This unit discusses the importance of using a series of job-related tools to select good employees such as application forms, various types of tests, interviews, background investigations and physical exams. Emphasis is placed on steps for maximizing performance appraisal effectiveness and methods using absolute standards, relative standards, and objectives are described. Review of suggestions to improve the reliability, validity, and therefore, the legality, and usefulness of appraisal ratings are given.

Identify the need for employee training and development.

Explain the six steps in the appraisal process.

Discuss how management by objective (MBO) can be used as an appraisal method.

Explain why performance appraisals might be distorted.