Traditionally, managers use performance reports as a primary tool for management to measure specific areas of employees’ labor. Organizations choose and develop performance appraisals according to its primary objectives and standards. For example, companies that rely on teams to execute tasks may design a performance management tool that focuses on collective output above individual performance. Although performance measurement methods vary with goals and structure, organizations often use popular appraisal techniques such as the simple ranking and graphic rating scale methods.
Accepted in many organizations, as a key performance analysis, is the simple ranking method. “Simple ranking requires managers to rank employees in their group from the highest performer to the poorest performer” (Managing Employees’ Performance, 2007, p.10). The process involves supervisors making judgments between employees under their supervision to determine the productivity of each member in comparison with other employees. Although popular, this technique lacks validity and can lead to a perception of favoritism in the workplace. Typical language in the ranking method, such as best or worst, does not specify what aspects of an employee’s performance need improvement or why. In addition, employees normally do not share equal skills, abilities, or roles; therefore, such comparisons may appear unfair and cause negative conflict. Last, the simple ranking method does not motivate employees to improve based on standards or organizational goals. If an employee’s objective is simply to out-perform his or her peers, he or she may lose focus on the importance of the task and fail to achieve his or her highest potential.
In contrast to the simple ranking method, the graphic rating scale uses established standards and traits to determine the quality of an employee’s performance. This widely used