Fundamentals of Management, 8th ed

Errors in Performance Appraisal

Errors or biases can occur in any kind of rating

or ranking system.

25

One common problem is recency error—the tendency to base

Dimension:  Punctuality

This teller is always on time for work and promptly opens her or his window

as scheduled.

Strongly

disagree

1

2

3

4

Disagree

Agree

Strongly

agree

Dimension:  Congeniality

This teller always greets his or her customers warmly and treats them with

respect and dignity.

Strongly

disagree

1

2

3

4

Disagree

Agree

Strongly

agree

Dimension:  Accuracy

This teller is always accurate in her or his work.

Strongly

disagree

1

2

3

4

Disagree

Agree

Strongly

agree

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F I G U R E 8 . 2

Graphic Rating Scales for a Bank Teller

Graphic rating scales are common methods for evaluating employee performance.

The manager who is doing the rating circles the point on each scale that best reflects

her or his assessment of the employee on that scale. Graphic rating scales are

widely used for many different kinds of jobs.

Behaviorally

Anchored Rating

Scale (BARS)

A sophisticated

rating method in

which supervisors

construct a rating

scale associated with

behavioral anchors

238

Part 3: Organizing

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judgments on the subordinate’s most recent performance because it is most easily

recalled. Often a rating or ranking is intended to evaluate performance over an entire

time period, such as six months or a year, so the recency error does introduce error

into the judgment. Other errors include overuse of one part of the scale—being too

lenient, being too severe, or giving everyone a rating of “average.” Halo error is allowing

the assessment of an employee on one dimension to “spread” to ratings of that employee

on other dimensions. For instance, if an employee is outstanding on quality of output, a

rater might tend to give him or her higher marks than deserved on other dimensions.

Errors can also occur because of race, sex, or age discrimination, intentionally or unin-

tentionally. The best way to offset these errors is to ensure that a valid rating system is

developed at the outset and then to train managers in how to use it.

One interesting innovation in performance appraisal used in some organizations

today is called