Deck 9: Performance Management and Appraisal

Question 1

Employee performance appraisals are conducted by all of the following EXCEPT ________.

A)peers
B)competitors
C)subordinates
D)rating committees

Answer 1

B
Explanation: B)Performance appraisals are primarily performed by supervisors. However, firms are increasingly using peers, rating committees, and subordinates to conduct appraisals. Competitors are not used for performance appraisals.

Question 2

Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's CEO advocates shifting from performance appraisals to performance management in an attempt to make Oshman more competitive and performance driven. Which of the following, if true, best supports the argument to replace Oshman's traditional appraisal methods with the performance management approach?

A)Oshman's competitors in the small appliance industry monitor the performance of their employees through electronic performance monitoring systems.
B)Oshman executives want to align the firm's strategic plan with individual employee goals and development needs.
C)Oshman has experienced problems associated with central tendency and bias, and the firm wants to ensure that appraisals are legally sound.
D)Oshman uses management by objectives as a primary appraisal method and requires supervisors to develop SMART goals.

Answer 2

B
Explanation: B)Performance management refers to the continuous process of aligning the performance of individuals and teams with an organization's goals. Performance management does not necessarily eliminate problems like central tendency and bias. Instead, the approach focuses on monitoring an employee's performance and making sure it matches the needs of the firm.

Question 3

Which of the following is most likely NOT a role played by the HR department in the performance appraisal process?

A)conducting appraisals of employees
B)monitoring the appraisal system's effectiveness
C)providing performance appraisal training to supervisors
D)ensuring the appraisal system's compliance with EEO laws

Answer 3

A
Explanation: A)Supervisors, rather than HR managers, conduct the actual appraisals. However, the HR department monitors the system's effectiveness and compliance with EEO laws. HR managers also provide supervisors with tools, advice, and training in regards to performance appraisals.

Question 4

In most organizations, who is primarily responsible for appraising an employee's performance?

A)employee's direct supervisor
B)company appraiser
C)human resources manager
D)employee's subordinates

Question 5

Supervisors should provide employees with feedback, development, and incentives necessary to help employees eliminate performance deficiencies or to continue to perform well.

Question 6

SMART goals are best described as ________.

A)specific, measurable, attainable, relevant, and timely
B)straightforward, meaningful, accessible, real, and tested
C)strategic, moderate, achievable, relevant, and timely
D)supportive, meaningful, attainable, real, and timely

Question 7

What usually occurs when employees rate themselves for performance appraisals?

A)Ratings are reliable but invalid.
B)Ratings are subject to halo effects.
C)Ratings are higher than when provided by supervisors.
D)Ratings are about the same as when determined by peers.

Question 8

Who is in the best position to observe and evaluate an employee's performance for the purposes of a performance appraisal?

A)customers
B)rating committees
C)top management
D)immediate supervisor

Question 9

Which of the following terms refers to the process of evaluating an employee's current and/or past performance relative to his or her performance standards?

A)employee selection
B)performance appraisal
C)employee orientation
D)organizational development

Question 10

________ means making sure that the manager and the subordinate agree on the subordinate's job standards and the appraisal method to be used.

A)SMART goals
B)Organizational development
C)Defining the job
D)Forced distribution

Question 11

Which of the following terms refers to the process of allowing subordinates to rate their supervisor's performance anonymously?

A)supplemental evaluation
B)upward feedback
C)paired evaluation
D)peer evaluation

Question 12

Which of the following terms refers to a performance appraisal based on surveys from peers, supervisors, subordinates, and customers?

A)360-degree feedback
B)team appraisals
C)upward feedback
D)rating committee

Question 13

Which of the following is NOT one of the recommended guidelines for setting effective employee goals?

A)creating specific goals
B)assigning measurable goals
C)administering consequences for failure to meet goals
D)encouraging employees to participate in setting goals

Question 14

The primary purpose of providing employees with feedback during a performance appraisal is to motivate employees to ________.

A)apply for managerial positions
B)remove any performance deficiencies
C)revise their performance standards
D)enroll in work-related training programs

Question 15

Peer appraisals have been shown to result in a ________.

A)reduction of social loafing
B)reduction of group cohesion
C)decrease in task motivation
D)decrease in group satisfaction

Question 16

What is the first step of any performance appraisal?

