Final answer:
The most true statement about performance appraisal practice is that companies often use a hybrid of a graphic rating scale and a BARS system, integrating multiple sources of feedback to evaluate employees. There is no one-size-fits-all superior system, as the effectiveness depends on organizational culture and implementation.
Step-by-step explanation:
When considering the statement which is most true about performance appraisal practice, the answer is A: Companies most often use a hybrid of a graphic rating scale and a Behaviorally Anchored Rating Scale (BARS). Performance appraisals are increasingly complex and intended to both assess and motivate improvements in job performance. The use of a 360-degree feedback appraisal is one example, where evaluations from various sources including supervisors, peers, and the employees themselves, are integrated to create a comprehensive review. However, there is no clear evidence that any one system, like BARS or employee comparison methods, is universally superior; the effectiveness largely depends on the specific organizational culture and how the system is implemented.
Since performance appraisal systems can influence decisions for training, pay raises, or terminations, it is crucial for them to be well-aligned with the organization's goals and culture. Research has shown that different methods have varying degrees of reliability, and self and peer ratings can sometimes be unreliable. A critical aspect of any appraisal system is the discussion it prompts, allowing for discrepancies to be addressed and learning opportunities for the employee.