indd xiiicintro.indd xiii 18/02/12 8:25 AM18/02/12 8:25 AM

cintro.indd xivcintro.indd xiv 18/02/12 8:25 AM18/02/12 8:25 AM

1

YARTICLE 1

THE EVOLVING PRACTICE OF TALENT MANAGEMENT

Brian E. Wilkerson

Companies that rely on traditional talent management approaches will fi nd themselves at an increasing disadvantage in the years ahead. The winners

will be those that replace traditional talent management tactics with an integrated strategy owned by line management and focused on the elements that will truly give them an advantage.

Integrated talent management, which encompasses recruiting, succession planning, performance management, compensation, career development, learning, and strategic workforce planning, enhances an enterprise’s ability to attract and retain top talent. Bringing all these disciplines together into a cohesive strategy requires a signifi cant investment of resources. The payback, however, in terms of lower turnover, higher engagement, and greater fi nancial success, makes the investment worthwhile.

Organizations are struggling with how to reframe their attraction and retention strategies to adapt to the shortage of skilled workers, a changing economy, and the new technologies required to keep pace. Today’s businesses are struggling to manage a complex workforce that encompasses three generations of work-ers with differing needs and motivations and an increasingly global employee and customer base. Fragmented and disjointed talent management programs are making this process diffi cult.

c01.indd 1c01.indd 1 18/02/12 8:15 AM18/02/12 8:15 AM

2 The Encyclopedia of Human Resource Management: Volume One

Recruiting, succession planning, performance management, compensation, career development, learning, and strategic workforce planning are often handled as separate functions—sometimes by separate groups that often don’t effectively collaborate or coordinate their efforts. Compounding their efforts are a highly uncertain economy where companies are often experiencing simultaneous surplus and scarcity when it comes to talent and increasingly limited funds to invest in the practice of talent management.

Integrating talent management programs and other related initiatives allows a company to view workforce decisions in a strategic way and positions it for greater fi nancial success.

Integrated Talent Management

Integrated talent management addresses managing human capital with the same clarity, discipline, and objectivity as managing other critical business assets. Research conducted while I was at Watson Wyatt Worldwide shows the elements that com-prise a comprehensive, integrated strategy (Wilkerson, 2009). But just as important as connecting these elements together is connecting them to the business.

In 2007, we examined more than 150 talent management projects to deter-mine what made companies successful at deploying integrated strategies. The major fi nding was that, while successful talent management is facilitated by the HR staff, it is owned by line managers and executives. It is part of each manager’s responsibilities and receives continual attention. This can happen, however, only when talent management processes align with the culture and values that drive how people in the organization make decisions and take action.

For example, no matter how thorough a succession planning process is, it will fail if managers pick up the phone and call an executive search fi rm as soon as a key player resigns. The point of succession planning is to have options already in place. Often succession plans are solely focused on compliance. Managers and HR staff respond to a CEO mandate by “fi lling in the boxes” to show a successor for all key positions. Little, if any, analysis or discussion occurs regarding the ripple effect of moving a particular person into a new position or the development needs of that individual, and often many people are identifi ed as successors for more than one position. Such plans do not address the organization’s strengths and gaps, nor do they refl ect a disciplined understanding of future needs. Integrated talent management aligns with the way the business works. Rather than forcing compliance from managers, it is embraced by managers because they see it as valuable to achieving their business results. This study showed that achieving this requires simple but powerful processes, where the effort put in is clearly aligned with the value received.

c01.indd 2c01.indd 2 18/02/12 8:15 AM18/02/12 8:15 AM

The Evolving Practice of Talent Management 3

A truly integrated talent management process integrates talent decisions with business decisions. The distinction between connected processes and integrated processes is an important one here. In most organizations, talent management processes have varying degrees of connection to the business. That doesn’t mean they are integrated. Returning to the succession planning example, many orga-nizations have talent review processes that call for discussing high-potential lead-ers and potential replacements and generally include a business context. Yet the talent planning discussion is disconnected from the business planning discussion.

