Chapter 1: Introduction

The achievement of an organisation‘s goals rests with its people. The more talented the
people and the better they are managed and coordinated toward those goals the greater the
chance of success. Performance appraisal is all about providing a way to do this.

A performance appraisal, performance review, performance evaluation, development

discussion, or employee appraisal is a method by which the job performance of
an employee is evaluated. Performance appraisals are a part of career development and
consist of regular reviews of employee performance within organizations.

What is Performance Appraisal?

A performance appraisal is a review and discussion of an employee's performance of
assigned duties and responsibilities. The appraisal is based on results obtained by the
employee in his/her job, not on the employee's personality characteristics. The appraisal
measures skills and accomplishments with reasonable accuracy and uniformity. It provides a
way to help identify areas for performance enhancement and to help promote professional
growth. It should not, however, be considered the supervisor's only communication tool.
Open lines of communication throughout the year help to make effective working
relationships.

Each employee is entitled to a thoughtful and careful appraisal. The success of the process
depends on the supervisor's willingness to complete a constructive and objective appraisal
and on the employee's willingness to respond to constructive suggestions and to work with
the supervisor to reach future goals.

Theoretically, performance appraisals provide information upon which promotion and salary
decisions can be made. Appraisals provide an opportunity to review subordinate's work
related behaviour and develop a plan for correcting any deficiencies. In addition, performance
appraisal offers an opportunity to review the person's career plan in light of strengths and
weaknesses.

Performance appraisals are an employer's way of telling employees what is expected of them
in their jobs and how well they are meeting those expectations. A typical performance
appraisal entails the supervisor:

 Monitoring the employee's performance,

Page 1
  Completing a performance appraisal form about the employee, and
 Conducting a performance appraisal interview with the employee to discuss
his or her performance.

Performance appraisals are conducted over a specific rating period—typically three months,
six months, or a year.

Why Performance Appraisal?

Some people believe that the only reason companies do performance appraisal is for
compensation purposes, to justify increase and decrease salaries. Of course companies use
performance appraisal to make good decisions about compensation ―If someone believes in
pay-for-performance, they have to have some way to evaluate that performance.
There are other reasons for doing performance appraisal. If it‘s done right, performance
appraisals tell companies who‘s a good candidate for promotion and who‘s properly placed in
their current job and who needs to be dismissed. Performance appraisal tells companies
where they need to intensify their development efforts. The standards and expectations of
some companies are just too high for some people to meet, and performance appraisal helps
identifying who those misplaced employees are.
All those reasons are most of the time secondary. The real reason organizations have a
performance appraisal system is to fulfil an ethical obligation.
It means that every person who works for an organization wants the answer to two questions:
1. What do you expect of me?
2. How am I doing at meeting your expectations?
Companies answer the first question about expectations from employees, at the start of the
year when they talk about goals and projects and key job responsibilities. Performance
appraisal answers the second question about their current performance and contribution.
Companies have got an ethical obligation to let people know where they stand. Performance
appraisal is the formal, structured process that allows them to meet that responsibility.

Employers appraise performance for a number of reasons. Performance appraisals frequently

are used to support HR decisions involving merit increases, promotions, termination, and
layoffs. Employers that plan to use a merit pay plan must have a performance appraisal
system that effectively and accurately assesses employee performance that the employer
wants to reward and is capable of differentiating among different levels of performance.

Page 2
Merit pay decisions which are not based on an accurate and fair performance appraisal
system can lead to charges of discrimination, as well as employee dissatisfaction with the pay
system.

Performance appraisals also can be used to:

 Motivate employee performance and improve productivity,

 Facilitate employee growth and development, and
 Identify current and future training needs.

Objectives of Performance Appraisal

The main objective of performance appraisals is to measure and improve the performance of
employees and increase their future potential and value to the company. The other important
objectives of Performance Appraisal are:-

 Providing Feedback

Providing feedback is the most common justification for an organization to have a

performance appraisal system. Through its performance appraisal process, the individual
learns exactly how well he/she did during the previous twelve months and can then use that
information to improve his/her performance in the future. In this regard, performance
appraisal serves another important purpose by making sure that the boss‘s expectations are
clearly communicated.

 Facilitating Promotion Decisions

Almost everyone in an organization wants to get ahead. How should the company decide who
gets the brass rings? Performance appraisal makes it easier for the organization to make good
decisions about making sure that the most important positions are occupied by the most
capable individuals.

 Facilitating Layoff or Downsizing Decisions

Page 3
If promotions are what everybody wants, layoffs are what everybody wishes to avoid. When
economic realities force an organization to downsize, performance appraisal helps make sure
that the most talented individuals are retained and to identify poor performers who effects the
productivity of the organisation.

In India, technology firm Cognizant uses annual performance appraisal system to assess its
employees for the purpose of retaining talent and for Compensation management. During its
annual performance appraisal of the employees, the firm has asked its employees identified
as underperformers to leave the organisation.

 Encouraging Performance Improvement

How can anyone improve if he doesn‘t know how he‘s doing right now? A good performance
appraisal points out areas where individuals need to improve their performance.

 Motivating Superior Performance

This is another classic reason for having a performance appraisal system. Performance
appraisal helps motivate people to deliver superior performance in several ways. First, the
appraisal process helps them learn just what it is that the organization considers to be
‗‗superior.‘‘ Second, since most people want to be seen as superior performers, a
performance appraisal process provides them with a means to demonstrate that they actually
are. Finally, performance appraisal encourages employees to avoid being stigmatized as
inferior performers or, often worse, as merely average.

 Setting and Measuring Goals

Goal setting has consistently been demonstrated as a management process that generates
superior performance. The performance appraisal process is commonly used to make sure
that every member of the organization sets and achieves effective goals.

 Counselling Poor Performers

Not everyone meets the organization‘s standards. Performance appraisal forces managers to
confront those whose performance is not meeting the company‘s expectations.

Page 4
 Determining Compensation Changes

This is another classic use of performance appraisal. Almost every organization believes in
pay for performance but how can pay decisions be made if there is no measure of
performance? Performance appraisal provides the mechanism to make sure that those who do
better work receive more pay.

 Encouraging Coaching and Mentoring

Managers are expected to be good coaches to their team members and mentors to their
protégés. Performance appraisal helps identify the areas where coaching is necessary and
encourages managers to take an active coaching role.

 Supporting Manpower Planning

Well-managed organizations regularly assess their bench strength to make sure that they have
the talent in their ranks that they will need for the future. Companies need to determine who
and where their most talented members are. They need to identify the departments that are
rich with talent and the ones that are suffering a talent drought. Performance appraisal gives
companies the tool they need to make sure they have the intellectual horsepower required for
the future.

 Determining Individual Training and Development Needs

If the performance appraisal procedure includes a requirement that individual development

plans be determined and discussed, individuals can then make good decisions about the skills
and competencies they need to acquire to make a greater contribution to the company. As a
result, they increase their chances of promotion and lower their odds of layoff.

 Determining Organizational Training and Development Needs

Would the organization be better off sending all of its managers and professionals through a
customer service training program or one on effective decision making? By reviewing the
data from performance appraisals, training and development professionals can make good
decisions about where the organization should concentrate company-wide training efforts.

