Question 1

When a performance appraisal scale is too open to interpretation of traits and standards,this rating scale problem is known as which of the following?
A) Non-quantitative standards
B) Translation openness
C) Unclear performance standards
D) Appraisal bias
E) Critical incidents

Accepted Answer

When a performance appraisal scale is too open to interpretation of traits and standards, it means the performance standards are unclear. This can lead to inconsistent ratings and unjustified evaluations.

Question 2

The performance improvement plan is most closely associated with which performance appraisal technique?
A) Critical incident
B) Paired comparison
C) Narrative forms
D) Forced distribution
E) Ranking

Accepted Answer

Narrative forms often include detailed feedback and suggestions for improvement, making them closely associated with performance improvement plans.

Question 3

Performance 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 level of performance.
A) reliable; valid
B) reliable; reliable
C) valid; measurable
D) measurable; valid
E) valid; reliable

Accepted Answer

Performance appraisal systems must be based on performance criteria that are valid and reliable. Validity means that the criteria accurately measures the desired performance and reliability means that the criteria consistently produces the same ratings for the same level of performance. Measurability is an important factor, but it is not enough on its own to ensure a fair and accurate appraisal system.

Question 4

Gary is Mindy's supervisor.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 missed more deadlines than her peers over the past quarter,Gary rated Mindy as "above average" for the trait of "personal effectiveness" as well.Gary's actions indicate which performance appraisal problem?
A) Performance bias
B) Halo effect
C) Trait effect
D) Appraisal bias
E) Trait bias

Accepted Answer

Gary's rating of Mindy as outstanding for one trait (ability to work in a team) is affecting his ratings for other traits (personal effectiveness) due to the halo effect. This could lead to an inaccurate appraisal of Mindy's overall performance.

Question 5

When using management by objectives,how should the goals be set?
A) The goals should not be set and should be allowed to change throughout the review period.
B) Collaboratively
C) Independently by the employee
D) Independently by the manager
E) Independently by the senior management team

Accepted Answer

Management by objectives involves setting goals collaboratively between the manager and employee, with input and feedback from both parties. This ensures that the goals are achievable, relevant, and aligned with the overall objectives of the organization. Independent goal-setting by either party can lead to misalignment and ineffective goal achievement.

Question 6

Which performance appraisal technique quantifies ratings by anchoring a quantified scale with specific narrative examples of good and poor performance?
A) Behaviourally anchored rating scale
B) Forced distribution scale
C) Graphic rating scale
D) Paired comparison scale
E) Alternation ranking method scale

Accepted Answer

The behaviourally anchored rating scale (BARS) quantifies ratings by using specific narrative examples of good and poor performance that are anchored to a quantitative scale. This helps to ensure that ratings are more objective and based on observable behaviours, rather than subjective opinions.

Question 7

Which performance appraisal technique combines the benefits of narrative,critical incidents,and quantified ratings by attaching a quantified scale with specific narrative examples of good or poor performance?
A) Graphic rating scale method
B) Paired narrative-quantitative method
C) Critical incident method
D) Behaviourally anchored rating scale method
E) Forced distribution method

Accepted Answer

The behaviourally anchored rating scale method (BARS) combines the benefits of narrative, critical incidents, and quantified ratings by attaching a quantified scale with specific narrative examples of good or poor performance. This method is designed to provide specific and objective feedback to employees and offers a clear understanding of what is expected of them in their job roles.

Question 8

Neerja is rating her team of ten employees.According to company policy,one employee should be "below expectations" and three employees should be rated "exceptional." What performance appraisal technique does this company use?
A) Paired comparison method
B) Critical incident method
C) Alternation ranking method
D) Graphic rating scale
E) Forced distribution method

Accepted Answer

The company uses forced distribution method to evaluate the performance of its employees. This technique requires the managers to distribute the employees into a predetermined distribution curve, where one employee is rated "below expectations," a few employees are rated "average," and most of the employees are rated "good" or "exceptional." This approach helps ensure that performance ratings are more objective and not merely a reflection of the manager's personal biases.

