Deck 8: Performance Management

Question 1

Attribute-based performance methods are the least popular performance evaluation approaches in organizations.

Answer 1

False
Explanation: Attribute-based performance methods are the most popular performance evaluation approaches in organizations.

Question 2

The assumption of Pareto analysis is that the majority of problems are the result of a small number of causes.

Answer 2

True
Explanation: The assumption of Pareto analysis is that the majority of problems are the result of a small number of causes.

Question 3

Validity refers to the consistency of a performance measure.

Answer 3

False
Explanation: Validity is the extent to which a performance measure assesses all the relevant-and only the relevant-aspects of performance. On the other hand, reliability refers to the consistency of a performance measure.

Question 4

Quality-based performance methods are quite easy to develop and are generalizable across a variety of jobs, strategies, and organizations.

Question 5

The quality approach relies primarily on a combination of the attribute and results approaches to performance measurement.

Question 6

Productivity measurement and evaluation system (ProMES)is designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance.

Question 7

Competencies are sets of skills, knowledge, abilities, and personal characteristics that enable employees to successfully perform their jobs.

Question 8

The extent to which a performance measure is deemed to be satisfactory or adequate by those who use it is known as its reliability.

Question 9

Acceptability is affected by the extent to which employees believe the performance management system is fair.

Question 10

Alternation ranking requires managers to rank employees within their departments from highest performer to poorest performer.

Question 11

Visible support of the performance management process by the CEO and senior management ensures that the system is consistently used across the company.

Question 12

An advantage of behaviorally anchored rating scales is an increased interrater reliability.

Question 13

Managers are the most frequently used source of performance information.

Question 14

The initial steps of the performance management cycle involve an employee and a manager identifying what the employee can do to capitalize on performance strengths.

Question 15

A performance management system should link employee activities with an organization's goals.

Question 16

One of the advantages of the results approach to performance measurement is that it disassociates an individual's results with the organization's strategies and goals.

Question 17

The comparative approach to performance management increases the problems of leniency, central tendency, and strictness.

Question 18

The best use of self-ratings is for administrative purposes.

Question 19

A behaviorally anchored rating scale is designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance.

Question 20

Result-based approaches to performance measurement assume that subjectivity can be eliminated from the measurement process.

Question 21

Whittaker Publishing Corp. is a publishing company that wants to hire more technical experts to handle the software requirements in the publishing process. However, the test given to the programmers assesses not only their technical knowledge, but also their communication skills, language abilities, and understanding of client services. The test conducted by Whittaker Publishing Corp. is _____.

A)high on reliability
B)low on strategic congruence
C)high on specificity
D)high on acceptability
E)low on validity

Question 22

The performance effectiveness of employees is provided to them during the _____ process.

A)performance appraisal
B)achievement discrepancy
C)job rotation
D)ability analysis
E)performance feedback

Question 23

Rick is the vice president of the Human Resources team. He designs a new performance management process. He completes the first step and moves on to the next step of developing employee goals and actions to achieve the outcomes. Which of the following is he likely to do next to create an effective performance management process?

A)He will define performance outcomes for divisions and departments.
B)He will evaluate performance.
C)He will identify improvements needed.
D)He will provide support and ongoing performance discussions.
E)He will provide consequences for performance results.

Question 24

Which performance management evaluation criterion reflects the extent to which a performance measure assesses all the relevant-and only the relevant-aspects of performance?

A)Reliability
B)Strategic congruence
C)Acceptability
D)Specificity
E)Validity

Question 25

Globo Analytics Inc., a data analysis company, has modified its performance management system. Apart from training employees on their specific tasks, the trainers and managers help the employees become more aware of the overall goals of the company and how their individual performances influence the broader goals of the company. As a result of this, employees' performances have become more consistent with the organization's strategies, goals, and culture. This initiative of Globo focused on the _____ criterion of performance management.

