Which appraisal method focuses on observing employee behavior in order to identify areas of improvement?

The appraisal method that focuses on observing employee behavior to identify areas of improvement is the behavioral method. This approach emphasizes the evaluation of specific behaviors exhibited by employees in the workplace rather than relying solely on outcomes or results. By concentrating on observable actions and interactions, this method allows managers to pinpoint strengths and weaknesses in an employee's performance.

This focus on behavior enables a more nuanced understanding of how employees contribute to their teams and organizations. It supports targeted feedback and developmental discussions that can lead to effective performance enhancement strategies. Consequently, managers can create action plans that address particular behaviors, fostering a culture of improvement and professional growth.

The other options do not specifically highlight behavior observation as a fundamental aspect of their methodology. For instance, guided assessments may involve structured questions and prompts without a primary focus on observable behavior. Grading assessments often center on specific criteria or results rather than the way in which tasks are performed. Performance reviews may encompass broader evaluations, including outcomes, achievements, and goals, without necessarily concentrating solely on the behaviors that led to those results.