Question 9

Which performance appraisal techniques is useful for identifying specific examples of good and poor performance and for planning how deficiencies can be corrected?
A) Critical incident method
B) Paired comparison method
C) Narrative form
D) Forced distribution method
E) Ranking method

Accepted Answer

The critical incident method involves keeping a record of specific examples of an employee's good and poor performance throughout the appraisal period. This allows for more objective feedback and helps to plan how deficiencies can be corrected.

Question 10

Which of the following is an advantage of the critical incident method?
A) It provides instant feedback to employees on critical issues.
B) It is useful by itself for comparing employees.
C) Results are easily linked to pay increase decisions.
D) Both managers and their employees agree to the criteria in advance.
E) It provides specific behaviours for explaining the appraisal.

Accepted Answer

The critical incident method provides specific behaviours that can explain the appraisal, which is an advantage as it offers clarity in feedback. However, it does not provide instant feedback, is not necessarily useful by itself for comparing employees, and may not easily link to pay increase decisions. While both managers and employees can agree on the criteria, this is not a specific advantage of the critical incident method.

Question 11

When supervisors who are engaged in a performance appraisal tend to rate all employees either high or low,this problem is referred to as which of the following?
A) Halo effect
B) Performance bias
C) Appraisal bias
D) Central tendency
E) Strictness/leniency

Accepted Answer

The phenomenon of supervisors rating all employees either high or low is known as strictness/leniency bias in performance appraisal. It occurs when the appraiser has a tendency to be overly critical or overly generous in their evaluation, leading to inaccurate assessments. The other options are also common types of performance appraisal biases, but they do not specifically address the issue of consistently rating all employees high or low. The halo effect refers to the tendency to let one positive trait or characteristic of an employee influence the overall evaluation. Performance bias occurs when the appraiser evaluates employees based on their performance in one area, rather than considering their overall performance. Appraisal bias refers to any systematic distortion in the performance appraisal process. Central tendency occurs when appraisers avoid extreme ratings and instead rate employees in the middle of the scale.

Question 12

Which method for appraising performance involves setting specific measurable goals with each employee and then periodically reviewing the progress made?
A) Progress review method
B) Critical goal method
C) Behaviourally anchored rating scale method
D) Management by objectives
E) Periodic review method

Accepted Answer

The method described in the question is Management by Objectives (MBO), which involves setting specific, measurable goals with each employee and then periodically reviewing their progress towards those goals. This method emphasizes collaboration between employees and their managers in setting and achieving objectives that align with the company's overall goals.

Question 13

Which performance appraisal technique maintains a record of uncommonly good or undesirable examples of an employee's work-related behaviour,which are reviewed with the employee at predetermined times?
A) Paired comparison method
B) Behaviourally anchored rating scales
C) Alternation ranking method
D) Critical incident method
E) Forced distribution method

Accepted Answer

The critical incident method involves maintaining a record of uncommonly good or undesirable examples of an employee's work-related behavior, which are reviewed with the employee at predetermined times. This technique focuses on specific incidents rather than general traits, making it a useful tool for providing detailed feedback to employees.

Question 14

What does a summary performance appraisal discussion focus on?
A) Problem solving
B) Administration
C) Training supervisors
D) Critical incidents
E) Pay scales

Accepted Answer

A summary performance appraisal discussion focuses on the overall performance of the employee, including their strengths, weaknesses, and areas for improvement.

Question 15

A manager is considering changing her current performance appraisal method,the graphic rating scale,to the forced distribution method.What criticism of this new method would you advise her about?
A) The traits being appraised are often incorrect.
B) The employees are placed in categories unrelated to their actual skills.
C) Employee comparisons are often unfair as veterans may be compared with newcomers.
D) Comparisons are very technical and this removes the manager's personal judgment.
E) The majority of the workforce is classified as at or below average and this may be demotivating.

Accepted Answer

One criticism of the forced distribution method is that it often results in the majority of the workforce being classified as at or below average. This can be demotivating for employees who perceive themselves as being unfairly evaluated, and it can also create tension and conflict within teams.

Question 16

Belinda manages the data entry department of a credit card company.Employees are ranked based on the accuracy and quantity of data they can input.Belinda is able to observe and monitor her employee's work electronically; what is this performance appraisal method formally called?
A) Data entry detection
B) Production evaluation
C) Employee systems assessment
D) Records processing review
E) Electronic performance monitoring

Accepted Answer

The performance appraisal method formally called electronic performance monitoring involves observing and monitoring employee's work electronically, which is exactly what Belinda is doing in this scenario. Option A, B, C, and D do not accurately describe this method.

