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Master of Business Administration

MBA Semester 4
Performance Management and Appraisal - MU0007
Assignment Set- 1

_________________________________________________________________________
Q.1 Define Performance Management? Explain the principles of developing a performance
management plan.
The campus carries out its mission through the individual and collective contributions of its
employees. To do their best, staff members need to know that those contributions will be
recognized and acknowledged.
Performance Management is one of the key processes that, when effectively carried out, helps
employees know that their contributions are recognized and acknowledged. Performance
management is an ongoing process of communication between a supervisor and an employee that
occurs throughout the year, in support of accomplishing the strategic objectives of the
organization. The communication process includes clarifying expectations, setting objectives,
identifying goals, providing feedback, and evaluating results.
PRINCIPLES OF DEVELOPING A PERFORMANCE MANAGEMENT PLAN
Development of a performance management plan should be consistent with the following
principles:
1. Performance management is considered a process, not an event. It follows good
management practice in which continual coaching, feedback and communication are
integral to success.
2. The Performance Management Plan is primarily a communication tool to ensure mutual
understanding of work responsibilities, priorities and performance expectations.
3. Elements for discussion and evaluation should be job specific – not generalized
personality traits. The major duties and responsibilities of the specific job should be
defined and communicated as the first step in the process.
4. Performance standards for each major duty/ responsibility should be defined and
communicated.
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5. Employee involvement is encouraged in identifying major duties and defining

performance standards.
6. Professional development should be an important component of the plan.
7. The formal evaluation period should be long enough to allow for full performance and to
establish a history such that evaluations are fair and meaningful. One year is a common
evaluation period.
8. Documentation of performance will occur as often as needed to record the continuum
of dialogue between supervisor and employee.
9. If formal ratings are included, they should reflect the incumbent's actual performance in
relation to the performance standard for that major duty.
10. The supervisor should be evaluated on the successful administration of the plan and
ongoing performance management responsibilities.
11. Training for supervisors and employees is encouraged and will be provided by
University Human Resource Services.
12. The Performance Management Plan should be consistent with federal and state laws
which address non-discrimination.

Q.2 Let, Ryan and Grossman suggested four key capacities for organizational effectiveness.-
Elucidate.

Four organizational capacities are critical to overall organizational effectiveness:

A) Leadership Capacity: the ability of all organizational leaders to create and sustain the vision,
inspire, model, prioritize, make decisions, provide direction and innovate, all in an effort to
achieve the organizational mission.
B) Adaptive Capacity: the ability of a nonprofit organization to monitor, assess and respond to
internal and external changes.
C) Management Capacity: the ability of a nonprofit organization to ensure the effective and
efficient use of organizational resources.
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D) Technical Capacity: the ability of a nonprofit organization to implement all of the key
organizational and programmatic functions.
TCC also includes organizational culture as a component of the assessment since it has a
significant impact on each of the above core capacities. Each organization has a unique history,
language, organizational structure, and set of values and beliefs. These cultural elements all serve
as the context through which organizations define, assess and improve their effectiveness.
Questions around the measures/indicators of all five capacity areas were compiled randomly into
a survey that is completed by, at minimum, each organization’s top three organizational leaders.

ORGANIZATIONAL ASSESSMENT: OTHER FACTORS

Ideal leadership, adaptive capacity, management and technical capacity as well as organizational
culture depend heavily on additional factors surrounding the organization. These are broadly
represented by the outer circles on the previous graphic. A few of these are described below.
• Organizational lifecycle: An organization’s phase of its lifecycle will affect its core capacities.
Nonprofit organizations, like people, experience a lifecycle of progressive stages and
developmental milestones. TCC labels the growth stages according to the following
organizational development elements:
• Core Program Development - development of a set of programs that are central to mission
success and have begun achieving a consistent level of desired results for those being served
• Infrastructure Development - development of an organizational infrastructure necessary for
supporting core programs and increasing the number of clients or service recipients
• Mission impact - achieving mission impact through activities bringing together an
organization’s programs and leadership with other community resources. This often involves
engaging in activities like collaboration, strategic alliances, partnerships, and joint policy and
advocacy efforts, in order to create a greater change. The core organizational capacities look
different during each of the lifecycle stages, which are additive. Each successive stage requires
more growth from the prior stages. This means more sophisticated core program development is
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required in each of the later stages and more sophisticated infrastructure development is required
during Mission Impact.
• External environment: There are many factors in the external environment that affect how no
constituent needs and demands; 3) available funding including competition for funds; 4) policy
changes related to government and nonprofit; 5) the available pool of highly qualified nonprofit
professionals; 6) the availability of non-monetary resources; and 7) the strengths and challenges
of the nonprofit sector as a whole. Each of these factors has a potential affect on each of the core
capacities for any given nonprofit. Therefore, when one attempts to discern whether an
organization is effective, he or she needs to take the relevant environmental influences into
consideration.
• Key organizational resources: There are certain critically needed resources that most directly
support and affect the quality of the delivery of programs and services. Without these resources,
the organization could not function. Key organizational resources most often include the skills,
knowledge, and experience of those delivering the services, as well as the resources provided
directly to clients (e.g., financial assistance (loans, housing, etc.), in-kind resources, equipment,
etc.).
• Supporting organizational resources: Each nonprofit organization has a unique set of supporting
resources (or assets) at its disposal that all serve to support the key resource(s).