A)giving feedback
B)setting work standards
C)making plans to provide training
D)assessing the employee's performance

Question 17

All of the following are reasons for appraising an employee's performance EXCEPT ________.

A)correcting any work-related deficiencies
B)creating an organizational strategy map
C)determining appropriate salary and bonuses
D)making decisions about promotions

Question 18

According to research, what is the typical result of upward feedback?

A)Firms are protected against biased appraisals.
B)Managers get defensive.
C)Managers improve their performance.
D)Managers seek to find out who gave them bad ratings.

Question 19

A performance appraisal is based on the assumption that an employee understood what his or her performance standards were prior to the appraisal.

Question 20

In most firms, a rating committee used for performance appraisals consists of ________ members.

A)2-3
B)4-5
C)6-8
D)9-10

Question 21

Peer appraisals have been shown to have a negative effect on task motivation, cohesion, and job satisfaction, so most organizations no longer use them.

Question 22

Which performance appraisal tool requires supervisors to categorize employees from best to worst on various traits?

A)graphic rating scale
B)critical incident method
C)alternation ranking method
D)electronic performance monitoring

Question 23

As a manager, how can you set effective performance appraisal standards for your employees? Explain your answer in a brief essay.

Question 24

Three hundred and sixty-degree feedback is generally used for development purposes rather than for pay increases.

Question 25

Studies suggest that managers who receive upward feedback from identified subordinates view the upward appraisal process more negatively than do managers who receive anonymous upward feedback.

Question 26

Wilson Consulting is a management consulting firm with seventy employees. As associate vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the twelve employees under her direct supervision. Suzanne plans to use a graphic rating scale to evaluate the performance of her subordinates. Which of the following, if true, best supports the argument that a graphic rating scale is the most appropriate performance appraisal tool for Suzanne to use?

A)The firm wants Suzanne to evaluate her subordinates on an ongoing basis and to keep a log of critical incidents.
B)Suzanne wants to ensure that the firm is protected from employee discrimination lawsuits, so she has conducted a job analysis of each position.
C)Suzanne wants a quantitative rating of each employee based on competencies important to the firm, such as problem-solving skills.
D)Employees in Suzanne's department participated in developing their own performance standards when they were first hired by the firm.

Question 27

Formal performance appraisals have been eliminated by almost all major firms and replaced by daily assessments by peers in addition to extensive training opportunities.

Question 28

The HR department monitors the performance appraisal system, but it is typically not involved in rating employees.

Question 29

Which of the following measurement methods is similar to grading on a curve?

A)forced distribution
B)graphic rating scale
C)constant sums rating
D)behaviorally anchored rating scale

Question 30

In order to ensure that performance appraisals are effective, Felicia, a line supervisor, should make sure to schedule a feedback session to address each subordinate's performance, progress, and future development plans.

Question 31

John, the supervisor of the manufacturing department at a computer firm, is in the process of evaluating his staff's performance. He has determined that 15% of the group will be identified as high performers, 20% as above average performers, 30% as average performers, 20% as below average performers, and 15% as poor performers. Which performance appraisal tool has John chosen to use?

A)behaviorally anchored rating scale
B)forced distribution
C)alternation ranking
D)paired comparison

Question 32

Kendra needs to rate five of her subordinates. She makes a chart of all possible pairs of employees for each trait being evaluated. Then, she indicates the better employee of each pair with a positive symbol on the chart. Finally, she totals the number of positive symbols for each employee. Which method of performance appraisal has Kendra most likely used?

A)graphic ranking scale
B)alternation ranking
C)paired comparison
D)forced distribution

Question 33

Which performance appraisal tool is being used when a supervisor places predetermined percentages of appraisees into various performance categories?

A)behaviorally anchored rating scale
B)graphic ranking scale
C)alternation ranking
D)forced distribution

Question 34

What are the essential steps of the performance appraisal process?

Question 35

In order to ensure that performance goals are challenging and relevant, Matthew, a marketing manager, should independently set goals for his subordinates because participatively set goals usually produce lower job performance.

Question 36

The most popular method for ranking employees is the ________ method.

A)graphic ranking scale
B)alternation ranking
C)paired comparison
D)forced distribution

Question 37

All of the following are usually measured by a graphic rating scale EXCEPT ________.

A)generic dimensions of performance
B)performance of co-workers
C)achievement of objectives
D)job-related competencies

Question 38

Which of the following is the easiest and most popular technique for appraising employee performance?

