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DHR0104 PERFORMANCE EVALUATION (Performance Appraisal Methods - 2)

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SAIFUL AZIZI saiful_azizi@msu.edu.my

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PERFORMANCE MANAGEMENT METHOD
BEHAVIOR METHODS Behaviorally Anchored Rating Scale (BARS) Behavior Observation Scale (BOS) RESULTS METHODS Management by Objectives (MBO) The Balanced Scorecard

The University of Choice Behaviorally Anchored Rating Scale (BARS)

A behavioral approach to performance appraisal that consists of a series of vertical scales, one for each important dimension of job performance. These dimensions are anchored by behaviors identified through a critical incident job analysis. BARS is typically developed by a committee that include both subordinates and managers. The committees task is to identify all the relevant characteristics or dimensions of the job. Behavioral anchors in the form of statements are then established for each of the job dimensions.

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One major advantages is that personnel outside the HR department participate with HR staff in its development. Employee participation can lead to greater acceptance of the performance appraisal process and of the performance measures that it uses. The main disadvantage of a BARS is that it requires considerable time and effort to develop. In addition, because the scales are specific to particular jobs, a scale designed for one job may not apply to another.

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Behaviorally Anchored Rating Scale (BARS)

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Behavior Observation Scale (BOS)

A behavior approach to performance appraisal that measures the frequency of observed behavior. The value of BOS is that this approach allows the appraiser to play the role of observer rather than of judge. More easily provide constructive feedback to the employee. Some company have used the BOS, and research shows that users of the system frequently prefer it over the BARS or trait scales for
a. maintaining objectivity b. distinguishing good performers from poor performers c. providing feedback d. identifying training needs

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Behavior Observation Scale (BOS)

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Management by Objectives (MBO)

A philosophy of management that rates performance on the basis of employee achievement of goals set by mutual agreement of employee and manager. System involving a cycle that begins with setting the organizations common goals and objectives (such as production costs, sales per product, quality standards, and profits) and ultimately returns to that step. The system acts as a goal-setting process whereby objectives are established for the organization (step 1), department (step 2), and individual manager and employees (step 3).

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Management by Objectives (MBO)

Employee-establish goals are discussed with the supervisor and jointly reviewed and modified until both parties are satisfied with them (step 4). The goal statements are accompanied by a detailed account of the actions the employee propose to take in order to reach the goals. During periodic review, as objective data are made available, the progress that the employee is making toward the goals is then (step 5). Goals may be changed at this time as new or additional data are received.

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Management by Objective (MBO)

The interview is an examination of the employees self-appraisal by the supervisor and the employee together (Step 6). The final step (Step 7) is reviewing the connection between individual and organizational performance.

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Advantages & Disadvantages (Trait Methods)
ADVANTAGES Are inexpensive to develop Use meaningful dimensions Are easy to use DISADVANTAGES Have high potential for rating errors Are not useful for employee counseling Are not useful for allocating rewards Are not useful for promotion decisions

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Advantages & Disadvantages (Behavioral Methods)
ADVANTAGES Use specific performance dimensions Are acceptance to employees and superiors Are useful for providing feedback Are fair for rewards and promotion decisions DISADVANTAGES Can be time-consuming to develop/use Can be costly to develop Have some potential for rating error.

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Advantages & Disadvantages (Results Methods)
ADVANTAGES Have less subjectivity bias Are acceptance to employees and superiors Link individual performance to organizational performance Encourage mutual goal setting Are good for reward and promotion decisions DISADVANTAGES Are time-consuming to develop/use May encourage a short-term perspective May use contaminated criteria May use deficient criteria

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