| PERFORMANCE | APPRAISAL295 CHAPTER ELEVEN Performance Appraisal Ses Evaluation of employee is one of the most universal practices of management. It is applied formally or informally to all employees. Most organizations have some forms of performance appraisal of their employees. Organizations require consistent levels of high performance from their employees in order to survive in a highly competitive environment. Once the employees have been selected, trained and motivated, they are then appraised for their performance. PA is the step where the management finds out how effective it has been at hiring and placing employees. If problems are identified, steps are taken to communicate with employees and to remedy them. 1. Definition of Performance Appraisal (PA) PA means many things to many people. It is a measurement process; it is an exercise in observation and judgment; it is a feedback process. It is a control device, which is used by the organization to accomplish their predetermined goals. Performance refers to an employee's accomplishment of assigned tasks (Mathis and Jackson, 2005). Performance means doing a job effectively and efficiently. PA is the process by which manager or consultant examines and evaluates an employee's work behavior by comparing it with preset standards, documents the results of the comparison and uses the results to provide feedback to the employees to show where improvements are needed and why. PA is that part of the performance assessment and management process in which an employee's contribution to the organization during a specified period of time is assessed (Fisher and Shaw, 2006). PA is the systematic evaluation of the performance of employees and.to understand the, abilities of a person for further growth and development. PA is a process of evaluating an employee's performance of a job in terms of its requirements. Performance Appraisal296 Performance appraisal is the process of evaluating the performance of employees. sharing that information with them and searching for ways to improve their performance. It provides the basis for assessment of employee contributions, coaching for improved | performance and distribution of economic rewards. It refers to the outcome of the. behavior of employees. Thus, performance appraisal means deciding the value a work done by an individual. It is a process by which organizations evaluate individual job performance. : Each employee should receive a thoughtful and accurate 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. 2. Characteristics of an Effective Performance Appraisal Performance appraisals measure progress and help a person set professional goals. The annual performance appraisal is something employees and managers alike often fear. Yel, it can be a source of motivation and reward if both parties are knowledgeable about how a performance appraisal works. This is also an opportunity for an employes 7 to share with his/her manager about professional goals and career aspirations. Explain the appraisal process In the appraisal meeting between a manager and employee, the manager should first explain the purpose and the process of the performance appraisal. Generally, 2 performance appraisal is conducted to clarify job expectations, set goals for improvement of weaknesses and reward for accomplishments and overall performance. The manager's job is to explain the steps involved during and after the | performance appraisal. Clarify job expectations A mutual understanding of the job expectations is essential to an effective performance appraisal. Absence of mutual understanding, the appraisal meeting could spirad downward because the manager and employee might be working from completely different yiewpoints. A review of the job description, and employee skills, qualifications and responsibilities should precede the actual performance appraisal. Review and update job skills Itis important to review the skills of employees and update accordingly. Performance Appraisal297 Manager discusses any improvements necessary, and praise the employee for acquiring the new skill, Manager determines what additional skills the employee can learn during the next evaluation period by setting reasonable goals for professional development. The employee should feel free to provide input throughout the performance appraisal. Employees should be provided with a self appraisal form. If this is the case, the employee will come to the performance appraisal meeting with the completed self- appraisal. Review accomplishments and goals Accomplishments throughout the evaluation year will be enumerated. If there are quantifiable goals established for the review period, the manager and the employee determine if the goals have been met. Often, a "management by objective" technique is used to track specific goals, progress and completion of each quarter. Using this technique simplifies the performance appraisal because there are intermediate assessments made during the evaluation period. Final steps and rewards ‘An overall appraisal score may be discussed during the meeting or it may be calculated after the manager has had an opportunity to consider the employee input. In addition, the manager should indicate whether or not the employee will be entitled to an increase in pay or bonus, if applicable. Many employers use a scale that determines a percentage increase in performance appraisal scores. Whenever possible, the manager should inform the employee of the type or amount of increase to expect for his/her performance during the year. 3. Common Elements of Performance Appraisal Process Performance appraisal is a process involving such steps as setting performance standard, communicating performance expectations to employees, measuring actual performance, comparing actual performance with the standards, discussing the appraisal results, and initiating corrective actions, if necessary (Decenzo and Robbins, 2004). The appraisal process begins with establishment of performance standards in accordance with the organization's strategic goals. Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. To be effective, analysis uncovers specific performance standards by analyzing the performance of current employees. Performance Appraisal298 To hold employees accountable, a written record of the standards should exist and employees should be advised of those standards before the evaluation occurs. & performance standards are not job -related, the evaluation can lead to inaccurate or ” biased results; harming the mangers’ relationship with their employees and violating equal employment opportunity rulings. Performance evaluation also requires reliable performance measures. To be helph, they must be easy to use, be reliable and report on the critical behaviors that determine performance. Performance measures also may be subjective or objective. Once performance standards are set, it is necessary to communicate these] expectations. It should not be part of the employees’ job to guess what is expected ae) them. Employees can be involved in setting standards. It is important to note that ~ communication is a two-way street Mere transference of information from the supervisor = to the employees regarding expectations is not communication. To make- communication effective, feedback is necessary from the subordinates to the manager. 3 The next step in the appraisal process is the measurement of performance. Te determine, what actual performance is, it is necessary to acquire information about #. We should be concerned with how we measure and what we measure. Four common sources of information are frequently used by managers regarding how to measure actual performance: personal observation, statistical reports, oral reports, and written. reports. The fourth step is the comparison of actual performance with standards. The point & this step is to note deviations between standard performance and actual performance” so that we can proceed to the fifth step in the process; the discussion of the appraisal with the employees. A necessary requirement of the appraisal process is employee feedback through an evaluation interview. Evaluation interviews are performance review sessions that give employees essential feedback about their past performance or future potential. Without feedback, standards should relate to the desired results of each job. Job improvement in human behavior is not likely and the HR department will not have accurate records its HR information system on which to base decisions ranging from job design = compensation. The evaluator may provide this feedback through several approaches tell and sell, tell and listen, and problem solving. Performance Appraisal299 Managers must create a supportive environment to put the employee at ease. Presenting an accurate assessment of the employee is a challenging task. The discussion of the appraisal can have negative as well as positive motivational consequences. The final step in the appraisal is the identification of corrective action where necessary. Corrective actions can be of two types: one is immediate and deals with symptoms, and the other is basic, which deals with the causes. 