Page 5
 Validating Hiring Decisions

Is the company hiring talented and efficient employees or no can only be answered when the
performance of newly hired individuals is assessed can the company learn whether it is hiring
the right people.

 Providing Legal Defensibility for Personnel Decisions

Almost any personnel decision - termination, denial of a promotion, and transfer to another
department can be subjected to legal scrutiny. If one of these is challenged, the company
must be able to demonstrate that the decision it made was not based on the individual‘s race
or handicap or any other protected aspect. A solid record of performance appraisals greatly
facilitates legal defensibility when a complaint about discrimination is made.

 Improving Overall Organizational Performance

This is the most important reason for an organization to have a performance appraisal system.
A performance appraisal procedure allows the organization to communicate performance
expectations to every member of the team and assess exactly how well each person is doing.
When everyone is clear on the expectations and knows exactly how he is performing against
them, this will result in an overall improvement in organizational success.

 Training Needed

These appraisals also identify the necessary training and development the employee needs to
close the gap between current performance and desired performance.

Advantages of Performance Appraisal

For the appraised:
 Increased motivation and job satisfaction.
 Clear understanding of what is expected and what needs to be done to meet
expectations.
 Opportunity to discuss aspirations and any guidance, support or training needed to
fulfil these aspirations.

Page 6
  Improved working relationships with the superior.
 Opportunity to overcome the weaknesses by way of counselling and guidance
from the superior.
 Increased sense of personal value as he too is involved in the appraisal process
For the appraiser:
 Opportunity to develop an overview of individual jobs.
 Opportunity to identify strengths and weaknesses of appraisees.
 Increased job satisfaction.
 Opportunity to link team and individual objectives with department &
organizational objectives.
 Opportunity to clarify expectations that the manager has from teams and
individuals.
 6. Opportunity to re-prioritize targets.
 7. Means of forming a more productive relationship with staff based on mutual
trust and understanding.
 8. Due to all above increased sense of personal value
For the company:
 Improved performance throughout the organization due to:
 Increased sense of cohesiveness and loyalty.
 Managers are better equipped to use their leadership skills and to develop their
staff.
 Effective communication of organization‘s objectives and values.
 Improved overview of tasks performed by each member of a group.
 Identification of ideas for improvement.
 Creation and maintenance of a culture of continuous improvement.
 Communication to people that they are valued.

Disadvantages of Performance Appraisal

 If not done right, they can create a negative experience.

 Performance appraisals are very time consuming and can be overwhelming to

managers with many employees.

Page 7
  They are based on human assessment and are subject to rate errors and biases.
 Can be a waste of time if not done appropriately.
 They can create a very stressful environment for everyone involved.

Who Conducts Them?

Human resource management & performance management

Human resource management conducts performance management. Performance management

systems consist of the activities and/or processes embraced by an organization in anticipation
of improving employee performance, therefore, organizational performance. Consequently,
performance management is conducted at the organizational level and the individual level. At
the organizational level, performance management oversees organizational performance and
compares present performance with organizational performance goals. The achievement of
these organizational performance goals depends on the performance of the individual
organizational members. Therefore, measuring individual employee performance can prove
to be a valuable performance management process for the purposes of HRM and for the
organization. Many researchers would argue that ―performance appraisal is one of the most
important processes in Human Resource Management‖.

The performance management process begins with leadership within the organization
creating a performance management policy. Primarily, management governs performance by
influencing employee performance input (e.g. training programs) and by providing feedback
via output (i.e. performance assessment and appraisal). ―The ultimate objective of a
performance management process is to align individual performance with organizational
performance‖. A very common and central process of performance management systems is
performance appraisal. The PA process should be able to inform employees about the
―organization's goals, priorities, and expectations and how well they are contributing to the
organization‖

Page 8
Performance Appraisal Process

Page 9
1. Set The Objectives of Performance Appraisal
Performance appraisal is a strategic tool to achieve the mission and objectives of the
organization. How the organization intends to stay competitive, attain competitive advantage
and continually grow and develop spells the objectives of performance appraisal. Human
resources are the means of attaining organizational goals and objectives without strategic
linkage, performance appraisal will not be useful for the organization.

2. Establish Standards of Performance

The second step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees. This
step requires setting the criteria to judge the performance of the employees as successful or
unsuccessful and the degrees of their contribution to the organizational goals and objectives.
The standards set should be clear, easily understandable and in measurable terms.

3. Communicating The Performance Standards to Employees

Once set, it is the responsibility of the management to communicate the standards to all the
employees of the organization.
The employees should be informed and the standards should be clearly explained to the. This
will help them to understand their roles and to know what exactly is expected from them. The
standards should also be communicated to the appraisers or the evaluators and if required, the
standards can also be modified at this stage itself according to the relevant feedback from the
employees or the evaluators.

4. Measure Actual Performance

The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the specified
period of time. It is a continuous process which involves monitoring the performance
throughout the year. This stage requires the careful selection of the appropriate techniques of
measurement, taking care that personal bias does not affect the outcome of the process and
providing assistance rather than interfering in an employees work.

Page 10
5. Compare Actual Performance With The Standard Performance
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.
The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in
the organizational performance. It includes recalling, evaluating and analysis of data related
to the employees‘ performance.

6. Discuss The Report With Employees

The result of the appraisal is communicated and discussed with the employees on one-to-one
basis. The focus of this discussion is on communication and listening. The results, the
problems and the possible solutions are discussed with the aim of problem solving and
reaching consensus. The feedback should be given with a positive attitude as this can have an
effect on the employees‘ future performance. The purpose of the meeting should be to solve
the problems faced and motivate the employees to perform better.

7. Take Corrective Actions

The last step of the process is to take decisions which can be taken either to improve the
performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.

Page 11
Page 12
 Chapter 2: Methods of Performance Appraisal

Over the years, the value of performance appraisal has been understood better by
organisations. With course of time, the methods of appraisal have also evolved and
undergone change. However, there are two methods of performance appraisal, namely,
Traditional & Modern methods of appraisal.

A. Traditional Methods of Performance Appraisal

1. Essay Appraisal Method

This traditional form of appraisal, also known as ―Free Form method‖ involves a description
of the performance of an employee by his superior. The description is an evaluation of the
performance of any individual based on the facts and often includes examples and evidences
to support the information. A major drawback of the method is the inseparability of the bias
of the evaluator.

Under this method, the rater is asked to express the strong as well as weak points of the
employee‘s behaviour. This technique is normally used with a combination of the graphic
rating scale because the rater can elaborately present the scale by substantiating an
explanation for his rating.

2. Straight Ranking Method

Under the ranking method, the manager compares an employee to other similar employees,
rather than to a standard measurement. An offshoot of ranking is the forced distribution
method, which is similar to grading on a curve. Predetermined percentages of employees are
placed in various performance categories, for example, excellent, above average, average,
below average, and poor,. The employees ranked in the top group usually get the rewards
(raise, bonus, promotion), those not at the top tend to have the reward withheld, and those at
the bottom sometimes get punished.

Managers have to make evaluative decisions, such as who is the employee of the month, who
gets a raise or promotion, and who gets laid off. So when we have to make evaluative
decisions, we generally have to use ranking. However, our ranking can, and when possible
should, be based on other methods and forms. Ranking can also be used for developmental

Page 13
purposes by letting employees know where they stand in comparison to their peers—they can
be motivated to improve performance.