In companies in which talent management is truly integrated, the succession discussion is part of the business discussion and talent reviews are part of business reviews. Discussion of future talent requirements is a natural outgrowth of a discus-sion about business direction, products, markets, and other issues. Throughout this book, you will fi nd numerous defi nitions of key human resources concepts and infor-mation on practices employed by various companies. It is key to blend the elements that fi t your culture and organization strategy into an integrated set of processes and practices that matches your needs. Rather than simply adopting what someone else terms as best practices, you have to create a synthesis of these concepts that speaks to your organization and can become part of how your management team manages.

Preparing Managers for a New Role

The current workforce challenges demand new thinking about talent management. This new thinking requires managers to develop new skills, including spotting good talent, coaching and growing their people, and connecting business planning skills with talent planning. Successful companies help their managers develop these skills to handle the people component of their jobs more effectively.

Managers play a critical role in integrated talent management, balancing the needs of the employer with those of the employee while representing the interests of both sides. To succeed, managers need a clear understanding of employee goals and expectations. Moreover, they need HR policies, processes, and tools to help them meet employees’ widely varying needs.

Establishing Talent Management Processes

Effective talent management processes integrate readily into the natural processes that drive the business. They take into account the managers’ work styles and busy work schedules. They ensure a high degree of communication from senior leaders down to individual employees. Clear communication establishes a clear line of sight and helps shape behavior.

c01.indd 3c01.indd 3 18/02/12 8:15 AM18/02/12 8:15 AM

4 The Encyclopedia of Human Resource Management: Volume One

For example, in most organizations, performance management really means performance appraisal. In contrast, integrated talent management closely links performance management with business management. One large service company has integrated its performance management process with its business reviews. Each business unit reviews its results and the contributions of its staff monthly, including the capabilities, skills, work processes, tools, and motivation that staff members need to improve their results. These reviews enable manag-ers to provide real-time guidance to employees about improving performance, as well as real-time recognition for their contributions. Managers hold a brief conversation with each employee immediately following business reviews to give more specifi c feedback on performance. Generally, managers use notes from these conversations to make a more formal performance appraisal at year end. Both employees and managers see the process as easier, more valuable, and more closely connected to driving business results.

In the current business environment, integration also requires focus. Gone are the days of trying to establish “best in class” practices across all areas of talent management. Companies need to focus on the areas of talent management that will have the most impact on their business and where investments will bring the most return. In my own work, I have seen companies returning to a much more pragmatic approach to talent management and to integrating these processes with business strategy.

Achieving Integration

Companies that successfully integrate all their talent management processes and integrate talent management with the business strategy have a number of elements in common. First, they can clearly articulate how people contribute to the business strategy in terms that managers understand and can act on. Organizations with effective talent management also identify a clear set of objec-tives that are agreed to at the most senior levels and communicated throughout the organization.

Increasingly, companies are using brand as the link between people and strat-egy. Efforts around aligning internal (employment) with external (customer) brand go well beyond simply making the links between employee experience and cus-tomer experience. With brand alignment, companies are explicitly linking their employment brand and resultant employee value proposition to their customer brand and recognizing that employees are critical to delivering the brand promise to customers. To ensure that employees deliver on the external brand promise, employers must deliver on their employment brand promise. Managers are once

c01.indd 4c01.indd 4 18/02/12 8:15 AM18/02/12 8:15 AM

The Evolving Practice of Talent Management 5

again the critical link in this chain. Managers need to drive the right behaviors and have the right tools and processes to manage their people.

As a next step in the integration process, successful organizations defi ne the decisions they are able to make to meet the talent management objectives, focusing on those that are most important and clearly tied to the business strategy. For example, in a consumer products company focused on new prod-ucts, the key decisions focused on rewarding innovation, identifying the best innovators, and ensuring they were committed and engaged. These were then translated into data required to make the best decisions, and processes and tools were designed to effectively gather the data and translate it into action-able information.

A final element to success was driving accountability for talent man-agement throughout the organization. Accountability takes different forms depending on the company, but includes holding leaders accountable for exe-cuting agreed-on processes and using them to make talent decisions. It also includes holding leaders to standards such as leadership competency mod-els and ensuring that leaders either demonstrate those competencies or have plans for developing them.