A)consistency
B)strategic congruence
C)social
D)acceptability
E)risk avoidance

Question 26

Appraisal politics refer to evaluators purposefully distorting a rating to achieve personal or company goals.

Question 27

As the CEO of Blue Corp., George makes it a point to meet new hires at all levels of his organization. He explains the goals of the company and emphasizes on the importance of an individual employee's role in the larger picture. This initiative of George focuses on the _____ of performance management.

A)strategic purpose
B)administrative purpose
C)developmental purpose
D)statistical purpose
E)validity purpose

Question 28

Prometheus Corp. is a large-scale manufacturer of consumer electronic gadgets. As part of its performance management system, Prometheus measures the amount each employee contributes to the profits of the company, and they are either held accountable or rewarded based on their contributions. With regard to performance measurement, under which of the following terms would contribution to profits be categorized?

A)Key risk indicators (KRIs)
B)Critical success factors (CSFs)
C)Non-performing assets (NPAs)
D)Key performance indicators (KPIs)
E)Behavioral Observation Scales (BOSs)

Question 29

Central tendency as a rating error reflects that a rater gives high ratings to all employees regardless of their performance.

Question 30

Which of the following is an example of using performance management to fulfill an administrative purpose?

A)Define the results, behaviors, and, to some extent, employee characteristics that are necessary.
B)Develop employees who are effective at their jobs.
C)Use performance appraisal to make decisions such as pay raises, promotions, retention-termination, layoffs, and recognition of individual performance.
D)Identify employees' strengths and weaknesses, link employees to appropriate training and development activities.
E)Confront employees with their performance weaknesses.

Question 31

The process through which an organization gets information on how closely an employee's actual performance meets his or her performance plan is known as _____.

A)performance appraisal
B)job analysis
C)performance feedback
D)ability analysis
E)achievement discrepancy

Question 32

The major advantage of the 360-degree appraisal technique is that it provides a means for minimizing bias in an otherwise subjective evaluation technique.

Question 33

A software company assesses its developers more on their client support skills rather than their development skills. Which of the following terms would best describe the software company's performance management process?

A)Deficient
B)Contaminated
C)Unreliable
D)Inconsistent
E)Unspecified

Question 34

A performance measure is said to be contaminated when:

A)it does not measure all aspects of performance.
B)it evaluates irrelevant aspects of performance.
C)it is a subjective supervisory measure of job performance.
D)it is not reliable over time.
E)the overlap between actual job performance and the measure of job performance is maximized.

Question 35

_____ is the means through which managers ensure that employees' activities and outputs are congruent with the organization's goals.

A)Performance standardization
B)Performance budgeting
C)Performance management
D)Performance indicator
E)Performance dampener

Question 36

Elle Inc. is a firm that holds frequent reviews and feedback sessions for its employees. It demands that the same person should review the employees of a team to ensure that the performance evaluation is consistent; tests-retests are conducted periodically to make sure the evaluation is consistent. These two steps taken by Elle focus on the _____ of performance management.

A)reliability
B)strategic congruence
C)specificity
D)acceptability
E)validity

Question 37

Output is a factor to be considered in analyzing poor performance.

Question 38

The process of performance management begins with:

A)developing employee goals, behavior, and actions to achieve outcomes.
B)defining performance outcomes for company division and department.
C)providing consequences for performance results.
D)identifying the improvements needed.
E)providing support and ongoing performance discussions.

Question 39

_____ is the extent to which the performance management system elicits job performance that is consistent with an organization's strategy, goals, and culture.

A)Specificity
B)Reliability
C)Validity
D)Strategic congruence
E)Acceptability

Question 40

Once the expected performance has been defined and employees' performances have been measured, it is necessary to feed that performance information back to the employees so they can correct any deficiencies.

Question 41

The consistency in the ratings given by two different individuals who evaluate an employee's performance is known as _____ reliability.

A)internal consistency
B)interrater
C)inter-method
D)test-retest
E)parallel-forms

Question 42

Which of the following approaches would be worst suited to provide managers with the specific guidance required to correct an employee's performance deficiencies?

