Performance Appraisals
Appraisal items test why we appraise, what we measure, which method fits which job, and which rating error a scenario illustrates.
Purposes and criteria
Appraisals serve administrative uses (pay, promotion, transfer, discipline, retention) and developmental uses (feedback, coaching, training needs). Combining both in one conversation creates conflict, so many employers split them. Criteria are traits (loyalty, initiative-weakest), behaviors (best when the process matters), and results (best when outcomes are controllable by the employee).
Methods
Graphic rating scales rate traits or behaviors on a scale. Critical-incident files record specific effective and ineffective behaviors. BARS anchor each scale point to a behavioral example, improving consistency. Forced distribution ranks a fixed percentage into buckets, suits large groups, and can damage teamwork. MBO sets objectives jointly and appraises goal attainment. 360-degree feedback gathers ratings from supervisors, peers, subordinates, and customers. Behavior-based methods fit service jobs; MBO fits managers with measurable goals.
Rating errors
Halo rates everything high because of one favorable trait; horns does the reverse. Leniency, strictness, and central tendency distort the scale. Recency lets recent events dominate. Similar-to-me favors people like the rater. Contrast compares employees with each other instead of the standard. Raters should be trained and ratings calibrated.
Worked example
A 40-person unit uses a 20/70/10 forced distribution: 8 top, 28 middle, 4 bottom. If the unit hired only strong performers and no one is below standard, forced distribution invents a bottom group and drives wrongful turnover. The reasoning is to defend the method by population size and actual performance variance; with only 40 employees, sampling error alone skews a distribution, so a validated behavior-based scale plus calibration meetings is the safer design. Note also that appraisal records are discoverable in litigation, so defensibility requires job analysis, written standards, documentation, and an appeal step.
Traps that cost marks
- Confusing halo with leniency.
- Rating traits for a job whose output is measurable and controllable.
- Treating forced distribution as legally required.
- Assuming 360-degree feedback is used for pay decisions.
- Ignoring due process: standards, documentation, feedback, and appeal.