Graphic rating scale performance appraisal

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I. Contents of getting graphic rating scale performance appraisal

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The performance appraisal process often gets a bad rap. For every person who says the

performance review should be abolished another will say it’s a necessary part of doing business.

While many equate performance reviews with compliance, it really doesn’t have to be that way.

Tracy McCarthy SPHR, GPHR, chief human resources officer at SilkRoad, led a great session on

performance reviews. One thing that struck me from the start was our opening dialogue about the

review process itself. Lots of different definitions and descriptions for what performance reviews

are and how they are utilized within organizations. It made me wonder if some of the reason

performance appraisals get a bad rap is because we don’t do a good job of explaining to

employees what the process means to our companies and how the process will be conducted.

During the conference we talked about three emerging trends in the performance review process

that companies might want to examine.

Consider changing the review cycle. Traditionally companies either conduct reviews on

employee anniversary dates or a common date. I’ve worked in organizations that have done both

and there are pros/cons to each. A Buck Consultants survey has started to see a trend toward a

common review date.

Common reviews (also referred to as a focal review) allow companies to have a greater focus

during the process. When reviews are done on anniversary dates, the company views them in

pieces. When the process is completed at one focal time, the business benefits in a few ways.

The process can be conducted when it’s convenient for the operation.

Organizations can ensure that operational goals are included in every appraisal.

Administration of the process (forms, data entry, etc.) is streamlined.

One other advantage: the process is typically completed on-time. This is a win-win for everyone.

Ditch the graphic rating scale. Companies have been using the 1-5 graphic rating scale in

performance reviews for ages. While it’s easy to use, it can be filled with rating errors. My

personal challenge with using the graphic rating scale is the “doesn’t meet standard” ratings.

Here’s my thought. If a “3” rating represents “meets company standard”, then why does a 2 or 1

rating exist? I’m not sure I understand degrees of not meeting the standard. Either you meet the

standard or you don’t.

Tracy shared how the SilkRoad team revamped the graphic rating scale. SilkRoad conducts

performance appraisals twice a year – there’s the annual review as well as a mid-year check-in.

The annual review has a 5-point scale (5=Outstanding, 4=Exceeds, 3=Solid, 2=Inconsistent,

1=Ineffective). I really like the way they address the “doesn’t meet standard” ratings. Or in

SilkRoad’s case “not a solid” performer.

The mid-year check-in is a bit more casual and fun. The ratings are Rockin’ It, On Track, and

Course Correction. Tracy says that managers and employees are more invested in the process

because they’ve had the opportunity to create a piece of it.

Infuse a little fun into the process. Performance reviews are important to the employee and

company. This doesn’t mean they have to be void of fun. Take a cue from the HR team at

Balfour Beatty Construction. They decided to solicit the help of their managers in creating a

video kick-off for their annual performance appraisal process. Watch what they came up with.

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III. Performance appraisal methods

1.Ranking Method

The ranking system requires the rater to rank his

subordinates on overall performance. This consists in

simply putting a man in a rank order. Under this method,

the ranking of an employee in a work group is done

against that of another employee. The relative position of

each employee is tested in terms of his numerical rank. It

may also be done by ranking a person on his job

performance against another member of the competitive

group.

Advantages of Ranking Method

i. Employees are ranked according to their performance

levels.

ii. It is easier to rank the best and the worst employee.

Limitations of Ranking Method

i. The “whole man” is compared with another “whole man”

in this method. In practice, it is very difficult to compare

individuals possessing various individual traits.

ii. This method speaks only of the position where an

employee stands in his group. It does not test anything

about how much better or how much worse an employee

is when compared to another employee.

iii. When a large number of employees are working, ranking

of individuals become a difficult issue.

iv. There is no systematic procedure for ranking individuals

in the organization. The ranking system does not eliminate

the possibility of snap judgements.

2. Rating Scale

Rating scales consists of several numerical scales

representing job related performance criterions such as

dependability, initiative, output, attendance, attitude etc.

Each scales ranges from excellent to poor. The total

numerical scores are computed and final conclusions are

derived. Advantages – Adaptability, easy to use, low cost,

every type of job can be evaluated, large number of

employees covered, no formal training required.

Disadvantages – Rater’s biases

3. Checklist method

Under this method, checklist of statements of traits of

employee in the form of Yes or No based questions is

prepared. Here the rater only does the reporting or

checking and HR department does the actual evaluation.

Advantages – economy, ease of administration, limited

training required, standardization. Disadvantages – Raters

biases, use of improper weighs by HR, does not allow

rater to give relative ratings

4. Critical Incidents Method

The approach is focused on certain critical behaviors of

employee that makes all the difference in the

performance. Supervisors as and when they occur record

such incidents. Advantages – Evaluations are based on

actual job behaviors, ratings are supported by

descriptions, feedback is easy, reduces recency biases,

chances of subordinate improvement are high.

Disadvantages – Negative incidents can be prioritized,

forgetting incidents, overly close supervision; feedback

may be too much and may appear to be punishment.

5. Essay Method

In this method the rater writes down the employee

description in detail within a number of broad categories

like, overall impression of performance, promoteability

of employee, existing capabilities and qualifications of

performing jobs, strengths and weaknesses and training

needs of the employee. Advantage – It is extremely

useful in filing information gaps about the employees

that often occur in a better-structured checklist.

Disadvantages – It its highly dependent upon the writing

skills of rater and most of them are not good writers.

They may get confused success depends on the memory

power of raters.

6. Behaviorally Anchored Rating Scales

statements of effective and ineffective behaviors

determine the points. They are said to be

behaviorally anchored. The rater is supposed to

say, which behavior describes the employee

performance. Advantages – helps overcome rating

errors. Disadvantages – Suffers from distortions

inherent in most rating techniques.

III. Other topics related to Graphic rating scale performance appraisal (pdf

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