A)The quality approach
B)The comparative approach
C)The behavioral approach
D)The attribute approach
E)The results approach

Question 43

Which of the following is true regarding the attribute approach to performance management?

A)There is usually a high congruence between the techniques used in this approach and the company's strategy.
B)The methods usually have clearer performance standards due to which different raters provide similar ratings and rankings.
C)It is easy to develop and is generalizable across organizations and strategies.
D)It provides specific guidance and feedback to employees.
E)The ratings from this approach are easily accepted by employees during feedback.

Question 44

In which performance technique are managers given a total of three statements of performance per dimension and asked to indicate whether the employee's performance is above (+), at (0), or below (-)the statements?

A)Behaviorally anchored rating scale
B)Forced distribution scale
C)Behavior observation scale
D)Graphic rating scale
E)Mixed-standard scale

Question 45

Which performance management technique initially involves the identification of a large number of critical incidents, followed by the classification of these incidents into performance dimensions, and finally ranking these incidents into levels of performance?

A)Behaviorally anchored rating scales
B)Graphic rating scales
C)Comparative rating scales
D)Organizational behavior modification
E)Competency models

Question 46

A measure that results in drastically different ratings over time lacks _____ reliability.

A)internal consistency
B)interrater
C)parallel-forms
D)test-retest
E)inter-method

Question 47

The ranking technique that requires certain percentages of employees to be categorized into predetermined categories or groups based on their performance is known as _____.

A)forced distribution
B)high/low ranking system
C)paired comparison
D)alternation ranking
E)simple ranking

Question 48

Which of the following is a comparative approach to ranking that consists of a manager looking at a list of employees, deciding who the best employee is, and crossing that person's name off the list?

A)Simple ranking
B)Alternation ranking
C)Reverse ranking
D)Elimination by aspect
E)Forced distribution

Question 49

Which of the following approaches to measuring performance uses some overall assessment of an individual's performance or worth and seeks to develop some ranking of the individuals within a work group?

A)The results approach
B)The attribute approach
C)The comparative approach
D)The consequential approach
E)The behavioral approach

Question 50

The _____ approach to performance management focuses on the extent to which individuals have certain characteristics or traits believed desirable for the company's success.

A)results
B)quality
C)behavioral
D)comparative
E)attribute

Question 51

Teknikal Inc. decides to implement a new performance management system. It consists of a list of five traits used to evaluate all the employees. The manager considers one employee at a time; and on a continuum with different points, circles the number that signifies how much of a particular trait the individual has. Which type of performance management system is Teknikal Inc. using?

A)Probability distribution
B)Simple ranking
C)Forced distribution
D)Paired comparison
E)Graphics rating scale

Question 52

Which of the following attribute approaches to performance management is most commonly used?

A)Behaviorally anchored rating scales
B)Mixed standard scales
C)Behavior observation scales
D)Graphic rating scales
E)Simple ranking scales

Question 53

Which of the following statements best defines the acceptability of a performance measure?

A)It is the extent to which the performance management system elicits job performance that is consistent with the organization's strategy, goals, and culture.
B)It is the extent to which a performance measure gives detailed guidance to employees about what is expected of them and in what ways they are unsuitable for the job.
C)It is the extent to which a performance measure assesses all the relevant-and only the relevant-aspects of job performance.
D)It is the extent to which a performance measure is free from random error.
E)It is the extent to which a performance measure is deemed to be satisfactory or adequate by those who use it.

Question 54

In the graphic rating scale, the rater:

A)defines performance dimensions by developing behavioral anchors associated with different levels of performance.
B)defines the relevant performance dimensions and then develops statements representing good, average, and poor performances along each dimension.
C)considers one employee at a time, circling the number that signifies how much of that trait the individual has.
D)identifies and provides descriptions of competencies that are common for an entire occupation, organization, job family, or a specific job.
E)compares every employee with every other employee in the work group, giving an employee a score of 1 every time he or she is considered the higher performer.

