Performance Appraisal

PERFORMANCE APPRAISAL METHODS The Critical Incidents File The critical incidents file is a performance appraisal method in which the manager writes down positive and negative performance behavior of employees throughout the performance period. The critical incidents file is a form of documentation that is needed in this litigious environment. The Rating Scale The rating scale is a performance appraisal form on which the manager simply checks off the employee’s level of performance. Some of the possible areas evaluated include quantity of work, quality of work, dependability, judgment, attitude, cooperation, and initiative. Behaviorally Anchored Rating Scales (BARS) BARS is a performance appraisal method combining rating and critical incidents. It is more objective and accurate than the two methods separately. Rather than having excellent, good, average, and so forth, the form has several statements that describe the employee’s performance, from which the manager selects the one that best describes the employee’s performance for that task. Standards are clear when good BARS are developed. Ranking Ranking is a performance appraisal method that is used to evaluate employee performance from best to worst. Under the ranking method, the manager compares an employee to another employee, rather than comparing each one to a standard measurement. An offshoot of ranking is the forced distribution method, which is similar to grading on a curve. A predetermined percentage of employees are placed in performance categories: for example, excellent—5 percent, above average—l5 percent, average—GO percent, below average—l5 percent, and poor—5 percent. Management by Objectives (MBO) MBO is a process in which managers and their employees jointly set objectives for the employee, periodically evaluate the performance, and reward according to the results (review Chapter 6 for details). The Narrative Method The narrative method requires the manager to write a statement about the employee’s