Deck 8: Performance Management

Question 1

Which of the following is a developmental purpose of performance reviews?

A) meeting legal requirements
B) promoting employees
C) improving communication
D) determining transfers

Answer 1

C

Question 2

What is the key purpose of performance reviews/evaluations when they are used for pay-for-performance decisions?

A) signalling purpose
B) symbolic purpose
C) administrative purpose
D) developmental purpose

Answer 2

C

Question 3

Which of the following is a key advantage of 360-degree feedback systems?

A) They are simple to administer.
B) They cannot be legally challenged.
C) Raters do not have to be trained.
D) They may lessen bias and prejudice.

Answer 3

D

Question 4

Farah, a waitress at OMG Restaurant, was appraised only on the quality of the food she delivered to the customers. Which type of problem does this review illustrate?

A) criterion deficiency
B) criterion reliability
C) reliability
D) criterion contamination

Question 5

Why is performance review important?

A) because it is key to the validation of selection procedures, which are the foundation of all HR practices
B) because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum
C) because employees need to know that they are being evaluated in order to perform at an appropriate level
D) because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them

Question 6

Which of the following are the two primary purposes of performance reviews?

A) informative and developmental purposes
B) administrative and developmental purposes
C) administrative and informative purposes
D) managerial and administrative purposes

Question 7

What is the problem when a performance standard focuses on one performance criterion and excludes others that are important?

A) The performance standard suffers from criterion contamination.
B) The performance standard suffers from criterion deficiency.
C) The performance standard is not of strategic relevance.
D) The performance standard has low criterion relevance.

Question 8

Suppose the performance reviews that salespeople receive are based solely on sales revenue to the exclusion of other important factors. Which of the following would these performance evaluations suffer from?

A) criterion contamination
B) lack of reliability
C) criterion deficiency
D) lack of criterion relevance

Question 9

Magee was rated higher than she deserved by her supervisor; her supervisor wanted to look good in the eyes of her own superiors. Which of the following is illustrated in this example?

A) criterion deficiency
B) criterion exaggeration
C) criterion contamination
D) organizational politics

Question 10

Under which one of these conditions are managers more open to subordinate evaluations of their performance?

A) when the evaluations are used for compensation decisions
B) when the evaluations are used for promotions
C) when the evaluations are used for legal decisions
D) when the evaluations are used to improve communications

Question 11

If a performance standard is found to be stable or consistent over time, it is said to be which of the following?

A) reliable
B) relevant
C) steady
D) valid

Question 12

Suppose the performance reviews that delivery drivers receive are partially influenced by the fact that some drivers operate in areas where there are major traffic problems while others operate in areas with few traffic problems. Which of the following would these performance reviews suffer from?

A) criterion contamination
B) lack of relevance
C) lack of reliability
D) rater bias

Question 13

What is the foundation for performance standards in the development of effective performance management systems?

A) the knowledge and experience of HR managers
B) feedback from customers
C) job-related requirements derived from a job analysis
D) job evaluations

Question 14

How often should performance feedback be delivered?

A) It should be done at least annually.
B) It depends on the organizational culture, industry, and supervisor's style.
C) It should be done at regular intervals-the more frequent the better.
D) It should be an ongoing, regular part of supervisor-subordinate interactions.

Question 15

Jay is a polite, helpful, conscientious employee who often helps his fellow auto sales representatives make sales, and is popular with customers due to his customer service orientation. Based on his performance evaluation, which is focused on sales, Jay is being fired because he has not sold enough cars this month. What is the problem at the root of his poor performance review?

A) criterion contamination
B) lack of reliability
C) criterion deficiency
D) lack of relevance

Question 16

Which of the following has been shown to be true in court?

A) Vague performance standards can be acceptable when clearly written.
B) Organizations should have carefully defined and measurable performance standards.
C) While performance standards should be somewhat specific, there should be room for individual interpretation.
D) Descriptions of traits such as attitude and cooperation are acceptable performance standards.

Question 17

Which of the following processes would help to improve the consistency and reliability of employee ratings?

A) job evaluations
B) external validation
C) strategic rewards
D) calibration

Question 18

In developing a new performance evaluation system, Organization C made an evaluation plan, decided who would be doing the appraising and how it would be done, and even included evaluation training. Which one of the following is an important step that Organization C missed?