These resources include: human resources (i.e., the knowledge, experience and skills of board
members, the executive director, managers, support staff and volunteers); technology; program
support materials; finances/funding; facilities; time; and other resources like equipment, vehicles,
and supplies. An organization’s level of resources at a given point in time will greatly affect how
leadership, adaptive capacity, management, and technical capacity will manifest themselves.
• Financial health: Financial resources are critical to supporting an organization’s entire core
capacities. Leadership requires making tough decisions about how to use the finite financial
resources available to the organization as well as provides direction for how to raise additional
funds. Part of an organization’s adaptive capacity function is the need to identify opportunities
and challenges in the funding environment that are and will impact upon an organization and its
programs and services. Management capacity is all about making efficient and effective use of
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resources, and this includes financial resources. Lastly, financial stability will affect the ability of
an organization to support its technical capacities. Profits function, among them: 1) the economy
including changes in the private sector; 2)

Q.3 Explain the process of performance management

I. INTRODUCTION
The performance review process links coaching for performance and careers, and performance
evaluation as integrated elements in a continuous process. The main purpose of the performance
management process is to develop people and improve performance by clarifying goals and
coaching regularly. A secondary purpose is to provide honest and accurate formal evaluations to
support rewards for performance practices. Managers, supervisors, and subordinates have a
mutual responsibility for making the process work. Each has a role in setting goals, coaching,
and evaluation.

II. OBJECTIVES
Upon completion of the performance management program, participants will be able to:
• Identify the importance of the performance management process from the viewpoint of the
supervisor and employee.

• Establish performance requirements for those positions that report to them.

• Define coaching and explain the steps for effective coaching.
• Specify the steps for completing a performance review.
• Create the appropriate atmosphere and rapport for conducting the performance review
discussion.
• Conduct the performance review discussion.
III. PRINCIPLES OF THE PERFORMANCE MANAGEMENT PROCESS
Improving appraisal effectiveness will require the following ongoing changes in our
"University Culture":
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• Increase management's time commitment to personnel matters on an ongoing (Versus once-a-

year) basis.
• Shift performance emphasis from short-term, component specific individual goals to include
long-term, team-oriented goals that are consistent with continuous improvement of the
University as a whole.
• Communicate with each employee in honest, timely dialogue aimed at performance
improvement; increase mutual involvement in goal-setting and definition of performance
standards.
• Improve management skills in communicating and taking responsibility for making the
performance improvement process operate effectively.
• Increase employee responsibility for planning their own careers.

PERFORMANCE MANAGEMENT PROCESS

IV. ESTABLISHING PERFORMANCE REQUIREMENTS

The first element of the performance management process that must be effectively executed is
specifying the required levels of performance and identifying goals to be achieved. It is
imperative that the supervisor and the employee agree upon and understand each other's
expectations of the job. This is the foundation upon which the entire performance management
process will be built. For this reason, it is important that goal setting is done and done well. If it
is not done, what will the employee are measured against? Quite often, when a goal setting
session is not completed, employees and supervisors have completely different ideas about job
priorities and responsibilities.
To the extent possible, the supervisor should strive to clarify their expectations of subordinates.
The supervisor also should endeavor to describe what differentiates one level of performance
from another. The supervisor’s expectations will certainly vary from employee to employee and
from job to job but must always be job related.
Studies show that there are sizeable differences between the employee's and supervisor's concept
of the responsibilities of the same position. Therefore, before any attempt can be made to review
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an individual's performance, the supervisor and the employee must have a common
understanding of what constitutes good performance.
Every supervisor needs to establish a set of "Performance Requirements" for each subordinate's
position. These requirements become the basis of the performance review.
Performance Requirements include:
• Areas of Responsibility. An area of responsibility is a major category or segment of work.

