Performance Appraisal Method - "Graphic Rating" 01. Graphic rating scales 1.

Definition of the rating scales The Rating Scale is a form on which the manager simply checks off the employees level of performance. This is the oldest and most widely method used for performance appraisal. The scales may specify five points, so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). 2. Content of appraisal Quantity of work. Volume of work under normal working conditions Quality of work. Neatness, thoroughness and accuracy of work Knowledge of job. Dependability. Conscientious, thorough, reliable, accurate, with respect to attendance, relief, lunch breaks, etc. Judgment attitude. Exhibits enthusiasm and cooperativeness on the job Cooperation . Willingness and ability to work with others to produce desired goals. Initiative. 3. Rating scales Rating scales can include 5 elements as follows: Unsatisfactory Fair Satisfactory Good Outstanding 4. Advantages of the rating scales Graphic rating scales are less time consuming to develop. They also allow for quantitative comparison. 5. Disadvantages of the rating scales Different supervisors will use the same graphic scales in slightly different ways. One way to get around the ambiguity inherent in graphic rating scales is to use behavior based scales, in which specific work related behaviors are assessed. More validity comparing workers ratings from a single supervisor than comparing two workers who were rated by different supervisors.

02. Behavioral Checklist A behavioral checklist is a rating form containing statements describing both effective and ineffective job behaviors. These behaviors relate to a number of behavioral dimensions determined to be relevant to the job. Items from a behavioral checklist for a salesperson's job Instructions: Please check those statements descriptive of an employee's behavior. 1. Calls on customers immediately after hearing of any complaints 2. Discusses complaints with customer 3. Gathers facts relevant to customers' complaints 4. Transmits information about complaints back to customers and resolves problems to their satisfaction 5. Plans each day's activities ahead of time 6. Lays out broad sales plans for one month ahead 7. Gathers sales information from customers, other salesmen, trade journals, and other relevant sources

Behavioral checklists are well suited to employee development because they focus on behaviors and results, and use absolute rather comparative standards. An advantage of behavioral checklists is that evaluators are asked to describe rather than evaluate a subordinate's behavior. For this reason, behavioral checklists may meet with less evaluator resistance than some other methods. An obvious disadvantage of behavioral checklists is that much time and money must be invested to construct the instrument. 03. Multiple Choice Method Multiple choice items are a form of assessment item for which respondents are asked to select one or more of the choices from a list. This type of item is used in educational examinations, in elections (choose between multiple candidates, parties, or policies), in market research, and many other areas.) 04. Self Evaluation In order to become lifelong learners, students need to learn the importance of self-evaluation. They can do this by filling out self-evaluation forms, journalizing, taking tests, writing revisions of work, asking questions, and through discussions. When students evaluate themselves, they are assessing what they know, do not know, and what they would like to know. They begin to recognize their own strengths and weaknesses. They become more familiar with their own
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beliefs, and possibly their misconceptions. After they self-evaluate they will be able to set goals that they feel they can attain with the new knowledge they have about themselves. Teachers should encourage self-evaluation because self-assessment makes the students active participants in their education (Sloan, 1996). There are a variety of ways for teachers to provide the students with self-assessments. Research suggests that the simplest tools to encourage student self-assessment are evaluative questions that force students to think about their work (Hart, 1999). Some examples of these questions include the following: 1. How much time and effort did you put into this? 2. What do you think your strengths and weaknesses were in this assignment? 3. How could you improve your assignment? 4. What are the most valuable things you learned from this assignment? It is important for teachers to model self-assessment too. Teachers need to show their students that it is important for everybody to self-evaluate by doing their own self-evaluations. One thing teachers can do is to ask their students for feedback on how the class is going and what the teacher is doing well and not so well. In this way the teacher is showing that they want to make improvements where needed. Teachers could put up a suggestion box, and they can hand out evaluation forms at different times of the year. This shows the students that continuous improvement is important. 05. Essay Appraisal In the essay method approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraisee.

Advantages The essay method is far less structured and confining than the rating scale method. It permits the appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply with methods where the appraisal criteria are rigidly defined. Appraisers may place whatever degree of emphasis on issues or attributes that they feel appropriate. Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal system the limits expression or assumes that employee traits can be neatly dissected and scaled. Disadvantages Essay methods are time-consuming and difficult to administer. Appraisers often find the essay
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technique more demanding than methods such as rating scales. The techniques greatest advantage - freedom of expression - is also its greatest handicap. The varying writing skills of appraisers can upset and distort the whole process. The process is subjective and, in consequence, it is difficult to compare and contrast the results of individuals or to draw any broad conclusions about organizational needs. 06. Examination System This is to assess whether the employee can perform the specified tasks. For example, whether a crane operator can correctly operate the the crane while on-loading or off-loading goods. 07. Critical Incidents Another appraisal method is the critical incidents method. This is similar to essay appraisal method. It requires the supervisor to keep a log on employees performance. The assessor will submit an essay on the poor or outstanding performance of the employee. The problem is that he or she may come to arbitrary conclusions. As in the case of the essay type of appraisal, it is necessity to keep an on-going log. 08. Ranking methods. The two commonly used ranking methods are alternative and paired comparison ranking. Under alternative ranking, the employees are simply ranked from best to worst. Under the pairedcomparison method each employee being appraised is compared one at a time to all other employees being appraised. The major problem with the paired-comparison method is that it becomes unwieldy when comparing large numbers of employees. 09. Forced Distribution This is similar to the forced choice method as both end up with a "bell shape" result. But in forced distribution, the assessor may have to add a few employees to the very poor or outstanding in order to arrive at a required number of people for those groups. 10. Paired comparison analysis 1. Definition of paired comparison analysis Paired comparison analysis is a good way of weighing up the relative importance of options. A range of plausible options is listed. Each option is compared against each of the other options. The results are tallied and the option with the highest score is the preferred option.