A) clearly communicating in advance the company's plans for employees who do not meet standards
B) gaining support from top management, which should occur near the beginning of the process
C) informing employees how the process would go to alleviate anxiety
D) examining the performance standards through job analysis

Question 19

ABC Corporation uses several raters to assess their employees' performance, after which the company does correlation analyses on the various ratings. What is ABC Corporation trying to figure out?

A) the level of contamination of the ratings
B) whether the ratings are deficient
C) the rewards that will be associated with good performance
D) the reliability of the ratings

Question 20

Which of the following is a reason why performance reviews fail?

A) Managers use them for administrative purposes.
B) Performance standards may not be clear.
C) The program is usually based on a job analysis rather than a competency analysis.
D) There is too much employee input into the development of the evaluation program.

Question 21

The HR managers at Organization M are very keen to tie all their HR practices in with organizational strategy, and performance evaluation is no exception. They would like to make clear the link between individual performance and organizational performance. Which of the following is the best type of evaluation method for the HR managers at Organization M?

A) trait-based methods
B) results-based methods
C) behaviour-based methods
D) performance-based methods

Question 22

Which of the following performance evaluation methods involves a mutual agreement of goals and metrics between supervisor and subordinate?

A) all behavioural methods
B) productivity measures
C) forced distribution
D) management by objectives

Question 23

John, an average performer, was inaccurately assessed as excellent because he was compared to Alex, a very poor performer. What type of evaluation error is evident in this example?

A) recency error
B) halo error
C) contrast error
D) similar-to-me error

Question 24

Which performance review method captures behaviour that results in unusual success or unusual failure?

A) graphic ratings method
B) critical incidents method
C) mixed ratings method
D) essay method

Question 25

In order to keep track of employees' performance, which of the following performance review methods would a supervisor use a log or diary for?

A) critical incidents method
B) forced-choice method
C) essay method
D) graphic rating scale

Question 26

Which of the following methods require an appraiser to rate the degree to which the employee possesses a trait or characteristic?

A) behaviourally anchored rating scale
B) graphic rating scale
C) forced-choice method
D) critical incident method

Question 27

Which of the following are peer evaluations best suited for?

A) administrative purposes
B) developmental purposes
C) strategic purposes
D) budgetary purposes

Question 28

Which performance review methods usually requires raters to evaluate characteristics such as dependability and initiative?

A) trait methods
B) behavioural methods
C) results methods
D) attitudinal methods

Question 29

Every time Sandy makes a mistake at work, her manager writes it down in detail in her employee record. Sandy thinks this is a form of harassment. More likely, what is the manager trying to do?

A) collect information in order to build a BARS
B) substantiate her termination in case Sandy files a complaint
C) evaluate her performance
D) collect critical incidents

Question 30

What advantage do peer evaluations have over other types of evaluations?

A) Peers may have a more intimate view of the performance of fellow employees.
B) Peers don't have to worry about meeting standards for distributions.
C) Peers know the job better than most managers do.
D) Peers do not have a conflict of interest over honestly appraising a fellow employee.

Question 31

Performance review methods can be broadly classified in which of the following categories of approaches?

A) trait, behavioural, and judgmental approaches
B) behavioural, judgmental, and results approaches
C) behavioural, judgmental, and results approaches
D) trait, behavioural, and results approaches

Question 32

Under which one of these conditions are employee self-evaluations more acceptable to management?

A) when the evaluations are used for promotions
B) when the evaluations are used for compensation
C) when the evaluations are used to identify developmental goals
D) when the evaluations are used for legal purposes

Question 33

Max Weber works for ABC Corporation a sales agent. The company uses his actual sales numbers to rate his performance. What performance evaluation method is ABC Corporation using?

A) trait method
B) behavioural method
C) outcome method
D) results method

Question 34

Some organizations ask managers to place a percentage of their employees in the bottom performance category on every performance evaluation exercise, which in some cases may mean they are fired. Which type of performance evaluation method does this exemplify?

A) forced-distribution system
B) checklist method
C) percent method
D) forced-choice method

Question 35

Which of the following performance review methods are considered as the most subjective?

A) traits methods
B) behavioural methods
C) behaviourally anchored rating methods
D) results methods

Question 36

Which of the following uses critical incidents as examples at different points along the scale?