While the integration process poses signifi cant challenges, all successful com-panies fi nd that integration is key to gaining manager and employee acceptance and to unlocking measurable results. Integration allows managers to see how to make talent management work in their day-to-day jobs instead of viewing it as some annual HR program. Once enough managers have adopted the processes, the programs, as measured by the key metrics the companies have chosen, begin to show improvement.

Conclusion

Research shows that companies with integrated talent management strategies do a better job of attracting and retaining top talent and, as a result, benefi t from lower turnover and higher engagement levels than their peers. As talent manage-ment evolves in a changing economy, these companies are positioned to capture and maintain a leadership role in their respective industries. Most importantly, however, talent management strategies and processes must be aligned with the business strategy and owned by line managers and executives. In successful com-panies, HR is the facilitator and the business is the driver of successful talent management.

These companies will continue to distinguish themselves by creating a strong employment brand that clearly defi nes and communicates expectations,

c01.indd 5c01.indd 5 18/02/12 8:15 AM18/02/12 8:15 AM

6 The Encyclopedia of Human Resource Management: Volume One

outcomes, and rewards. They will create a partnership between HR and business managers, leveraging the skills and expertise of each to make integrated talent management a reality. Through this partnership, they will strengthen employee engagement and encourage behaviors that drive business success.

Reference

Wilkerson, B.E. (2009). Five rules for talent management in the new economy. www.towerswatson.com/research-and-ideas.

c01.indd 6c01.indd 6 18/02/12 8:15 AM18/02/12 8:15 AM

7

YARTICLE 2

MULTI-RATER (360-DEGREE) FEEDBACK INSTRUMENTS

Curtis D. Curry

Multi-rater feedback, more commonly known as 360-degree feedback, is often used by organizations to help their managers identify leadership

strengths and development areas. Multi-rater feedback instruments are designed to solicit feedback on a number of characteristics, skills, and behaviors believed to represent effective management, teamwork, or leadership practices. Examples of competencies include decision making, initiative, communication, and delegation.

There are many applications for multi-rater feedback. Common uses include assisting in career development, identifying gaps in perception of effective leader-ship performance between self, leader, peers, and direct reports, and enhancing manager and employee self-awareness. They are also used for improving com-munication and enhancing organizational efforts to involve employees. Using multi-rater feedback for these purposes can encourage behaviors and attitudes that reinforce the organization’s values and the strategic focus, while serving as a vehicle to promote the continuous growth and development of its leaders.

The primary purpose of multi-rater feedback is to provide an individual with extensive feedback on his or her skills, knowledge, or performance from a group of individual raters who are familiar with his or her work. The raters generally include the individual’s employees, peers, and supervisor. This “360-degree” view helps people understand relative strengths and developmental areas both as they

c02.indd 7c02.indd 7 18/02/12 8:25 AM18/02/12 8:25 AM

8 The Encyclopedia of Human Resource Management: Volume One

perceives them and as others who have been selected to participate in the process perceive them.

The process allows leaders to compare and contrast their view of their own effectiveness with the views of supervisors, peers, and employees. Such feedback helps the participant explore the concept “perception is reality” and determine how closely aligned the other individual perceptions are with his own. Chappelow (1998) summarizes the purpose of multi-rater feedback: “a structured method of collecting and processing data, and an opportunity to refl ect on this valuable information. It may be the only time some leaders ever consciously stop to take stock of their performance effectiveness” (p. 35).

How Does It Work?

Multi-rater feedback surveys contain a number of questions, or items, that solicit feedback on the other person’s performance. The items are grouped under specifi c scales, which usually represent competency areas such as those mentioned above.

In implementing 360-degree programs, organizations choose individuals who will participate in the process. These participants complete the survey instrument and rate themselves on such topics as leadership effectiveness, typically respond-ing to items on a scale. They evaluate their performance on each of the items that appear on the specifi c survey. Additionally, the organization or the individual chooses raters from a pool of those who are familiar with the his or her work. The raters are asked to complete the instrument, responding to the same items, and providing valuable feedback on the individual’s performance.