• Results Statement. A results statement describes the work results that must be achieved in each
area.
• Standards. Standards are indicators that the desired result is being achieved.
• Behaviors. Behavior patterns that is appropriate to the University and the supervisor.

Master of Business Administration

MBA Semester 4
Performance Management and Appraisal - MU0007
Assignment Set- 1

______________________________________________________________________________

Q.1 Explain the role of ethics in performance appraisal.

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To abandon or abuse the performance appraisal process is a breach of business ethics. While
some managers are skillful and genuine in reviewing an individual's performance, that does not
appear to be typical. The ethical ramifications of performance review have caused managers and
employees at all levels to become frustrated, cynical, and withdrawn.

Many managers talk about ethics but do not recognize or act upon ethical issues in their day-to-
day managerial responsibilities. Most ethical questions arise from people relationships within the
organization. Managers must realize that ethics is the process of deciding and acting. Recent
survey results in one large organization indicate that only 26% of managers believe they are
recognized and reinforced for their ethical decisions and behaviors. Employees have a big stake
in the way managers evaluate and operate. Managers and nonsupervisory employees alike cite
concern about "politics and lack of fair treatment, honesty, and truthfulness" in connection with
the performance review.

Experience has clearly indicated that the handling of performance review sessions is usually far
more critical than the decision made or information conveyed in the session. Frequently, when
unsuccessful candidates for promotions are notified of the decision that someone else has been
selected they are not told why. Often they are not told anything, usually because the managers or
supervisors do not feel equipped or skillful enough to explain the reasons in a systematic and
rational way.

Sometimes, major miscommunications occur in performance review sessions due to basic

differences in ethical orientation. For example, the reviewer may say, "That report is a
requirement, and we need to follow the rules of the organization." The person being reviewed
may reply, "I make a significant contribution to this organization, and I don't have time to
prepare reports that no one looks at. Judge me on what I accomplish." What is going on here?
The reviewer is concerned with decisions and actions that conform to basic principles and rules
(adherence). The employee appears to be oriented toward the outcome - the ends justify the
means (results). They are talking on two different, nonconnecting planes. Unless the employee
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and the reviewer are successful in negotiating an ethical balance, each may view the other as
taking unfair shots - and the battleground will be the performance review process.

The overall objective of high-ethics performance review should be to provide an honest

assessment of performance and to mutually develop a plan to improve the individual's
effectiveness. That requires telling people where they stand and being straight with them. It is
important to keep the following points in mind:

* What are the primary objectives of the organization - i.e., what is the organization's purpose?

* What is valued most - adherence or results?

* How is this person expected to contribute to the organization?

* What is this person's position on the team?

* How well does he or she fill that position?

If you really want to know what concerns the individual, ask the following types of questions:

* What results do you expect from this performance review session?

* What is your biggest frustration?

* How do you feel about your department and the organization?

* What do you want to accomplish?

* How do you want to spend your time?

Many effective, high-ethics managers invite such input. They strive to help the person see how
his or her contribution results in mutually beneficial outcomes. However, when performance
review sessions are conducted, there is always the risk that the person being reviewed may
conclude that he or she has no future with the organization and opt to leave. If this is an accurate
perception, based upon an honest exchange of information, the timing of the separation could be
painful, but the parting would probably be inevitable and in the best interests of both. There is a
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fundamental decision managers must make with respect to performance review, i.e., is the
unstated outcome effective communication or minimum compliance?

Some managers and supervisors feel that being "legal" in a performance review is enough. If
they comply with the rules and regulations and are careful about their documentation, they feel
that they are secure and have a defensible position. However, being "legal" does not always
equate to being "ethical." Simply stated, being legal is not enough. It is entirely possible to
comply with the ritual and surface requirements of performance review without injecting the
proper spirit into the process, which is to enable the individual to recognize and strive for
performance improvement in specified areas. Clarity and mutuality of expectations are critical to
success, personal satisfaction, and high performance. To achieve such an outcome requires that
some managers and supervisors avoid the great cop-out of simply going through the motions.

