Fundamentals of Management, 8th ed

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F I G U R E 8 . 3

Behaviorally Anchored Rating Scale

Behaviorally anchored rating scales help overcome some of the limitations of

standard rating scales. Each point on the scale is accompanied by a behavioral

anchor—a summary of an employee behavior that fits that spot on the scale.

360-degree

feedback

A performance

appraisal system in

which managers are

evaluated by

everyone around

them—their boss,

their peers, and their

subordinates

Chapter 8: Managing Human Resources in Organizations

2 3 9

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Many managers are uncomfortable with the task, especially if feedback is negative and

subordinates are disappointed by what they hear. Properly training managers, however,

can help them conduct more effective feedback interviews.

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Some firms use a very aggressive approach to terminating people who do not meet

expectations. General Electric has long used a system whereby each year the bottom 10

percent of its workforce is terminated and replaced with new employees. Company

executives claim that this approach, although stressful for all employees, helps it to con-

tinuously upgrade its workforce. Other firms have started using this same approach.

However, both Ford and Goodyear recently agreed to abandon similar approaches in

response to age discrimination lawsuits.

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MAINTAINING HUMAN RESOURCES

After organizations have attracted and developed an effective workforce, they must also

make every effort to maintain that workforce. To do so requires effective compensation

and benefits as well as career planning. “Leading the Way” describes how one firm,

Nucor Steel, uses compensation to maintain a strong workforce.