4. Team vs. Individual Performance Appraisals Performance appraisals can evaluate individual performance or team performance. Performance appraisals, whether team or individual, provide feedback to workers or organizational teams. Traditionally, performance evaluations provide information to help improve performance, increase efficiency and define management's expectations. __ Performance appraisals compare work performed against measurable objectives that the employee and supervisor agreed to at the beginning of the appraisal period. As work has become more team oriented, performance appraisals now measure how a team of workers performs rather than just how an individual performs his job. Definition of team performance appraisals As jobs become more intricate, organizations must rely on teams of people to accomplish tasks. To evaluate job performance by teams of people, organizations institute team performance appraisals. Team performance appraisals assess the performance of teamwork on organizational performance. Team performance appraisals can range from recognition of individual performance and its contribution to group outcomes to only an assessment of the organization's performance. When only an organization's performance is evaluated, no iridividual appraisals are completed and individuals do not receive performance ratings. Types of team performance appraisals The culture and organizational structure of the workplace environment influence the type of team performance appraisal the best suited to evaluate and measure performance. If work teams exist in the organization, but are used only occasionally to accomplish projects, individual performance measurements are used to determining a final rating of theemployee. When an organization uses teamwork more frequently, performance appraisals still emphasize individual performance, but introduce an assessment of the worker's contribution to the team effort. If an organization uses a significant amount of teamwork to accomplish its objectives, team performance appraisals link team productivity measurements with individual performance measurements. Performance Appraisal300 Organizations with only a team approach do not utilize individual performance appraisals. Team performance measurements determine monetary rewards. Elements of individual performance appraisals Individual performance appraisals are the traditional appraisals that measure individual performance against measurable objectives. Individual performance appraisals provide an opportunity for employees and supervisors to share ideas and reach mutually agreed upon objectives. Individual performance appraisals focus on the skills required to perform the current job and skills that must be acquired for promotion. Individual performance evaluations are tools to determine monetary compensation. This type of performance appraisal provides feedback and recognition to the individual. Comparison of Individual and Team Performance Appraisals Individual performance appraisals measure an employee's work against standard performance measures. Standard performance measures are derived from individual job descriptions. Often, a direct link exists between performance and pay based on an employee's job rating from the appraisal. Team performance appraisals assess an individual's contribution to the team. Team performance appraisals are appropriate to support an organization's effort to transform from an individual-based organization to a team-based organization. Team performance appraisal, for example, assesses whether the team met its goals, produced a quality product and worked well together. 5. Qualities of a Good Performance Appraisal System The performance appraisal system must possess certain qualities (Monappa and Saydain, 2004). The main qualities are as, follows: - It is an organizational necessity. - It should be consistent with the strategic mission of the organization. - It is based on well-defined, objective criteria such as output, quality, timeliness of output, presence at work and cooperativeness. - Itis based on careful job analysis. - Itis based on job related criteria - It is supported by adequate studies. - It must be applied by trained and qualified raters. - It should be applied objectively throughout the organization. - Itis beneficial as a development tool. - Itis useful as an administrative tool. Performance Appraisal301 6, Uses or Benefits of Performance Appraisal Performance appraisals are about employee performance and accountability. In a globally competitive world, companies need high performance. At the same time, employees need feedback on their performance as a guide to future behavior. Appraising employee performance is useful for development and administrative purposes (Koontz, 1998). Performance appraisals have many uses, such as: a) Employee motivation PA serves as a motivational tool. Through evaluating performance of employees, a person's efficiency can be determined if the targets are achieved. PA is a part of the reward and punishment system of an organization, Employees who receive positive evaluations tend to receive rewards such as pay increases, and bonuses. This will motivate a person for better job and helps him to improve his performance in the future. b) Better communication Through PA, communication occurs between supervisors and subordinates. Through performance appraisal; the employers can understand and accept skills of subordinates. The subordinates can also understand and create a trust and confidence in superiors. It also helps in maintaining cordial and congenial labor management relationship. It develops the spirit of the work and boosts the morale of employees. All the above factors ensure effective communication. c) Employee promotion PA helps the supervisors to chalk out the promotion programs for efficient employees. In this regard, inefficient workers can be dismissed or demoted. Promotion is a tool used to motivate employees for better performance. d) Formulation of employee training program PA can determine the training needs of individual employees. The systematic procedure of PA helps the supervisors to frame training policies and programs. It helps to analyze the strengths and weakness of employees so that new jobs can be designed for efficient employees. It helps to identify areas where development efforts are needed. Performance appraisal is a major tool to identify employee skill and knowledge deficiencies. It helps to identify the strengths and weaknesses of employee to place right men for the right job. e) Selection validation PA helps to identify criteria against which selection and development programs are validated. The supervisor comes to know the validity and thereby the strengths and weaknesses of the selection procedure. Future changes in selection methods can be made. = Performance Appraisal302 f) Establishment of standard Managers work with employees and agree on a set of standards or goals to achieve during a specified period of time. Goals should be specific and quantifiable. Standards should be valid and reliable and free from bias. The employee must be empowered to achieve these goals, There must have some standards of satisfactory performance. The development of a valid and bias-free performance appraisal system can establish such standards. zm g) Feedback to employee f The employee should be provided with timely feedback. Employees must know where they stand so that they can know where improvements are needed. The performance. appraisal is an opportunity for the manager to convey to an employee specific expectation and suggestions for future performance. h) Proper management and employee development Appraisal systems are necessary for proper management and for employee development. It serves to stimulate and guide employee development. i) Reward management 7 Accurate and up to date and objective performance evaluation is needed for selecting - employees to receive the different types of rewards. 