Question 1

The main reason firms conduct performance appraisals is to establish a formal record of job performance that will protect them from lawsuits filed by unhappy workers.

Accepted Answer

The key word here is performance. The main purpose of a performance appraisal is to improve employee performance.

Question 2

A performance appraisal provides an opportunity for employees to make suggestions about how a particular task could be better performed.

Accepted Answer

A performance appraisal typically consists of a two-way discussion between the employee and their manager, during which the employee may provide feedback and suggestions for improving their performance and the tasks they are responsible for. Therefore, it provides an opportunity for employees to make suggestions about how a particular task could be better performed.

Question 3

An employment appraisal may include a 360-degree review, which is an appraisal that includes job-related and non-job-related comments from a range of employees.

Accepted Answer

A 360-degree review typically includes feedback from a range of individuals such as peers, subordinates, and supervisors, but it focuses on job-related performance and behaviors, not non-job-related comments.

Question 4

One drawback of performance appraisals is that they cannot be completed for top management because there is no one above this level of management to carry out and evaluate the results.

Accepted Answer

Today, performance appraisals rely on feedback from all levels, including subordinates. Even top managers benefit from 360-degree reviews by peers and subordinates.

Question 5

Most experienced workers have a clear idea of what is expected of them even if managers do not communicate their expectations explicitly.

Accepted Answer

Experienced workers may have a general understanding of their roles, but explicit communication from managers is crucial to clarify expectations, align goals, and ensure that all team members are working towards the same objectives. Without clear communication, assumptions can lead to misunderstandings and misaligned efforts.

Question 6

When she met with Rafi to discuss his performance appraisal, Cady noted that Rafi had difficulty with managing his time on certain projects. One drawback of a performance appraisal is that it does not allow for feedback during the evaluation process.

Accepted Answer

The fourth step of the appraisal process is to discuss results with the employee and the fifth step of the performance evaluation process is to take corrective action. These steps provide managers with an excellent opportunity to offer constructive criticism and corrective feedback to their employees, and also receive feedback from the employees.

Question 7

Top-level managers can benefit from having their performance evaluated by subordinates.

Accepted Answer

Top-level managers can benefit from having their performance evaluated by subordinates as it can give them insights into areas they need to improve and can help them build stronger relationships with their team members. It also creates a culture of open communication and encourages feedback from all levels of the organization.

Question 8

A 360-degree review will include the opinions of an employee's subordinates, as well as those above him/her in the organization structure, and those who work alongside the employee in comparable positions.

Accepted Answer

A 360-degree review is a multi-source feedback process that involves gathering feedback from various sources, including subordinates, superiors, peers, and sometimes even customers or clients. The purpose is to provide a comprehensive and well-rounded evaluation of the employee's performance and abilities.

Question 9

Even employees who work on a busy production floor need performance appraisals. If the manager cannot conduct a closed-door appraisal session, the supervisor should conduct these wherever he/she can find room.

Accepted Answer

Performance appraisals should always be performed one on one and in a closed-door session; and never with other employees present.

Question 10

Performance appraisals are very useful for new, inexperienced workers and first-line managers, but have little value for top management.

Accepted Answer

This statement is not correct. Performance appraisals have value for all levels of management, including top management. They can provide valuable feedback, identify areas for improvement, and help align individual goals with organizational objectives. However, the type and frequency of performance appraisals may differ based on the level of management and the specific needs of the organization.

Question 11

Companies compete with other firms for good employees.

Accepted Answer

It is true that companies compete with other firms for good employees, as they need a skilled and talented workforce to achieve their business objectives and stay ahead of their competitors.

Question 12

Because of legal implications, managers should not use the results of performance appraisals to make decisions about promotions and compensation.

Accepted Answer

Managers can use the results of performance appraisals to make decisions about promotions and compensation, as long as they ensure that the process is fair and non-discriminatory, and based on job-related factors. However, they should be aware of legal implications, such as potential claims of discrimination or bias, and should follow established policies and procedures to minimize the risk of such claims.

Question 13

The last step in the performance appraisal process is to discuss the results with the employee.

Accepted Answer

The last step in the performance appraisal process is typically to make decisions based on the appraisal, such as promotions, salary adjustments, or development plans, after discussing the results with the employee.

Question 14

Establishing performance standards is a crucial step in the performance evaluation process.

Accepted Answer

Establishing performance standards provides a clear framework for evaluating employees' performance and determining whether they have met the expectations for their job. Without clear standards, the evaluation process can become subjective and inconsistent. Therefore, it is crucial to establish performance standards as part of the performance evaluation process.

Question 15

Compensation is one of the main tools a firm uses in its efforts to attract qualified employees.

Accepted Answer

Compensation is a crucial factor in attracting and retaining qualified employees in any organization. Adequate compensation and benefits packages are essential to ensure that employees are motivated, engaged, and committed to their jobs. Firms may use various forms of compensation, such as base salary, bonuses, stock options, retirement plans, health insurance, and other perks, to attract talented individuals and ensure that they are satisfied with their work and compensation. Therefore, compensation is undoubtedly one of the main tools that firms use in their efforts to attract good employees.

Question 16

Eliza is an office manager at Bookman's Legal Services. The company's top management recently announced it was adopting a 360-degree review process as part of the performance appraisals of its office managers. Once this policy goes into effect, Eliza can expect her evaluations to include feedback from both the managers above her and the employees she supervises.

Accepted Answer

A 360-degree review is so named because it calls for feedback from all directions: up, down, and all around. In other words, opinions are gathered from workers above, below, and at the same level as the worker being evaluated.

Question 17

Performance standards should be understandable, measurable, and reasonable.

Accepted Answer

Performance standards should be clear and easily understandable by all parties involved. They should also be measurable so that progress can be tracked and evaluated. Additionally, the standards should be reasonable and achievable so that employees are not set up for failure.

Question 18

Due to the secret nature of performance standards, employees are only permitted to review these standards at the time when they receive their appraisal.

Accepted Answer

When the manager sets the standards that will be the basis for employee performance appraisals, those standards should be communicated with the employee, and the employee should have the opportunity to offer feedback on any job-related responsibilities that may not be clear.

Question 19

Airlines, hotels, hospitals, and many other service organizations are so labor intensive that the cost of labor is their primary cost of operations.

Accepted Answer

Labor is the primary cost of operations for labor-intensive service organizations like airlines, hotels, and hospitals.

Question 20

After manager Donald set reasonable, understandable, and measurable performance standards, he communicated these standards clearly to all team members. Because of these efforts, he should be prepared for the next step in the appraisal process.

Accepted Answer

The first two steps in performance appraisal are establishing performance standards and communicating them to subordinates. The third step is to evaluate performance, and if the first two steps are done correctly, this step is relatively easy.

Quiz 11: Human Resource Management: Finding and Keeping the Best Employees