A number of actions are recommended to address

A number of actions are recommended to address problems if a forced distribution
system is used:
 Use specific, objective criteria and standards.
 Involve employees in planning and designing the programs
 Ensure that sufficient numbers of people are rated, so that statistical rankings
are relevant.
 Train managers, and review their ratings to ensure that they are job related, not
based on favoritism.
LOGGING ON: Zigon Performance Group – provides resources to measure, manage,
and improve employee performance –
D. Narrative Methods - require documented written information. Documentation and
description are the essence of the critical incident and the essay method.
1. Critical Incident - is a system in which the manager prepares a record of the
employee's highly favorable and unfavorable actions during the entire rating period.
This method can be used with other methods to document the reasons why a
certain rating was given to an employee.
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Chapter 10: Performance Management and Appraisal
2. Essay – The essay method requires raters to write an essay describing each
employee's performance during the rating period. Some essays are “free-form” and
others are more structured with prepared questions that must be answered. The
effectiveness often depends on a supervisor’s writing skills.
E. Management by Objectives (MBO) – Management by objectives (MBO) is a
performance appraisal method that specifies the performance goals that an individual
and manager mutually identify. MBO requires joint effort by the employee and the
manager to set the employee’s objectives to be accomplished within a designated time
frame. Other names for MBO include appraisal by results, target coaching, work
planning and review, performance objective setting, and mutual goal setting.
1. MBO Process – is a four-stage process:
 Job review and agreement
 Development of performance standards .
 Setting of objectives
 Continuing performance discussions
The MBO process seems to be most useful with managerial personnel and
employees who have a fairly wide range of flexibility and control over their jobs.
F. Combinations of Methods - There is no one best appraisal method for all situations. A
performance measurement system that uses a combination of the preceding methods
can draw on the advantages of each while compensating for the disadvantages.
VI. TRAINING MANAGERS AND EMPLOYEES IN PERFORMANCE
APPRAISAL
Court decisions on the legality of performance appraisals and research on appraisal
effectiveness both stress the importance of training managers and employees on
performance management and conducting performance appraisals. For employees,
performance appraisal training focuses on the purposes of appraisal, the appraisal process
and timing, and how performance criteria and standards are linked to job duties and
responsibilities. Because supervisor training is critical, the training should center around
minimizing rater errors and providing raters with details on documenting performance
information. Training is especially essential for those who have been recently promoted to