Most 360-degree assessments require a minimum of three raters from each peer and employee rater group. This is done in an effort to achieve anonymity. Research has shown that this is an important practice since raters will generally score an individual higher if anonymity is not guaranteed (Chappelow, 1998). One of the primary values of 360-degree feedback is the ability of the person being evaluated to consider many different perspectives on his or her perfor-mance. By guaranteeing anonymity, the person is more likely to receive con-structive feedback. This is especially true for subordinates and peers, as most 360-degree feedback instruments do not guarantee anonymity for the supervisor of the individual being rated.

The superiors’ and supervisor’s ratings are generally not anonymous, because people who are requesting the feedback are encouraged to discuss their feedback with their supervisors. Moreover, it is most common for people who complete a survey to have only one supervisor, although in matrix organizations feedback from several supervisors is not uncommon.

c02.indd 8c02.indd 8 18/02/12 8:25 AM18/02/12 8:25 AM

Multi-Rater (360-Degree) Feedback Instruments 9

Confi dentiality is an important consideration in implementing 360-degree feedback programs. When the focus of 360-degree assessment is placed on lead-ership development and confi dentiality of results is assured, what Chappelow has called a “shield of objectivity” is created (1998). This “shield of objectivity” increases the validity of the responses. While participants in 360-degree survey programs are encouraged to share general trends in their feedback with their supervisors, when coupled with anonymity of respondents, the “shield of objectivity” helps participants receive more accurate, and therefore more useful feedback.

Participating in a multi-rater feedback process gives an individual the oppor-tunity to carefully consider perceptions of his or her strengths and potential developmental areas on a number of competencies, seen as critical for effective performance. Therefore, the person also has an opportunity to compare his or her self-perceptions with those of peers, direct reports, and managers on the very same competencies. This enables him or her to weigh the various perceptions, identify relative strengths and developmental areas, choose gaps in current behav-iors and skills, and consider strategies to leverage existing strengths or develop new skills to bridge the gaps. This is accomplished through goal setting and action planning. Multi-rater feedback has extremely limited value if the participant does not put the information to work.

Pitfalls with 360-Degree Feedback

In addition to leadership development, other uses of multi-rater feedback include selection, promotion, and performance evaluation. Uses other than development are referred to as administrative uses. Practitioners and researchers alike (Chappelow 1998; Smither, London, & Reilly, 2005) advise against using multi-rater feedback for purposes other than leadership development. Smither, London, & Reilly (2005) note that such use may create a “prevention focus” that can lead participants to a reactive, avoiding-type goal orientation (p. 53). Using multi-rater feedback for administrative purposes also increases rater bias as indi-viduals strive to avoid torpedoing the career of the person they are evaluating and rate people more leniently (Chappelow, 1998). In their excellent book on choosing multi-rater feedback instruments, Velsor, Leslie, and Fleenor (1997) also argue that 360-degree feedback instruments should be used only in the context of development: “An individual or organization planning to use an instrument of this sort for selection, promotion, pay, or performance purposes is in treacherous territory and will need to become aware of the relevant professional standards (SIOP, 1987) and government guidelines (Mohrman, Resnick-West, & Lawler, 1990), which are not covered in this report” (p. 18).

c02.indd 9c02.indd 9 18/02/12 8:25 AM18/02/12 8:25 AM

10 The Encyclopedia of Human Resource Management: Volume One

Another pitfall in using 360-degree feedback tools effectively includes not carefully selecting the right instrument for the organization’s needs. One instrument is unlikely to fi ll all an organization’s needs with different management groups and levels. Instruments should be chosen with the actual behaviors, knowledge, and skills of the specifi c target group in mind.

Finally, the instrument’s validity and reliability should also be taken into account. Does the instrument measure accurately the behaviors it purports to provide feedback on? How reliably or consistently does it do so? Some surveys, such as the Center for Creative Leadership’s Benchmarks, are developed using rigorous validation procedures. Other 360-degree surveys are created by consul-tants or human resources professionals within the organization. Typically, these surveys are customized to address specifi c behaviors that the organization views as critical to its success in the marketplace. While they offer customization and specifi c targeting of leadership competencies, such instruments often suffer from inferior validity and reliability. If 360-degree feedback surveys are not carefully designed and validated to measure target competencies, the feedback may be marginally useful at best. Velsor, Leslie, and Fleenor (1997) offers a step-by-step guide to choosing the appropriate 360-degree feedback instrument to meet an organization’s specifi c needs.

