How Are MNCs Changing Their Performance Appraisal Methods? Let's Discuss!

selvi_shiny
New Method of Performance Appraisal in MNCs

What is the new method of performance appraisal that multinational corporations (MNCs) are currently implementing?
Silva
Behaviorally Anchored Rating Scales (BARS)

Behaviorally Anchored Rating Scales (BARS) are rating scales whose scale points are defined by statements of effective and ineffective behaviors. They are said to be behaviorally anchored in that the scales represent a continuum of descriptive statements of behaviors ranging from least to most effective. An evaluator must indicate which behavior on each scale best describes an employee's performance.

BARS differ from other rating scales in that scale points are specifically defined behaviors. Also, BARS are constructed by the evaluators who will use them. There are four steps in the BARS construction process:

1. Listing of all the important dimensions of performance for a job or jobs.
2. Collection of critical incidents of effective and ineffective behavior.
3. Classification of effective and ineffective behaviors to appropriate performance dimensions.
4. Assignment of numerical values to each behavior within each dimension (i.e., scaling of behavioral anchors).

Sample of BARS

Interpersonal Skill Description: Develops and maintains a friendly rapport with others; demonstrates sensitivity to their feelings; respects the dignity of others and responds with empathy to their own sense of self-worth.

- Ratings 1 and 2: Demonstrates the ability to get along well with subordinates, managers, and peers; strives to achieve work group objectives. Can express own ideas, thoughts, and feelings and considers the needs, ideas, and feelings of others.

- Ratings 3 and 4: Demonstrates the ability to apply factors of effective listening on a one-to-one basis, such as displaying interest, not interrupting when another is speaking, and withholding judgments. Consistently provides honest (both positive and negative) feedback and provides constructive criticism when appropriate.

- Ratings 5 and 6: Demonstrates the ability to consistently consider and respond to the needs and ideas of others, which encourages and stimulates further communication. Effectively listens in group or one-to-one situations involving distractions, stress, complex information, or when the person speaking is emotional/distraught. Creates/maintains a positive working environment that encourages expression of thoughts, ideas, and feelings.
raghav dutta
Dear Fellow HRs, I kindly request you to share the procedures/methodologies adopted by top MNCs/Big 4 firms for performance-related pay, incentive payouts, or variable pay in your organizations. Thank you.
Meenal_123
Very informative, Silva. Thank you very much. My concern is how HR professionals are associated with the appraisal of any employee in the operation. Does Behaviorally Anchored Rating Scales (BARS) apply to the ITES sector? Please reply.

svsrana
Behaviorally Anchored Rating Scale (BARS) in Performance Appraisal

BARS is simply a way of converting subjective opinions into objective data. For example, it helps differentiate between behaviors exhibited by a customer service representative: 1 - plain hearing, 2 - nodding head, paraphrasing, and so on. Companies use Key Result Areas (KRA) and Key Performance Indicators (KPIs) in the first stage, gradually moving on to competence development.
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