Question 17

Kai ranks his employees on a scale from 1 to 5.In general,most of his employees receive a rating of around 3 although his employees differ more on their actual performance.Kai's actions seem to indicate which performance appraisal problem?
A) Central tendency
B) Halo effect
C) Performance bias
D) Appraisal bias
E) Equal rating tendency

Accepted Answer

Kai's tendency to rate most employees around a 3 indicates a central tendency bias, where he may be hesitant to rate employees as exceptional or poor performers and instead cluster around the average rating.

Question 18

Which performance appraisal technique places a predetermined percentage of employees being rated in various performance categories?
A) Paired comparison method
B) Critical incident method
C) Alternation ranking method
D) Graphic rating scale
E) Forced distribution method

Accepted Answer

Forced distribution method places a predetermined percentage of employees in different performance categories, forcing raters to differentiate among the employees and preventing a "normal distribution" where most employees are rated as average. It helps organizations to identify top performers, average performers and poor performers for the purpose of better planning and development programs.

Question 19

According to the textbook,which of the following is the main potential problem that can occur when using management by objectives?
A) Setting objectives that are too easy to achieve
B) Setting objectives not directly related to an employee's tasks
C) Setting objectives but then not following up
D) Setting unclear, unmeasurable objectives
E) Setting unrealistic, unattainable objectives

Accepted Answer

Setting unclear, unmeasurable objectives can lead to confusion and frustration for employees, making it difficult to track progress and achieve desired outcomes.

Question 20

Although the graphic rating scale seems objective,it may result in unfair appraisals because the traits and degrees of merit are
A) open to interpretation.
B) contradictory of each other.
C) repetitive.
D) unrelated to the actual job.
E) outdated.

Accepted Answer

The graphic rating scale is open to interpretation because different managers may have different interpretations of the same trait or degree of merit. This subjectivity can lead to unfair appraisals.

Quiz 10: Performance Management

When a performance appraisal scale is too open to interpretation of traits and standards,this rating scale problem is known as which of the following?

The performance improvement plan is most closely associated with which performance appraisal technique?

Performance 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 level of performance.

When using management by objectives,how should the goals be set?

Which performance appraisal technique quantifies ratings by anchoring a quantified scale with specific narrative examples of good and poor performance?

Which performance appraisal technique combines the benefits of narrative,critical incidents,and quantified ratings by attaching a quantified scale with specific narrative examples of good or poor performance?

Neerja is rating her team of ten employees.According to company policy,one employee should be "below expectations" and three employees should be rated "exceptional." What performance appraisal technique does this company use?

Which performance appraisal techniques is useful for identifying specific examples of good and poor performance and for planning how deficiencies can be corrected?

Which of the following is an advantage of the critical incident method?

When supervisors who are engaged in a performance appraisal tend to rate all employees either high or low,this problem is referred to as which of the following?

Which method for appraising performance involves setting specific measurable goals with each employee and then periodically reviewing the progress made?

Which performance appraisal technique maintains a record of uncommonly good or undesirable examples of an employee's work-related behaviour,which are reviewed with the employee at predetermined times?

What does a summary performance appraisal discussion focus on?

A manager is considering changing her current performance appraisal method,the graphic rating scale,to the forced distribution method.What criticism of this new method would you advise her about?

Belinda manages the data entry department of a credit card company.Employees are ranked based on the accuracy and quantity of data they can input.Belinda is able to observe and monitor her employee's work electronically; what is this performance appraisal method formally called?

Kai ranks his employees on a scale from 1 to 5.In general,most of his employees receive a rating of around 3 although his employees differ more on their actual performance.Kai's actions seem to indicate which performance appraisal problem?

Which performance appraisal technique places a predetermined percentage of employees being rated in various performance categories?

According to the textbook,which of the following is the main potential problem that can occur when using management by objectives?

Although the graphic rating scale seems objective,it may result in unfair appraisals because the traits and degrees of merit are