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                                                                                            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
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