A perfunctory performance review is an ethical strikeout - without taking a swing. If the person
being reviewed feels ignored, his or her feelings of personal worth will suffer. In the worst
scenario, low-ethics managers use the performance review process as a form of "forced humility"
for individuals reporting to them. This is inherently wrong and will almost inevitably lead to the
loss of the best people in the organization. Performance appraisal must be recognized and treated
as an ethical issue of high payoff and peril. Far too often, the signal sent to the individual is one
of three:

1. "We are only doing this review because we have to."

2. "You had better shape up or ship out."

3. "We want you to continue to work hard and develop new programs and processes - but
advancement potential is limited."

The effect on self-esteem is the critical issue. A blow to the self-worth of an individual can be
damaging to that person as well as to the overall morale of the organization. When low-ethics
managers use retribution to coerce behavior, employees may respond out of fear. This would
hardly be described as a trust-based and ethical business climate. If employees feel they have
been neglected or not treated fairly, feelings of personal worth are often threatened. This may
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result in organizational strife in which individuals attempt to gain self-esteem or at least get even
with those who have caused these very painful feelings and emotions.

When a performance review helps the individual recognize that his or her objectives are closely
aligned with the organization's, the individual is more likely to perform at a higher level and the
organization is less likely to lose a valuable employee. The objective of the performance review
is to develop the person, not to threaten self-esteem. Treatment of people is the most fundamental
ethical issue. Performance review is a matter of ethics

Q2. Q.2 Mr. Sunil is a manager in a manufacturing company. He thinks that his subordinates are
inherently lazy, avoid work and they needs supervision to perform tasks and therefore he shows
authority over his subordinates’. According to McGregor theory, what assumptions Mr. Sunil is
having of his subordinates. And also elucidate McGregor both the theories
According to McGregor’s theory Mr. Sunil follows theory X, an authoritarian style of
leadership. The assumptions that Mr. Sunil has on his subordinates are :

1. The average person dislikes work and will avoid it.

2. Therefore most people must be forced with the threat of punishment to work
towards organizational objectives.

3. The average person prefers to be directed; to avoid responsibility is relatively not

ambitious and wants security above all else.

Employees shirk responsibilities and seek formal direction whenever needed

Douglas McGregor’s x & y Theory

The x & y theory was proposed by an American psychologist Douglas McGregor in his book
‘The Human Side of Enterprise’ in 1960. These theories are still commonly referred to in the
field of management & motivation. McGregor’s theory is a constructive and effortless memento
of the standard rules of managing people, which are easily forgotten under the pressure of routine
business. His theory states that there are two primary approaches to managing people. Though
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recent studies have questioned the firmness of the model the theory still remains as an official
essential principle from which management styles and techniques can be developed. This theory
is vital for organizational progress and for the improvisation of organizational culture. ‘Theory y’
has been proven to give better results and allows room for improvement and development over
‘theory x’ when used by managers.

‘Theory x’ includes the following:

• Work is usually disliked, and will be avoided by the worked if possible.

• Work is enforced with threats of punishment for the achievement of organizational goals.

• Direction is preferred in most cases as people tend to avoid responsibility and seek work
security above other things.

• Individuals require close supervision.

The x theory is also known as “the authoritarian management style” because it states that the
average worker needs to be persuaded into completing company/organizational objectives.

‘Theory y’ includes the following:

• To put effort in work is as natural as work and play

• Employees apply self-direction and self-control in the pursuit of organizational objectives

without pressure, external control or threats of punishment.

• Loyalty towards achieving goals is also a function of rewards; associated with their
achievement.

• Employees often seek as well as accept responsibility

• The ability to use imagination, take initiatives and the creativity for solving organizational
problems is extensively not narrowly strewn in the population.
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• The intellectual talent of the average person is only partly utilized in the industry.

• If there is freedom of work in the organization, it brings about increase in productivity.

This theory tends to be better than theory x, because it has a wider scope towards analyzing
employee behavior and is better suited towards companies that use a much more flexible
approach to cope with work management, rewards systems, employee management etc.