3. Paired Comparison

A better technique of comparison than the straight ranking method, this method compares
each employee with all others in the group, one at a time. After all the comparisons on the
basis of the overall comparisons, the employees are given the final rankings.

4. Critical Incidents Method

This technique of performance appraisal was developed by Flanagan and Burns.

The manager prepares lists of statements of very effective and ineffective behaviour of an
employee. These critical incidents or events represent the outstanding or poor behaviour of
employees on the job. The manager maintains logs on each employee, whereby he
periodically records critical incidents of the workers behaviour. At the end of the rating
period, these recorded critical incidents are used in the evaluation of the workers‘
performance.

This method provides an objective basis for conducting a thorough discussion of an

employee‘s performance. This method avoids bias (most recent incidents get too much
emphasis). This method suffers however from the following limitations:
 Negative incidents may be more noticeable than positive incidents.
 The supervisors have a tendency to unload a series of complaints about incidents
during an annual performance review session.
 It results in very close supervision which may not be liked by the employee.
 The recording of incidents may be a chore for the manager concerned, who may be
too busy or forget to do it.

5. Confidential Report System

Confidential report system is well known method of performance appraisal system mostly
being used by the Government organisations. In this method of appraising system,
Subordinate is observed by his superiors regarding his performance in the job and on his
duties done. Thereafter Superior writes confidential report on his performance, mainly on his
behaviour in the organisation and conduct and remarks if any. Confidential reports will be
kept confidential and will not be revealed to anyone and finally confidential reports will be

Page 14
forwarded to the top management officials for taking decision against person on whom
confidential report has made. Confidential reports are the main criteria for promoting or
transferring of any employee mainly in the government sector. All governmental
organisations example judiciary, police Department and other government departments in the
India are using confidential reports method as a tool to know about the employee and to take
any decision connecting to him.
The superiors who appraise their subordinate‘s performance, behaviour and other key issues
will be kept in the form of writing on paper, which is called as confidential report.
Confidential report should not be sent openly on a paper, it must be kept in a sealed cover to
send it to decision-making authorities. Only authorised persons are allowed to open the sealed
covers which consist of confidential reports. Confidential reports shall not be handed over in
loose sheets to the subordinates.

6. Rating Scales Method

Creating Scales Method is commonly used method for assessing the performance of the
employees and well-known traditional method of performance appraisal of employees. Many
corporations and companies example in the country India, telecommunications company
likely Airtel and US IT companies like Dell Corporation are using this method for evaluating
the employees and subsequently take decisions on concerned employee.
Depending upon the job of employee under this method of appraisal traits like attitude,
performance, regularity, accountability and sincerity etc, are rated with scale from 1 to 10. 1
indicates negative feedback and 10 indicates positive feedback as shown below.
Attitude of employee towards his superiors, colleagues and customers

1 2 3 4 5 6 7 8 9 10
Extremely Excellent
poor

Regularity in the job

1 2 3 4 5 6 7 8 9 10
Extremely Outstanding
poor

Page 15
Under this method of performance appraisal, employee may be assessed by his superiors,
colleagues, subordinates or sometimes by his customers which all depends on nature of the
company or job which is added where the employee. Appraiser is a person who appraises
employee will give rating for every trait given by marking or choosing number basing on his
observation and satisfaction. Ultimately all numbers chosen or marked will be added to
determine highest score gained by employee. Employee who scored more points will be
treated as top performer following descending scored employees will be treated as low
performer and the least scored employee will be treated as non-performers.

7. Checklist Method

The rater is given a checklist of the descriptions of the behaviour of the employees on job.
The checklist contains a list of statements on the basis of which the rater describes the on the
job performance of the employees.
Another simple type of individual evaluation method is the checklist. A checklist represents,
in its simplest form, a set of objectives or descriptive statements about the employee and his
behaviour. If the rater believes strongly that the employee possesses a particular listed trait,
he checks the item; otherwise, he leaves the item blank. A more recent variation of the
checklist method is the weighted list. Under this, the value of each question may be weighted
equally or certain questions may be weighted more heavily than others. The following are
some of the sample questions in the checklist.
Is the employee really interested in the task assigned? Yes/No
Is he respected by his colleagues (co-workers) Yes/No
Does he give respect to his superiors? Yes/No
Does he follow instructions properly? Yes/No
Does he make mistakes frequently? Yes/No

8. Graphic Rating Scale

This is the very popular, traditional method of performance appraisal. Under this method,
core traits of employee pertaining to his job are carefully defined like Attitude, Knowledge
of Work, Managerial Skills, Team Work, Honesty, Regularity, Accountability, Interpersonal
relationships, Creativity and Discipline etc. These traits are allotted with numerical scale to
tabulate the scores gained by appraisee (employee) in performance assessment relating to

Page 16
his job by appraiser (employer) and sum-up to determine the best performer. Appraiser
ticks rating of particular trait depending upon his endeavour in his job. Score vary from
employee to employee depending up on his performance levels and endeavour in his job.

This method is popular because it is simple and does not require any writing ability. The
method is easy to understand and use. Comparison among pairs is possible. This is necessary
for decision on salary increases, promotion, etc.

Companies like Dell, Maruti Suzuki India Ltd and Airtel are using this graphic rating scale
method to appraise performance of their employees in their jobs and to take decisions
regarding the matters concerned to employees.

Example of Graphic Rating Scales Method

Performance Trait Excellent Good Average Fair Poor

Attitude 5 4 3 2 1
Knowledge of Work 5 4 3 2 1
Managerial Skills 5 4 3 2 1
Team Work 5 4 3 2 1
Honesty 5 4 3 2 1
Regularity 5 4 3 2 1
Accountability 5 4 3 2 1
Interpersonal 5 4 3 2 1
relationships
Creativity 5 4 3 2 1
Discipline 5 4 3 2 1

9. Forced Distribution

A rating system used by companies to evaluate their employees. The system requires the
managers to evaluate each individual, and rank them typically into one of three categories
(excellent, good, poor). The system is thought to be relatively widely-used, but remains
somewhat controversial due to the competition it creates, and also the reality that not all
employees will fit neatly into one of the categories and might end up in a category that does
not reflect their true performance. One of the first companies to use this system was General
Electric, in the 1980s.
Forced ranking is a method of performance appraisal to rank employee but in order of forced
distribution.

Page 17
For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80
percent in the middle, and 10 percent in the bottom.

The top-ranked employees are considered ―high-potential‖ employees and are often targeted
for a more rapid career and leadership development programs.

In contrast, those ranked at the bottom are denied bonuses and pay increases. They may be
given a probationary period to improve their performance.

B. Modern Methods of Performance Appraisal

1. Assessment centre method

This method was used for the first time in 1930 by the German army and then in 1960‘s by
the British army. This method tests a candidate in different social situations using a number
of assessor and procedures. The performance of an employee an also his potential for a new
job is evaluated in this method by assessing his performance on job related simulations.
Characteristics that the concerned managers feel are important for the success of a particular
job are included in these simulations. Techniques like business games role playing and in
basket exercises are used in this method. The employees are evaluated individually as well as
collectively on job related characteristics. Personal interview and projective tests help in
assessing the motivation, career orientation and dependence on others of an employee. To
measure the intellectual capacity written tests are used. The evaluators in this method consist
of experienced manager working at different levels who prepare a summary report for the
management as well as for the employees. This technique usually measures the planning
ability interpersonal skills and organizational skills of an employee.

