Question 1

In the context of performance information, employee attitude is classified as trait-based information.

Accepted Answer

Employee attitude is a personal trait that influences their behavior and performance, thus it falls under the category of trait-based information.

Question 2

An effective performance management system should:
A) be used only as an administrative tool.
B) be effective in documenting employee performance.
C) provide equal rewards to all employees.
D) avoid categorizing employees as high, average, and low performers.

Accepted Answer

A performance management system should be effective in documenting employee performance, as this enables management to make informed decisions, provide feedback, and identify areas for improvement. It should not be used solely as an administrative tool, as this fails to address issues relating to employee performance. Similarly, providing equal rewards to all employees is not an effective approach, as it fails to recognize differences in employee contributions and may lead to a lack of motivation. Categorizing employees as high, average, and low performers is an important aspect of performance management, as it allows management to identify areas for improvement and provide targeted feedback and training.

Question 3

The _____ occurs when a low rating on one characteristic leads to an overall low rating.
A) halo effect
B) horns effect
C) contrast error
D) similar-to-me error

Accepted Answer

The horns effect, also known as the devil effect, is the opposite of the halo effect. It occurs when a low rating on one characteristic (e.g. performance) leads to an overall negative perception of the person, despite having positive qualities in other areas. This bias can be harmful as it can cause individuals to be unfairly evaluated and judged based on one negative characteristic.

Question 4

The number of cars sold by a car salesman is classified as a subjective measure of performance.

Accepted Answer

The number of cars sold by a car salesman is an objective measure of performance because it can be quantitatively measured and verified by others.

Question 5

The _____ is the tendency to rate people relative to others rather than against performance standards.
A) halo effect
B) horns effect
C) contrast error
D) strictness error

Accepted Answer

The tendency to rate people relative to others rather than against performance standards is known as contrast error. The halo effect refers to the tendency to generalize positive or negative traits from one aspect of a person to all aspects. The horns effect is the opposite, where one negative trait leads to an overall negative impression. The strictness error refers to consistently rating employees lower than deserved.

Question 6

Performance appraisal has a broad organizational focus.

Accepted Answer

Performance appraisal typically focuses on individual employees, assessing their performance, strengths, and areas for improvement rather than on broader organizational objectives or performance.

Question 7

If a rater has seen only a small specimen of an employee's work, the appraisal may be subject to _____.
A) the halo effect
B) the horns effect
C) rater bias
D) a sampling error

Accepted Answer

When a rater has only seen a small sample of an employee's work, the appraisal may be subject to sampling error because it may not accurately reflect the employee's overall performance. The halo effect, horns effect, and rater bias are more likely to occur when a rater has multiple observations of an employee's work over time.

Question 8

The appraisal discussion is an emotional experience for managers because:
A) managers must frequently communicate both praise and constructive criticism to employees.
B) managers must emphasize only the positive aspects of employees' performance.
C) managers must overlook the positive aspects of employees' performance and emphasize their negative aspects.
D) managers must avoid communicating the results of appraisals to employees.

Accepted Answer

The appraisal discussion is emotional for managers because they have to be both positive and constructive in their feedback to employees. This can be challenging because it requires managers to balance the need for encouragement and recognition with the need for improvement and development.

Question 9

The _____ occurs when a rater gives greater weight to information received first when appraising an individual's performance.
A) leniency error
B) recency effect
C) primacy effect
D) central tendency error

Accepted Answer

The primacy effect is the tendency for a rater to give greater weight to information received first when appraising an individual's performance. This can lead to biases in the rating process and inaccurate evaluations. The other options are different types of rating errors that are not specific to the order of information received.

Question 10

Performance standards should be established before work is performed because they define the level of satisfactory job performance.

Accepted Answer

Performance standards help establish clear expectations for job performance and enable employees to understand what they need to do to meet or exceed performance expectations. It is important to establish these standards before work is performed so that everyone involved understands what is expected and can work towards achieving those expectations.

Question 11

A supervisor's rating of an employee's attitude is classified as an objective measure of performance.

Accepted Answer

A supervisor's rating of an employee's attitude can be subjective and influenced by personal biases, making it a subjective measure of performance.

Question 12

The _____ occurs when a manager uses only the lower end of the scale to rate employees.
A) leniency error
B) recency effect
C) primacy effect
D) strictness error

Accepted Answer

The strictness error occurs when a manager rates all employees low on the performance scale, often because the manager believes that high ratings should be reserved for only exceptional performances.

