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A good reference is : Winston, R. B, Jr., & Creamer, D. G.  (1997).
"Improving Staffing Practices in Student Affairs".  San Francisco: Jossey
Bass.  Even if you are not "housed" in Student Affairs, this is a good
source of information for anyone who works within a higher ed. department
that serves students (I assume we all do that!)  This proposes a Synergistic
Supervision model in which all elements of the staffing process are
interrelated.

If supervision - staff development - performance appraisal, etc. are
on-going, the process is perceived as developmental and NOT remedial.  If we
only conduct evaluations annually at raise time, naturally there will be a
negative connotation attached to this!  On-going informal observation
coupled with immediate feedback may be less threatening, and may decrease
the negative response when it comes time to do something more formal.

I am finishing up a qualitative study on the perceptions and practices of
staff supervision and a couple of the findings seem to be relevant to this
discussion:
1. Though participants made comments reflecting a remedial perception of
supervision, a recurring theme was the expectancy that the supervisor will
help them develop professionally and personally.  I think then, as
supervisors, we need to identify means of developing our staffs and
articulate these to them (staff development is not just attending a
conference - performance management can do this too!)
2. Supervision is often predicated on relationships and personality styles
of the people involved; we are rarely formally trained in appropriate
practices of supervision or in the use of supervisory models.  Usually we
rise to supervisory positions not because we have supervisory skills, but
because we are good within a functional area.  So... if staff members "get
along with the boss" or are "friends", they tend not to feel as threatened
and they believe they have access to more opportunities.  True or not, this
is the perception of the participants I interviewed.

I fear I am babbling :)  but this is something in which I am interested and
am conducting some research...