The University of

Choice

DHR0104PERFORMANCE EVALUATION

(Performance Appraisal Methods - 2)

SAIFUL AZIZIsaiful_azizi@msu.edu.my

The University of

ChoicePERFORMANCE 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

ChoiceBehaviorally 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 committee’s 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.

The University of

ChoiceBehaviorally Anchored Rating Scale (BARS)

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.

The University of

ChoiceBehaviorally Anchored Rating Scale (BARS)

The University of

ChoiceBehavior 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

The University of

ChoiceBehavior Observation Scale (BOS)

The University of

Choice

The University of

ChoiceManagement 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 organization’s 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).

The University of

ChoiceManagement 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.

The University of

ChoiceManagement by Objective (MBO)

The “interview” is an examination of the employee’s 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.

The University of

ChoiceAdvantages & 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

The University of

ChoiceAdvantages & 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.

The University of

ChoiceAdvantages & 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

The University of

Choice

THANK YOU…