Types of Formal Appraisal Methods
Comparative Appraisal Methods
Graphic Rating Scale
lists a number of traits and a range of performance for each. The employee then rated by identifying the score that best describes their level of performance at each trait (ex. Trait is responsibility and scale is unsatisfactory to excellent)
Alternation Ranking Method
ranking employees from best to worst on a specific trait
Paired Comparison Method
Ranking employees by making a chart of all possible pairs of employees for each trait and indicating the better employee of the pair
Forced Distribution Method
redetermined percentages or ratees are placed in various performance categories. Identify the top 10% of performers and the bottom 10% of performers, the rest are average
Qualitative Methods
Critical Incident Method
Supervisor keeps a log of desirable or undesirable examples or incident of each employee’s work-related behaviour and later review this with employee
Narrative Forms
Feedback in a standard form to identify performance issues
Advanced Quantitative Methods
Behaviourally Anchored Rating Scale (BARS)
An appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a series of quantified scales with specific examples of good or poor performance
Management By Objectives
setting specific measurable goals with the employees involved in goal-setting process and periodically reviewing the progress made
Seven Problems Using Appraisal Tools
Unclear Standards
appraisal scale that is too open to interpretation
Halo Effect
rating an employee on one trait biases the way the person is rated on other traits
Central Tendency
tendency to rate all employees in the middle of the scale
Leniency or Strictness
tendency to rate all employees high or low
Appraisal Bias
tendency to allow characteristics such as age, race, and sex to affect ratings even though unrelated to performance
Recency Effect
ratings are based on employee’s most recent performance, good or bad
Similar to Me Bias
supervisor gives higher rating to employees with whom the supervisor has something in common
Who Should Do The Appraising?
360 Degree Appraisal
a performance appraisal technique that uses multiple rates including peers, supervisors, self, subordinators, customers