A)alternation ranking
B)graphic rating scale
C)forced distribution
D)constant sum rating scale

Question 39

The third step of the performance appraisal process is to assess the employee's actual performance relative to work standards.

Question 40

Which performance appraisal technique lists traits and a range of performance values for each trait?

A)behaviorally anchored rating scale
B)graphic rating scale
C)forced distribution
D)critical incident

Question 41

The basic problem with using a ranking method for performance appraisals is not identifying the extreme good and bad performers but differentiating meaningfully between the others.

Question 42

Which of the following best describes a behaviorally anchored rating scale?

A)chart of paired subordinates ranked in order of performance
B)combination of narrative critical incidents and quantified performance scales
C)diary of positive and negative examples of a subordinate's work performance
D)list of subordinates from highest to lowest based on specific performance traits

Question 43

Wilson Consulting is a management consulting firm with 70 employees. As associate vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the 12 employees under her direct supervision. Suzanne plans to use the behaviorally anchored rating scale (BARS)to evaluate the performance of her subordinates. Which of the following, if true, supports the argument that BARS is the most appropriate performance appraisal tool for Suzanne to use?

A)Suzanne wants to provide her subordinates with specific examples of their good and poor job performance during the appraisal interview.
B)Suzanne encourages her subordinates to review and make comments about their appraisal during a formal appeals process.
C)Wilson Consulting recently installed an electronic performance monitoring system to help supervisors conduct appraisals
D)Suzanne provides her subordinates with upward feedback as a way to illustrate the ratings she assigns to each employee.

Question 44

The forced distribution method is the simplest and most popular technique for appraising performance.

Question 45

In the paired comparison method, the manager places predetermined percentages of ratees into performance categories.

Question 46

Which performance appraisal tools require a supervisor to maintain a log of positive and negative examples of a subordinate's work-related behavior?

A)alternation ranking
B)paired comparison
C)critical incident
D)graphic rating

Question 47

Nick supervises a team of data entry specialists. Lately, productivity has been down, and Nick believes his subordinates are not working as efficiently as possible. Which of the following tools would provide Nick with daily information about each employee's rate, accuracy, and time spent entering data?

A)digital dashboard device
B)electronic performance monitoring system
C)Web-based management oversight device
D)electronic performance support system

Question 48

Supervisors at Sun Microsystems use the forced distribution method to evaluate performance, so they must ensure that the proportions in each category are symmetrical.

Question 49

Which of the following enables supervisors to oversee the amount of computerized data an employee is processing each day?

A)computerized performance appraisal system
B)online management assessment center
C)digitized high-performance work center
D)electronic performance monitoring system

Question 50

What is the primary goal of using mixed standard scales?

A)improving validity
B)reducing rating errors
C)clarifying performance standards
D)illustrating feedback for subordinates

Question 51

The first step in developing a behaviorally anchored rating scale is to ________.

A)develop performance dimensions
B)write critical incidents
C)reallocate incidents
D)scale incidents

Question 52

Stacey is using a behaviorally anchored rating scale as a performance appraisal tool. She has already asked employees and supervisors to describe critical incidents of effective and ineffective job performance. What should Stacey most likely do next?

A)create a final appraisal instrument
B)develop performance dimensions
C)reallocate the incidents
D)rate the incidents

Question 53

Wilson Consulting is a management consulting firm with 70 employees. As associate vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the 12 employees under her direct supervision. Suzanne plans to use the critical incident method to evaluate the performance of her subordinates. Which of the following, if true, most likely undermines the argument that the critical incident method is the most appropriate performance appraisal tool for Suzanne to use?

A)Employee performance standards are closely aligned with Wilson Consulting's long-term strategic plans.
B)Suzanne will be conducting performance appraisals in conjunction with the HR manager to ensure EEO compliance.
C)Wilson Consulting will be allowing employees to rate themselves as part of its organizational development strategy.
D)Due to economic difficulties, the firm will be laying off the two lowest performing employees in Suzanne's department.

Question 54

Which of the following terms refers to setting specific measurable goals with each employee and then periodically reviewing the progress made?

A)behaviorally anchored rating scale
B)management by objective
C)mixed standard scales
D)forced distribution

Question 55

Top employees often outperform the average or poor employees by as much as 100%.