Best Practices in Using 360-Degree Feedback

When utilized in the context of leadership development, 360-degree has been shown to improve performance, as well as serve as a catalyst to behavioral changes (Bradley, Allen, Hamilton, & Filgo, 2006; Chappelow 1998; Green, 2002; Smither, London, & Reilly, 2005). While multi-rater feedback can help leaders iden-tify strengths and developmental areas and increase their self-awareness, there are a number of practices that can further increase its value to an organization. The fol-lowing are the top eight best practices for implementing a 360-degree feedback effort:

1. Clearly communicate the purpose of using 360-degree assessment to par-ticipants and their leaders before, during, and after the program. The focus should be on development rather than evaluation.

2. Use trained facilitators who demonstrate a command of both the 360-degree process, and the specifi c instrument and its target competencies, to present the results.

3. Consider combining the 360-degree feedback process with training to increase self-awareness of strengths and developmental areas. A management devel-opment workshop can be an ideal vehicle for presenting an overview of the

c02.indd 10c02.indd 10 18/02/12 8:25 AM18/02/12 8:25 AM

Multi-Rater (360-Degree) Feedback Instruments 11

360-degree process, describing the instrument and how it is designed and scored, and delivering the feedback results.

4. Make sure participants create a development plan based on the feedback with SMART (specifi c, measurable, attainable, relevant, and time-bound) goals. Many 360-degree instruments include developmental guides or workbooks that provide a step-by-step process for setting and achieving developmental goals. These generally feature developmental activities such as on-the-job assignments, other developmental assignments, and training.

5. Encourage participants to share the feedback with their leaders, peers, and employees. At a minimum, participants should be encouraged to thank their raters for taking time to complete the instruments and to indicate that they will be using the feedback to continue developing their skills and abilities. Leaders also may wish to meet with their employees, sharing general areas scored as strengths, as well as general areas the leader has chosen to continue to develop as a result of their feedback. The participant should also meet one-on-one with his or her leader to discuss the general areas of strengths and potential developmental areas.

6. Organizations should maintain peer and employee confi dentiality to ensure the integrity of the process.

7. The organization should use multiple administrations to provide feedback on participants’ improvement in areas targeted for development.

8. Individual coaching can increase the value of 360-degree interventions. A skilled coach who is knowledgeable in the instrument can provide additional interpretive feedback that the participant may miss, as well as assistance in setting and achieving developmental goals.

Supervisor, employee, and especially peer, feedback has been shown to help individual participants improve their performance when combined with other development efforts such as those outlined above.

References

Bradley, T., Allen, J., Hamilton, S., & Filgo, S. (2006). Leadership perception: Analysis of 360-degree feedback. Performance Improvement Quarterly, 19(1), 7–33.

Chappelow, C.D. (1998). 360-degree feedback. In C.D. McCauley, R. Moxley, & E. Van Velsor (Eds.), The handbook for leadership development. San Francisco: Jossey-Bass.

Green, B. (2002). Listening to leaders: Feedback on 360-degree feedback one year later. Organizational Development Journal, 20(1), 8–16.

Mohrman, A.M., Jr., Resnick-West, S.M., & Lawler, E., III (1990). Designing performance appraisal systems. San Francisco: Jossey-Bass.

c02.indd 11c02.indd 11 18/02/12 8:25 AM18/02/12 8:25 AM

12 The Encyclopedia of Human Resource Management: Volume One

Rogers, E., Rogers, C., & Metlay, W. (2002). Improving the payoff from 360-degree feedback. Human Resource Planning, 25(3), 44–54.

Smither, J., London, M., & Reilly, R.R. (2005). Does performance improve following multisource feedback? A theoretical model, meta-analysis, and review of empirical fi ndings. Personnel Psycholog y, 58, 33–66.

