Implementing a Performance Appraisal System

Case for Module 4
You have been the human resources manager for Human
Solution
s Software for six months.
These first six months have been difficult at times, with you
needing to develop your credibility
with the people who work for HSS.
There have been some major changes at HSS since you became
the human resources manager.
A West Coast branch office, which has 25 new employees, has
been set up for HSS in Portland,
Oregon; and the former chief of operations has moved to
Portland to head that new office. HSS

has also received a major contract with a German firm. That
contract is being managed from the
main office in Maryland now, but a European branch office will
be opened in the next few
months. The German contract has led to the hiring of an
additional six employees at HSS
headquarters, with four of those employees planning to move to
Europe when the branch office
opens there.
HSS has also received several new contracts, mostly with
private firms, that have led to an
additional expansion of 18 more employees at the HSS
headquarters. This means that HSS has
expanded from 65 employees, when you first started as the
human resources manager, to 114
employees now.

As human resources manager you have hired a consultant who
has conducted job analyses for
all the present positions at HSS. The founders at HSS have
finally begun work on a strategic plan
for the organization and see you as one of the lead people in
developing that plan. You have also
set up standardized recruiting and staffing procedures that have
been used to hire many of the
new employees at HSS.
The hardest part of your job has been convincing several of the
founders that these changes
were needed. The demands of the organizations that HSS
contracts with, and several threatened
lawsuits by potential or former employees, have helped you to
get these changes approved by
the board.

You have accomplished all of this with only one clerical person
to help you. Recently you have
been putting pressure on the board to hire two human resources
generalists to help you in your
tasks. You have justified this expense by the money that the
organization can save by avoiding
lawsuits, by doing more training internally, and by being more
efficient in recruiting and staffing
positions.
Two months ago you submitted a plan for reorganizing HSS
based on the job analyses. This
structure included a traditional board of directors (made up of
the five founders), a
president/CEO, five vice presidents (finance, operations,
marketing, technical services, and
human resources). This morning you found out that, with a few
minor revisions, your plan has

been accepted. You will be the new vice president of human
resources with the two human
resource generalist positions being approved also. The founders
have also given you the
responsibility to supervise the five personnel who administer
and provide quality control for
contracts that HSS has.
While you are excited about your new position and the success
of HSS, you are aware of all the
work that is ahead of you now. You see HSS as an organization
that must be led into being a
more mature organization, with more established employee
policies. One of the first things that
you plan to have your new HR generalists do is to work on
organizing all of the employee policies
at HSS into an employee handbook. You also feel a need to

update and review the benefits
policies for employees.
Scenario 1
One of the many things on your list of things to be done to help
bring HSS into being a
more mature organization is to implement a formal performance
appraisal system.
The acting head of software development advises you that she
wants to develop an
effective performance appraisal system for her department. She
remembers, from
having taken a human resource management class as an
undergraduate, that there are
a number of different ways to measure performance and she
wants your guidance in
selecting one.
She also wants to make sure that the method chosen to measure
performance fits the

technical nature of the workers she supervises who work in
teams. Knowing what an
individualistic society the USA is, she suggests there be an
individual and a team
component.
A) Discuss the different alternatives that you recommend as the
most effective for
measuring the performance of software developers working in
teams. Share at
least three alternatives with the pros and cons of each
alternative you suggest.
B) Answer/discuss the following: 1) What information will need
to be gathered to
develop the new appraisal system; 2) How you will make the
performance
appraisal job-related and valid; and 3) How you will mitigate
the risk of rater
errors when evaluating performance.
Part 1BUS-FP3061 - Fundamentals of AccountingAssessment 1,