4 Douglas McGregor (1960) is a pioneer in the field of industrial relations. His book "The Human Side of Enterprise" laid the foundations for the modern, people-centered view management. He says, "Formal PA plans are designed to meet three needs, one of the organization and the other two of the individual, namely: ~ Providing systematic judgment to back up salary increases, transfer, demotions or terminations; - Telling a subordinate how he is doing and suggestions needed to change in his behavior, attitudes and skills of job knowledge; - Using asa base for coaching and counseling the individual by the superior. An article by Archer North & Associates (2006) state that, where performance appraisal has been conducted properly, both supervisors and subordinates have found tre experience to be beneficial and positive. For all concerned, the process can formato, human resource decisions that can otherwise seem arbitrary and haphazard, ae provide an opportunity for discourse between employees and supervisors. Performance Appraisal303 7, Disadvantages or Limitations of Performance Appraisal (PA) In spite of merits of performance appraisal, it may create a negative experience if it is not done properly. The major limitations are as follows: a) Performance appraisals are very time consuming and can be overwhelming to managers with many employees. b) Sometimes, a strict appraisal may affect the goodwill between senior and junior. When different departments in the same company use different methods of appraisal, it becomes very difficult to compare among the employees. c) They are based on human assessment and are subject to rater’s errors and biases. d) PA can be a waste of time if not done appropriately. ) Many bosses do not wish to spoil their relations with subordinates by giving poor appraisal. They provide higher grades which are not justified; this is an injustice to a really deserving employee. f) They can create a very stressful environment for everyone involved. g) The objective of the PA is to evaluate and develop employees. One PA system cannot achieve both objectives. The particular system of appraisal should clarify before it is designed and should be discussed with all managers and employees to gain their commitment. h) Feedback is an important element of PA. Performance feedback lets employees know how well they have performed in comparison with the standards of the organization. While positive feedback is easily accepted, negative feedback often meets with resistance unless it is objective based on a credible source and given in a skillful manner. Managers are often uncomfortable discussing performance weaknesses directly with employees. Managers fear a confrontation when presenting negative feedback (Meyers, 2001). Many employees tend to become defensive when their weaknesses are pointed out. Employees tend to have an inflated assessment of their own performance. 8. Who are Responsible for Conducting Performance Appraisal? Performance appraisals can be done by anyone familiar with the performance of individual employees. Performance Appraisal304 The following may be raters: The immediate supervisor : The immediate supervisor is the right person to make an evaluation of his subordinates. He or'she is probably most familiar with the individual's performance and, in most jobs, he has had the best opportunity to observe actual job performance. The immediate supervisor is probably best able to relate the individual's performance to organizational objectives. Immediate supervisor keeps performance log writing their employee's accomplishment. These logs provide specific examples to use when rating performance. The peer : Employees’ co-workers, explicitly familiar with the jobs involved, conduct peer evaluations mainly because they too are doing the same thing. They are the most aware of co-worker's day-to-day work behavior and should be given the opportunity to provide the management with some feedback. Here coworkers provide input into the employee's performance. Peer evaluations facilitate teamwork and satisfactory interpersonal skills among employees rather than impelling individuals to appear to be the best employee when under a supervisor's observation. Group Appraisals : In group appraisal, the judgment of the immediate superior is supplemented by the different slants of other executives. TQM and other participative management approaches emphasize teamwork and team performance rather than individual performance. Appraisals by subordinates : Here the subordinates evaluate their superiors. Subordinates know firsthand the extent to which the supervisor actually delegates, how well he or she communicates, the type of leadership style he or she is most comfortable with and, the extent to which, he or she plans and organizes. Large firms use it, where managers have many subordinates. In the small firm, where managers have few subordinates, however, it is easy to identify who said what. Thus, considerable openness is necessary before subordinate appraisals can pay off. Pitfalls are obvious. In most cases, subordinates are in no position to know what is really required to an executive. They may be too young or inexperienced to realize the extent of their superior's responsibilities (Monappa and Siyadin, 2004). Multiple Raters : In multiple appraisals, the subordinate personnel are appraised independently by several other qualified officers. Staff personnel generally consolidate results of such multiple evaluation. If a person has ten supervisors, nine having rated him excellent and one poor; we can discount the value of the one poor evaluation. Performance Appraisal305 For individuals who have received ten appraisals during their first five or six years in the service, there is less chance that on one or two poor evaluations will seriously influence decisions made on the basis of these performance appraisals. Self-appraisal : Self-evaluation is the best method of performance appraisal if it can be systematically introduced. It means the way in which an individual views him. When employees evaluate themselves, defensive behavior is less likely to occur. As a self development tool, it forces employees to think about their strengths and weaknesses and set goals for improvement. 360-degree appraisal or feedback : It is a process in which supervisors, peers, subordinates, customers and the like evaluating the individual. It is difficult for supervisors have extensive job knowledge of each of their employees. Multisource feedback recognizes that the manager is no longer the sole source of performance appraisal information. Many managers simply do not know how their employees truly view them and the work they have done. When using 360 degree feedback for administrative purposes, managers must anticipate potential problem. Differences among the raters can present a challenge. Bias can just as easily be rooted in customers, subordinates and peers as in a boss. Rellily (1994) maintains that 360- Degree is better for development and feedback purpose rather than salary or other administrative uses. 9. Appraisal Philosophy In the past, appraisal programs tended to emphasize on employee traits, deficiencies and abilities. In the traditional approach, the supervisor is placed in the position of "Playing Gods". He judges and at times criticizes the personal worth of his men. The traditional approach has got some limitations. Demerits of traditional approaches to PA Managers usually are not qualified to assess personality traits and most managers are not trained to conduct evaluation and performance interviews. Some managers discouraged good performance by overemphasizing shortcomings and almost neglecting good works. The real message is lost. Rater’s personality also plays an important role in the effectiveness of the evaluation program. Merits of Modern Performance Appraisal Philosophy Modern appraisals philosophy emphasizes on the present performance and future goals. Performance Appraisal306 It is based on the behavioral value of fundamental trust in the goodness, capability and responsibility of human beings. Thus the hallmarks of modern appraisal philosophy are as follows: O Performance or result orientation; O Focus on goals or objectives; Cl Mutual goal setting between supervisor and employee. People will work harder for goals if they are allowed to participate in goal setting; O Extensive feedback system. Employees can improve their performance if they know how they are doing in the eyes of organizations. 40. Rating Errors There are many possible sources of errors in the performance appraisal process. Various types of rater errors are mentioned next: Recency error : The recency effect occurs when a rater gives greater weight to recent events when appraising an individual's performance. A recent action- either good or bad- is more likely to be remembered by the rater. Using some method of documenting both positive and negative performance can minimize this problem. Q Central tendency error: Appraisers, who rate all employees within a narrow range, usually the middle or average, commit a central tendency error. It is the reluctance to make extreme ratings in either direction, the inability to distinguish between and among ratees; a form of range restriction. Q_ Leniency error: Every evaluator has his own value system, which acts as the standard against which appraisals are made.’ Some evaluators mark high and others low. The former is referred to as positive leniency error and the latter as negative leniency error or strictness. Q Halo effect: The halo effect occurs when a manager rates an employee high or low on all items because of one characteristic. For example, she is tall, so she is an intelligent. This may not be true. Contrast error: This error is the tendency to rate people relative to other people rather than to performance standards. Two people may not be same. People are heterogeneous. So it is essential to compare a person with the standard, not with another person. Q Similarity error: When evaluators rate other people in the same way that the evaluators perceive themselves, they are making a similarity error. Performance Appraisal307 Based on the perception that evaluators have themselves, they project those perceptions onto others. You are an honest person; you expect others to be honest. Q Personal bias: Appraisal is affected by personal bias of the rater. If the rater has good relations with the ratee (an employee who is getting rated), he may give higher scores to the ratee, even though the ratee does not deserve such high scores. So personal bias may lead to favored treatment for some employees, and bad treatment to others. Students often complain against a few teachers against their personal biases. distort the ratings those people receive. Discrimination may occur in terms of age, gender, religion, and country of origin, etc. For example, some HR departments have noticed that male supervisors give undeserved low ratings to women who hold traditionally male jobs. Q_ Personal prejudice: A rater's dislike for a group or class of people may distort the ratings those people receive. Discrimination may occur in terms of age, gender, religion, and country of origin, etc. For example, some HR departments have noticed that male supervisors give undeserved low ratings to women who hold traditionally male jobs. Sometimes, raters are unaware of their prejudice, and this makes such biases more difficult to overcome. Paperwork: Some supervisors complain that performance appraisal is pointless paper work. They complain because many times, performance appraisal reports are found only in the files. It does not serve any practical purpose. In other words, the performance appraisal reports are not used by some organizations. They are conducted just as a formality or for the name sake. For example, in public universities, no extra reward or recognition is given for extra-ordinary performance. Q Fear of Spoiling Relations: Performance appraisal may also affect superior- subordinate relations. An appraisal makes the superior more of a judge than a coach. So, the subordinate may have a feeling of suspicion and mistrust, about the superior. Q Evaluate performance, not person: The rater should evaluate the performance, ive. output, new ideas, extraordinary efforts, etc. and not the person. In reality, the person is evaluated and not his performance. It should be noted that failure is an event and not a person. For example, the family background and political affiliation of a candidate are given more priority than merit while making personnel decisions. Performance Appraisal308 Horn effect: Sometimes the raters may evaluate on the basis of one negative quality. This results in the overall lower rating of the particular employee. For example, Karim - does not shave regularly, therefore, he must be lazy at work. voi desi Spillover effect In this case, the present performance is highly influenced by past performance. A person who has not done a good job in the past is considered to be bad for doing present work. 11. What Are the Criteria of Performance Appraisal? ; There are a number of criteria which can be used to appraise the performance of different classes of employees in an organization. An organization must decide what | criteria it will use for evaluation. Does it want a system based on evaluating individual | traits, behaviors, or job results? This decision depends in part on who is being — evaluated and how the organization intends to use the performance appraisal. j Trait Trait-based information identifies a subjective character trait of the employee. Early graphic rating scales evaluated workers on individual traits or personal characteristics which were presumably related to job performance. Initiative, attitude, creativity, aggressiveness, reliability, and personality are examples of traits on which employees have been rated. One problem with trait rating is that the traits themselves are difficu to define and may be subject to varying interpretation by evaluators. Most of the traits —_ are ambiguous and they are very vague to use when making performance based HR decisions. Behavior The behavior - based information focuses on specific behaviors that lead to success. Rating employees according to job behaviors is based on the assumption that there are effective and ineffective behaviors and that these have been identified for each job or type of job. Behaviors are judged effective or ineffective in terms of the results the behaviors produce (either desirable or undesirable). Evaluating employees along behavioral dimensions is especially important for employee development purposes. Job result It considers employee accomplishments. This approach works well for jobs in which measurement is easy and obvious. Performance Appraisal309 Examples of job results indexes are volume of sales in terms of money, the amount of scrap, and quantity and quality of work produced. When such quantitative results are not available, evaluators tend to use appraisal forms based on employee behaviors and/or personal characteristics. Results indexes such as turnover, absenteeism, grievances, profitability, and production rates can be used to evaluate the performance of organization units. 12. Methods of Performance Appraisal The importance of performance appraisal has led to academicians to create many methods to appraise performance. No one method is perfect; each has advantages and disadvantages. The commonly used techniques, among others, are discussed below : Essay appraisal The rater writes a narrative describing an employee's strengths, weaknesses, past performance, potential and suggestions for improvement. It is simple and requires no complex forms or extensive training to complete. It can provide a good deal of information about an employee. Because essays are unstructured, they are likely to vary widely in terms of length and content. Some raters are better writers than others are. It contains a subjective evaluation of the reported behavior of an individual and may affect such important decisions as promotion and layoff. No attempt is made to evaluate an employee in a quantitative manner. Rating scales It requires the rater to provide a subjective evaluation of an employee's performance along a scale from low to high (from poor to excellent), The evaluation is solely based on the opinion of the rater. In most cases, the criteria are not directly related to job performance. Rather, evaluation is based on traits- qualities that employee shows in his work. He is judged on such things as knowledge of the job, reliability, initiative and sense of responsibility. The rater rates the subordinates by marking a letter or figure on a scale. Immediate supervisor usually completes this form. The rating is given numerically to enable an average score to be computed and compared for each employee. Performance Appraisal310 Fig : Rating scales a [Good | Average] Poor! [- Factors 01. Knowledge of the job lo2. Reliability 03. Cooperation 04. Initiatives Pe 05. Quality of work 06. Sense of responsibility l07. Productivity. lo8. Punctuality Outstanding] * Checklists This method requires the rater to select statements or words that describe the employee's performance and characteristics. He does not evaluate employee performance. The rater is usually the immediate supervisor. He just supplies report about PA and the final rating is done by the HR department. But without rater’s knowledge, the HR department may assign weights to different items on the checklists according to each item's importance. The result is called a weighted checklist. The weight is the average score of the raters prior to use the checklist. The weights allow the rating to be quantified so total scores can be determined. The limitations of this method include use of personality criteria instead of performance ctiteria, misinterpretation of checklist items ‘and the usage of improper weights by the HR department. Examples : Statements Weights ooo 1s a decisive decision-maker. 