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Advantages:
Disadvantages:
Alternate ranking
Paired Comparison
Paired Comparison Analysis (also known as Pair wise Comparison) helps you
work out the importance of a number of options relative to one another.
This makes it easy to choose the most important problem to solve, or to pick
the solution that will be most effective. It also helps you set priorities where
there are conflicting demands on your resources. The tool is particularly
useful when you don't have objective data to use to make your decision. It's
also an ideal tool to use to compare different, subjective options, for
example, where you need to decide the relative importance of qualifications,
skills, experience, and team working ability when hiring people for a new role
Forced distribution
The forced ranking has many benefits for the large organization. All costs are
under a control. HR can make an exact estimate of the development because
it knows the limits. The system sets the limits for managers. No exceptions
are allowed.
The system makes differences among employees. The top players (A players)
enjoy many benefits. Their careers are quick; their bonuses are high; they
enjoy salary increases. They enjoy benefits at costs of other employees, who
are not lucky to be "A players".
The system can produce a healthy pressure on employees. They are required
to increase their performance. The "A" players have to develop their skills
and competencies to stay at the top level. The employees clearly see that
managers act on low performers in the team. It is a motivation for the rest to
work hard.
The forced ranking usually depends on the visibility of the employee in the
organization. The employee, who joins many important meetings, has a
higher chance to receive the excellent rating. Some people learn to live in
the matrix quickly. They are always seen as stars, but they have no real
results to prove it.The forced distribution usually stops working after few
cycles. The low performers are out of the organization, and the manager has
to choose new low performers. The manager starts to rotate the low
performance ranking or starts to protect the last low performer in the team.
The same situation happens to "A players". The manager is worried to rank
the A player as the B player.
The forced ranking can have a destroying impact on the friendliness of the
corporate culture. Employees do not cooperate; they protect their ideas and
do not share them with others. The team without inspiring discussion is not a
functioning team.
Summary
Generally, it's important that incidents be recorded AS THEY OCCUR, and not
written at or around the annual performance review. Delaying the recording
of critical incident reports (either good incidents or not so good) means a loss
of detail and accuracy
Narrative Method
The narrative method of documenting and reviewing performance involves
writing a story to describe the performance of an employee. The best way
to clarify this method is to show you an example of a simple, short narrative.
The following is a narrative written for receptionist and switchboard operator
Clarence.
Clarence works well under pressure and handles phone calls efficiently and
effectively. His ability to stay on top of both calls and in-person visitors is a
bonus, and several clients have commented on how polite and helpful he is.
On occasion Clarence has misdirected calls, resulting in a few customers
feeling theyve gotten the runaround. This is probably due to not having had
the roles of staff properly explained to him.
Clarence has shown the ability to learn new skills and a desire to take on
additional responsibilities.
I consider Clarence a valuable employee and someone who might train to do
more advanced tasks to be considered for promotion.
In this very short example, Clarences major job responsibilities are covered,
with comments about each. Narratives need not be limited to descriptions of
job behavior or abilities, but can also include plans for training and
promotion and results of problem diagnostics and performance problem
solving.
Narratives can also include some basic rating elements, so the information
recorded can be summarized. Its not uncommon for a narrative to contain
an overall summary section, which requires the narrator to indicate whether
the persons overall performance is in need of improvement, satisfactory, or
excellent. Those ratings, however, are not the focus of the process. The
narrative is the focus.
You can use various methods for coming up with the final narrative for an
employee.
The worst way to do it is to sit in your office, write the narrative, and then
stick it in front of the employee at the review meeting for his or her
signature. That completely misses the point, which is for you and the
employee to work together to identify and solve problems.
A more productive way is for you and the employee to prepare for the review
meeting by making notes and jotting down phrases that describe the
employees performance. Those notes become the basis for the review
discussion. During that discussion, you work with the employee to draft a
narrative that both of you feel is accurate, fair, and useful for both of you.
Bars
The term "BARS" is an acronym which stands for "Behavior- ally Anchored
Rating Statements."As the name implies, BARS are oriented toward
describing behavior as opposed to traits.
The BARS standards take the form of "examples" of behavior which would
typify the performance of an individual who would merit various adjective
descriptors.
The BARS standards were developed through a series of workshops held with
auditors and supervisors at each grade level. The workshop participants were
asked to write behavioral statements describing instances of high, average,
and low performance in each of the eight job dimensions. The pool of draft
BARS statements were then put through a process called "retranslation". This
was done by preparing a questionnaire for each grade level which asked
respondents to ex- amine the appropriateness of each statement to the
specific job dimension and to rate the performance level the statement
represented on a scale from 1 to 7. The questionnaires were sent to a
representative sample of 50 auditors in each grade level (7-14). The first
analysis performed on the questionnaire data dealt with the issue of
applicability of the statements to a particular dimension. Any statement
which was confirmed as belonging under its target dimension by less than
90% of the respondents was discarded. The second analysis was aimed at
establishing the performance level which the statements represented. While
respondents were asked to rate the statements from 1 to 7, their ratings
seemed to cluster into only 5 levels of performance, therefore it was decided
that asking supervisors to distinguish seven levels of performance was not
realistic and that the final set of standards should utilize only five levels.
Mean rating close to a cluster midpoint, and --a standard deviation of less
than 1 (i.e. low scatter around the mean). Finally, the BARS statements were
edited to eliminate those which appeared redundant with other statements
at that level and those which conflicted within or across grades. How to Use
the BARS Performance Standards? ~- -- The Performance Standards are used
to access the individual's performance against standards applicable to
his/her current grade level. These standards are descriptions of the quality of
performance defined for auditors of different grade levels within each of the
eight job dimensions. As mentioned above, five levels of performance have
been defined; Exceptional, Superior, Proficient, Borderline and Unacceptable.
By themselves, however, such terms as "Exceptional", "Superior",
"Borderline" etc. have very little meaning. They are all relative terms. Each
individual will tend to have his/her own subjective definitions. Identical
performance might be rated "Exceptional" by one person and "Superior" or
"Proficient" by another person. In order to avoid such inequities, there is a
need for standards which represent uniform, agreed upon definitions for the
various performance levels. In this system these standards are the BARS. A
sample set of BARS appears in Exhibit 3. To use the BARS, the rater would
examine each performance level. After reading the anchoring statements for
that level, the rater will mentally pose the question of whether the per- son
being evaluated normally exhibits the kinds of behaviors which are
represented by the BARS examples for that level. This is explicitly a process
of extrapolation. The individual will rarely mirror the exact behaviors referred
to in the anchoring statements. Therefore the BARS statements serve as
"examples" or "benchmarks" of behavior not as standards which allow a
direct, one-to-one comparison to be made. If the rater determines that the
ratee has exhibited the kind of behavior descriptive in the anchoring
statements for that level, the next task is to make a judgment concerning
the approximate percent of time they performed at that level. These
proportional time designations can be made in 5% increments, for example,
08, 5%, 10% etc., up to 100%. Gathering data on the distribution of
performance rather than just the anodal category offers the advantages of;
alleviating the rater's problem in describing "mixed" performance.
The BARS approach offers several key advantages:
Its easy to use. The clear behavioral indicators make the process
easier for the manager to carry out and the employee to accept.
Its high maintenance. Jobs change over time, which means that BARS
requires a high degree of monitoring and maintenance.
The MBO Process sets a benchmark for every employee. The superiors
set targets for each of the team members. Each employee is given a
list of specific tasks.