Part 1Instructions: When placing a (+) or (-) in the appropriate
cell, be sure to use ( ) around the character.Also, Some cells
may have both a (+) and (-) denoting an increase and decrease
in the same equation category.AssetsLiabilitiesOwner's Equity1.
Purchased supplies on account2. Received cash for providing a
service3. Paid expenses in cash4. Owner invested cash in the
business5. Owner withdraws cash from the business6. Received
cash from a customer who had previously been billed for
services provided7. Paid cash to purchase equipment8. Paid
employee salaries9. Paid a creditor from whom the business had
previously purchased supplies on account10. The company sells
new shares of stock11. Paid cash for monthly rent on the office
space12. Paid cash for monthly utility bills13. Performed
services on account14. Made a payment on a loan received from
the bank15. Purchased for cash merchandise that will be later
resold for profit
Part 2Answer w/Calculations1. The liabilities of the Smith
Company are $120,000 and the owner's equity is $232,000.
What is the the amount of Smith's total assets?2. The total
assets of Jones Company are $190,000 and its owner's equity is
$91,000. What is the amount of its total liabilities?3. The total
assets of Greene Company are $800,000 and its liabilities are
equal to one-half of its total assets. What is the amount of
Greens's owner's equity?4. Beginning the new year, Orange

Company had total assets of $800,000 and total liabilities of
$300,000. If total assets increased by $150,000 during the year
and total liabiities decreased by $80,000, what is the owner's
equity total at the end of the year?5. Beginning the new year,
Orange Company had total assets of $800,000 and total
liabilities of $300,000. If during the year Orange Company's
total liabilities increased by $100,000, and owner's equity
decreased by $70,000, what is the company's ending amount of
total assets?6. Beginning the new year, Orange Company had
total assets of $800,000 and total liabilities of $300,000. If total
assets decreased by $80,000 and owner's equity increased by
$120,000 during the year, what is the company's year-end total
liabilities amount?
Part 3Instructions: Click in the large box to beginning typing
your response for each scenario.Describe the role ethics has in
an accounting system.Scenario 1Scenario 2Scenario 3Scenario
4Scenario 5Scenario 6
HRMN 400 – Week 6 Citations
(Heathfield, 2019)

(Bacal, n.d.)
(Heathfield, 4 Common Problems With Performance Appraisals,
2020)
(Williams)
(Heathfield, The Advantages and Disadvantages of Merit Pay,
2020)
(Petersen, 2019)
(HR Basics: Performance & Rewards, 2011)
(How to do Effective Performance Appraisals, 2008)
(Heathfield, Performance Management Process Checklist, 2019)
(Heathfield, Why Employee Performance Appraisal Does Not
Work, 2019)
(Module 13: Designing a High-Performance Work System,
2012)
(Appraising Employee Performance)

Bibliography
Appraising Employee Performance. (n.d.). Retrieved February
15, 2021, from University of
Maryland Global Campus:
https://learn.umgc.edu/d2l/le/content/543604/viewContent/2043
1470/View
Bacal, R. (n.d.). Performance Enhancement. Retrieved February
14, 2021, from A Performance
Management Bias And Error Glossary: http://performance-
appraisals.org/Bacalsappraisalarticles/articles/bias.htm
Heathfield, S. M. (2019, November 25). Performance
Management Process Checklist. Retrieved
February 15, 2021, from Balance Careers:
https://www.thebalancecareers.com/performance-management-
process-checklist-
1918852
Heathfield, S. M. (2019, November 17). The 5 Goals of
Employee Performance Evaluation.
Retrieved February 14, 2021, from Balance Careers:
https://www.thebalancecareers.com/employee-performance-

evaluation-goals-1918866
Heathfield, S. M. (2019, October 19). Why Employee
Performance Appraisal Does Not Work.
Retrieved February 15, 2021, from Balance Careers:
https://www.thebalancecareers.com/performance-appraisals-
dont-work-1918846
Heathfield, S. M. (2020, May 8). 4 Common Problems With
Performance Appraisals. Retrieved
https://www.thebalancecareers.com/performa nce-appraisal-
problems-1918857
Heathfield, S. M. (2020, April 30). The Advantages and
Disadvantages of Merit Pay. Retrieved
https://www.thebalancecareers.com/the-
advantages-and-disadvantages-of-merit-pay-1919083
How to do Effective Performance Appraisals (2008). [Motion
Picture]. YouTube. Retrieved
February 14, 2021, from

https://www.youtube.com/watch?v=E34Zt1cEpFA&feature=yout
u.be
HR Basics: Performance & Rewards (2011). [Motion Picture].
YouTube. Retrieved February 14,
2021, from
https://www.youtube.com/watch?v=ALZVggBDODY&feature=y
outu.be
Module 13: Designing a High-Performance Work System.
(2012). In Principles of Management.
Lumen Learning. Retrieved February 15, 2021, from
https://courses.lumenlearning.com/principlesmanagement/chapte
r/16-6-designing-a-high-
performance-work-system/
Petersen, L. (2019, March 5). Advantages & Disadvantages of
Pay-for-Performance Policies.
Retrieved February 15, 2021, from Chron:
https://smallbusiness.chron.com/a dvantages-
disadvantages-payforperformance-policies-44264.html
Williams, L. (n.d.). Module 15: Performance Appraisals. In
Introduction to Business. Lumen
Learning. Retrieved February 15, 2021, from

https://courses.lumenlearning.com/wmintrobusiness/chap ter/rea
ding-performance-
appraisals/
The 5 Goals of Employee Performance
Evaluation
• • •
BY
SUSAN M. HEATHFIELD
Updated November 17, 2019
Are you interested in why organizations do employee
performance evaluations? It's both
an evaluative process and a communication tool. Done

traditionally, employee
performance evaluation is universally disliked by supervisors,
managers, and
employees.
The managers hate employee reviews because they don't like to
sit in judgment about
an employee's work. They know that if the performance
evaluation is less than stellar,
they risk alienating the employee. At the same time, employees
hate performance
evaluations because they dislike being judged. They tend to take
suggestions for
performance improvement personally and negatively.
Performance management, on the other hand, provides the
advantages organizations
seek in doing performance evaluation. But, performance
management, participated
effectively and with the appropriate mindset, accomplishes the
same goals, and more.
Performance management also supplies additional advantages to
both the manager
and the employee.

The question on the table now is why organizations would want
to ask employees to
participate in either employee performance evaluation or a
performance management
system. Good reasons exist for advocating the basic concept of
performance
evaluation. There are few fans of the traditional process.
Where Employee Performance Evaluation Fits
https://www.thebalancecareers.com/susan-m-heathfield-1916605
is-not-an-annual-appraisal-1918847
In some form, most organizations have an overall plan for
business success. The
employee performance evaluation process, including goal
setting, performance
measurement, regular performance feedback, self-evaluation,
employee recognition,
and documentation of employee progress, ensures this success.
The process, done with care and understanding, helps employees
see how their jobs

and expected contributions fit within the bigger picture of their
organization.
The more effective evaluation processes accomplish these goals
and have additional
benefits. Documented performance evaluations are
communication tools that ensure
the supervisor and their reporting staff members are clear about
the requirements of
each employee’s job.
The evaluation also communicates the desired outcomes or
outputs needed for each
employee’s job and defines how they will be measured.
Goals of Employee Performance Evaluation
These are the five goals of an effective employee evaluation
process.
1. The employee and the supervisor are clear about the
employee’s goals, required
outcomes or outputs, and how the success of the contributions
will be assessed. Your
goal in employee evaluation is to motivate a high level of

quality and quantity in the
work that the employee produces.
2. The goals of the best employee performance evaluations also
include employee
development and organizational improvement. The employee
performance evaluation
helps employees accomplish both personal development and
organizational goals. The
act of writing down the goals takes the employee one step closer
to accomplishing
them.
Since goals, deliverables, and measurements are negotiated in
an effective employee
performance evaluation, the employee and the supervisor are
committed to achieving
them. The written personal development goals are a commitment
from the organization
to assist the employee to grow in their career.
3. Employee performance evaluation provides legal, ethical, and

visible evidence that
employees were actively involved in understanding the
requirements of their jobs and
their performance. The accompanying goal setting, performance
feedback, and
documentation ensure that employees understand their required
outputs. The goal of
employee performance evaluation is to create accurate appraisal
documentation to
protect both the employee and the employer.
In the event that an employee is not succeeding or improving
their job performance, the
performance evaluation documentation can be used to develop a
Performance
Improvement Plan (PIP).
This plan provides more detailed goals with more frequent
feedback to an employee
who is struggling to perform. The goal of a PIP is the
improvement of the employee's
performance, but non-performance can lead to disciplinary
action up to and including
employment termination.

