Lecture 7 - Appraisal Methods

Appraisal MethodsAbsolute standards

1. Essay appraisal2. Critical incident appraisal3. Checklist appraisal4. Adjective rating scale appraisal5. Forced-choice appraisal6. Behaviorally anchored rating scales

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

1. Essay Appraisal: Appraiser writes a narrative describing employee’s strengths, weaknesses, past performance, potential and suggestions for improvement.• Format – broad headings

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

2. Critical Incident Appraisal: Based on key behavior incidents illustrating effective or ineffective job performance.

Supervisor acts as a “spy” – records good and bad behaviors in a “black” book

Example: Negative critical incident

9/12 - After repeated warnings to follow all safety procedures, employee failed to close shut-off valve, thereby flooding entire work area.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

3. Checklist Appraisal: Appraiser checks off behaviors that apply to the employee.

Example – Appraising Customer Service Representative

1. Are supervisor’s orders usually followed? Yes/No

2. Does the individual approach customers promptly? Yes/No

3. Does the individual lose his or her temper in public? Yes/No

4. Does the individual volunteer to help others? Yes/No

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

4. Adjective Rating Scale Appraisal: Appraiser rates employee on a number of performance factors using an incremental scale. • E.g. job knowledge, work quality, cooperation• Scale can be typically 5 to 10 points on a

continuum.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

4. Rating Scale Appraisal:

Exceptional Performance: Unique and exceptional accomplishments

Exceeds Expectations: Clearly and consistently above what is required

Meets Expectations: Consistently meets the requirements of the job in all

aspects Marginal Performance: Sometimes acceptable, but not

consistent Unsatisfactory Performance: Does not meet the minimum

requirements of the job

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

4. Rating Scale Appraisal:

Graphic Ratings ScalePerformance Factor Low High Quality of Work 1 2 3 4 5 Quantity of Work 1 2 3 4 5 Job Knowledge 1 2 3 4 5 Attention to Costs 1 2 3 4 5 Customer Service 1 2 3 4 5

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

4. Rating Scale Appraisal:

Trait-Based Scale

Low HighLoyalty 1 2 3 4 5 6 7 Communication 1 2 3 4 5 6 7 Cooperativeness 1 2 3 4 5 6 7 Attitude 1 2 3 4 5 6 7

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

4. Rating Scale Appraisal:

Results-Oriented Scale Number of units produced: __________ Number of units rejected: __________ Number of absences unauthorized: __________

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

5. Forced-Choice Appraisal: Appraisers choose between two specific statements about an employee’s work behavior.• Choice of one of many options to describe main

characteristics of individual (i.e. a multi-choice answer). • Common problem is reduction of many traits to just one.• Examples

─ Staff asked customer for his needs─ Staff let customer approach him before offering

Performance Level Distribution Target

Level 1: Employee is below acceptable performance standards.

5% of the unit

Level 2: Employee meets acceptable performance standard but has room for improvement.

15% of the unit

Level 3: Employee shows a uniformly good level of performance.

50% of the unit

Level 4: Employee shows a very high level of performance.

20% of the unit

Level 5: Employee consistently shows outstanding performance.

10% of the unit

Forced Distribution

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

6. Behaviorally Anchored Rating Scales (BARS): Appraiser rates employee on factors which are defined by behavioral descriptions illustrating various dimensions along each rating scale.• Format deals with measurable behaviors, not

personality.• Provides raters and ratees with clear statements

of performance goals.• Based on specific, thorough job analysis.

Behaviorally-Anchored Rating Scales (BARS)

1

2 3 4 5 6 7

Could be expected to refuse to make decisions when needed.

Could be expected to give personal feelings priority when making decisions.

Could be expected to make decisions without considering reactions of others.

Could be expected to provide temporary solutions to problems.

Could be expected to solve problems as they arise.

Could be expected to take problem to a higher level when problem is beyond his/her control.

Could be expected to conduct detailed talks with workers to solve problems.

Appraisal MethodsRelative Standards

1. Group order ranking2. Individual ranking3. Paired comparison

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

Relative standards:1. Group Order Ranking: Employees are

placed in a classification reflecting their relative performance, such as “top one-fifth.”

Group rank ordering

• Supervisor places employees into a particular classification – e.g. "top one-fifth" and "second one-fifth".

• If a supervisor has ten employees, only two could be in the top fifth, and two must be assigned to the bottom fifth.

Relative Standards

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

Relative standards:2. Individual Ranking:

Employees are ranked from highest to lowest.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

Relative standards:3. Paired Comparison: • Each individual is compared to every other.• Final ranking is based on number of times the

individual is preferred member in a pair.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Appraisal Methods

Relative standards:– Paired Comparison: