Behavioral Methods in Performance Appraisal

Study Notes

Critical Incident Method: involves a manager keeping a log for an employee and notes critical incidents related to performance. This method is particularly useful in capturing significant events that have a direct impact on the organization. It allows managers to identify areas of strength and weakness, providing insight into an employee's abilities and potential for growth.
Behavioral Checklist Method: requires the rater to check statements on a list that describe characteristics of an employee's behavior. This method is useful for evaluating an employee's job-specific skills and behaviors, allowing managers to assess performance against a set of predetermined criteria.
Behavior Observation Scale (BOS): a behavioral approach to performance rating that measures the frequency of observed behavior. This method focuses on capturing the frequency and duration of specific behaviors, providing a more accurate representation of an employee's performance.
Behaviorally Anchored Rating Scale (BARS): a behavioral approach to performance rating that consists of a series of vertical scales, for each dimension of job performance. This method uses a behavioral-based approach to evaluate performance, providing a more detailed assessment of an employee's performance compared to other methods.

Sales, Productivity, and Quality Measures: link what employees accomplish to results for the organization. These measures provide a clear understanding of an employee's contribution to the organization, allowing managers to make informed decisions about development and growth opportunities.
Management by Objectives (MBO): a philosophy of management that rates performance based on the achievement of goals set mutually by employees and managers. MBO encourages employee involvement and accountability, ensuring that employees are committed to achieving their goals and exceeding expectations.
The Balanced Scorecard: considers four measures: financial, customer, process, and learning. This approach provides a comprehensive assessment of an organization's performance, allowing managers to make data-driven decisions and identify areas for improvement.

Performance review meetings should be scheduled in advance to allow the subordinate and manager to prepare for the discussion. Adequate preparation ensures that both parties are fully prepared to discuss performance, goals, and development opportunities.
Three formats of performance review meetings and feedback sessions: tell-and-sell, tell-and-listen, and problem-solving. The tell-and-sell approach is structured around the manager providing feedback, while the tell-and-listen approach encourages dialogue between the manager and subordinate. Problem-solving focuses on identifying solutions to performance challenges and development gaps.

Feedback training should assist managers in providing ongoing performance feedback and during reviews and feedback sessions. Effective feedback training ensures that managers are equipped to provide constructive feedback, supporting employee growth and development.
Feedback training should cover: communicating effectively, diagnosing causes of performance problems, and setting goals and objectives. Managers need to understand how to communicate feedback in a clear and concise manner, identify the root causes of performance issues, and set specific, measurable, and achievable goals.

Performance review methods can measure traits, behaviors, or results. A combination of traits, behaviors, and results-oriented approaches provides a comprehensive evaluation of an employee's performance, allowing managers to develop a more well-rounded understanding of their team members.
Trait approaches are based on people's characteristics. While trait-based evaluations can provide insight into an employee's potential, they are often limited in their ability to capture an employee's job-specific skills and behaviors.
Behavioral approaches provide action-oriented information to employees and may be best for development. Behavioral-based evaluations focus on an employee's specific job tasks and behaviors, providing action-oriented feedback that supports employee growth and development.
The results-oriented approach focuses on the measurable contributions that employees make to the organization. This approach provides a clear understanding of an employee's impact on the organization, allowing managers to make informed decisions about development and growth opportunities.