4. In many organizations, numeric rankings are used to compare
an employee’s
performance with the performance of other employees. Numeric
ratings are frequent
components of these systems, too.
No matter how fair and non-discriminatory these ratings are
made to appear through the
endless establishment of criteria for rating, and they boil down
to the manager’s opinion
of an employee’s performance. This is why numeric components
in an employee
performance evaluation process are not recommended.
5. The employee performance evaluation provides evidence of
non-discriminatory
promotion, pay, and recognition processes. This is an important
consideration in training
managers to perform consistent, regular, non-discriminatory
employee performance
evaluations. You want to ensure equitable measurement of an
employee's contribution
to the accomplishment of work,
https://www.thebalancecareers.com/need-6-strategies-to-

promote-the-growth-of-your-employees-1918617
https://www.thebalancecareers.com/performance-improvement-
plan-contents-and-sample-form-1918850
https://www.thebalancecareers.com/performance-improvement-
plan-contents-and-sample-form-1918850
https://www.thebalancecareers.com/use-disciplinary-actions-
effectively-and-legally-1917913
The documentation of success and failure to achieve goals is a
critical component of the
employee performance evaluation process.
While employee performance evaluation systems take many
forms from organization to
organization, these are the components that organizations are
most likely to include.
Some are more effective than others.
But the goals for the employee performance evaluation system,
or the appraisal
process, or the performance management process are similar.
The differences appear
in the approach and the details. And, that can make all of the
difference in how the

performance evaluation system is perceived by and carried out
by employees.
2/11/2021 A Performance Management Bias And Error Glossary
performance-
appraisals.org/Bacalsappraisalarticles/articles/bias.htm 1/1
A Performance Management Bias And Error Glossary by
Robert Bacal
Robert Bacal is a noted author, keynote speaker, and
management consultant. His most recent
books include Performance Management - A Briefcase Book,
and The Complete Idiot's Guide
To Dealing With Difficult Employees. The Work911 Supersite
contains many more free
articles and tips on a number of workplace topics. Access it at
work911.com .
Performance appraisals are always sticky for everyone. While

managers make an effort to be
as objective as possible, there are always concerns about
specific performance appraisals, and
their accuracy. If you are going to evaluate your staff, then it is
wise to be aware of factors that
may affect your assessments. In this short article we outline a
few factors you should be aware
of, so that you can examine your own assessment processes to
ensure that they are as free
from bias as possible.
Halo Effect
The halo effect is the tendency to rate someone high or low in
all categories because he or she
is high or low in one or two areas. Results in appraisals that do
not help develop employees,
because they are two general or inaccurate as to specifics.
Evaluating someone lower is
sometimes also called the "devil effect".
Standards of Evaluation
If you are using categories such as fair, good, excellent, etc, be
aware that the meanings of

these words will differ from person to person. In any event, the
use of these categories is not
recommended because they do not provide sufficient
information to help employees develop.
Central Tendency
The habit of assessing almost everyone as average. A person
applying this bias will tend not to
rate anyone very high or very low.
Recency Bias
Tendency to assess people based on most recent behaviour and
ignoring behaviour that is
"older".
Leniency Bias
Tendency to rate higher than is warranted, usually accompanied
by some rationalization as to
why this is appropriate.
Opportunity Bias

Ignoring the notion that opportunity (factors beyond the control
of the employee) may either
restrict or facilitate performance, and assigning credit or blame
to the employee when the true
cause of the performance was opportunity.
False Attribution Errors
We have a tendency to attribute success or failure to individual
effort and ability (at least in
North America). So when someone does well, we give them
credit, and when someone does
less well, we suggest it's somehow their fault. While there is
some truth in this, the reality is
that performance is a function of both the individual and the
system he or she works in. Often
we misattribute success and failure and assume they are both
under the complete control of
the employee. If we do, we will never improve performance.
http://www.amazon.com/exec/obidos/ASIN/0070718660/bacalas
soci
http://work911.com/articles/

