Amity Business School Performance Appraisal Methods

Amity Business School
PERFORMANCE AND COMPETENCY MANAGEMENT
Shikha Mishra Contributed by books and journals ABS
BARS and BOS Performance appraisal systems
Behaviorally Anchored Rating Scales Amity Business School (BARS)
Behaviorally Anchored Rating Scales: BARS are rating whose scale points are determined by statements of effective and ineffective behaviors. A rater is expected to indicate which behavior on each scale best describes an employees performance. Using ratings scales with labels or anchors reflecting examples of poor, average, and good behavioral incidents.
Four step development process

1. Critical incidents are generated 2. One group of SMEs clustered the critical incidents into performance dimensions 3. Another group of SMEs confirms the performance and 4. Rates each critical incident (effective/ineffective)
BARS Example
Performance Points Behavior
Extremely good
Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to inform only a part of the customer Can expect to take extended coffee breaks and roam around purposelessl
Good Above average Average Poor Extremely poor
5 4 3 2 1
BARS
Advantages Performance dimensions are clearly defined Based on job analysis and therefore job relevant and legally defensible Useful for feedback purposes High content and face validity (if it is well developed) The development process may promote buy-in a frame-of-reference for evaluating performance
BARS
Disadvantages Development is time-consuming and expensive Affected by error and bias If anchors are too representative of a particular employees performance this may result in rating errors
Behavioral Observation Scales (BO

Developed by Latham and associates A performance appraisal that measures the frequency of observed behavior. Requires appraisers to rate how often a worker has been observed performing key work behaviors (critical incidents) Values on the rating scale can reflect specific percentages of time 5 = 95-100% 4= 87-94% 3 = 75-84% 2 = 65-74% 1 = 0-64%
Sample Items from Behavior Observation Scales

Steps involved in BOS
1. a group of individuals is observed and rated on a five-point scale as to the frequency with which they engage in the behavior described by each incident/statement, 2. a total score for each individual is determined by summing the observer's responses for each behavioral item, and 3. an item analysis (or factor analysis, depending upon the sample size) is conducted to select the most discriminating items. Those items with the highest correlations with the total score on a scale are retained to form one behavioral criterion or scale (BOS).
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
Advantages of BOS
Advantages It is (supposedly) measuring observations of behavior and therefore lessening subjective judgement Based on job analysis and therefore job relevant and legally defensible Very useful for feedback purposes High content and face validity (if well developed) The development process may promote buy-in a frame-of-reference for evaluating performance
Disadvantages of BOS
Disadvantages A supervisor cannot always be observing the workers he or she is rating Appraisers cannot remember how often very specific periods of time over any extensive time period (certainly not 6 to 12 months) Affected by error and bias
Comparing BOS with BARS

BOS is preferred over BARS for maintaining objectivity distinguishing good performers from poor performers providing feedback identifying training needs
CASE STUDY
A Comparison of Three methods of performance Appraisal with Regards To Goal Properties, Goal Perception and Ratee Satisfaction
OBJECTIVE
To examine the effects of rating scale formats in several variables that are important when using performance appraisal as a development tool, in particular ratee satisfaction with appraisal and the characteristics of goals that are developed in response to performance appraisal and feedback
HYPOTHESIS
H1:Ratee satisfaction with performance appraisal will be higher when BOS are used to evaluate performance than when GRS or BARS are used. H2:The goals set following appraisal with BOS will be more specific and more observable than those set following appraisals using GRS or BARS. H3:The goals set following appraisal with BOS will generate more positive perceptions on the part of ratee than those derived from use of GRS or BARS.
METHOD
96 Police officers in a large metropolitan area of Quebec were evaluated. Ratings were done by a team of high ranking officers Raters used one of the three types of rating scales to evaluate their subordinates, and after giving performance feedback, jointly set future performance goals with each ratee. Ratee satisfaction with appraisal and characteristics of the goals developed using each rating scale were assessed and compared.
Contd.
Raters were given 2days of training in performance appraisal and feedback so as to: 1)develop rater skills in observing and recording behavior 2)helping them distinguish between performance dimensions and component behaviors 3)helping them in setting specific and observable goals 4)fostering a shared understanding among raters as to content.
RATING SCALE
Each rating scale consisted of 56 behavioral items classified into 16 performance dimensions. These dimensions were developed by 70% of the 13 police officers who participated in devising the form but did not participate in the study.
RESULTS
H1:Ratee satisfaction with the appraisal system was higher for BOS than for BARS and also higher for GRS than for BOS.There were virtually no differences in satisfaction for BOS versus GRS. H2:With regards to goal specificity BOS was superior to both BARS and GRS H3:With regards to observability,BOS was found to be superior to BARS and GRS was superior to BARS.BOS was not noticeably superior to BARS
LIMITATIONS
Sample of raters and ratees is relatively small The effects reported are generally small or medium. Thus requiring caution while drawing broad conclusions. Sufficient data is not available to draw a conclusion that BARS are problematic.
PERFORMANCE REVIEW DISCUSSION

Communicating
Influencing
Performance Review Discussion
Helping
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Methods of Performance Appraisal Individual Evaluation Methods Multiple Person Evaluation Methods Other Methods
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Individual Evaluation Methods
Confidential report Essay evaluation Critical incidents
Checklist
Graphic rating scale Behaviorally anchored rating scale (BARS) Forced choice method Management by Objective (MBO)
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Multiple Person Evaluation Methods

Ranking
Paired comparison
Forced distribution
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Individual Evaluation Methods
Checklist Method
Simple checklist method Weighted checklist method Forced choice method
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Checklist Method
Is employee regular Y/N Simple Checklist Method Is employee respected by subordinate Y/N Is employee helpful Y/N Does he follow instruction Y/N Does he keep the equipment in order Y/N
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Checklist Method
Weighted Checklist Method
weights
performance
rating (scale 1 to 5 )
Regularity Loyalty Willing to help Quality of work Relationship
0.5 1.5 1.5 1.5 2.0

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Checklist Method
Forced Choice Method
Criteria
1.Regularity on the job
Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular
Rating
Most Least
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Individual Evaluation Methods Forced Choice Method

This method uses several sets of paired phrases, two of which may be positive and two negative The rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker Favorable qualities earn plus credit and unfavorable ones earn the reverse
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Amity Business School

PERFORMANCE AND COMPETENCY MANAGEMENT

Shikha Mishra Contributed by books and journals ABS