Different approaches to performance appraisals
One of the important considerations in creating your organization’s performance management (PM) system is the approach used to measure performance. According to organizational researcher Herman Aguinis (2009), there are three types of criteria: behaviors, results, and traits.
The behavior approach to performance management focuses on specific behaviors that an employee engages in. Aguinis (2009) suggests that using a behavioral approach is appropriate when there is not a clear link between behaviors and results, outcomes of performance are far away in the future, and results are not in the control of the employee.
When there is a clear link between employee behaviors and an outcome, a results approach may be more appropriate (Aguinis, 2009). The results approach focuses only on the end result of employee actions (e.g. mistakes made, machine parts produced, sales per month). This approach tends to be more objective than the other approaches, and it is appropriate under a number of circumstances. A results approach is ideal when employees have the skills need to complete work tasks, and they can recognize and correct inaccurate behaviors (Aguinis, 2009). This approach also works when employees improve over time. This may incentivize them to improve their skills and develop expertise in order to achieve the desired results. Additionally, the results approach works well when there are several ways to get to the desired approach. Sales people can use many different approaches to making sales, and not all ways are needed by each individual. The results approach allows knowledgeable employees to use their information and resources to obtain the desired performance in a more autonomous way.
A third approach is to measure employee traits during the review cycle. Traits are relatively unchanging characteristics of an individual, such as personality or intelligence. The idea is that there is a relationship between some traits and performance, such as extraversion and leadership performance (Judge, Bono, Illies, & Gerhadrt, 2002). However, this may be problematic for PM systems because traits are relatively stable and not in control of the employees. It is difficult to justify giving employees lower scores because they are introverted. Employees are less likely to see this process as fair. Additionally, having a desired trait does not mean that the employee will use it to perform better at work. Capability does not equal performance. Therefore, the trait approach to measuring performance is rarely warranted. The exception might be if the organization is going through major structural changes (Aguinis, 2009), but the organization should have a clear justification for using traits backed by HR and the legal department. In almost all cases, employers can use behavioral and results approaches to evaluate employees.
Organizations may also be interested in using multiple methods in their PM systems. For example, a results approach may be more applicable to Starbucks district retail managers, who focus on setting and achieving sales goals quarterly goals, than for baristas, who focus on making drinks and engaging with customers. The approach used should be considered for each position being evaluated in the PM system.
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