Question 1

When it comes to performance appraisals, most firms combine

Accepted Answer

Most firms use several appraisal techniques to ensure a comprehensive, objective evaluation of an employee's performance. This may include a combination of objective measures such as computerized techniques or Management by Objectives (MBO), as well as subjective measures such as narrative or behavioral anchored rating scales (BARS). By using a variety of techniques, firms can ensure a well-rounded assessment of an employee's performance.

Question 2

When using MBO, in order to avoid having the process demotivate employees, objectives must be

Accepted Answer

Objectives in MBO must be fair and attainable to ensure that employees have a sense of accomplishment and motivation when they achieve them. Objectives that are too easy or difficult can result in boredom or frustration, respectively. Additionally, objectives should be customized to the employee's individual skill level and career aspirations rather than simply based on their educational level. Finally, objectives may vary slightly between employees in the same role due to differences in experience or individual goals.

Question 3

The following are all steps in developing a behaviourally anchored rating scale except

Accepted Answer

Causing critical incidents to occur is not a step in developing a behaviourally anchored rating scale. The other options are all steps in the process. Developing performance dimensions involves identifying the key areas or criteria on which employees will be evaluated. Generating critical incidents involves collecting specific real-life examples of behaviour that demonstrate effective or ineffective performance. Scaling the incidents involves creating a scale or rating system, often using a Likert scale or similar method, to quantitatively assess the quality of the incidents. Finally, developing the final instrument involves putting all of these components together into a cohesive rating system.

Question 4

Which of the following is not an advantage of the behaviourally anchored rating scale method?

Accepted Answer

The statement "It is the simplest form of performance appraisal, so little supervisor time is involved in using this performance appraisal tool" is actually not an advantage but a misconception. Developing the critical incidents and behavioural anchors for the rating scale requires a significant amount of time and effort from the supervisor or appraisal designer. Therefore, this statement is false, making choice D the correct answer.

Question 5

A method for appraising performance involving setting specific measurable goals with each employee and then periodically reviewing the progress made is called

Accepted Answer

Management by objectives (MBO) involves setting specific measurable goals with each employee and periodically reviewing the progress made towards achieving those goals. This allows for a more objective appraisal of an employee's performance and provides a clear focus for their work.

Question 6

The simplest and most popular technique for appraising performance is

Accepted Answer

Graphic rating scales are the simplest and most popular technique for appraising performance. They involve a list of traits or characteristics for the employee to be rated on, and the rater is asked to assign a rating for each trait based on performance. It is a straightforward and easy-to-understand method that is widely used in organizations. The other options listed are less common or have limitations in terms of fairness and accuracy.

Question 7

The following are all advantages of the behaviourally anchored rating scale appraisal method except

Accepted Answer

The behaviorally anchored rating scale (BARS) method does not involve forced behavioral dimensions; it focuses on specific behaviors that are anchored to performance levels, providing clearer standards, consistency, specific feedback, and more accurate measures.

Question 8

The following are all problems for managers when using performance appraisal methods except

Accepted Answer

All of the options listed except for quota appraisals are common problems that managers may face when using performance appraisal methods. Quota appraisals are not a problem, but rather a specific type of performance appraisal method where a certain number or percentage of employees are given specific ratings or labels, regardless of their actual performance.

Question 9

Appraisal systems must be based on performance criteria that are ________ for the position being rated and ________ in that their application must produce consistent ratings for the same performance.

Accepted Answer

The appraisal system must be based on performance criteria that are valid for the position being rated and reliable in that their application must produce consistent ratings for the same performance. Validity refers to the degree to which a performance criterion measures what it is supposed to measure, while reliability refers to the extent to which the criterion can be measured consistently across time and across raters. Therefore, option E is the best choice, as it correctly identifies both characteristics that are essential for a robust performance appraisal system.

Question 10

Because of good results, more employers are turning to a new approach to appraisal, namely a

Accepted Answer

The answer of Because of good results, more employers are...

Question 11

A summary performance appraisal discussion focuses on

Accepted Answer

A summary performance appraisal discussion focuses on problem solving.

Question 12

When an appraisal scale is too open to interpretation, it is characterized as having

Accepted Answer

This is because unclear performance standards make it difficult for appraisers to objectively evaluate performance and may lead to a wide range of interpretations, making it challenging to provide accurate feedback to the employee.

Question 13

A graphic rating scale used with unclear standards may appear to be objective, however, it will probably result in unfair appraisals because the traits and degrees of merit are

Accepted Answer

If the standards for the graphic rating scale are unclear, then the traits and degrees of merit will be open to interpretation. This can lead to unfair appraisals because different raters may interpret the same trait or degree of merit differently, resulting in inconsistent evaluations.

Question 14

All of the following are problems that are typically encountered when an organization uses the MBO method of performance appraisal except

Accepted Answer

Measurable objectives are not a problem in the MBO method; in fact, they are a key component of the method, which focuses on setting clear, measurable goals.

Question 15

An appraisal method that aims at combining the benefits of narrative, critical incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good or poor performance, is called the

Accepted Answer

The description provided fits the behaviourally anchored rating scale (BARS) method, which combines narrative examples of good or poor performance with a quantified scale to provide a more objective and precise performance appraisal.

Question 16

MBO almost always refers to a comprehensive organization-wide goal-setting and appraisal program that consists of all the following steps except

Accepted Answer

MBO (Management by Objectives) typically involves setting specific, short-term goals rather than long-term performance targets. The focus is on aligning individual and departmental objectives with the organization's goals and providing feedback.

Question 17

An advantage of the critical incident method is that

Accepted Answer

The advantage of the critical incident method is that it provides hard facts for explaining the appraisal. This means that it can provide specific examples of employee behavior or performance that led to a certain rating or feedback. This can make the appraisal process more objective and transparent. None of the other options listed describe this advantage.

Question 18

Kai has a tendency to rate all of his direct reports as average.Kai's actions indicate which of the following performance appraisal problems?

Accepted Answer

Kai's tendency to rate all his employees as average shows central tendency, where the appraiser has a bias towards the middle of the rating scale and avoids extreme ratings.

Question 19

When supervisors who are engaged in a performance rating tend to rate all employees either high or low, this problem is referred to as

Accepted Answer

When supervisors rate all employees either high or low, it results in leniency/strictness bias. Leniency occurs when supervisors rate employees more positively than they deserve, whereas strictness occurs when supervisors rate employees more negatively than they deserve.

Question 20

Gary is the supervisor of Mindy.He is very impressed with Mindy's ability to work in a team, so he has rated her as "outstanding"for this trait.Although she has had more missed delivery deadlines than her peers over the past financial quarter, Gary rated her as "above average"for the trait of "personal effectiveness."Gary's actions indicate which of the following performance appraisal problem?

Accepted Answer

This is an example of the halo effect, where one positive trait of an employee influences the appraiser's ratings of all other traits. In this case, Gary's high rating of Mindy's team working ability has influenced his rating of her personal effectiveness positively, despite her missing delivery deadlines.

Quiz 10: Performance Management