Qualities of Effective Performance Criteria

The dimension of performance upon which an employee is evaluated is called the criteria of evaluation. The correctness of the performance appraisal many extent depends on the characteristics of criteria set for the evaluation. Cascio (1991:64-65) has prescribed characteristics of effective performance criteria:
1. Reliability – A measure of performance must be consistent. Perhaps the most important type of consistency for a performance measure is inter-rater reliability. If different raters view the same worker, they should arrive at similar conclusions about the quality of that worker’s output.
2. Relevance – A measure of performance must be related to the actual output of an incumbent as logically as possible.
3. Sensitivity – Any criteria must be able to reflect the difference between high and low performers. That is, high and low performers must receive criterion scores that accurately represent the difference in their performance.
4. Practicality – The criteria must be measurable, and data collection cannot be inefficient or too disruptive.
Most studies indicate that multiple criteria are necessary to measure performance completely (Ivancevich, 2001:249). The choice of criteria is not an easy process. One must be careful to evaluate both activities and results. A combination of criteria using results and activities is desirable.

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