7.7: Describe various methods to review performance. Flashcards
What are the main categories of performance review methods?
Trait Methods
Behavioural Methods
Results Methods
Combination Methods (e.g., MBO, BSC)
What do trait methods assess?
The extent to which an employee displays traits like enthusiasm, dependability, and creativity.
What is a common tool used in trait methods?
The Graphic Rating Scale, where employees are rated numerically (e.g., 1 to 5) on traits.
What is a key drawback of trait methods?
They can be subjective and prone to bias.
What do behavioural methods evaluate?
Specific actions or behaviors that an employee should or should not display.
What are two types of behavioural review tools?
Behavioural Checklist – Manager checks off displayed behaviors from a list.
Behaviourally Anchored Rating Scale (BARS) – Uses scales based on real job incidents and rates performance from low to high.
What makes BARS effective?
It ties each performance level to specific, observable job behaviors, reducing subjectivity.
What is Level 4 in 360-degree competency ratings?
Consistently demonstrates the behavior.
Give an example of a 360-degree competency.
Teamwork: Works effectively with others, celebrates success, and treats team members with respect.
Customer Service: Understands needs, provides exceptional service, and responds quickly.
What traits might be included in a graphic rating scale?
Dependability
Problem Solving
Written & Verbal Communication
Initiative
Ability to Work with Others
What is an example of a high score on a BARS scale?
“Consistently demonstrates exceptional verbal and written communication skills, shows empathy.”
What is a low score on a BARS scale?
“Consistently unable to receive, record, and share information accurately and in a timely manner.”
What do results methods focus on?
The accomplishments or outcomes of an employee’s work (e.g., sales, production numbers).
What is a benefit of results-based reviews?
They are based on objective measures, reducing bias.
What is a potential risk of using results-only evaluations?
May encourage short-term thinking and ignore collaboration or long-term consequences.
What is Management by Objectives (MBO)?
A method where employees and managers agree on specific goals, and performance is evaluated based on results tied to those goals.
What are SMART goals in MBO?
Specific, Measurable, Attainable, Relevant, and Time-bound.
What is the Balanced Scorecard (BSC)?
A framework that helps managers translate strategic goals into operational objectives across four categories.
What are the four categories in a BSC?
Financial
Customer
Internal Processes
Learning and Growth
What is the key benefit of BSC?
It shows how individual and team performance contributes to the overall success of the organization.
What should the decision to use a particular performance review method be based on?
A comparison of each method’s advantages and disadvantages, the organization’s culture, and how well the method supports business needs.
Why is cost not the only factor to consider when choosing a method?
Cheaper methods often result in less accurate or less detailed performance information.
What organizational factor should performance management decisions align with?
The organization’s culture.
What are 2 advantages of trait methods?
Simple and inexpensive to develop
Easy to use and understand
What are 2 disadvantages of trait methods?
Strong possibility of rater error
Difficult to use for compensation or promotion decisions
What are 2 advantages of behavioural methods?
Provide specific, observable feedback
Useful for compensation, transfers, and promotion decisions
What are 2 disadvantages of behavioural methods?
Time-consuming to develop and implement
Possibility of rater error
What are 2 advantages of results methods?
Use of objective measurements
Usually well understood and accepted
What are 2 disadvantages of results methods?
Can be time-consuming to implement
May encourage short-term thinking
May exclude important performance criteria
