PERFORMANCE APPRAISAL

APPRAISAL TOOLS

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 Graphic Rating Scale

A scale that lists a number of traits and a

range of performance for each. The employee
is rated by identifying the core that best
describes his or her level of performance for
each trait

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 Alternation Ranking Method

Ranking employees from best to worst on a

particular trait, choosing highest, then
lowest, until all are ranked

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 Paired Comparison Method

Ranking employees by making a chart of all

possible pairs of the employees for each trait
and indicating which is better employee of
the pair

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 Forced Distribution Method

Similar to grading on a curve; predetermined

percentages of ratees are placed in various
performance categories

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 Critical Incident Method

Keeping a record of uncommonly good or

undesirable examples of an employee’s work-
related behavior and reviewing it with the
employee at predetermined times

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 Behavioral Anchored Rating Scale
(BARS)

An appraisal method that aims at combining

the benefits of narrative critical incidents and
quantified ratings by anchoring a quantified
scale with specific narrative examples of
good and poor performance

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 Steps in BARS
• Generate critical incidents
• Develop performance dimensions
• Reallocate incidents-second group
• Scale the incidents-second group rating
• Develop a final instrument

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 Electronic Performance Monitoring
(EPM)

Having supervisors electronically monitor the

amount of computerized data an employee is
processing per day, and thereby his or her
performance can be recorded

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 MBO

Involves setting specific measurable goals

with each employee and then periodically
reviewing the progress made

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 Steps in MBO
• Set the organization's goals
• Set departmental goals
• Discuss departmental goals
• Define expected results
• Performance reviews
• Provide feedback

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 Important Advantages &
Disadvantages of Appraisal Tools
Tool Advantage Disadvantage
Graphic Rating Scale Simple to use: provides a Standards may be unclear;
quantitative rating for each halo effect, central
employee tendency, leniency, bias
can also be problem
BARS Provides behavioral Difficult to develop
“anchors”. BARS is very
accurate
Alternation Ranking Simple to use(but not as Can cause disagreements
simple as graphic rating among employees and may
scale). Avoids central be unfair if all employees
tendency and other are, in, fact, excellent
problems of rating scales
Forced Distribution End up with Employees’ appraisal
method predetermined number or results depend on your
% of people in each group choice of cutoff points
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 Tool Advantage Disadvantage
Critical Incident method Helps specify what is Difficult to rate employees
“right” and “wrong” about relative to one another
the employee’s
performance; forces
supervisor to evaluate
subordinates on an
ongoing basis.
MBO Tied to jointly agreed-upon Time consuming
performance objectives

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 Checklist During the Appraisal
Interview
List Yes No
1. Did you discuss each goal or objective established for this employee
2. Are you and your employee clear on the areas of agreement?
disagreement?
3. Did you and your employee cover all positive skills, traits,
accomplishments, areas of growth, etc. Did you reinforce the employee’s
accomplishments?
4. Did you give employee a sense of what you thought of his or her
potential or ability
5. Are you both clear on areas where improvement is required? expected?
demanded? Desired?
6. What training or development recommendations did you agree on?
7. Did you indicate consequences for noncompliance, if appropriate?
8. Did you set a time for next evaluation?
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Cont.
 List Yes No
9. Did you set good objectives for the next appraisal period?
i) Objective?
ii) Specific?
iii) Measurable?

10. Did you set a standard to be used for evaluation?

i) Time frame?
11. Did you confirm what your part would be? Did the employee confirm
his or her efforts?
12. Did you thank the employee for his or her efforts?

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 Some Definitions
• Unclear Standards:
– An appraisal that is too open to interpretation
• Halo Effect:
– In performance appraisal that occurs when a
supervisor’s rating of a subordinate on one trait
biases the rating of that person on other trait
• Central Tendency:
– A tendency to rate all employees the same, such
as rating them all average
Cont.
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• Strictness/leniency
– The problem that occurs when a suprvisor has a
tendency to rate all subordinates either high or
low
• Bias:
– The tendency to allow individual differences such
as age, race, and sex effect the appraisal ratings
employees receive

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