A) the global rating
B) the mixed-standard scale
C) dimensional rating
D) the behaviourally anchored rating scale

Question 37

Managers tend to be more open to the use of subordinate evaluations when they are used for which of the following?

A) promotional purposes
B) regulatory purposes
C) administrative purposes
D) developmental purposes

Question 38

Which of the following is an important weakness of 360-degree feedback?

A) In cases where feedback is not positive, it has been shown to increase voluntary turnover.
B) It is hard to know what to conclude if the evaluation results in conflicting opinions.
C) The quality of information is not as good as other types of evaluation systems.
D) The training can be demoralizing because it is so intense.

Question 39

Tracy was evaluated by multiple raters in her last job, including her supervisor, customers, peers, and clients. What performance evaluation system was most likely used in this instance?

A) whole-team evaluations
B) peer evaluations
C) 360-degree feedback
D) multiplicative feedback

Question 40

What is a key disadvantage of behaviourally anchored rating scales?

A) They do not involve employee participation.
B) They have low content validity.
C) They can only be used in the public sector.
D) They require considerable time and effort to develop.

Question 41

Scenario 8.3
Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, managers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses. However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.
Refer to Scenario 8.3. Canadian Fasteners wants to embark on feedback sessions. Which of the following is NOT one of the key points to address?

A) direct the feedback toward behaviour the employee can control
B) give specific examples of desirable and undesirable behaviours
C) provide timely feedback
D) focus feedback on the person, not behaviour

Question 42

Which of the following is an environmental factor that may be a source of ineffective performance?

A) rules and policies
B) career ambition
C) technical skills
D) job satisfaction

Question 43

Of the following interview methods, which is the most proactive on the part of the interviewer?

A) tell-and-listen
B) tell-and-sell
C) problem solving
D) essay

Question 44

In delivering a performance evaluation interview, Manuel is attempting to convince his direct report that she needs to be more communicative with her peers about her work. The other aspects of her performance are excellent, so he is willing to provide incentives for her if she can improve in this aspect of her performance. What type of performance evaluation interview is Manuel delivering?

A) tell-and-listen
B) tell-and-sell
C) tell-and-train
D) problem-solving

Question 45

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

Question 46

Which of the following is the most accurate description of the possible facets of an evaluation interview?

A) It should minimize criticism, change the person not the behaviour, and encourage feedback.
B) It should change the person not the behaviour, minimize criticism, express appreciation, and invite participation.
C) It should ask for a self-assessment, invite participation, express appreciation, and minimize criticism.
D) It should ask for a self-assessment, change the person not the behaviour, and encourage feedback.

Question 47

Managers often first assume poor performance of subordinates is due to which of the following?

A) lack of ability
B) pay dissatisfaction
C) poor motivation
D) poor work life balance

Question 48

Which of the following is a major issue surrounding "stretch goals"?

A) They demoralize the employee.
B) They increase voluntary turnover.
C) They could be considered unethical for several reasons.
D) They cause disruptive behaviours to the point that they are more costly to the organization than they are financially advantageous.

Question 49

Which of the following is an ability factor that may be a source of ineffective employee performance?

A) goals and expectations
B) career ambition
C) technical skill
D) job design

Question 50

Scenario 8.3
Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, managers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses. However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.
Refer to Scenario 8.3. If Canadian Fasteners were to provide ongoing performance feedback to its employees, this would be a key step in which of the following?

A) strategic and managerial process
B) performance management process
C) compensation rating process
D) promotion process

Question 51

Which of the following is an accurate listing of the factors that affect performance?

A) motivation, organizational culture, and leadership factors
B) motivation, environment, and ability factors
C) organizational culture, motivation, and ability factors
D) ability, job design, and motivation factors

Question 52

Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year's performance evaluation exercise. However, she doesn't want anyone to be fired either, so she has also decided not to give out any very low ratings.
Refer to Scenario 8.2. How can Jane correct for this error?

A) by rating the reports highly if they displayed characteristics similar to her own
B) by rating everyone leniently
C) by collecting critical incidents
D) by rating everyone highly

Question 53

Scenario 8.1
Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors. Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada. Sales reps are paid a yearly bonus based on the team's performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year's performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees' goals and the organization's objectives.
Refer to Scenario 8.1. Med Supplies should consider using team evaluations to evaluate the team as a whole. Which of the following is true about team evaluations?

