Performance Management and Appraisal 9- 4
Copyright © 2017 Pearson Education, Inc.
D. Forced Distribution Method – predetermined percentages of rates are placed
in various performance categories, which is similar to grading on a curve.
E. Critical Incident Method – a supervisor keeps a record of positive and
negative examples of a subordinate’s work-related behavior, and reviews the
record with the employee at predetermined times.
F. Narrative Forms – the method involves rating the employee’s performance for
each performance factor, writing down examples and an improvement plan,
aiding the employee in understanding where his/her performance was good or
bad, and summarizing with a focus on problem solving.
G. Behaviorally Anchored Rating Scales (BARS) – a method that combines the
benefits of narratives, critical incidents, and quantified scales by anchoring a
scale with specific behavioral examples of good or poor performance. The
five steps in developing a BARS are: 1) generate critical incidents; 2) develop
performance dimensions; 3) reallocate incidents; 4) scale the incidents; and 5)
develop a final instrument. The advantages of BARS include a more accurate
gauge, clearer standards, feedback, independent dimensions, and consistency.
H. Mixed Standard Scales – these are similar to BARS. The employer “mixes”
together sequentially the good and poor behavioral example statements when
listing them. The aim is to reduce rating errors by making it less obvious to
the appraiser 1) what performance dimensions he or she is rating; and 2)
whether the behavioral example statements represent high, medium, or low
I. Management by Objectives (MBO) – the manager sets specific measurable
goals with each employee and then periodically discusses the employee’s
progress toward these goals. The process consists of six steps: 1) set the
organization's goals; 2) set departmental goals; 3) discuss departmental goals;
4) define expected results (set individual goals); 5) conduct performance
reviews; and 6) provide feedback.
J. Computerized and Web-Based Performance Appraisal – this method generally
enables managers to keep notes on subordinates during the year, to rate
employees on a series of performance traits, and then generate written text to
support each part of the appraisal. About 1/3 of employers use online
performance management tools for at least some employees.
K. Electronic Performance Monitoring – these systems use computer network
technology to allow managers to monitor their employees’ computers and
employee rate, accuracy, and time spent working online.
L. Conversation Days – manager-employee conversation that focus on areas of
improvement, growth, and setting stretch goals.
M. Appraisal in Practice: Using Multiple Methods
N. Trends Shaping HR: Customized Talent Management
O. Improving Performance: The Strategic Context
III. Dealing with Rater Error Appraisal Problems – it can be difficult to rate performance for
several reasons, such as a systematic error in judgment that occurs when people evaluate
each other: unclear standards, halo effect, central tendency, leniency or strictness, and