2. Advantages and disadvantages of paired comparison analysis It is useful where priorities are not clear. It is particularly useful where you do not have objective data to base this on. It helps you to set priorities where there are conflicting demands on your resources. This makes it easy to choose the most important problem to solve, or select the solution that will give you the greatest advantage. 3. Steps to conduct paired comparison analysis List the options you will compare (elements as A, B, C, D, E for example). Create a table 6 rows and 7 column. Write down option to column and row; A to row second, cell first from left and A to row first, cell second from left; B to row third, cell first from left and B to row first, cell third from left etc; column seventh is total point. Identify importance from 0 (no difference) to 3 (major difference). Compare element A to B, C, D, E and place point at each cell. Finally, consolidate the results by adding up the total of all the values for each of the options. You may want to convert these values into a percentage of the total score. 4. Paired comparison in performance appraisal The term used to describe an appraisal method for ranking employees. We use the above model to appraise employee s performance. 11. Job Evaluation: Methods: Point Method
Point Method A set of compensable factors are identified as determining the worth of jobs. Typically the compensable factors include the major categories of:

1. 2. 3. 4.

Skill Responsibilities Effort Working Conditions

These factors can then be further defined.

1. Skill 1. Experience 2. Education 3. Ability 2. Responsibilities 1. Fiscal 2. Supervisory 3. Effort 1. Mental 5

2. Physical 4. Working Conditions 1. Location 2. Hazards 3. Extremes in Environment

The point method is an extension of the factor comparison method.

Each factor is then divided into levels or degrees which are then assigned points. Each job is rated using the job evaluation instrument. The points for each factor are summed to form a total point score for the job. Jobs are then grouped by total point score and assigned to wage/salary grades so that similarly rated jobs would be placed in the same wage/salary grade. Advantages y y y The value of the job is expressed in monetary terms. Can be applied to a wide range of jobs. Can be applied to newly created jobs. Disadvantages y y The pay for each factor is based on judgments that are subjective. The standard used for determining the pay for each factor may have built-in biases that would affect certain groups of employees (females or minorities).

12. Field Review Appraisal?

In today's market, many loan programs are now requiring a field review appraisal in addition to a standard appraisal. This allows the lender to feel more comfortable with the opinion of value given by the original appraisal. A field review appraisal includes a visual inspection of the property in question from the street. The neighborhood or area where the property is located is also visually inspected, as well as the comparable sales used. One reason why a field review appraisal might be required is that the property could be located in an area that just experienced a natural disaster. An area that just realized a natural disaster could have extensive damage done to a home after the initial appraisal was already completed and therefore in order to protect the lender's interest they may require a field review appraisal to be done to make sure the property being financed was not effected by the disaster. This is very common in states such as Florida where the state is effected by Hurricanes every so often. Previously used primarily for post-closing audits, field reviews are increasingly being required as a preclosing condition as well.

Many lenders require a broker price opinion or BPO instead of, or in addition to, a field review appraisal In many cases, the original appraiser may have to respond to some questions brought up by the field review appraiser concerning his report. an appraisal is more concrete than a review

13. Management By Objectives (MBO)

The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. An example of an objective for a sales manager might be: Increase the gross monthly sales volume to $250,000 by 30 June. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. Advantages The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts - as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured. Disadvantages MBO methods of performance appraisal can give employees a satisfying sense of autonomy and achievement. But on the downside, they can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring.

Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills needed to do their own "reality checking". Nor are these skills easily conveyed by training. Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of the strengths of the MBO method is the clarity of purpose that flows from a set of well-articulated objectives. But this can be a source of weakness also. It has become very apparent that the modern organization must be flexible to survive. Objectives, by their very nature, tend to impose a certain rigidity. Of course, the obvious answer is to make the objectives more fluid and yielding. But the penalty for fluidity is loss of clarity. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.