A) They can help break down barriers and encourage joint effort.
B) They make it easier to separate individual contributions.
C) They readily identify leadership and interpersonal skills.
D) They provide 360-degree feedback.

Question 54

Scenario 8.1
Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors. Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada. Sales reps are paid a yearly bonus based on the team's performance, coupled with annual performance evaluations done by managers. Over the last three years, they have been paid bonuses based on the previous year's performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the evaluations, but their superiors think these evaluations are key and need to be the link between employees' goals and the organization's objectives.
Refer to Scenario 8.1. The VP Sales suggests the use of peer evaluations to ensure that each member of the team pulls his or her weight. Which of the following is NOT a reason why peer evaluations are not frequently used?

A) Those receiving low ratings might retaliate against their peers.
B) Peer ratings are simply a popularity contest.
C) Managers want to give up control over the evaluation process.
D) Peers rely on stereotypes in ratings.

Question 55

Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this year's performance evaluation exercise. However, she doesn't want anyone to be fired either, so she has also decided not to give out any very low ratings.
Refer to Scenario 8.2. Which of the following will Jane's ratings suffer from?

A) similar-to-self bias
B) leniency error
C) forced distribution
D) central tendency error

Question 56

Scenario 8.3
Canadian Fasteners Inc. has recently implemented a human resource (HR) system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance evaluations for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance evaluations are done each year, managers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses. However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.
Refer to Scenario 8.3. According to research, which of the following is most accurate about providing feedback?

A) Employees who receive no feedback from their supervisors exhibit the least amount of engagement.
B) Feedback is least useful when it is immediate.
C) You should only provide positive feedback to employees.
D) Feedback should not be specific to a particular situation.

Question 57

Which of the following is an essential component of an evaluation interview?

A) It should take place in one session in order to give the employee a complete view of his or her performance.
B) The supervisor must discuss changes to the employee's compensation as a result of his or her performance.
C) It is a time for the supervisor to give feedback on past performance and should not be used for developmental purposes.
D) It should be held in two segments because the rater must perform the role of both evaluator and counsellor.

Question 58

In delivering a performance evaluation interview, Jacqui is taking a listening perspective. She wants to stimulate growth and development by discussing the problems, needs, satisfactions, and dissatisfactions the employee has encountered on the job. What type of performance evaluation interview is Jacqui delivering?

A) tell-and-listen
B) tell-and-sell
C) tell-and-train
D) problem-solving

Question 59

Which of the following is a good way to start a problem-solving performance review meeting with an employee?

A) Let the employee start with a self-evaluation.
B) Point out the employee's problem areas.
C) Inform the employee about the compensation implications.
D) Tell the employee that standards must be met.

Question 60

Which of the following appraisal systems is based on the concept that learning helps organizations improve their internal processes and allows individuals to see how their performance ties in with the firm?

A) balanced scorecard approach
B) 360-degree evaluation
C) customer-oriented approach
D) management by objectives

Question 61

In order to increase employee motivation levels, written performance standards should be objective but not defined in quantifiable and measurable terms.

Question 62

Correlations can be used to measure reliability.

Question 63

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

Question 64

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

Question 65

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

Question 66

Administrative purposes for performance evaluations include documenting personnel decisions and identifying individual training needs.

Question 67

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

Question 68

Peer evaluations should be used primarily for developmental purposes.

Question 69

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

Question 70

Ineffective handling of performance evaluations may result in court cases or other legal action.

Question 71

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

Question 72

Performance standards should be based on job-related requirements derived from a job analysis.

Question 73

Ideally, performance evaluations should be linked to the strategic objectives of the organization.

Question 74

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

Question 75

With respect to performance standards, reliability refers to the stability or consistency of a standard.

Question 76

Reliability refers to measures that are consistent across raters and over time.

Question 77

Developmental purposes for performance evaluation include validating selection criteria and meeting legal requirements.

Question 78

Depending on the industry, managers should provide performance feedback on an annual basis.

Question 79

Calibration can be used to make sure managers are rating employees consistently.

Question 80

Self-evaluations should be used primarily for developmental purposes.