Chapter 9Selecting the Right Performance Appraisal

Martin G. Wolf, Ph.D., PresidentManagement Advisory Services

THE IMPORTANCE OF MEASUREMENT IN SHAPING BEHAVIOR IN AN ORGANIZATIONAL SETTING is well known. Dr. Mason Haire, an industrial-organizational psychologist, said, “What gets measured gets done … If you want to change how an organization behaves, change the measurement system.” Bill Gates said the same thing much more succinctly, “People behave as they are measured.” The goal of this chapter is to help readers select, and implement, the type of measurement system that will have the most positive impact on their organization’s performance.

Choice of Appraisal System

Appraisal systems can be categorized by what they assume and on what they ...

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