Question 55

Roundel Inc. is a company that sells automobile tires. The company is projecting an increase in sales in the next twelve months, and is looking to fill the senior positions through internal recruiting to meet this demand. The company is evaluating the individual performances and seeking to develop some ranking of the individuals within a work group to identify the best performer. Which of the following approaches is the company using?

A)The results approach
B)The attribute approach
C)The comparative approach
D)The behavioral approach
E)The quality approach

Question 56

Jason is a manager at Eros Corp. He needs to perform an evaluation of his subordinates. He does this by pairing each of his subordinates with every other subordinate in the same group, and then selects the higher performer between the two. At the end of the process, he calculates the number of times a subordinate has been the higher performer in a match-up. Which type of performance management system does Jason employ to perform the evaluation?

A)Probability distribution
B)Simple ranking
C)Forced distribution
D)Paired comparison
E)Scanlon plans

Question 57

Which of the following is true regarding behavioral approaches to performance measurement?

A)They link the company's strategy to the specific behavior necessary to implement that strategy.
B)They adopt a very subjective approach to evaluating human behavior at the workplace.
C)They result in techniques that have a low degree of validity and acceptability.
D)They assume that there are multiple best ways to do the job.
E)Despite substantial investments in training, the techniques are not strong enough to be reliable.

Question 58

The extent to which the performance measure gives guidance to employees about what is expected of them is called _____.

A)reliability
B)validity
C)specificity
D)acceptability
E)strategic congruence

Question 59

The _____ method requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he/she is considered the higher performer.

A)partner measurement
B)probability distribution
C)forced distribution
D)paired comparison
E)alternation ranking

Question 60

The performance management method that requires managers to rate the frequency with which the employee has exhibited a behavior during a rating period is the _____.

A)simple ranking method
B)behavioral observation scale
C)graphic rating scale
D)organizational behavior modification method
E)forced distribution scale

Question 61

The appraisals that involve collecting subordinates' evaluations of manager's behavior or skills are known as _____.

A)360-degree feedback
B)screening interviews
C)peer review
D)Kaizen
E)upward feedback

Question 62

Which of the following is a means of measuring and feeding back productivity information to personnel with the main goal of motivating employees to higher levels of productivity?

A)Projective tests
B)Productivity measurement and evaluation system
C)Assessment centers
D)Critical incidents
E)Multi-criteria decision analysis

Question 63

A competent employee receives lower-than-deserved ratings because of a few outstanding colleagues who set very-high performance standards. This is an example of a _____ rater error.

A)contrast
B)distributional
C)halo
D)similar to me
E)horns

Question 64

Which quality control technique is useful for understanding the amount of variance between an outcome and the expected value or average outcome?

A)A control chart
B)A histogram
C)A cause-and-effect diagram
D)A process-flow analysis
E)A Pareto chart

Question 65

Which of the following approaches to performance measurement minimizes contamination and deficiency?

A)The comparative approach
B)The attribute approach
C)The behavioral approach
D)The results approach
E)The quality approach

Question 66

Both the comparative and the attribute approaches to performance measurement are _____.

A)high on strategic congruence
B)very low on specificity
C)low on acceptability
D)high on reliability
E)very high on validity

Question 67

Which of the following observations is true about scattergrams?

A)They help in identifying the most important cause of a problem.
B)They are useful for understanding the amount of variance between an outcome and the expected value or average outcome.
C)They help employees determine whether the relationship between two variables or events is positive, negative, or zero.
D)They assume that that the majority of problems are the result of a small number of causes.
E)They are useful for identifying redundancy in processes that increase manufacturing or service time.

Question 68

_____ are the most frequently used source of performance information.

A)Peers
B)Managers
C)Subordinates
D)Employees themselves
E)Customers

Question 69

Which of the following is true about the results approach to performance management?