10.00 ------Seems tobe focused on addressing problems 8.00 —_ Tactfully correct poor quality work of technicians 6.00 coool Is sensitive to the needs of the fellow workers 10.00 Performance AppraisalLimitations ~ It suffers from biases on the part of the rater because he cannot distinguish between positive and negative questions. - Aseparate checklist must be prepared for different classes of jobs. It is expensive and time consuming. Forced choice method This method requires the rater to choose the most descriptive statement in each pair of statements about the employee being rated. Often both statements in the pair are positive or negative. For example: .. Works hard. .. Usually tardy, Learns quickly... Absent too often... eee Sometimes the rater must select the best statement from four choices. The supervisor usually the rater, although peers or subordinates may make the evaluation. In order to reduce bias and distortion, the right answers are not known to the rater. Someone in the HR department scores the answers based on the key. Critical Incident method Critical Incident Method was first used by the US Army during the World War Two. Now it is widely used in the business organizations to appraise employee performance. Under this method manager keeps a written record of highly favorable and unfavorable employee actions. The focus is on the key behaviors that make the difference between doing a job effectively or ineffectively. The statements are called critical incidents. The supervisor records these incidents during the evaluation period for each employee. Both positive and negative incidents are recorded. Supervisor keeps a log with positive and negative examples (critical incidents) of subordinate's work behavior. Advantages of Critical Incident method a) This method is extremely useful for giving employees’ job-related feedback. b) It also reduces recency biases. ¢) It identifies even rare events that might be missed by other methods which only focus on common and everyday events. Performance Appraisal312 i d) Data are collected from the respondent's perspective and in his or her own words, €) It provides an objective basis for conducting a discussion of an individual's performance. : f) It forces supervisor to evaluate subordinates on an ongoing performance basis. Drawbacks This method suffers from some limitations, which are listed below: a) It is difficult to rate or rank employees relative to one another, b) There may occur variations in how managers define a ‘critical incident’, c) Most employee actions are not observed and may become different if observed, d) Supervisors often do not record incidents as they occur, e) Negative incidents are more noticeable than positive ones, {) Very close supervision is required, which employees may not like, g) It is time consuming and burdensome for managers to write down critical behaviors of a large number of subordinates throughout the year. h) Respondents may not be accustomed to or willing to take the time to say (or write) a complete story when describing a critical incident, Critical incident method Critical Incident Method was first used by the US Army during the World War Two. Now it is widely used in the business organizations to appraise employee performance. Under this method manager keeps a written record of highly favorable and unfavorable employee actions. The focus is on the key behaviors that make the difference between doing a job effectively or ineffectively. The statements are called critical incidents. The supervisor records these incidents during the evaluation period for each employee. Both positive and negative incidents are recorded. Supervisor keeps a log with positive and negative examples (critical incidents) of subordinate’s work behavior. Advantages of critical incident method a) This method is extremely useful for giving employees' job-related feedback. b) It also reduces recency biases. c) It identifies even rare events that might be missed by other methods which only focus on common and everyday events, Performance Appraisal313 d) Data is collected from the respondent's perspective and in his or her own words, e) It provides an objective basis for conducting a discussion of an individual's performance. f) It forces supervisor to evaluate subordinates on an ongoing performance basis. Drawbacks This method suffers from some limitations, which are listed below: a) It is difficult to rate or rank employees relative to one another, b) There may occur variations in how managers define a ‘critical incident’, c) Most employee actions are not observed and may become different if observed, d) Supervisors often do not record incidents as they occur, e) Negative incidents are more noticeable than positive ones, 1) Very close supervision is required, which employees may not like, g) Itis time consuming and burdensome for managers to write down critical behaviors of a large number of subordinates throughout the year. h) Respondents may not be accustomed to or willing to take the time to say (or write) a complete story when describing a critical incident. Field review method In this method, a skilled representative of the human resource department goes into the field and assists supervisors with their ratings. The personnel specialists solicit from the immediate supervisor specific information about the employee's performance. Then the experts prepare an evaluation based on this information. The evaluation is sent to the supervisor for review, changes, approval and discussion with an employee who was rated. Since the skilled processional is completing the evaluation form, reliability and comparability are more likely, but the usage of skilled professionals makes this approach costly and impractical for many firms. And since the supervisor is the primary source of information, bias may still exist. Performance Appraisal/ 314 3 Performance tests and observations With a limited number of jobs, performance appraisal may be based on a test of knowledge and skills. The test may,be of paper- and- pencil variety or an actual demonstration of skills. The test must be reliable and validated to be useful. Practicability may suffer when the cost of the test development is high. Behaviorally Anchored Ratings Scales (BARS) Smith and Kendall developed BARS. BARS rely on the use of critical incidents to serve as anchor statements on a scale. It combines major elements of the critical incident and graphic rating scale approaches. Here supervisors construct rating scale with associated behavioral anchors. They identify relevant performance dimensions and then generate anchors- specific, and observable behaviors typical of each performance level. BARS identify and evaluate relevant job-related behaviors. Since job related behaviors are used, validity is more likely than with the forced choice method. An example of BARS for the dimension " Inventory control" is shown below: Job: Store Manager Dimension: Inventory control 7. Always orders in the right quantities and at the right time. 6. Almost always orders at the right time, but occasionally orders too much or too litle of a given item. ‘ 5. Usually orders at the right time and almost always in the right quantities. 4. Often orders in the right quantities and at the right time. 3. Occasionally, orders at the right time, but usually not at the right quantities. 