Deck 8: Performance Management and the Employee Appraisal Process

Question 1

Organizational politics can introduce bias into even the most fairly administered performance appraisals.

Answer 1

True

Question 2

Experts advise companies to discontinue to appraise their employees during an economic downturn if they cannot afford to give them raises.

Answer 2

False

Question 3

Criterion contamination occurs when correlations between two raters of an employee are inconsistent.

Answer 3

False

Question 4

Developmental purposes for performance appraisal include identifying strengths and weaknesses and improving communication.

Question 5

According to a Supreme Court ruling,performance appraisals are subject to the same validity criteria as selection procedures.

Question 6

Managers need to constantly engage in a dialogue with their subordinates.

Question 7

Employee performance avoidance rarely starts on day one of the new job.

Question 8

Managers may deflate performance ratings to make themselves look good as managers.

Question 9

Developmental purposes for performance appraisal include evaluating goal achievement and validating selection criteria.

Question 10

In general,performance appraisal can be classified as either administrative or developmental.

Question 11

Developmental purposes for performance appraisal include evaluating training programs and determining promotion candidates.

Question 12

Studies have shown employees who earn performance-based pay are more satisfied.

Question 13

Criterion deficiency occurs when performance standards focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions.

Question 14

Performance appraisal programs can be used for many purposes,including layoff decisions,retention and termination of employees.

Question 15

The annual or semi-annual performance appraisal should be an extension of day-to-day supervision.

Question 16

Criterion contamination occurs when factors outside an employee's control influence his or her performance.

Question 17

Most performance appraisals focus on long-term improvement,rather than short-term achievements.

Question 18

Criterion deficiency occurs when performance standards have not been properly established and communicated to the employee.

Question 19

Developmental approaches to performance appraisal recognize that a manager's purpose is to improve job behaviors,not just evaluate past performance.

Question 20

The federal government began evaluating employees in 1842.

Question 21

Team appraisals are conceptually just a collection of the individual appraisals of a work unit.

Question 22

One reason that managers may not want co-workers (peers)to rate each other is that they do not want to give up control of the appraisal process.

Question 23

Distributional errors in performance appraisal include central tendency,contrast,and strictness.

Question 24

Subordinate appraisals should be used primarily for developmental purposes.

Question 25

In most instances,one person can easily observe and evaluate an employee's performance.

Question 26

Reliability refers to the stability or consistency of a standard.

Question 27

Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors.

Question 28

Subordinate appraisals are useful for ratings on dimensions such as leadership,coordination of team efforts,and interest in subordinates.

Question 29

Having appraisal's reviewed by a supervisor's supervisor creates unnecessary redundancy and may actually result in greater legal liability.

Question 30

One disadvantage of peer appraisals is the belief that they contain more biases and furnish less valid information than appraisals by superiors.

Question 31

An appeals process is only necessary for administrative appraisals.

Question 32

Internal customers can provide valuable performance information for both developmental and administrative purposes.

Question 33

The HR department rarely has the primary responsibility for overseeing and coordinating a firm's appraisal program.

Question 34

With peer appraisals,confidentiality in handling the review form is not a problem.

Question 35

A team appraisal approach is well suited for a company advocating a total-quality management philosophy.

Question 36

An error of central tendency is a performance-rating error in which all employees are more or less rated as average.

Question 37

Self-appraisal works well when supervisors and subordinates jointly establish future performance goals or employee development plans.

Question 38

Criterion deficiency refers to the extent to which the standards of an appraisal relate to the strategic objectives of the organization in which they are applied.

Question 39

Employees should be given a written copy of their job standards in advance of appraisals.

Question 40

Self-appraisals should be used primarily for administrative purposes.

Question 41

Measurable and quantifiable performance objectives are requirements for a successful MBO program.

Question 42

Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest.

Question 43

The balanced scorecard approach integrates four categories: financial,customer,processes,and outcomes.

Question 44

Results appraisals give employees more responsibility for outcomes and discretion over how to accomplish them.