A)The results approach relies primarily on a combination of the attribute and results approaches to performance measurement.
B)The results approach virtually eliminates problems of leniency, central tendency, and strictness.
C)The techniques of the results approach usually have very little congruence with the company's strategy.
D)The results approach is usually highly unacceptable to both managers and employees.
E)The results approach minimizes subjectivity, relying on objective, quantifiable indicators of performance.

Question 70

Which of the following is the first step in the Productivity Measurement and Evaluation System (ProMES)?

A)The staff defines indicators of the products to measure how well the products are being generated.
B)The management develops a feedback system that provides employees and work groups with information about their specific level of performance.
C)People in the organization identify the set of activities or objectives the organization expects to accomplish.
D)The employee and manager identify what the employee can do to capitalize on performance strengths.
E)The staff establishes the contingencies between the amount of the indicators and the level of evaluation associated with that amount.

Question 71

The _____ technique consists of having multiple raters above, equal to, and below the manager providing input into a manager's evaluation.

A)employee integrity testing
B)background check
C)360-degree appraisal
D)upward feedback
E)performance appraisal

Question 72

Which of the following is a disadvantage of subordinate evaluations?

A)Subordinates tend to focus only on aspects of their manager's performance that are measured, neglecting those that are not.
B)Subordinates do not have adequate opportunity to observe a manager's interactions and behavior.
C)Subordinates have the potential for friendship to bias ratings.
D)Subordinates have power over their managers, thus putting the managers in a difficult situation.
E)Subordinates find the situation of being both rater and ratee uncomfortable when the evaluations are made for administrative decisions.

Question 73

A _____ is a quality control technique that lists causes of a problem in decreasing order of importance.

A)cause-and-effect diagram
B)control chart
C)Pareto chart
D)process-flow analysis
E)histogram

Question 74

Which of the following statistical process quality control techniques helps identify the redundancies in procedures that increase manufacturing or service time?

A)Cause-and-effect diagrams
B)Control charts
C)Pareto charts
D)Process-flow analysis
E)Histograms

Question 75

A performance management system designed with a strong quality orientation can be expected to:

A)emphasize an assessment of system factors in the measurement system, but not of the person factors.
B)emphasize that managers' and employees' work separately to solve performance problems.
C)involve only the external customers in setting standards and measuring performances.
D)use multiple sources to evaluate person and system factors.
E)emphasize an assessment of person factors in the measurement system, but not of the system factors.

Question 76

Which of the following rater errors is based on stereotypes the rater has about how individuals with certain characteristics are expected to perform?

A)Horns
B)Similar to me
C)Halo
D)Contrast
E)Central tendency

Question 77

The _____ approach assumes that subjectivity can be eliminated from the measurement process and that outcomes are the closest indicator of one's contribution to organizational effectiveness.

A)behavior
B)results
C)attribute
D)quality
E)comparative

Question 78

_____ refers to practices participated in by employees from all levels of the company that focus on continuous improvement of business processes.

A)Quality circle
B)Muda
C)Kaizen
D)Root cause analysis
E)Business process reengineering

Question 79

Which of the following is true of peers as the source for performance information?

A)Peers have expert knowledge of job requirements and often have the most opportunity to observe the employee in day-to-day activities.
B)Peer evaluations give employees power over their managers, thus putting the manager in a difficult situation.
C)Peers are comfortable providing evaluations for both administrative and developmental purposes.
D)Peers have the ability to discard the fact that they may be friends with the ratee in order to provide an unbiased rating.
E)Peers give feedback that is strongly related to performance and to employee perceptions of the accuracy of the appraisal.

Question 80

Which of the following is true about the quality approach to performance measurement?

A)The quality approach techniques usually have very little strategic congruence.
B)The quality approach has very low acceptability.
C)The quality approach does not advocate the evaluation of personal traits.
D)The quality approach adopts a systems-oriented focus.
E)The quality approach relies primarily on a combination of the comparative and results approaches to performance measurement.