Tyson, S., & Ward, P. (2004). The use of 360-degree feedback technique in the evaluation of management development. Management Learning, 35(2), 205–223.

Velsor, E.V., Leslie, J., & Fleenor, J. (1997). Choosing 360: A guide to evaluating multi-rater feedback instruments for management development. Greensboro, NC: Center for Creative Leadership.

c02.indd 12c02.indd 12 18/02/12 8:25 AM18/02/12 8:25 AM

13

YARTICLE 3

ACTION LEARNING

Yongho Park

In a modern competitive environment, organizations must be prepared to face various challenges, including fi nding new business opportunities, solving prob-

lems, establishing a shared vision of the future, and working toward achieving goals. Also, individuals have developmental needs to enhance their skills and knowledge. One method for coping with these two different needs can be action learning. Action learning is a real-time learning experience that is carried out with two equally important purposes—meeting an organizational need and developing group or individuals (Rothwell, 1999). Since its inception, action learning has infl uenced businesspeople, teachers, students, scientists, and a wide range of others with its approach to various level of learning including organizational, team, and individual (Waddill, Banks, & Marsh, 2010).

The term “action learning” has been defi ned very differently by various people, and many different training and learning interventions have been labeled with this term during the last two decades. The founder of action learning, Reg Revans (1982), defi ned action learning as “a means of development, intellectual, emotional, or physical, that requires its subjects, through responsible involvement in some real, complex, and stressful problem, to achieve intended change to improve observable behavior henceforth in the problem fi eld.” Pedler (1991) regarded action learning as an approach to the individuals’ development in an organization and as the vehicle for learning, while McGill and Beaty (2001) defi ned it as a con-tinuous process of learning and refl ection, which are supported by many of their

c03.indd 13c03.indd 13 18/02/12 8:41 AM18/02/12 8:41 AM

14 The Encyclopedia of Human Resource Management: Volume One

colleagues. Today, action learning is considered as both a process and a develop-mental program to improve favorable behaviors. Based on these trends, therefore, Marquardt (1999) described action learning as both a powerful program and a process that involves a small group of people solving real problems while focusing on what they are learning and the benefi ts from that learning at the same.

From these defi nitions, it is apparent that certain principles are common to action learning. Also, some basic principles distinguish action learning from other forms of experience-based learning. Its foundation is working in small groups in order to take action on meaningful problems while seeking to learn from having taken this action (Yorks, O’Neil, & Marsick, 1999). The basic two concepts of action learning, action and learning, especially need to be fully understood to concrete the concept of action learning more specifi cally (Yeo & Nation, 2010). Action learning is basically learning through action, where “action” is related to the behavior that each member of a group takes on his or her own issue after refl ection with the group, and “learning” is the process of refl ection. That is, the opportunity to refl ect on an experience with the sup-port of others followed by action means that set members engage in learning from experience in order to change rather than simply repeat previous patterns (McGill & Beaty, 2001).

Components of an Action Learning Program

The success and effectiveness of action learning rely on the cooperative interac-tion of elements. Weinstein (1999) discussed six main elements of action learning: (1) the set—the small group of fi ve or six people who meet regularly to work together in a supportive yet challenging way; (2) the learning vehicle—the work-focused, real-time projects or tasks that each person focuses on; (3) the pro-cesses the set adopts when working—each person has his or her own “airspace,” in which to work on the project; (4) a set adviser—who helps the group as it works and learns; (5) the duration of a program—normally three to six months; and (6) the emphasis on learning—which emerges both from working on the proj-ects and from working in the set. Weinstein discussed that the emphasis through-out the action learning is as much on achieving visible results as on learning from everything that takes place around the set.

Marquardt (1999, 2004) also identifi ed six action learning components. Some elements of those six are very similar to Weinstein. For example, “the set” of Weinstein’s analysis is “the group” in Marquardt’s elements. However, his analysis of action learning components is built around a problem, including proj-ect, challenge, issue, or task, and that is different from Weinstein’s framework.

c03.indd 14c03.indd 14 18/02/12 8:41 AM18/02/12 8:41 AM