Dr. Ed Cornelius, one of my business school professors, was adamant that a traditional performance review form should have an even-numbered scale. He said it didn't matter if you chose a 4-point, a 6-point, an 8-point or a 10-point scale. He felt a mid-point - like a 3 on a 5-point scale - was a magnet for managers, and an easy way for them to cop out. An even-numbered scale has no mid-point.
I experienced this cop out once when I received a 3 out of possible 5 for Profitability when my business unit had literally tripled its budgeted profit. When I asked my VP what it would take to earn a 4, he just laughed, but didn't change the rating. Dr. Cornelius was right - mid-points really are a magnet for managers who don't take the time to properly prepare a review.
Another problem with Likert Scales like these is that the ratings seem to always be grouped around the top 3 numbers. So if an organization uses a 10 point scale, there will be a few 8s, a lot of 9s and a few 10s. If they use a 6 point scale, the ratings will distribute across 4, 5 and 6 in the same way. Most people get a B, and B is generally the number right below the top number on the scale.
So which scale is best?
If the goal of your performance management program is to provide meaningful feedback that leads to performance improvement, links to compensation and supports career development and succession initiatives, then my answer is, None of the Above!
More and more organizations have decided that rating attributes or behaviors on a Likert Scale has little impact on performance and can even be demotivating when poorly executed. I never really took my review seriously with that company after the 3 for Profitability incident. Plus there were no obvious links between my ratings and my compensation, anyway. The review devolved into an exercise that I tolerated each year so my boss could check the box. That's why organizations are abandoning their traditional Likert Scale reviews and either replacing them with something better or not replacing them at all.
But if forced to use a Likert Scale, I'll defer to a 4-point scale - that way, when the scores are distributed across 2, 3 and 4, the lowest rating will be below the mid-point of the possible ratings. But I'll be kicking and screaming that there is a better way!
If you would like to discuss alternatives to the traditional review, contact me for a free consultation.
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