Question 13

The _____ occurs when a rater gives all employees a score within a narrow range in the middle of the scale.
A) similar-to-me error
B) recency effect
C) primacy effect
D) central tendency error

Accepted Answer

The central tendency error occurs when a rater gives all employees a score within a narrow range in the middle of the scale, rather than differentiating between higher and lower performing employees. This can result in inflated scores for average performers and lower scores for high or low performers, leading to inaccurate evaluations.

Question 14

In a performance-driven organizational culture, employee rewards vary little from person to person and have little to do with differences in individual performance.

Accepted Answer

In a performance-driven organizational culture, rewards are typically tied to individual performance and can vary based on levels of performance or achievement.

Question 15

In organizational cultures based on an entitlement approach, performance evaluations link results to employee compensation and development.

Accepted Answer

In an entitlement approach, compensation and development are often seen as a right or benefit due to employment duration or status, rather than being directly linked to performance results.

Question 16

Feedback and recognition are important aspects of a performance-driven culture as they give employees information and encouragement for their accomplishments.

Accepted Answer

Feedback and recognition provide employees with valuable information about their performance and help to motivate and inspire them to continue performing well. In a culture that values performance, these are essential elements to encourage ongoing improvement and success.

Question 17

The ability of a waiter at a restaurant to persuade his or her customer to order an expensive item from the menu is an example of behavior-based information.

Accepted Answer

The ability of a waiter to persuade a customer is based on the behavior of the waiter and falls under behavior-based information.

Question 18

The _____ occurs when ratings of all employees fall at the high end of the scale.
A) leniency error
B) recency effect
C) primacy effect
D) central tendency error

Accepted Answer

The leniency error occurs when an evaluator tends to give all employees high ratings, ignoring their actual performance levels. This bias skews performance appraisals towards the higher end of the scale.

Question 19

The _____ occurs when a rater scores an employee high on all job criteria because of performance in one area of the assigned work responsibilities.
A) halo effect
B) horns effect
C) contrast error
D) similar-to-me error

Accepted Answer

The halo effect occurs when a rater scores an employee high on all job criteria because of performance in one area of the assigned work responsibilities. This can happen when a rater allows one positive aspect of an employee's performance to influence their perception of the employee's overall performance.

Question 20

The performance management process starts by identifying the strategic goals an organization needs to accomplish to remain competitive and profitable.

Accepted Answer

The performance management process starts by identifying the strategic goals an organization needs to accomplish to remain competitive and profitable. This is necessary to ensure that employee performance objectives and assessments are aligned with the overall strategic direction of the organization.

Quiz 10: Performance Management and Appraisal

In the context of performance information, employee attitude is classified as trait-based information.

An effective performance management system should:

The _____ occurs when a low rating on one characteristic leads to an overall low rating.

The number of cars sold by a car salesman is classified as a subjective measure of performance.

The _____ is the tendency to rate people relative to others rather than against performance standards.

Performance appraisal has a broad organizational focus.

If a rater has seen only a small specimen of an employee's work, the appraisal may be subject to _____.

The appraisal discussion is an emotional experience for managers because:

The _____ occurs when a rater gives greater weight to information received first when appraising an individual's performance.

Performance standards should be established before work is performed because they define the level of satisfactory job performance.

A supervisor's rating of an employee's attitude is classified as an objective measure of performance.

The _____ occurs when a manager uses only the lower end of the scale to rate employees.

The _____ occurs when a rater gives all employees a score within a narrow range in the middle of the scale.

In a performance-driven organizational culture, employee rewards vary little from person to person and have little to do with differences in individual performance.

In organizational cultures based on an entitlement approach, performance evaluations link results to employee compensation and development.

Feedback and recognition are important aspects of a performance-driven culture as they give employees information and encouragement for their accomplishments.

The ability of a waiter at a restaurant to persuade his or her customer to order an expensive item from the menu is an example of behavior-based information.

The _____ occurs when ratings of all employees fall at the high end of the scale.

The _____ occurs when a rater scores an employee high on all job criteria because of performance in one area of the assigned work responsibilities.

The performance management process starts by identifying the strategic goals an organization needs to accomplish to remain competitive and profitable.