Performance Management 237
is time - consuming and complex because each dimension requires its own
behavioral anchors.
An example of a behaviorally anchored rating scale is presented in
Exhibit 8.3.
Essay
The rater writes a narrative essay describing the employee ’ s performance. The
weakness in this method is that the evaluation may depend on the writing
skills of the supervisor or the amount of time the supervisor takes to complete
the evaluation. Another problem is that raters and employees do not
necessarily use common criteria.
Productivity Data or Work Standards
Raters evaluate employees on expected levels of output and the quality of
output. If employees are to believe that the standards are fair, they should
understand how the standards were set.
Management by Objectives
Raters and employees together determine goals or objectives and a plan
of action for achieving them that the employee is to achieve during the
upcoming evaluation cycle. At a scheduled time, the two participants
reconvene and determine whether the goals have been met. The effective-
ness of management by objectives (MBO) depends on the skills of supervi-
sors and subordinates in defi ning appropriate goals and objectives. Often
easy objectives are set. Sometimes there is an overemphasis on objectives
at the expense of specifying how these objectives are to be obtained. For
example, Internal Revenue Service collection agents need to retrieve
revenue from delinquent taxpayers but not through illegal or intimidating
tactics. Nonprofi ts must be successful in raising money but not through
dishonest fundraising activities.
A typical MBO rating scale is presented in Exhibit 8.4.
Critical Incidents
Raters record actual incidents of successful or unsuccessful performance
of work actions. The rater uses these observations to evaluate employee
performance. An example of a critical incidents report is presented in
Exhibit 8.5.