Question 56

Which term refers to ranking of employees from best to worst on a trait or traits, choosing highest than lowest until all are ranked?

A)performance management
B)paired comparison
C)alternation ranking
D)direction sharing

Question 57

All of the following are benefits of using computerized or Web-based performance appraisal systems EXCEPT ________.

A)merging examples with performance ratings
B)helping managers maintain computerized notes
C)combining different performance appraisal tools
D)enabling managers to monitor employees' computers

Question 58

Which of the following is one of the primary complaints regarding the use of the forced distribution method for performance appraisals?

A)difficult to implement
B)harm to employee morale
C)high costs of administration
D)time consuming to administer

Question 59

Which of the following is a downside of the critical incident method of compiling incidents?

A)doesn't provide examples of excellent work performance
B)doesn't produce relative ratings for pay raise purposes
C)doesn't make the supervisor think about the subordinate's appraisal all year
D)doesn't compile examples of ineffective work performance

Question 60

Which appraisal method combines the benefits of narrative critical incidents and quantified scales by assigning scale points with specific examples of good or poor performance?

A)behaviorally anchored rating scale
B)constant sums rating scale
C)alternation ranking
D)forced distribution

Question 61

Ongoing performance monitoring is an element of performance management that involves the use of computer-based systems that measure an employee's progress and send out reports regarding an employee's performance.

Question 62

Which of the following is the best way for a supervisor to correct a performance appraisal problem caused by unclear standards?

A)focusing on performance instead of personality traits
B)using graphic rating scales to rank employees
C)using descriptive phrases to illustrate traits
D)allowing employees to rate themselves first

Question 63

Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly. Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work." Which of the following problems has most likely affected Jason's performance appraisal?

A)central tendency
B)leniency
C)halo effect
D)recency effect

Question 64

The alternation ranking method of performance appraisals can be problematic and unfair if all employees have excellent job performance.

Question 65

A talent management philosophy involves segmenting employees based on their value to the firm's success and providing those employees with special coaching, feedback, and development opportunities.

Question 66

The ________ problem occurs when supervisors tend to rate all their subordinates consistently low.

A)central tendency
B)leniency
C)strictness
D)halo effect

Question 67

The best way to reduce the problem of central tendency in performance appraisals is to ________.

A)rank employees
B)use graphic rating scales
C)limit the number of appraisals
D)appraise personal characteristics

Question 68

A supervisor who frequently rates all employees as average on performance appraisals most likely has a problem known as ________.

A)halo effect
B)stereotyping
C)central tendency
D)leniency

Question 69

Which of the follow is the best method for reducing the problems of leniency or strictness in performance appraisals?

A)keep critical incident logs
B)require multiple appraisals
C)impose a performance distribution
D)reconsider the timing of the appraisal

Question 70

Management by objectives requires a manager to set specific measurable, organizationally relevant goals with each employee and then periodically discuss the employee's progress toward these goals.

Question 71

Sam supervises a team of data entry clerks at Geico. The firm's electronic performance monitoring system enables Sam to electronically monitor the amount of computerized data an employee processes each day.

Question 72

In a brief essay, describe the forced distribution method. What are the advantages and disadvantages of the forced distribution method?

Question 73

What is a behaviorally anchored rating scale (BARS)? How would a manager develop a BARS?

Question 74

What are the four job-relevant dimensions that can be measured by the graphic-rating scale method of performance appraisal? What problems are associated with graphic-rating scales?

Question 75

Graphic rating scales are subject to all of the following problems EXCEPT ________.

A)unclear standards
B)halo effects
C)complexity
D)leniency

Question 76

Which of the following terms refers to an appraisal that is too open to interpretation?

A)unclear standards
B)halo effects
C)leniency
D)biased

Question 77

Which performance appraisal problem is associated with supervisors giving all of their subordinates consistently high ratings?

A)central tendency
B)leniency
C)strictness
D)halo effect

Question 78

Paired comparison is a rating approach that involves keeping a record of uncommonly good or undesirable examples of an employee's work-related behavior and reviewing it with the employee at predetermined times.

Question 79

Which of the following is a performance appraisal problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits?

A)recency effect
B)halo effect
C)central tendency
D)stereotyping

Question 80

The advantages of using BARS as a performance appraisal tool are the method's accuracy, clear standards, and consistency.