Performance Appraisal Methods

Listed here are a variety of methods used to measure performance. Any one or combination of these techniques may be used in the workplace:

Graphic Scale

Using the graphic scale method, the appraiser checks the appropriate place on a scale for each task listed. A typical scale is a five-point rating scale where 1 is significantly below standard, 3 is standard, and 5 indicates performance significantly above standard. A “comments” section is typically included in which the appraiser can provide additional information about the employee’s performance in each dimension.

Example:

This employee is a team player:
_____________________
1        2        3        4        5

Checklist

Using the checklist method, the appraiser is given a list of statements and checks the items on the list that describe or apply to the employee. Some items may be weighted higher than others to arrive at an overall tabulated result. This system is limited because each appraiser may interpret statements and words differently.

Example:

• This employee is a team player.
• This employee arrives at work on time.
• This employee is a good leader.

Ranking

Using the ranking method, the appraiser ranks all employees from best to poorest performance. The limit to this system is that the difference between each number is not accounted for. For example, there may be little difference in performance between employees ranked 3 and 4, but a great difference in performance between employees ranked 11 and 12.

Forced Distribution

In the forced distribution method, employees are rated and placed at different points along a bell-shaped curve. For example, the curve may be divided into five sections: the lowest 10% of employees fall into the “poor” section, the next 20% of employees fall into the “below average” section, the next and largest group of 40% of employees fall into the “average” section, the next 20% fall into the “above-average” section, and the highest-performing 10% of employees fall into the “excellent” section. The limitation to this method is that some employees must be placed in lower or higher sections regardless of their ability.

Critical Incidents

Using critical incidents involves keeping track of on-the-job occurrences and accomplishments throughout the performance period. Both positive and negative incidents should be recorded. This method provides good examples of employee performance, but it can be time-consuming.

Management by Objectives (MBO)

Management by Objectives (MBO) is a process in which employees help set objectives for themselves, defining what they intend to accomplish within a given time period. Managers and employees mutually agree on the goals and objectives. When employees are involved in setting goals, a higher level of commitment and performance can result. Employees will also clearly understand goals that they helped to set.