4 Common Problems With Performance
Appraisals
Where Do Managers Go Wrong With Performance
Appraisal?
• • •
Table of Contents
• Performance Appraisals Are Annual
• Performance Appraisal As a Lecture
• Appraisals and Employee Development
• Performance Appraisals and Pay
BY
SUSAN M. HEATHFIELD
Updated May 08, 2020
Managers go wrong with performance appraisals in so many
ways, that it’s difficult to
identify all of them. Some of the problems have to do with the
overall system of
performance appraisal, and other problems are the result of the
one-on-one meeting
that is held for the appraisal interaction.

The systemic problems are rarely under the control of one
manager. They are created
by the people who have developed the performance appraisal
system that the
managers are asked to use, usually the senior leadership team
and Human Resources
staff.
Here are four of the big problems managers and employees
experience with
performance appraisals. If you are clear on the problems, you
have an opportunity to fix
the problems.
Performance Appraisals Are Annual
https://www.thebalancecareers.com/performance-appraisal-
problems-1918857#performance-appraisals-are-annual
problems-1918857#performance-appraisal-as-a-lecture
problems-1918857#performance-appraisal-and-employee-
development

problems-1918857#performance-appraisals-and-pay
https://www.thebalancecareers.com/susan-m-heathfield-1916605
1918226
Start with the fact that performance appraisals are usually
annual. Employees need
feedback and goal planning much more frequently than
annually. Managers may need
to participate in the annual performance appraisal plan, but they
have the power to
provide regular feedback in addition to the annual performance
appraisal.
Employees need weekly, even daily, performance feedback.
This feedback keeps them
focused on their most important goals. It also provides them
with developmental
coaching to help them increase their ability to contribute. The
feedback also recognizes

them for their contributions.
Employees need and respond best to clear expectations from
their manager. Feedback
and goal-setting annually just doesn't cut it in the modern work
environment. In this
environment, goals are constantly changing. Work is under
constant evaluation for
relevance, importance, and contribution.
Customer needs change with such frequency that only the
nimble respond in a timely
manner. It is what performance feedback needs to do—respond
nimbly and with serious
responsiveness in a timely manner.
Performance Appraisal As a Lecture
Managers, who don't know any better, make performance
appraisals into a one-way
lecture about how the employee did well this year and how the
employee can improve.
In one example from a small manufacturing company,
employees reported to HR that
they thought that the performance development planning

meeting was supposed to be a
conversation.
Their manager was using 55 of the 60 minutes to lecture his
reporting staff members
about their performance—both good and bad. The employees'
feedback was relegated
to less than five minutes. This is not the point of a performance
appraisal discussion—a
two-way discussion is critical so employees feel heard out and
listened to.
https://www.thebalancecareers.com/how-to-set-and-achieve-
goals-1918137
https://www.thebalancecareers.com/what-s-the-big-deal-about-
clear-performance-expectations-1919253
https://www.thebalancecareers.com/performance-development-
planning-1916761
Additionally, once a manager tells an employee about problems
with their work or a
failure in their performance, employees tend not to hear
anything else the manager has
to say that is positive about their performance.

So, the feedback sandwich in which managers praise an
employee, then give the
employee negative feedback that is followed, once again, by
positive feedback is an
ineffective approach to providing needed feedback.
So, it’s a combination problem. The best performance appraisals
are a two-way
discussion and focus on the employee assessing his or her own
performance and
setting his or her own goals for improvement.
Performance Appraisal and Employee Development
Performance appraisals rarely focus on developing an
employee’s skills and abilities.
They do not provide commitments of time and resources from
the organization about
how they will encourage employees to develop their skills in
areas of interest to the
employee.
The purpose of performance evaluation is to provide
developmental feedback that will

help the employee continue to grow in their skills and ability to
contribute to the
organization. It is the manager's opportunity to hold a clear
exchange about what the
organization expects and most wants and needs from the
employee. What a lost
opportunity if a manager uses the meeting in any other way.
Performance Appraisals and Pay
In a fourth way that performance appraisals often go astray,
employers connect
performance appraisals with the amount of pay raise an
employee will receive. When
the appraisal becomes a deciding factor in decisions about
employee raises, it loses its
ability to help employees learn and grow.
https://www.thebalancecareers.com/ban-the-feedback-sandwich-
for-employee-feedback-1918465
https://www.thebalancecareers.com/use-an-employee-self-
evaluation-1918856
https://www.thebalancecareers.com/what-is-a-raise-1918241

