Building Effective Appraisal Rating Systems

So how can you reduce the bias inherent in rating scales? First behavior anchored rating scales (BARS) can define ratings by identifying job specific behaviors to define the rating scale. What actions indicate when an employee meets, exceeds or does not meet expectations. Human Factors Rating Scales

The Human Factors rating scale (HFRS)is a new technology developed by Performance Path® LLC. HFRS measures the developmental factors associated with employee performance. These factors may include observable measures of both skill and motivational levels. This allows managers and HR professional to quickly identify effective coaching strategies by pinpointing the underlying factors affecting performance. When combined with job specific performance standards HFRS provide objective measures of management and staff skill sets, motivation level in key result areas, innovation or conduct. Developmental trend analysis provide feedback on management coaching and training effectiveness, 

A common dilemma for many managers is how to fairly evaluate the level of work difficulty for different people assigned to the same job category. I once had a hedge fund manager tell me he had 80 accounts with the same job description. But he said, they were not all doing the same job. Some of them were doing basic accounting. Others were working with very complex accounts containing CDOs, mortgage backs and derivatives. How can we fairly use the same measuring stick with them? We solved this by creating a second rating scale that evaluated the staff on the factors ranging from the size of the account, technical complexity, Client profile, etc , This rating scale was used boost the overall rating of the final score. This provides extra compensation for individuals working in more difficult jobs. Suddenly difficult jobs become more appealing to staff. who would otherwise play it safe.