2. Human Resource Accounting Method

Human resources are valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the terms of money. In this method
the Performance appraisal of the employees is judged in terms of cost and contribution of the
employees. The cost of employees include all the expenses incurred on them like their

Page 18
compensation, recruitment and selection costs, induction and training costs etc whereas their
contribution includes the total value added (in monetary terms). The difference between the
cost and the contribution will be the performance of the employees. Ideally, the contribution
of the employees should be greater than the cost incurred on them.

3. Appraisal through management by objectives (MBO)

This concept was introduced by Peter Drucker in 1954 who named it management by
objectives and self control. It is an effective way it is also known as goal setting approach to
appraisal .In this process the supervisor and subordinate members jointly identify the
common goals of the organization and set the areas of the responsibility of each individual in
terms of results expected from that person. These measures are use for operating the unit as
well as for appraising the performance of the employees.

4. The 360 degree appraisal

The 360 degree method of performance appraisal is used to make the appraisal process
more transparent, objective and participative. It introduced the concepts of self appraisal
subordinates appraisal, peer appraisal and appraisal by customers. It is called a 360
degree method because it involves the evaluation of an employee by persons above him,
below him and alongside him. Structured questionnaires are used to collect information
from the seniors, subordinates and peers. The employee to be evaluated thus acquires a
central position and everyone around him participates in the appraisal process in the 360
degree method. The following four are the main components of 360 degree appraisal:

a. Self appraisal:
It allows an employee complete freedom in accessing his or her strengths objectively and
identifying the areas of development. The employees get a chance to share the
development areas with their seniors based on their self appraisal and jointly worked out a
plan in tune with the organizational realities like the availability of resources and time. It
also gives a chance to the employee to express his career plans which is in the interest of
the organization as it knows beforehand the aspirations of its employee.

Page 19
 b. Appraisal by superiors:
An appraisal by superiors involves providing constructive, feedback about the
performance of any employee as well as his development areas during the review period.
It helps in setting goals for the employees that help in achieve the organizational goals
and improve the performance of the employee. The career aspirations of an employee are
also put in proper prospective.

c. Appraisal by subordinates:
This is a unique feature of the 360 degree method of appraisal. As the subordinates play
an important role in the performance of the employee. The feedback by the subordinates
gives firsthand account of how they look at their superior in terms of working style. The
capability of a superior in motivating, delegating the work, building a team and
communicating with them effectively form the basis of appraisal by the subordinates.

d. Peer appraisal:
It also plays an important role in 360 degree appraisal as the role of peers is quite
important in life of an employee. Selecting the right peers is very important and peers
from the departments that are directly related with the department of the employee should
also be included. It mainly focuses on feedback about the style of functioning of the
employee under review and can also include his ability to work as team leader besides his
co-operation and collaboration.

e. Potential appraisal:
It is different from performance appraisal as it refers to the abilities of the employees that
are not being used at the time of appraisal. It searches for the latent abilities of the
employee in discharging higher responsibilities in future. The potential of the employees
is judged on the basis of his present performance, personality traits, past experience and
age and qualification. It also looks at the unused skills and knowledge of an employee. It
aims at informing the employee their future prospectus and helps the organization in
drawing your suitable successions plan. It also requires updating the training efforts
regularly and advised the employees on things which they can do to improve their career
prospectus.

Page 20
 5. Behaviourally anchored rating scale (BARS)

This method combines the graphic rating scale and the critical incident method. It
determines in advance the critical areas of the performance and the most effective
behaviour to achieve the results. Then the actual job behaviour of an employee is
evaluated against the predetermined behaviour.

Page 21
 Chapter 3: Behaviourally Anchored Rating Scales (BARS)

BARS refer to Behaviourally Anchored Rating Scales. It was developed by Smith and
Kendall to provide a better method of rating employees. It differs from "standard" rating
scales in one central respect, in that it focuses on behaviours that are determined to be
important for completing a job task or doing the job properly, rather than looking at more
general employee characteristics for example personality, vague work habit, etc.

So, rather than having a rating item that says: Answers phone promptly and courteously, a
BARS approach may break down that task into behaviours: For example:
 Answers phone within five rings.
 Greets caller with "Hello, This is the Dinkle Company, how may I help you?"
Notice how the BARS items are describe the important behaviours. Once those behaviours
are identified for a particularly job, or employee, the items can be used to base a numerical or
performance label on, let's say a five point, or seven point scale.

Behaviourally Anchored Rating Scales (BARS) is a relatively new technique which combines
the graphic rating scale and critical incidents method. It consists of predetermined critical
areas of job performance or sets of behavioural statements describing important job
performance qualities as good or bad (for e.g. the qualities like inter-personal relationships,
adaptability and reliability, job knowledge etc). These statements are developed from critical
incidents.

In this method, an employee‘s actual job behaviour is judged against the desired behaviour by
recording and comparing the behaviour with BARS. Developing and
practicing BARS requires expert knowledge.

Development of BARS evaluations requires an in-depth understanding of each position‘s key

tasks, along with an understanding of the full range of behaviours displayed by individuals in
carrying out such tasks. You rate these behaviours for each employee; then you anchor each
behaviour to points on a rating scale, which indicates whether the behaviour is exceptional,
excellent, fully competent, or unsatisfactory. The result is a rating scale for each task.

Page 22
For example, in a hypothetical position of human resources coordinator, one of the job
holder‘s responsibilities is to complete status change notices, which update the personnel
system regarding changes in employee pay, position, title, supervisor, and personal data. The
BARS method for this specific task in this specific job could read as follows:

5 - Exceptional performance: Accurately completes and submits all status change notices
within an hour of request.

4 - Excellent performance: Verifies all status change notice information with requesting
manager before submitting.

3 - Fully competent performance: Completes status change notice forms by the end of the
workday.

2 - Marginal performance: Argues when asked to complete a status change notice.

1 - Unsatisfactory performance: Says status change notice forms have been submitted when
they haven‘t.

Advantages of BARS

 It‘s behaviourally based

The BARS system is totally focused on employee performance. Ideally, it removes all
uncertainty regarding the meaning of each numerical rating.

 It‘s easy to use

The clear behavioural indicators make the process easier for the manager to carry out and the
employee to accept.

 It‘s equitable

With its heavy emphasis on behaviour, the evaluation process comes across as fair.

 It‘s fully individualized

From the standpoint of consistency within a company, BARS is designed and applied
individually and uniquely for every position.

 It‘s action-oriented

Page 23
With an understanding of the specific performance expectations and standards of excellence,
employees can much more easily take steps to improve their performance, and they‘re more
likely to do so as a result

 Ratings are not easily subjected to different interpretations of raters.

 It meets EEOC (Equal Employment Opportunity Commission) guidelines for fair
employment practices, since job criterion for assessment are derived from actual job
performance and are related to it.
 Based on samples of actual behavior
 More effective behavior identified for training.
 Instruments used by those who helped to develop it.
 A more accurate gauge.
 Clear standards.
 Feedback
 Independent dimensions.
 Consistency

Disadvantages of BARS

 The process of creating and implementing BARS is time-consuming, difficult and

expensive

Each BARS form must be created from scratch for every position in the company.