14. Performance Appraisal Method - "BARS - Behaviorally Anchored Rating Scales" Behaviorally anchored rating scales (BARS) are rating scales whose scale points are defined by statements of effective and ineffective behaviors. They are said to be behaviorally anchored in that the scales represent a continuum of descriptive statements of behaviors ranging from least to most effective. An evaluator must indicate which behavior on each scale best describes an employee's performance. BARS differ from other rating scales in that scale points are specifically defined behaviors. Also, BARS are constructed by the evaluators who will use them. There are four steps in the BARS construction process: 1. Listing of all the important dimensions of performance for a job or jobs 2. Collection of critical incidents of effective and ineffective behavior 3. Classification of effective and ineffective behaviors to appropriate performance dimensions 4. Assignment of numerical values to each behavior within each dimension (i.e., scaling of behavioral anchors) Sample of BARS INTERPERSONAL SKILL DESCRIPTION: Develops and maintains a friendly rapport with others; demonstrates a sensitivity to their feelings; respects the dignity of others and responds with empathy to their own sense of self-worth. Ratings 1 and 2: Demonstrates the ability to get along well with subordinates, managers, and peers; strives to achieve work group objectives. Can express own ideas, thoughts, and feelings and considers the needs, ideas, and feelings of others. Ratings 3 and 4: Demonstrates the ability to apply factors of effective listening, on a one-to-one basis, such as displaying interest, not interrupting when another is speaking, and withholding judgments. Consistently provides honest (both positive and negative) feedback and provides constructive criticism when appropriate. Ratings 5 and 6: Demonstrates the ability to consistently consider and respond to the needs and ideas of others which encourages and stimulates further communication. Effectively listens in group or one-to-one situations involving distractions, stress, complex information, or when the person speaking is emotional/distraught. Creates/maintains a positive working environment that encourages expression of thoughts, ideas, and feelings.

15. BEHAVIORAL OBSERVATION SCALE

How do you measure the performance of your administration staff, your secretary, or another nonproduction staff?

In production floor, we can use the number of product (in units) that processed daily or in workhours easily, as the basis of employee performance. But, this is very difficult to determine the quantitative type of work output completed by such employees (administration staff, secretary, research & development staff). We cant use the number of letters that has been typed by the secretary as the reference, as the larger the number of the letters, the better the performance.

Then, A QUALITATIVE based performance appraisal (PA) method has been developed to handle this problem, called Behavioral Observation Scale (BOS). The rationale is simple. Good behavior will produce good performance, bad behavior will be a distortion. This method is applicable for production-employees performance, too. The key factor of measurement in this method is determining the behaviors in workplace that related to the success or the failure, partially or generally, to the jobs. There are some consideration in making an effective BOS:

1. The behaviors on the job must be JOB EVALUATION based analysis. 2. Critical Incident Technique (CIT) should be performed to minimize the bias of performance
measurement 3. BOS should be performed by better qualification of supervisor The instrument of BOS is ordinal scale questionnaires (usually 1-5, or 1-7 scale). The question is related to the FREQUENCY of the GOOD or BAD BEHAVIOR. Note that higher score is given to higher frequency good behavior. Lower score for higher frequency of bad behavior!. Do some Correlation Test (stastical analysis) for each factors that investigated by each questions for better measures. The TOTAL PERFORMANCE of an employee is THE SUM OF THE SCORE OF THE QUESTIONNAIRE. Better employee (better performer) is someone reach higher score.

The example of questionnaires below designed for a Hotel Receptionist a. Right question, scale of measurement, and scale attribution for GOOD BEHAVIOR Say Thank you for your visits to the customer who leaves the hotel 1 (never) 2 3 4 5 (always)

b.

Right question and scale attribution, but wrong scale of measurement for BAD BEHAVIOR Show the "sad face" to the customer 1 (never) 2 3 4 5 (always)

c.

Right question, scale of measurement, and scale attribution for BAD BEHAVIOR Show the "sad face" to the customer 1 (always) 2 3 4 5 (never)

d.

WRONG QUESTION, Wrong question, scale of measurement, and scale attribution Perform an english conversation with foreigner 1 (poor) 2 3 4 5 (very good)

Note: 1. The difference between b and c questions is on the scale attribution (always for score-5 in b, an never for score-5 in c) A brief explanation must be provided for each scale in all questions. The details should be made based on the PRELIMINARY OBSERVATION (Critical Incident Technique (CIT)is a recommended technique for this purpose).

2.

For example:

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Right question, scale of measurement, and scale attribution for BAD BEHAVIOR Show the "sad face" to the customer 1 (always) Where: 1 (always) 2 3 4 5 : more than 80% of customer in a day : 60%-79% of customer in a day : 40%- 59% of customer in a day : 10% -39% of customer in a day : 0%-9% of customer in a day 2 3 4 5 (never)

3.

For a better result of employee performance appraisal, BOS is suggested to be combined with another quantitative appraisal method for PRODUCTION JOB based employee.

Prepared by FHA.Shibly Email:-shiblymis@gmail.com

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