Page 608 - Encyclopedia of Business and Finance
P. 608
eobf_P 7/5/06 3:18 PM Page 585
Performance Appraisal
Behaviorally anchored rating scale
Job: Project Manager
Scale values Anchors
9 Develops a comprehensive schedule, documents it, obtains required approvals, and distributes it to all concerned.
8 Plans, communicates, and observes target dates and updates the status of operations relative to plans, making schedule modifications as
quickly as necessary
7 Experiences minor operational problems but still communicates effectively, laying out all parts of the job and schedules for each
6 Usually satisfies time constraints, with time and cost overruns coming up infrequently
5 Makes list of due dates and revises them but is frequently surprised by unforeseen events
4 Has a sound plan but neglects to keep track of target dates or to report schedule slippages or other problems as they occur
3 Plans poorly, with ill-defined, unrealistic time schedules
2 Has no plan or schedule of work and no concept of realistic due dates
1 Fails consistently to complete work on time because of no planning; expresses no interest in how to improve
Figure 2
develop appropriate measuring scales. Among the many typically describes the rate’s job-related behaviors and per-
assessment methods developed by human resource man- formance. Without standard performance description, it
agement experts, commonly used ones include the is a cumbersome task for raters to write an essay for sev-
Graphic Rating Scale, Behaviorally Anchored Rating eral employees. For example, a rater can be asked to
Scale, Narrative Technique, Critical-Incident Method, describe the activities, achievements, and level of perform-
Multiperson Comparison Method, Forced Choice ance of the employee in a completely open-ended format
Method, and Forced Distribution Method. (unstructured narration). Alternatively, the rater can be
The Graphic Rating Scale is the simplest and most provided with some structure to use in the evaluation; for
popular method for performance appraisal. As shown on example, “Describe briefly the activities, achievements,
Figure 1, the Graphic Rating Scale offers a list of areas and level of performance of the staff member in the fol-
related to job performance. A manager rates each lowing areas: (1) work habits, (2) planning and organizing
employee on the listed areas according to a numerical the tasks, (3) management skills, communications, and
score. Although this method is relatively simple and quick development of others.”
to complete, some experts question its validity and relia- The performance review form at a college asks an
bility. Without elaborate description, appraisal items and evaluator to describe the activities, accomplishments, and
scores are subject to various interpretations of raters. creative works of the professors in the areas of (1) teach-
In order to overcome pitfalls of the Graphic Rating ing and (2) research/creative activity. A dean of the college
Scale, numerous other methods have been developed. The writes about the professor’s teaching performance: “Dr.
Behaviorally Anchored Rating Scale (BARS), illustrated in Michael Johnson has been nominated by his students for
Figure 2, offers rating scales for actual behaviors that the Outstanding Teacher Award several times during his
exemplify various levels of performance. Because raters service. He introduced many teaching innovations into
check off specific behavior patterns of a ratee, PA results his classes. His teaching record is exemplary.” In the area
of BARS are more reliable and valid than those of the of creative activity, the dean writes, “Dr. Johnson has a
Graphic Rating Scale. Human resource managers must strong and productive research record with a defined focus
carefully analyze each job and develop behavior patterns in organizational leadership. His research has been recog-
pertinent to various levels of performance for the job nized with several awards given by professional organiza-
before they use the BARS. tions. His creative activity is exemplary.”
The Narrative Technique is a written essay about an Similar to the Narrative Technique is the Critical-
employee’s job performance prepared by a rater. The essay Incident Method, which involves keeping a running log of
ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION 585