 Sometimes the listed behaviours still don’t include certain actions required of the
employee, so managers can have difficulty as signing a rating.

 It’s high maintenance

Jobs change over time, which means that BARS requires a high degree of monitoring and
maintenance.

 It’s demanding of managers.

In order to successfully conduct BARS evaluations, managers need detailed information

regarding the actions of their employees. Gathering such data can be quite time-consuming,
and many managers end up letting this slide.

Page 24
Construction of Behaviourally Anchored Rating Scales

Collect critical
incidents

Identify performance
dimensions

Reclassification of
instruments

Assigning value to
the incidents

Producing the final

instrument

Page 25
Step 1:

Collect Critical incidents:

People with knowledge of the job to be probed such as job holders and supervisors describe
specific examples of effective and ineffective behavior related to job performance.

Step II:

Identify Performance Dimensions:

The people assigned the task of developing the instrument cluster the incidents into a small
set of key performance dimensions. Most performances fall generally between five and ten
dimensions.

Examples of performance dimensions include technical competence, relationships with

customer handling or paperwork, and meeting day-to-day deadlines.

While developing varying levels of performance for each dimension (anchors), specific
examples of behavior should be used that is rated in terms of good, average or below average
performance later.

Step III:

Reclassification of Incidents:

Another group of participations who are knowledgeable about the job is instructed to
retranslate or reclassify the critical incidents generated (in Step II) previously. They are given
the definition of job dimension and told to assign each critical incident to the dimension that
it best describes. At these stage incidents for which there is not 75% agreements are discarded
as being too subjective.

Page 26
Step IV:

Assigning Scale values to the Incidents:

‗Each incident is the rated on a one-to-nine scale with respect to how well it represents
performance on the appropriate dimension. A rating of one represents in effective
performance; the top scale value indicates very effective performance. The second group of
participants usually assigns the scale values. Means and standard deviations are then
calculated for the scale values assigned to each incident. Typically incidents that have
standard deviation of 1.50 or less (on a 7-point scale) are retained.

Step V

Producing the Final Instrument:

About six or seven incidents for each performance dimension – all having met both the
retranslation and standard deviation criteria – will be used as behaviour anchors. The final
BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or
measured) by the final incidents. Each incident is positioned on the scale according to its
mean value attribution.

Page 27
Examples of Behaviourally Anchored Rating Scales

1. Acceptance of Supervision – Willingly accepts and follows instructions

given by supervisor in the performance of duties; responds to training and
coaching in a constructive manner.

Rating Possible Behavioural examples

Meets Expectation  Readily accepts and completes assigned responsibilities

 Attempts to improve performance following constructive criticism
 Follows policies set by supervisor without reminder
 Cooperates willingly with supervisor
 Follows specific instructions

Exceeds Expectation  Demonstrates exceptional ability to independently complete assigned

responsibilities
 Never complains about assigned tasks
 Improves performance following constructive criticism
 Knows and follows all policies set by supervisor

Does Not Meet Expectation  Complains about assigned tasks; often questions supervisory requests
 Fails to consistently follow all policies set by supervisor
 Becomes upset when constructively criticized
 Sometimes fails to follow specific instructions

2. Adaptability/Flexibility – Adapts readily to new situations and changes in

the workplace; works well under pressure; learns and functions well under
widely different situations and circumstances.

Rating Possible Behavioural examples

Meets Expectation  Readily adjusts to new situations and responsibilities

 Easily handles a wide variety of tasks, sometimes concurrently
 Readily comprehends new job related information
 Performs well under widely different and/or changing circumstances

Exceeds Expectation  Functions effectively under unusually high levels of mental or

emotional stress
 Capable of assisting other staff with change while maintaining
regular personal workload
 Conforms to changing demands with a positive attitude and skills

Page 28
Does Not Meet Expectation  Has difficulty adjusting to changes in workload or assignments
 Becomes nervous or upset under normal job stress
 Loses composure under higher than normal stress level
 Lacks patience when dealing with more than one assignment

3. Change Management – Openly supports change; motivates and encourages

fellow employees to support change; successfully implements change in work
unit.

Rating Possible Behavioural examples

Meets Expectation  Works hard to implement successful change in areas of responsibility

 Openly supports change
 Recommends and implements further changes to improve processes
and customer service
 Encourages others to make changes
 Makes serious effort and takes responsible risk to improve processes

Exceeds Expectation  Actively promotes the possibilities that change can bring
 Regularly tries new ways of doing things to improve processes
 Searches for and implements ―best practices‖ to improve processes
and customer service

Does Not Meet Expectation  Resists change or innovation, or takes a ―wait & see‖ approach
 Can become defensive
 Averse to taking any risk
 Continues to try to do things the way they have ―always been done.‖

4. Communication – Comprehends oral and written information, and clearly and

effectively expresses self in the presentation of ideas; develops written work in
a logical and comprehensive manner where appropriate.

Rating Possible Behavioural examples

Meets Expectation  Demonstrates oral and written communication skills commensurate

with job responsibilities
 Reports and communications are accurately spelled and utilize
correct grammar
 Possesses sufficient command of English language and adequate
grammar skills for position

Page 29

Exceeds Expectation
Does Not Meet Expectation
5. Composure/Stability – Works well under pressure; responds appropriately to
stressful/emergency situations; approaches tasks with patience and firmness; is
consistent in behaviour.
Rating
Meets Expectation
Exceeds Expectation
Does Not Meet Expectation
 Able to effectively present personal viewpoint
 Consistently attempts to be effective and attentive listener
 Readily comprehends oral and/or written instructions when first
presented
 Demonstrates unique ability to transmit difficult information in an
understandable manner
 Superior comprehension of oral and/or written instructions
 Capable of reviewing materials for others due to superior command
of English usage
 Possesses outstanding persuasive powers
 Practices superior listening skills and positive body language
techniques
 Reports and communications are vague or poorly written
 Reports and communications contain spelling or grammar errors
 Has difficulty verbalizing thought patterns, or expressing facts, ideas,
and/or questions needed for position
 Misinterprets or is slow to comprehend oral and/or written
instructions
 Practices insufficient listening skills which promote an environment
of misunderstanding
Possible Behavioural examples
 Takes appropriate action in emergency situations
 Maintains composure in emergency or high-stress situations
 Acts in a calm, yet firm manner under adverse conditions
 Rarely intimidated by others
 Exercises authority when appropriate
 Acts professionally in all situations
 Is not intimidated by any person/situation
 Responds quickly and efficiently in emergency situations
 Remains firm and calm under serious/dangerous circumstances
 Is uncertain of appropriate action in emergency situations
 Is reluctant to or uncertain how to exercise appropriate authority
 Becomes nervous or upset under normal stress levels
 Loses composure in emergency or high-stress situations
 Is easily intimidated by others
Page 30
 6. Confidentiality – Can be trusted to use discretion in dealing with customers
and fellow employees; maintains confidentiality of information or materials
appropriate to position.

