Relative measures are performance appraisal techniques that evaluate an employee's performance in comparison to that of their peers or a set standard, rather than in isolation. These measures provide a relative assessment of an individual's performance within a group or organization.
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Relative measures are often used to differentiate between high and low performers within an organization.
Relative measures can help identify top performers, but may also demotivate lower-ranked employees.
Forced distribution techniques, such as the bell curve method, are a common type of relative measure used in performance appraisals.
Relative measures can be influenced by factors outside of an employee's control, such as the performance of their peers.
Relative measures are typically more suitable for organizations with a large number of employees, as they allow for more meaningful comparisons.
Review Questions
Explain how relative measures differ from absolute measures in performance appraisal.
Relative measures evaluate an employee's performance in comparison to their peers or a set standard, whereas absolute measures assess an individual's performance in isolation, without reference to others. Relative measures provide a comparative assessment of performance, while absolute measures focus on meeting predefined goals or criteria. The key distinction is that relative measures rank or categorize employees based on their performance relative to the group, while absolute measures judge performance based on individual achievement.
Describe the potential advantages and disadvantages of using relative measures in performance appraisal.
Advantages of relative measures include the ability to differentiate between high and low performers, identify top talent, and motivate employees to improve their relative standing. However, disadvantages include the potential for demotivation among lower-ranked employees, the influence of factors outside an employee's control (such as the performance of their peers), and the difficulty of providing meaningful feedback based solely on relative comparisons. Relative measures may also be less suitable for small organizations where the pool of employees is limited.
Analyze the role of forced distribution techniques, such as the bell curve method, as a type of relative measure in performance appraisal.
Forced distribution techniques, like the bell curve method, are a form of relative measure that assign employees to predetermined performance categories, typically following a normal distribution. These methods are designed to identify and differentiate between high, average, and low performers within an organization. While they can help organizations identify top talent, forced distribution techniques have been criticized for their potential to demotivate employees, especially those who are categorized as 'average' or 'low' performers, despite their actual contributions. Additionally, these methods may not accurately reflect the true performance distribution within an organization and can be influenced by factors beyond an employee's control.
Related terms
Ranking: A relative measure where employees are placed in order from best to worst performer based on their overall performance.
A relative measure where employees are assigned to predetermined performance categories, typically following a normal distribution curve.
Paired Comparison: A relative measure where each employee is compared to every other employee, and a ranking is determined based on the number of times an employee is judged superior to others.