You will train employees to hide and cover-up problems. They
will set their manager up
to be blindsided by problems or an issue in the future. They will
bring only positives to
the appraisal meeting if they are a normal employee.
Don’t ever expect an honest discussion about improving an
employee's performance if
the outcome of the discussion will affect the employee’s
income. Doesn't this make
perfect sense? You know it does, so why go there? It should be
one component of your
salary setting system.
Let your employees know that you will base raises on a wide
range of factors—and tell
them what the factors are in your company annually. Employees
have short memories,
and you need to remind them every year about how you will
make your decisions about
merit increases.
If your company has a company-wide approach—and many
companies do these
days—even better. You will have support and backup as all

employees will receive the
same message. Your job will be to reinforce the message during
the performance
appraisal meeting.
Connecting the appraisal to an employee's opportunity for a
salary increase negates the
most important component of the process—the goal of helping
the employee grow and
develop as a result of the feedback and discussion at the
performance appraisal
meeting.
The Bottom Line
If you can influence these four big problems in performance
appraisal, you will go a long
way toward having a useful, developmental system in which the
employee's voice plays
a prominent role. It is the right way to approach performance
appraisal.
https://www.thebalancecareers.com/the-advantages-and-

disadvantages-of-merit-pay-1919083
https://www.thebalancecareers.com/the-advantages-and-
disadvantages-of-merit-pay-1919083
Reading: Performance Appraisals
The Purpose of Performance Appraisals
A performance appraisal (PA) or performance evaluation is a
systematic and periodic
process that assesses an individual employee’s job performance
and productivity, in
relation to certain pre-established criteria and organizational
objectives. Other aspects
of individual employees are considered as well, such as
organizational citizenship
behavior, accomplishments, potential for future improvement,
strengths, and
weaknesses. A PA is typically conducted annually. However,
the frequency of an
evaluation, and policies concerning them, varies widely from
workplace to workplace.
Sometimes an evaluation will be given to a new employee when

a probationary period
ends, after which they may be conducted on a regular basis
(such as every
year). Usually, the employee’s supervisor (and frequently, a
more senior manager) is
responsible for evaluating the employee, and he or she does so
by scheduling a private
conference to discuss the evaluation. The interview functions as
a way of providing
feedback to employees, counseling and developing employees,
and conveying and
discussing compensation, job status, or disciplinary decisions.
Historically, performance appraisals have been used by
companies for a range of
purposes, including salary recommendations, promotion and
layoff decisions, and
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content/uploads/sites/143/2016/11/29012946/8024702520_96c6
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training recommendations.[1] In general, “performance
elements tell employees what

they have to do, and standards tell them how well they have to
do it.”[2] This broad
definition, however, can allow for appraisals to be ineffective,
even detrimental, to
employee performance. “Second only to firing an employee,
managers cite performance
appraisal as the task they dislike the most,” and employees
generally have a similar
feeling.[3] One key item that is often forgotten during the
appraisal process (by managers
and employees alike) is that the appraisal is for improvement,
not blame or harsh
criticism.[4]
Developing an Appropriate Appraisal Process
One significant problem in creating an appraisal process is that
no single performance
appraisal method will be perfect for every organization.[5]
Establishing an appropriate
process involves significant planning and analysis in order to
provide quality feedback to
the employee. The most crucial task in the process is
determining proper job
dimensions that can be used to evaluate the employee against