Rating Possible Behavioural examples

Meets Expectation  Maintains the confidentiality of all appropriate records or materials

 Uses discretion in dealing with all clients/customers and/or fellow
employees
 Does not participate in office gossip concerning clients/customers
and/or fellow employees
 Discloses appropriate information at appropriate times based on
relevant statutes, rules or policies

Exceeds Expectation  Actively promotes atmosphere of confidentiality through continuous

monitoring and communication of confidentiality standards
 Actively discourages office gossip about clients/customers and/or
fellow employees

Does Not Meet Expectation
 Demonstrates lack of concern for confidentiality through behavior or
conversation
 Participates in office gossip with little regard to potential negative
consequences
 Demonstrates insufficient knowledge of all statutes and/or policies
relating to the confidentiality of relevant records and materials

7. Customer Service – Demonstrates knowledge of internal and external

customers; is sensitive to customer needs and expectations; anticipates needs
and responds promptly and willingly to provide information, services and/or
products as needed.

Rating Possible Behavioural examples

Meets Expectation  Demonstrates understanding of internal customer concept and treats

all customers with high levels of sensitivity and respect
 Always provides satisfactory and sometimes excellent customer
service
 Responds to all customer requests promptly

Page 31
  Maintains personal accountability and ownership in customer service
rendered
 Seeks feedback from customers and adjusts behavior accordingly

Exceeds Expectation
 Provides excellent service to all customers, frequently going beyond
what is strictly required
 Keeps informed about customers‘ needs and/or wants and in general,
anticipates customers‘ needs
 Responds to customer requests with high degree of sensitivity and a
sense of urgency
 Builds close, collaborative relationships with all customers
 Motivates others to provide service excellence and leads by example
 Examines and recommends changes to processes to improve
customer service

Does Not Meet Expectation
 Demonstrates inadequate knowledge of internal customer concept
 Views customers as an irritation and/or a problem
 Resists changes in how customers are served
 Waits to be asked before responding to customers‘ needs
 Responds to requests with little sense of urgency

8. Directing/Coaching – Defines and coordinates work and delegates

appropriately to best accomplish goals; adjusts assignments to maintain
workflow; provides immediate and effective feedback to employees
concerning behaviour and performance.

Rating Possible Behavioural examples

Meets Expectation  Allocates materials and equipment to accommodate work flow

 Regulates the assignments and responsibilities of subordinate
employees to ensure that work is completed on or ahead of schedule
 Work assignments are delegated to optimize output
 Reassigns tasks when necessary

Exceeds Expectation
 Skilfully manages subordinates for optimal performance and output
 Demonstrates superior skill in ensuring that priorities are adhered to
 Demonstrates exceptional ability to meet/exceed deadlines in
emergency situations
 Voluntarily directs additional administrative responsibilities

Does Not Meet Expectation
 Has difficulty in prioritizing, delegating, monitoring or adjusting
work activities of subordinate employees
 Has difficulty meeting deadlines
 Does not coordinate interdepartmental issues
 Fails to direct staff toward achieving maximum performance

Page 32
 9. Drive for Results – Understands importance of achieving results; makes
effort necessary to achieve goals/objectives; achieves results requested or
agreed upon.

Rating Possible Behavioural examples

Meets Expectation  Understands importance of achieving results

 Makes all effort necessary to achieving goals/objectives
 Usually achieves requested results in appropriate time frame

Exceeds Expectation  Takes appropriate decisive action to achieve goals/objectives

 Consistently surpasses requested results or agreed upon objective
 Not deterred by uncertainty, risk or conflict; results oriented
 Demonstrates high sense of urgency in achieving results

Does Not Meet Expectation  Rarely achieves desired results

 Makes excuses for lack of achievement
 Tends to blame others or circumstances when results were achievable
 May be stopped by uncertainty, risk or conflict
 Visible lack of urgency, commitment, or effort for results

10. Employee Relations – Is supportive, considerate, fair, and objective in one‘s

behaviour toward subordinates; establishes and maintains a cordial and
harmonious work atmosphere.

Rating Possible Behavioural examples

Meets Expectation  Establishes/maintains a cordial and harmonious work atmosphere by

effectively communicating with individuals
 Offers encouragement and support to subordinates when work gets
difficult
 Exhibits fair and objective behaviour toward subordinate employees
 Promotes an environment that is low in conflict

Exceeds Expectation  Encourages employees to communicate ideas or questions regarding

work operations
 Extremely fair, supportive, and objective in behaviour toward
subordinates
 Promotes a respect-filled environment

Does Not Meet Expectation  Often subjective and/or unfair when dealing with individuals
 Ineffective in establishing or maintaining a cordial and harmonious
work atmosphere

Page 33
  Provides little encouragement or support to employees
 Environment is conflict-filled.

11. Financial Planning/Budgeting – Fully understands the budgetary parameters

of the work unit; plans and operates within the budget; capable of rationalizing
allocation of resources.

Rating Possible Behavioural examples

Meets Expectation  Formulates, prioritizes and develops budgetary items

 Capable of rationalizing allocation of resources for budgetary line
items
 Plans and operates within budget; continually reprioritizes to reflect
changes in resources
 Formulates expense guidelines for ongoing and future projects
 Manages fiscal resources in emergency situations
 Reviews budgets for cost efficiencies

Exceeds Expectation  Expert ability to manage emergency budget revisions

 Exceptional ability to identify, investigate, and manage budgetary
results
 Demonstrates unique aptitude to forecast budgetary factors
 Presents effective case in communicating budgetary requests
 Manages to deliver positive budgetary results

Does Not Meet Expectation  Inaccurately forecasts budgetary parameters

 Fails to establish budgetary priorities
 Fails to adequately manage fiscal resources resulting in excessive
cost overruns
 Rarely reviews budgets for cost efficiency

12. Interpersonal Relations – Establishes effective working relationships with

co-workers, supervisors & managers, clients and/or the public; gets along well
with others.

Rating Possible Behavioural examples

Meets Expectation  Usually tactful, considerate and respectful in dealing with others
 Establishes or maintains rapport with others
 Resolves infrequent conflicts in an appropriate and respectful way

Page 34

Exceeds Expectation
Does Not Meet Expectation
13. Job Knowledge – Possesses adequate knowledge skills and experience to
perform the duties of the job; understands the purpose of the work unit and
how position contributes to the overall mission of the agency; maintains
competency in essential areas.
Rating
Meets Expectation
Exceeds Expectation
Does Not Meet Expectation
 Cooperates with all other staff to complete assignments
 Uses discretion when dealing with others
 Refrains from disturbing the work of others
 Does not allow personal issues to intrude on work relationships
 Always tactful, considerate and respectful in dealing with others
 Never experiences conflict with others
 Demonstrates exceptional ability to promote a positive atmosphere
among co-workers
 Continuously establishes effective work relationships with all agency
stakeholders
 Personal issues never intrude on work relationships
 Frequently involved in conflict with others
 Has difficulty being tactful, considerate and respectful in dealing
with others
 Is indiscreet in dealing with others
 Personal issues frequently intrude on work relationships
 Reluctant or refuses to cooperate with others in completing work
assignments
 Disturbs others while they are working
Possible Behavioural examples
 Demonstrates substantial knowledge and skill in job-related areas
 Willingly participates in training to maintain or enhance current
knowledge of principles, procedures, methods, and/or technology
 Has thorough knowledge of how one‘s job fits into the overall
agency mission
 May serve as resource person for peers
 Frequently serves as resource person for peers
 May serve as resource person for supervisor
 Demonstrates exceptional knowledge and skills in job-related areas
 Proactively remains up to date with all principles, procedures,
methods, and technology
 Demonstrates insufficient or vague knowledge and skill in job-
related areas
 Exhibits little interest in training to maintain current knowledge of
principles, procedures, methods or technology
Page 35
  Is frequently unable to answer job-related questions

14. Judgment – Exercises logical thinking and foresees consequences of actions;

has adequate knowledge of all applicable policies or rules and selects
appropriate guidelines or procedures to follow in a variety of situations.