The x and y theory is basically about the management of organizations. Once

managements understand that underestimating the potential of its human resources will lead to
the organizations downfall then it will better identify and accept the information provided by
social science researchers, such as displayed in the x and y theories assumptions. The theory
ascertains that organizations need to invest time, effort and money to develop or improvise
company managements. Also as shown in ‘theory y’ managers need to realize the true potential
of their employees and give them room to grow and expand their work talent, for the benefit of
themselves as well as the organizations. When putting the theories forward, McGregor realized
that in most cases his theories are unrealizable in organizational practices, still he suggests that
managers assume that: “Staff will contribute more to the organization if they are treated as
responsible and valued employees. Also known as “the participative management style”,
However one should remember that an organization that is using the y theory will have a
different view of people/employees than that organization which is using theory X.

Q.3 Write notes on:

 Management by Objectives
 Behavioral Anchored Rating Scales
 Graphic Rating scale
 Behavioral checklist

Performance appraisal is a formal, structured system that compares employee performance to

established standards. Assessment of job performance is shared with employees being appraised
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through one of several primary methods of performance appraisals. Elements in performance

appraisal methods are tailored to the organization's employees, jobs, and structure. They include
objective criteria for measuring employee performance and ratings that summarize how well the
employee is doing. Successful appraisal methods have clearly defined and explicitly
communicated standards or expectations of employee performance on the job.

Management by Objectives
MBO evaluates how well an employee has accomplished objectives determined to be critical in
job performance. This method aligns objectives with quantitative performance measures such as
sales, profits, zero-defect units produced.

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.

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.

Management by objectives (MBO) involves setting specific measurable goals with each
employee and then periodically discussing his/her progress toward these goals. The term MBO
almost always refers to a comprehensive organization-wide goal setting and appraisal program
that consist of six main steps:

1. Set the organization?s goals. Establish organization-wide plan for next year and set goals.

2. Set departmental goals. Here department heads and their superiors jointly set goals for their
departments
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3. Discuss and allocate department goals. Department heads discuss the department's goals with
all subordinates in the department (often at a department-wide meeting) and ask them to develop
their own individual goals; in other words, how can each employee contribute to the department's
attaining its goals?

4. Define expected results (set individual goals). Here, department heads and their subordinates
set short-term performance targets.

5. Performance review and measure the results. Department heads compare actual performance
for each employee with expected results.

6. Provide feedback. Department heads hold periodic performance review meetings with
subordinates to discuss and evaluate progress in achieving expected results.

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.
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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

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
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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
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person speaking is emotional/distraught. Creates/maintains a positive working environment that

encourages expression of thoughts, ideas, and feelings.

Graphic Rating

Graphic rating scales are one of the most common methods of performance appraisal. Graphic
rating scales require an evaluator to indicate on a scale the degree to which an employee
demonstrates a particular trait, behavior, or performance result. Rating forms are composed of a
number of scales, each relating to a certain job or performance-related dimension, such as job
knowledge, responsibility, or quality of work. Each scale is a continuum of scale points, or
anchors, which range from high to low, from good to poor, from most to least effective, and so
forth. Scales typically have from five to seven points, though they can have more or less. Graphic
rating scales may or may not define their scale points.

Acceptable rating scales should have the following characteristics:

1. Performance dimensions should be clearly defined.

2. Scales should be behaviorally based so that a rater is able to support all ratings with objective,
observable evidence.
3. Abstract trait names such as "loyalty," "honesty," and "integrity" should be avoided unless
they can be defined in terms of observable behaviors.
4. Points, or anchors, on each scaled dimension should be brief, unambiguous, and relevant to the
dimension being rated. For example, in rating a person's flow of words, it is preferable to use
anchors such as "fluent," "easy," "unimpeded," "hesitant," and "labored," rather than "excellent,"
"very good," "average," "below average," and "poor."

Carefully constructed graphic rating scales have a number of advantages:

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1. Standardization of content permitting comparison of employees.

2. Ease of development use and relatively low development and usage cost.
3. Reasonably high rater and ratee acceptance.

A disadvantage of such rating scales is that they are susceptible to rating errors which result in
inaccurate appraisals. Possible rating errors include halo effect, central tendency, severity, and
leniency. The halo effect occurs when a rating on one dimension of an appraisal instrument
substantially influences the ratings on other dimensions for the same employee. As a result of the
halo effect, an employee is rated about the same across all performance dimensions. Central
tendency is a lack of variation or difference among ratings of different subordinates, wherein
most employees tend to be rated as average. Leniency refers to an evaluator's tendency to rate
most employees very highly across performance dimensions, whereas severity refers to the
tendency to rate most employees quite harshly.

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
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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.