accepted standards that
affect the performance of the team, business unit, or
company.[6] Peter Drucker
developed a method termed “Management by Objectives,” or
MBO, in order to address
the need for specifying such job dimensions. Drucker suggests
that objectives for any
employee can be validated if they pass the following SMART
test:[7]
• Specific
• Measurable
• Achievable
• Realistic
• Time-related
The process of an evaluation typically includes one or more of
the following:
• An assessment of how well the employee is doing. Sometimes
this includes a
scale rating indicating strengths and weaknesses in key areas
(e.g., ability to
follow instructions, complete work on time, and work with
others effectively). It’s

also common for the supervisor and manager to discuss and
determine the key
areas.
• Employee goals with a deadline. Sometimes the employee may
voluntarily offer a
goal, while at other times it will be set by his or her boss. A
significantly
underperforming employee may be given a performance
improvement plan, which
details specific goals that must be met to keep the job.
• Feedback from coworkers and supervisors. The employee may
also have the
chance to share feelings, concerns, and suggestions about the
workplace.
• Details about workplace standing, promotions, and pay raises.
Sometimes an
employee who has performed very well since the last review
period may get an
increase in pay or be promoted to a more prestigious position.
Methods of Performance Appraisal

https://courses.lumenlearning.com/wmintrobusiness/chapter/rea
ding-performance-appraisals/#footnote-8747-1
Numerous methods exist for gauging an employee’s
performance, and each
has strengths and weaknesses depending on the environment.
The following outlines
some of the more commonly used methods, as well as some
recently developed ones
that can be useful for various feedback situations:
• Graphic rating scales: This method involves assigning some

form of rating
system to pertinent traits. Ratings can be numerical ranges (1–
5), descriptive
categories (below average, average, above average), or scales
between desirable
and undesirable traits (poor ↔ excellent). This method can be
simple to set up
and easy to follow but is often criticized for being too
subjective, leaving the
evaluator to define broad traits such “leadership ability” or
“conformance with
standards.”[8]
• Behavioral methods: A broad category encompassing several
methods with
similar attributes. These methods identify to what extent an
employee displays
certain behaviors, such as asking a customer to identify the
usefulness of a sales
representative’s recommendation. While extremely useful for
jobs where behavior
is critical to success, identifying behaviors and standards for
employees can often
be very time-consuming for an organization.[9]

• 2+2: A relative newcomer in performance appraisal
methodology, the 2+2
feedback system demonstrates how appraisals can be used
primarily for
improvement purposes. By offering employees two compliments
and two
suggestions for improvement focused around high-priority
areas, creators Douglas
and Dwight Allen suggest that organizations can become “more
pleasant, more
dynamic, and more productive.”[10] If the goal is employee
improvement, this
system can provide significant benefits; however, if the goals
are compensation
changes and rankings, the system provides little benefit.
Appraisal methodologies depend greatly on the type of work
being done; an assembly
worker will require a very different appraisal system from a
business consultant.
Significant planning will be required to develop appropriate
methods for each business
unit in an organization in order to obtain maximum performance
towards the appraisal
goals.

1. Kulik, 2004 ↵
2. United States Department of the Interior, 2004 ↵
3. Heathfield, Performance Appraisals Don't Work ↵
4. Bacal, 1999 ↵
5. Kulik, 2004 ↵
6. Fukami, Performance Appraisal, 2007 ↵
7. Management by Objectives—SMART, 2007 ↵
8. Kulik, 2004 ↵
ding-performance-appraisals/#return-footnote-8747-1

9. Kulik, 2004 ↵
10. Formula 2+2, 2004 ↵
LICENSES AND ATTRIBUTIONS
CC LICENSED CONTENT, ORIGINAL
• Revision and adaptation. Authored by: Linda Williams and
Lumen
Learning. License: CC BY-SA: Attribution-ShareAlike
CC LICENSED CONTENT, SHARED PREVIOUSLY
• Performance Review. Authored by: Samuel Mann. Located
at:
https://www.flickr.com/photos/[email protected]/8024702520/.

License: CC BY:
Attribution
• Business Fundamentals. Authored by: Donald J McCubbrey.
Located
at:
https://dl.dropboxusercontent.com/u/31779972/BusinessFundam
entals.pdf. …

Implementing a Performance Appraisal System

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