Rating Possible Behavioural examples

Meets Expectation
 Reports all incidents to appropriate source and completes all required
documentation
 Requests assistance from appropriate personnel when necessary
 Recognizes and chooses appropriate course of action when dealing
with difficult or sensitive situations
 Makes appropriate decisions when dealing with client population and
peers
 Recognizes all potentially dangerous situations and takes appropriate
action
 Ensures all security procedures are followed according to agency
policy

Exceeds Expectation  Consistently recognizes and chooses best course of action when
dealing with difficult or sensitive situations
 Reports are consistently accurate, concise and clearly understandable
 Utilizes security procedures to anticipate and prevent problems

Does Not Meet Expectation  Reports are incomplete, inaccurate or incomprehensible

 Fails to choose appropriate course of action when dealing with
difficult or sensitive situations
 Negligent in performing security procedures

15. Motivation/Initiative – Displays an interest in performance of tasks, including

those over and above regular assignments; willingly accepts increasing
responsibility and accountability; makes recommendations and suggestions to
improve operations.

Rating Possible Behavioural examples

Meets Expectation  Willingly accepts increasing levels of accountability

 Takes initiative to enlarge scope of responsibility
 Makes recommendations and suggestions to improve operations
 Sometimes recommends taking on work to facilitate improvements
in operational excellence

Page 36

Exceeds Expectation
Does Not Meet Expectation
16. Organizational Commitment – Displays high level of effort and commitment
to performing work; operates effectively within the organizational structure;
demonstrates trustworthiness and responsible behaviour.
Rating
Meets Expectation
Exceeds Expectation
Does Not Meet Expectation
 Willingly performs additional assignments after expected/delegated
work is completed
 Provides information, coaching and training to others to enhance
their knowledge or skills
 Proactively takes on increasing levels of accountability
 Seeks assignments in addition to expected work
 Anticipates problems and develops alternatives in advance
 Does not assume or accept personal responsibility
 Needs frequent guidance and assistance
 Does not ―make a move‖ without direction or approval
 Does only what is required
Possible Behavioural examples
 Follows through on assigned work
 Shows concern about completion of work
 Assumes accountability for own actions
 Readily accepts assignments
 Volunteers for additional work when assignments are completed
 Frequently performs duties over and beyond job description
 Volunteers for additional assignments to relieve pressure on
supervisor or co-workers
 Willingly assumes total responsibility for own actions
 Familiarizes self with co-worker‘s jobs in order to provide assistance
during an absence or when workload is heavy
 Does not seek additional assignments after expected work is
completed
 Reluctant to assume accountability for own actions
 Complains about duties
 Selectively completes only duties enjoyed
 Complains when asked to perform an extra task
Page 37
 17. Physical Effort – Puts forth the physical exertion required to perform
assigned tasks. Can be counted on to do one‘s share of the work.

Rating Possible Behavioural examples

Meets Expectation  Works well in all temperatures

 Adequately performs required heavy lifting
 Performs at a sufficient rate of speed
 Willing to work in uncomfortable conditions and/or carry out
unpleasant tasks

Exceeds Expectation  Volunteers to work in uncomfortable conditions and/or carry out

unpleasant tasks
 Skilfully performs tasks at great speed
 Works well in extreme heat or cold
 Frequently volunteers to exert above average physical effort

Does Not Meet Expectation  Performs at inadequate rate of speed

 Reluctant to work in uncomfortable conditions and/or carry out
unpleasant tasks
 Reluctant to work in extreme heat or cold
 Depends on co-workers to do required heavy lifting
 Exerts minimal physical effort

18. Planning & Organizing – Establishes priorities and work sequences to

coordinate efforts maintain work flow and meet deadlines; ensures sufficient
functioning through smooth interface with related processes.

Rating Possible Behavioural examples

Meets Expectation  Consistently meets deadlines, even under pressure

 Continually demonstrates efficient use of work time
 Effectively prioritizes assignments, agendas, tasks, and programs
 Competent in anticipating the need to rearrange priorities
 Prepares for meetings in advance
 Maintains consistent and orderly work flow

Exceeds Expectation  Excellent coordination of programs, assignments, and agendas

 Thoroughly integrates the work of other departments and/or agencies
 Regularly completes assignments ahead of schedule
 Anticipates needs and steps required to complete assignments and
prepares for future assignments
 Continuously strives for improved productivity
 Has excellent organizational skills

Page 38
Does Not Meet Expectation
19. Problem Solving/Decision Making – Recognizes and defines problems;
thoroughly obtains and analyzes facts; takes immediate corrective action; uses
resources and techniques to develop sound solutions while foreseeing possible
consequences.
Rating
Meets Expectation
Exceeds Expectation
Does Not Meet Expectation
 Misses deadlines frequently
 Needs assistance planning work flow
 Has difficulty appropriately prioritizing assignments, agendas, tasks
and programs
 Has inadequate organizational skills
Possible Behavioural examples
 Efficiently recognizes and defines problems associated with job
 Weighs advantages and disadvantages of proposed solutions
 Resolves most problem situations and looks for ways to avoid
similar problems in future
 Can obtain data or information and analyze factual situations for
relevancy
 Can interpret and apply all relevant procedures, principles, policies
and /or statutes
 Can develop alternatives when faced with obstacles
 Extremely skilled in assessing impact of problem situations
 Instinctive skill in recognizing problem situations before they
develop
 Notably effective in resolving complaints
 Highly creative in development of problem solving techniques
 Seeks out and attempts to solve the root causes of problems
 Possesses great skill in gathering and analyzing information for
application to problem situations
 Possesses insufficient knowledge to develop problem solving
strategies
 Fails to resolve complaints and/or problems
 Inconsistent or insufficient in recognizing and defining problems
 Requires assistance in weighing advantages and disadvantages of
potential solutions
 Fails to anticipate the development of problem solutions
 Is unable to correctly interpret and apply all relevant procedures,
principles, policies and/or statutes
Page 39
 20. Public Relations – Works effectively with contacts outside the agency in a
courteous, co-operative and objective manner. Involves the provision of
timely, accurate assistance to the public.

Rating Possible Behavioural examples

Meets Expectation
 Interacts with the public in a courteous and cooperative manner
 Handles complaints from individuals from outside the agency in a
calm manner
 Handles sensitive situations involving individuals outside the agency
 Can tactfully handle irate individuals from outside the agency
 Can develop and deliver presentations to outside groups pertaining to
the agency‘s function

Exceeds Expectation  Demonstrates superior ability in establishing favourable relations

with the public
 Consistently coordinates and communicates new agency policies to
outside individuals and agencies
 Independently handles sensitive situations involving individuals
outside the agency

Does Not Meet Expectation  Insufficient skills in developing and delivering presentations to
outside groups
 Often communicates incorrect information to the public
 Needs assistance in assisting the public with requests for information

21. Safety – Follows safety policies and procedures using proper techniques to
ensure the protection of people and property.

