Performance appraisal: match the tool to the task.

Performance appraisals can be vital tools in administering an effective human resources program if they're used properly, although they're particularly useful in salary administration, incentive award determination, and promotability assessment, selecting the method or methods that best meet your needs may not be easy. John D. McMillan, director of compensation services, and Hout W. Doyel, consultant, of A.S. Hansen, Inc., explain the key features, advantages, and disadvantages of four major types of performance appraisal methods: the trait checklist, the management by objectives approach, the free-form approach, and the responsibility rating system. The authors note, for instance, that the most frequently used method, the trait checklist, has these major disadvantages: Traits that are rated tend to be general and don't relate specifically to job performance. The tendency of raters is to focus on personal characteristics rather than job performance results. And the method makes no sense where different levels in a job family are rated on the same form.