2. Occasionally, orders in the right quantities, but usually not at the right time. 1, Never orders in the right quantities or at the right time. Performance Appraisal315, The rater appraises the employees based on actual behavior or performance on the given job rather than general descriptions or traits. The logic is that the use of specific behaviors, derived for each job, should produce relatively error-free and reliable ratings. Examples of job- related behavior and performance dimensions are generated by asking participants to give specific illustrations of effective and ineffective behavior regarding each performance dimension. For example, for a college professor, the major job dimensions associated with teaching might be (a) course organization, (b) altitudes towards students, (c) fair treatment, and (d) competence in the subject area, BRAS match descriptions of possible behaviors with what the employee most commonly exhibits. Short statements are developed that describe both desirable and undesirable behaviors (anchors). The analyst or a group of knowledgeable workers ranks specific behaviors along a scale — from 1 to 7. That is, employees are rated against a scale ranging from extremely good performance to extremely poor performance. The behavior incidents are then numerically scaled to a level of performance. It tends to reduce rating errors. But developing and maintaining BRAS require extensive time and effort. In addition, several appraisal forms are needed to accommodate different types of jobs in an organization. A BARS contains the following features: - Six to ten performance dimensions are identified and defined by the raters and rates, - Dimensions are anchored with positive and negative critical incidents. Each dimension is anchored with five or six critical incidents, - Each ratee is then rated on the dimensions, - Ratings are fedback using the terms displayed on the form. Merits of BARS - Reduces rating errors. - Focus on job related behaviors, not on personality traits. - Focus manager's attention on important critical incidents for effective job performance. - Identify which behaviors represent good and bad performance. - Both supervisor and subordinates are involved in the development process of BARS. - Making the feedback more acceptable. Performance Appraisal316 Ranking method Under this method, the rater places each employee in order from best to worst. All the HR department knows is that certain employees are better than others are. It does not know by how much. This method is subject to halo and recency effect, although rankings by two or more raters can be averaged to help reduce biases. Forced distribution Forced distributions require the rater to sort employees into different classifications. Usually a certain portion must be put in each category. A router may classify ten subordinates into five classes, namely, top 10% of subordinates, next 20% of subordinates, middle 40% of subordinates, next 20% of subordinates and the lowest 10% of subordinates. Although relative differences among subordinates are unknown, this method does overcome the biases of central tendency, strictness and leniency errors. Point allocation method It requires the rater to allocate a fixed number of points among employees in the group. The rater allocates 100 points to all employees according to their relative worth. The employee with the maximum point is the best employee. The rater can recognize the relative differences between employees. Paired comparisons Paired comparisons force the raters to compare each employee with all other employees who are being rated in the same group. It ranks each employee in relationship to all others on a one-to-one basis. The basis for comparison is usually overall performance. The number of times'each employee is rated ‘superior to another can be summed to develop an index. The employee who is preferred the most is the best employee on the criterion selected. Self-appraisal This method is used to further self-development. When employees evaluate themselves, defensive behavior is less likely to occur. The employee is getting involved in identifying his development needs. Assessment centers Assessment centers are a standardized employee appraisal that relies on multiple types of evaluation and multiple raters. The assessment center is usually applied to managers who appear to have potential to perform more reasonable jobs. Employees are evaluated at a separate place, usually at a hotel, which is away from the jobsite. Performance Appraisal317 During this time, the psychologists and managers who do the rating attempt to estimate the strengths, weaknesses and potential of each attendee at the center. They then pool their estimates to come to a conclusion about each member of the group. A report is prepared on each attendee. Assessment centers are time consuming and costly. Its main merit is that multiple raters reduce bias. Psychological appraisals Some organizations employ full time psychologists to evaluate employee's future potential, not past performance. This appraisal consists of in-depth interview, psychological tests, discussion with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employee's intellectual, emotional and motivational and other work related characteristics that may predict future performance. Management by Objective (MBO) Peter Drucker (1954) advocated and popularized the idea behind MBO. He stresses that business performance requires that each job be directed towards the objective of the whole business. Despite its wide applications, it is not always clear what is meant by MBO. Some still think of it as an appraisal tool; others see it as a motivational technique; still others consider MBO a planning and control device. Definitions and applications of MBO differ widely. MBO is a comprehensive management system that integrates many key managerial activities in a systematic manner and that is consciously directed toward the effective and efficient achievement of organizational and individual objectives. MBO is a process by which managers and subordinates work together in identifying goals and setting up objectives and making plans together in order to achieve these objectives. MBO is a process of collaborative goal setting by a manager and subordinate; the extent to which goals are accomplished is a major factor in evaluating and rewarding the subordinate’s performance. It is based on a person's performance and how well he or she is achieving in a given period of time. The focus is on results, not personality traits. The purpose of MBO is to give subordinate a voice in the goal setting process and to clarify for them what they are expected to do in a given time span. Thus MBO is concerned with goal setting for individual managers and their work groups. Performance AppraisalSaini | 318 Process of MBO: MBO process consists of few main steps. These are discussed below: QQ Set the organizational goals at the top: The goal will provide specific standards of performance. The goal must be verifiable, tangible and measurable. Thus MBO starts at the top of the organization. These goals can be set for any period-a quarter, a year, five years, or whatever is appropriate in given situations. Q_ Set departmental goals: Department heads and their superiors jointly set goals for their departments. Q Discuss departmental goals: Department heads discuss the department's goals with all subordinates in the department (often a department wide meeting) and ask them to develop their own individual goals. (Define expected results (set individual goals): Here department heads and their subordinates set short- term performance goals. Goals must be verifiable and specify a - time span for their accomplishment. Employees must be educated about MBO and its role. Q_ Performance review: At this stage results will be measured. Department heads compare the actual performance of each employee with expected results and to find out deviations. Q Provide feedback: Department heads hold periodic performance review meetings with subordinates to discuss and evaluate the lalter’s progress in achieving expected results. The reasons for both success and failure are explored and the employee is rewarded on the basis of goal accomplishment. MBO's appeal undoubtedly lies in its emphasis on converting overall organizational objectives into specific objectives for organizational units and individual members. Because lower — unit managers jointly participate in setting their own goals, MBO works from the bottom up as well as from the top down. The result is a hierarchy of objectives that link objectives at one level to those at the next level. An example will make MBO concept clear. Performance Appraisal319 An Example of MBO Evaluation Report Objectives set Period objectives Accomplishments Variance Number of sales calls : 100 104 + 4% Number of new customers contacted 20 18 -10% Sales of product ‘x’ 10000 9750 = 2.5% Sales of product 'Y’ Customer complaints 47000 18700 +10 % Service calls 35 11 - 68% Number of sales report in home office within one day of the end of the month 12 10_ 17% Merits of MBO: Following are the main merits of MBO: 1 MBO helps in a better overall management system as it encourages managers to do detailed planning. It results in greatly improved management. Objectives cannot be established without planning, and result-oriented planning is the only kind that makes sense. MBO forces manager to think about planning for results, rather than merely planning activities or work. Q MBO forces managers and subordinates to clarify organizational roles and structures. There is no role ambiguity or confusion as managers and subordinates know what is expected of them. O Itestablishes clearly the authority and responsibilty of personnel. MBO helps develop effective controls. ° It makes individuals more aware of the company goals. With MBO, the subordinates feel proud of being involved in the