Rating Possible Behavioural examples

Meets Expectation  No preventable injuries

 No preventable accidents
 Consistently follows policies and procedures as directed
 Consistently applies safety knowledge to work activities

Exceeds Expectation  Identifies safety deficiency and provides solution that was
implemented
 Serves as safety resource for peers
 Excels in acquiring additional safety knowledge

Page 40
Does Not Meet Expectation
22. Staff Development/Performance Management – Works with employees to
create training and development plans; provides regular, balanced feedback to
clarify strengths and weaknesses; provides clear standards for employee
achievement; fosters individual and collective creativity within the work
group.
Rating
Meets Expectation
Exceeds Expectation
Does Not Meet Expectation
 Incurs preventable injury
 Incurs preventable accident
 Does not consistently follow policies and procedures as directed
 Does not consistently apply safety knowledge in work activities
Possible Behavioural examples
 Develops individual performance plans which include work
standards and/or goals/objectives as appropriate
 Consistently monitors and documents employee performance and
behaviour throughout the review period.
 Subordinates receive timely, specific direction to improve
performance
 Appraisals are completed in a timely fashion
 Takes corrective action when appropriate
 Possesses general understanding of employee strengths and
weaknesses
 Recognizes and meets training needs of staff
 Has detailed knowledge of employee strengths and weaknesses and
incorporates knowledge into detailed development plans to enhance
career growth
 Partners with employees in creating individual performance plans
including detailed work standard and/or appropriate goals and
objectives
 Coaches employees in supportive fashion in order to achieve desired
performance levels
 Expertly uses performance management system to monitor, assess
and influence the performance of employees
 Expert ability to recognize employees not capable of performing
required work; recommends appropriate corrective action
 Lacks required/sufficient knowledge of employee strengths and
weaknesses
 Fails to establish clear performance standards or write appropriate
goals/objectives for employees
 Documentation of employee performance is insufficient or
ambiguous
 Cannot support subjective performance appraisals with appropriate
Page 41
 documentation
 Provides little encouragement and/or looks for opportunities to
criticize

23. Staffing/Affirmative Action – Maintains adequate staffing levels; executes

established personnel policies and maintains working conditions; applies all
appropriate Equal Employment Opportunity/Affirmative Action policies when
making staffing decisions; addresses work-related needs of subordinates.

Rating Possible Behavioural examples

Meets Expectation  Maintains and schedules a sufficient staff

 Handles all leave requests in consistently appropriate fashion
 Adequately understands and consistently applies current EEO/AA
policies when making staffing decisions (i.e., selection, promotion,
demotion, or dismissal)
 Asks non-discriminatory, job-related questions when interviewing
 Applies annual EEO/AA goals and timetables for protected class
recruitment

Exceeds Expectation  Possesses a thorough understanding of current EEO/AA policies and

accurately interprets and explains to co-workers and subordinates
 Consistently makes effective staff decisions as a result of following
current EEO/AA policies
 Effectively decides and recommends staffing revisions

Does Not Meet Expectation
 Lacks a basic understanding of current EEO/AA policies
 Fails to follow current EEO/AA policies when making staffing
decisions
 Fails to inform employees of current EEO/AA policies
 Is known to ask illegal, discriminatory or inappropriate questions
when interviewing applicants
 Needs assistance in determining appropriate protected class
recruitment efforts

24. Teamwork – Encourages and facilitates cooperation, pride, and trust and
group identity; fosters commitment and team spirit; works cooperatively with
others to achieve overall goals.

Page 42
 Rating Possible Behavioural examples

Meets Expectation  Facilitates accomplishment of team objectives through cooperation

and ―lending a hand,‖ even with assignments outside of normal areas
of responsibility
 Consistently meets deadlines for team assignments
 Demonstrates knowledge and understanding of team/organization
mission
 Demonstrates positive support for team/organization mission

Exceeds Expectation  Puts team goals ahead of personal achievement and recognition
 Shares credit for team accomplishment liberally and accepts
responsibility for overall team performance as appropriate
 Plays a standout role in allowing team to exceed expectations
through high levels of personal contribution

Does Not Meet Expectation  Does not accept responsibility for team performance
 Fails to meet deadlines for team assignments
 Exhibits negative behaviour concerning team/organizational mission

Page 43
 Chapter 4: Conclusion
As with most things related to performance management the success of a BARS
(behaviourally anchored rating system) approach to employee reviews depends on how well
the system is implemented. In theory, a BARS system, if properly implemented should result
in fairer and more accurate assessments of employee performance. In theory, they are indeed
better than more vague rating systems where it's hard to get any two people to agree on what
a particular rating item means.
However, BARS still involves RATINGS, and ratings still have inherent flaws, the most
notable being that ratings themselves (let's say assigning some number to "reflect"
performance) are not very helpful in helping employees improve performance because too
much information is lost. Another problem is that there is a tendency for people to believe
that BARS system ratings are objective and that is definitely not the case. Ratings cannot, by
definition, be objective, because they involved labelling and generalizations.
The issue with BARS is that it requires extensive upfront analysis necessary to identify the
job behaviours. Without that, it's no improvement.

The major advantage of using BARS is that they can be tailored to the organization‘s
objectives for employees. In addition, the BARS approach is less subjective than some other
approaches because it uses statements describing behaviour. However, developing the scales
is time consuming and therefore relatively expensive.

A BARS analysis gives a quick visual as to where an employee stands because it's easy to see
clusters of behaviour points at the top for high performers and at the bottom for low
performers. The drawback to BARS methods is that each one takes a considerable amount of
time to develop. The system may be infeasible in organizations that have a higher number of
different types of jobs.

Page 44
 Bibliography

Websites: -

http://en.wikipedia.org/wiki/Behaviorally_anchored_rating_scales

http://www.ehow.com/info_8217072_pros-cons-performance-appraisal-methods.html

http://www.chrmglobal.com/Articles/239/1/Behaviorally-Anchored-Rating-Scales-BARS-.html

http://www.dummies.com/how-to/content/behind-bars-evaluating-employees-with-
behaviorally.html

http://www.scribd.com/doc/40974806/Behaviour-Ally-Anchored-Rating-Scales

http://answers.mheducation.com/business/management/supervision/appraising-
performance#behaviorally-anchored-rating-scales

http://conservancy.umn.edu/bitstream/99579/1/v03n2p193.pdf

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=16&ved=0CFIQFjAFOAo&url
=http%3A%2F%2Fwww.bus.iastate.edu%2Femullen%2Fmgmt471%2FCh11powerpoint.ppt&ei=xS9A
UpaYEomFrgeTyoGADQ&usg=AFQjCNEhpDhciuY4TcCBzAucEC1BXgEU_g&sig2=pcWgj5AxrJV9bsGeC5
nyig

http://performance-appraisals.org/faq/bars.htm

http://www.managementparadise.com/forums/human-resources-management-h-r/206354-
behaviorally-anchored-rating-scales-bars.html

http://www.in.gov/spd/files/bars.doc

http://www.transtutors.com/homework-help/human-resource-management/performance-
appraisal/methods/behaviorally-anchored-rating-scales/

Page 45