Certification Prep: SHRM-CP

with Joanne Simon-Walters

Performance Appraisal Methods

Comparison
−− Compares employees to each other
−− Ranked: evaluator ranks employees from highest to lowest
−− Paired comparison: evaluator compares employees to the other employees in the group
−− Forced distribution: evaluator uses a bell curve resulting in a few high performers, few low
performers, and mostly average performance
Narrative
• Uses a Likert scale (1–5 point)

• May be subjective

Behaviorally Anchored Ratings Scales (BARS)

• Evaluator ranks anchored statements

• Must be customized by job and built from the job description

Checklist
• Evaluator checks off which behaviors were observed and to what degree throughout the
performance year

• Does not provide meaningful feedback

Management by Objectives (MBO)

• Evaluator uses mutually set goals to rate employees

360-Degree Feedback
• Performance data is gathered from suppliers, vendors, subordinates, and superiors

Self-Assessment
• Employees evaluate themselves

• Typically, the first step in a multiple-step review process

Common Performance Appraisal Errors

Certification Prep: SHRM-CP with Joanne Simon-Walters

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Central tendency/leniency/strictness: rating every employee about average

Contrast effect: comparing all statements against all other statements

Cultural noise: not recognizing when the candidate answers questions based on what the candidate
believes the interviewer wants to hear

First-impression effect: forming opinions based on first impression rather than the objective
data collected

Halo effect/horn effect: emphasizing either a positive trait (halo) or a negative trait (horn) over all other
traits the employee displays

Inconsistency: manipulating data to draw selective rather than representative conclusions

Example: A male employee sexually harasses a female employee at a company event. The harassment is
witnessed by 12 people, three of whom are men. The HR pro only interviews the three male employees.

Negative emphasis: placing the most emphasis on a small amount of negative and irrelevant information

Nonverbal bias: placing too much emphasis on body language and other nonverbal cues

Primacy error: forming an opinion based on a first impression

Recency error: treating employees’ most recent behavior as reflective of the entire review period

Similar-to-me/different-than-me error: being influenced by shared personal characteristics

Stereotyping: using personally held beliefs about groups of people to draw conclusions about a
specific situation

Example: Men do not make good administrative assistants because they lack the ability to multitask.

Certification Prep: SHRM-CP with Joanne Simon-Walters

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