organizational goals. They have had a part in actually setting objectives; they have had an opportunity to put their ideas into planning programs, they understand their area of discretion and they have been able to get help from their superiors to ensure that they can accomplish their goals. This improves employee morale and commitment. People become enthusiastic when they control their own fate. Q MBO intensifies the area in which the employees need further training. Q The system of periodic review and evaluation lets the subordinates know how well they are doing. Performance Appraisal320 CO Itimproves communication between management and subordinates. Limitations of MBO No management tool is perfect. MBO is not certainly appropriate for all employees or all organizations. There are few problems in using MBO according to Nibuya (2007). There are few problems is using MBO: = The limitation of MBO is to set unclear and immeasurable objectives. The objective should be concrete not abstract. An objective such as "will do a better job of training" is vague. On the other hand, "will have four subordinates promoted during the year" is a measurable objective. Some areas are difficult to quantify and to evaluate. MBO cannot work if those who are expected to set goals are not given needed guidelines. - MBO is time-consuming - The top management is usually reluctant to support the process of MBO in which their subordinates would take equal part. ( Odiorne 1975). - Subordinates may resent MBO. They may be under pressure to get along with management when setting goals and these goals may be unrealistically high. - The emphasis is more on short-term goals, This may be harmful for the organizational sustainability. Short term objectives must be designed to serve longer -range goals.(Humble, 1970). - People, in their search of verifiability, may‘overemphasize quantifiable goals. > Most managers may not be sufficiently skilled in interpersonal interaction, such as Coaching and counseling, which is extensively required to make an MBO successful. Group goal achievement is more difficult when the goals of one department depend on the goals of another department. ~ MBO is suffering from the danger of inflexibility. Managers often hesitate to change objectives. ~ Setting objectives with the subordinates sometimes tums into a tug of war, managers are pushing for higher quotas and the subordinates are pushing for lower ones. Performance Appraisal321 Suggestions for Improving the Effectiveness of MBO - It is important to secure top management support and commitment. Top managers must share the necessary authority with subordinates. MBO may fail in an autocratic management system. - The objectives should be clearly formulated and achievable. - The employee must be skilled and knowledgeable, otherwise they cannot participate in the goal setting process effectively. ~ MBO should be an overall philosophy of management and the entire organization, rather than simply a divisional process or a performance appraisal technique. - The goals must be continually reviewed and modified, as the changed conditions require. - All personnel involved should be given training in understanding the basics as well as the contents of the program. 13. Common Performance Evaluation Problems Problems can occur at any stage in the evaluation process. Some of the common problems of performance evaluation programs are listed below: - Lack of standards: Without standards, there can be no objective evaluation of results. - Irrelevant or subjective standards: Standards should be established by analyzing the job output to ensure that standards are job related. = Unrealistic standards: Standards are goals with motivating potential. Those that are reasonable but challenging have the most potential to motivate. - A poor measure of performance: Objectivity and comparison require that progress toward standards or accomplishment of standards is measurable. Examples of measurable standards include quantifiable measures such as 10 sales per 100 calls, as well as qualitative measures, such as projects completed or not completed. Performance Appraisal322 _ Rater errors: Rater errors include rater bias or prejudice, halo effect (overall rating based on a single dimension or trait. Halo error may be positive or negative), constant error, central tendency, recency of events error (more emphasis on current behavior, forgets about past behavior), and fear of confrontation. Each employee is supposed to be rated without regard to other employee's performance. A contrast effect occurs when an evaluator rates an employee on the basis of the evaluation of another employee. For example, when the performance of an average employee is evaluated immediately after the performance of an outstanding employee, the supervisor might end up rating the average person as below average or poor. A central tendency error occurs when a rater avoids using high or low ratings and assigns average ratings. - Poor feedback to employees: Standards or ratings must be communicated to the employee in order to make PA more effective. - Negative communications: The evaluation process is hindered by communication of negative attitudes, such as inflexibility, defensiveness and a non-developmental approach. - Unpleasant task: Many managers see appraisal as their most unpleasant duty. - Failure to apply evaluation data: In many cases appraisal results are not used in making personnel decisions (compensation, promotion, transfer, etc.). - Conflicting dual roles: Manager is expected to criticize the subordinates and to give guidance at the same time. However, it is not easy for a manager to combine those roles. Many managers do not like to criticize a subordinate with whom they are working closely, day- by day. - Lack of faith in appraisal: Many people are usually suspicious of appraisals. They think managers are trying to find out their weaknesses, so they are on the defensive. 14, Making Sppraisal System More Effective Anumber of suggestions may be offered to make the appraisal more effective: - Top management support and commitment is essential to make the PA system effective. Performance Appraisal323 / tis important to introduce a double evaluation system to neutralize biases. / - The appraiser must be knowledgeable about the employee's job. It will increase inter- rater agreement and make the evaluation a more valid process. - There should be a written form (for example, ACR) to complete along with standard criteria to evaluate the employee. - The appraiser must allow the employees to participate in the discussion. - Accurate and thorough job analysis are an essential component of an effective performance appraisal. - The rater should be thoroughly instructed in the purposes and values of the appraisal program. The training of appraisers can make them more accurate raters. It should be kept in mind that a poor appraisal is worse than no appraisal at all. - All factors and degree of factors and terms should be thoroughly explained to raters so that all raters will interpret all terms in the same way and thus can produce ratings that are based on the same standards. - Raters must carefully observe the persons whom they will rate. In this way, the task of rating will not be a matter of guesswork. - One way to make the process easier is to meet with employees more frequently. - Raters should be advised to guard against allowing recent events or isolated cases to influence unduly their decisions. - The raters must have enough evidence or spécific examples to support his evaluation. - It is important to evaluate specific behaviors, not the traits of employees. It will increase the likelihood that two raters will see the same thing. - Give both positive and negative feedback, Employees like to know how well they are doing. The raters should share with employees, both expectations and disappointments on a frequent basis. - Raters must allow enough time for the rating job. Interruptions tend to reduce the accuracy of ratings. - It is wise to rate all employees on one factor at a time because the consistency of rating is thereby increased. Performance Appraisal_ Make sure that employees know precisely what the appraisal is to be used for. It is important to describe the purposes of the appraisal to employees. - The employee should be involved in the appraisal discussion, including a self- evaluation. Performance appraisal should not be a one -way communication event. 