Question 45

Behavior observation scales have the rater check statements they believe are characteristic of the employee.

Question 46

One major advantage of a behaviorally anchored rating scale is that it is possible to use a scale developed for one job to appraise individuals in another,unrelated job.

Question 47

Similar-to-me error,like contrast,results in less than accurate performance ratings,but would not be considered discriminatory.

Question 48

Results-oriented approaches have become more popular because it focuses on the measurable contributions that employees make to the organization.

Question 49

One of the potential drawbacks of a trait-oriented performance appraisal is that traits can be biased and subjective.

Question 50

It is unrealistic to presume that one person can fully observe and evaluate an employee's performance.

Question 51

A recency error is an error in which the appraisal is based largely upon the employee's most recent behavior as opposed to their behavior throughout the entire appraisal period.

Question 52

Mixed standard rating scales rate on the degree to which an employee possesses a trait or characteristic.

Question 53

Behavioral methods describe actions and outcomes that should be exhibited on the job.

Question 54

The effectiveness of the essay method is affected by the rater's writing skills.

Question 55

Similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common.

Question 56

The forced-choice method of appraisal is less effective as a tool for developing employees.

Question 57

Graphic rating scales include sets of statements between which the rater must choose,such as "works hard" vs."works quickly."

Question 58

A major drawback of the essay method is that composing an essay that attempts to cover all of an employee's essential characteristics is very time-consuming.

Question 59

Feedback training for raters should include communicating effectively,diagnosing causes of performance problems,and setting goals.

Question 60

One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity.

Question 61

Expressing appreciation for work the employee has done well is strongly related to employee satisfaction with the appraisal feedback.

Question 62

A ____ one in which all employees of a company are reviewed at the same time of year rather than on the anniversary dates they were hired.

A) Justinian review system
B) focal performance appraisal
C) annuity appraisal system
D) non-bifurcated appraisal system

Question 63

Performance is a function of ability,environment and motivation.

Question 64

Appraisal discussions should focus on the employee rather than on his or her behaviors.

Question 65

The balanced scorecard approach translates broad goals into increasingly specific goals,so that individuals can see how their performance relates to the overall performance of the firm.

Question 66

A problem with performance appraisal includes:

A) it tends to be objective and consistent
B) it identifies weaknesses of employees as well as strengths
C) it tends to focus on short-term objectives rather than long-term learning
D) it tends to be a bottom-up process

Question 67

Feedback is most useful when it is immediate and general in nature.

Question 68

A diagnosis of poor employee performance should focus on the three interactive elements of skill,motivation,and external conditions.

Question 69

Research has consistently shown that managers often attribute poor performance to characteristics of the individuals.

Question 70

Self assessment is useful to ensure the employee knows against what criteria he or she is evaluated,eliminating surprises.

Question 71

Because the appraisal interview is for developmental purposes,the interviewer rather than the employee should spend the majority of the time talking.

Question 72

The problem-solving interview method requires the appraiser to possess the ability to persuade an employee to change in a prescribed manner.

Question 73

Since praise is a powerful motivator,appraisers should alternate positive and negative statements during a performance appraisal interview.

Question 74

One study showed that organizations with strong performance management systems are
____ more likely to outperform their competitors in the areas of revenue growth,productivity,profitability,and market value

A) 10-15 percent.
B) 20-30 percent
C) 40-50 percent
D) 80-90 percent

Question 75

Three types of appraisal interviews are tell-and-sell,tell-and-listen,and problem-solving.

Question 76

The federal government begin evaluating employees in 1842,when Congress passed a law mandating yearly performance review for:

A) departmental clerks
B) military personnel
C) postal employees
D) all federal employees

Question 77

Dividing the appraisal interview into two sessions,one for the performance review and the other for the employee's growth plans,is a good strategy to improve communication between the parties.

Question 78

The best appraisal method to use depends upon the purpose of the appraisal.

Question 79

Self-appraisals are often best used for administrative decisions rather than developmental purposes.

Question 80

The "horn error" is the opposite of the "halo effect."