Criterion validation of two approaches to performance appraisal: The behavioral observation scale and the relative percentile method

We compared the criterion validity of a new relative performance appraisal format (percentile-based ranking) to that of an absolute format (BOS) in a sample of 88 unit managers. Overall, our results suggest that the relative format has higher criterion-related validity than does the absolute format. These findings contradict conventional wisdom that format-related differences in measures of performance are minimal and that relative approaches to performance appraisal are inferior.This research was supported by grants from the Social Sciences and Humanities Research Council of Canada (SSHRC) to Richard D. Goffin, Douglas N. Jackson, John P. Meyer, Sampo V. Paunonen, and Mitchell G. Rothstein. Additional funding provided by a research grant from Imperial Oil Ltd. to Douglas N. Jackson.A version of these results was presented at the 7th Annual Meeting of the Society for Industrial and Organizational Psychology, Montreal, Canada, May, 1992. Limited portions of these data, addressing distinctly different research issues, were published in Gellatly, Paunonen, Meyer, Jackson, & Goffin (1991) and Meyer, Paunonen, Gellatly, Goffin, & Jackson (1989).