415. Employee Appraisal Review Meeting After completing PA, it is important to conduct an appraisal meeting with the concerned employee. Some guidelines are suggested to make appraisal meetings effective. * Schedule the meeting time a few days in advance. Be sure to reserve sufficient time for discussion. + Choose a meeting place that is comfortable and private. * Avoid discussing motivation or personal issues. Concentrate on the employee's behavior and the consequences of that behavior to the individual and the organization. * Be sure to give the employee an opportunity to discuss his/her feelings and reactions to the feedback. Important Elements of an Appraisal Discussion Heath field (2013) identifies few elements of an appraisal discussion. These are listed below. + Establish the purpose of reviewing the performance appraisal and outline the discussion. * Review results or accomplishments achieved against objectives, emphasizing how these contributed to the work group's efforts. + Review performance data against performarice & goals. * Discuss causes of problems and reasons for success, emphasizing problem solving and concentrating on future actions. * Agree on action to be taken and discuss ideas for development. * Summarize the discussion and express confidence in the employee's ability to succeed. + Listen to the employee. Encourage reactions and suggestions. + If there are areas that need improvement, encourage employees to come up with solutions for improvement. * If employees disagree, allow them to discuss their feelings. Disagree with the idea not with the person. Performance Appraisal16. Appraisal System in Bangladesh ‘akkas (1995), Professor of Management, University of Dhaka, in his article "Employee performance Appraisal System in the Nationalized Commercial Bank of Bangladesh", has made a vivid explanation of the employee performance appraisal practices in the enterprises of Bangladesh. He indicates that both public and private enterprises in Bangladesh are using some sort of employee performance appraisal technique. In most cases, an appraisal is done annually, The widely used method of appraisal is known as Annual Confidential Report (ACR). It contains traits and performance related factors. ACR form has been examined and found that the ACR system is mainly trait based and thus neglects the reviews on direct job related dimensions. The factors are very much subjective in nature. In many cases, the last few months before the appraisal dates are crucial in influencing the assessment of appraisal. Repetition of interrelated criteria has made the ACR long and complicated. The supervisory officer is reluctant to give negative feedback from the understanding that they have to work with employees next days. The ACRs are applicable to all employees irrespective of the grades. However, forms are different for different grades of employees. The immediate supervisor usually appraises his subordinates, which is countersigned by the immediate supervisor's superior. The counter signing officer indicates his or her rating, If he disagrees, he must give reasons. Employees are rated against a five point scale starting from excellent to very poor. An excellent employee is one who demonstrates complete mastery of the job and is recognized as a rare professional in the field. Employee showing unacceptable performance with frequent failures to meet expected result is rated as very poor. All employees are rated on 100 marks. 100 marks are allocated to different factors as they apply to different group of employees. Here there is a tendency to keep the result of the rating is secret. The ACR is filled up confidentially. This non-communication keeps the employee in the dark about what is expected of them or where they stand. Some companies feel that rating discussions lead to needless controversy and allegation. To bring improvements, an open appraisal system should be introduced and the results of the appraisal, particularly, when they are negative, should be communicated to the employees, so that try to improve their performance. An atmosphere of trust and confidence should be developed so that the raters and the employees may discuss matters frankly and offer suggestions, which may be beneficial to the organization and the employees. Appraisal practices in the different enterprises of Bangladesh are discussed in the last chapter. Performance Appraisal k326 Questions for Discussion 01. Why do organizations evaluate employees? 02, Suppose you are a supervisor, what errors might you make when preparing a performance appraisal on a clerical employee? 03. Ifthe dean of your university asked you to serve on @ committee to develop a performance appraisal system for evaluating the faculty, what performance criteria would you identify? Of these criteria, which ones do you think are most likely to determine a faculty member's success at your school? What standards would you recommend to the dean, regardless of the specific evaluation instrument selected? 04. What criticisms do you have about the critical incident method? When it is done correctly, what are its strengths? 05, Describe the MBO process? What are the merits and demerits of MBO? How would you make MBO more effective? 06. What suggestions would you offer to make appraisal system more effective? 07. How can an organization's performance evaluation system affect employee behavior? 08. Suppose you are a supervisor. What errors might you make when preparing a performance appraisal on a clerical employee? 09. Construct a plan for a post-appraisal interview with an employee who has performed poorly. 10. How would you make performance appraisal system more effective? 11, How might the developmental and administrative uses of performance appraisal conflict? Performance Appraisal327 Case Study - 1 Rajib Chowdhury is the manager ofthe a company’s appliance division, Each December, he must evaluate all of his subordinates to decide who is to recelva a merit increase for the upcoming fiscal year. But each year these employees complain about how they are evaluated, how merit money is dispersed and what criteria are used for the evaluations. However, during the past two years there has been a tremendous emphasis on quality of production. A review of the merit receipts reveals that these people were the ones who had the best quality records. But many of the employees felt that quality should not be the determining factor. At an employee forum, one of the senior members remarked, "How can Rajib now reward quality? What has happened to production numbers? Another employee agreed and stated: "This quality game is okay for some, but what about overall production? It seems to me if | will only be rewarded for quality, then | should produce a few items but make them perfect”. After hearing such criticism, Rajib was quite upset. He was not trying to cause chaos to his evaluation, nor was he attempting to hurt anyone. Unfortunately, what was originally intended to be an evaluation system had just become a nuisance? Questions 01. What is the major problem with Rajib's evaluation system? 02, Describe a performance evaluation system that you could recommend to Rajib for evaluating a worker on the production line. 03. If no changes are made in the current system that Rajib is using, what do you expect will occur regarding future production performance of the employees? 04. What does this case tell us about the impact of performance appraisals on employee motivation? Performance Appraisal328 Case Study : 2 ABC is a big corporation with many business units.For two years; the employees of an X business unit of ABC Corporation were evaluated with the same performance appraisal system. The HR manager decided that the duties of the employees were sufficiently different from other units of the corporations. So.a specially designed appraisal should be developed. A weighted checklist was decided on and was used for about one year. The HR manager left and the replacement disliked weighted checklists. Specialists then implemented behaviorally anchored rating scales. But as soon as the method was installed, top management decided to shift all evaluations of the corporation to the critical incident method. The critical incident method worked well in all phases of the corporation's operations. Supervisors in the X business unit would not keep a record of critical incidents until about a week before the incidents were due to be submitted to the personnel office. Training sessions were held for these supervisors, but little changes in their behavior resulted. To evaluate the supervisors, the company conducted a survey of employees at the waterworks. Most employees thought the supervisors were fair to good in all dimensions except supervisors showed too much favoritism. Thought was being given to other methods. Questions 01. How would you suggest overcoming the resistance of the supervisors to using the critical incident method? 02. Should another evaluation method be tried? 03. What method would you recommend and why?