Question 1

Higbee Farm Implements one location,a rural Iowa area.Higbee has been experiencing slow sales of tractors and other expensive large agricultural equipment such as combines over the last few years because of the low profitability of the farms in its sales region.In order to increase its profits by increasing the sales of equipment,Higbee has announced that the salesperson who writes the highest dollar volume in sales contracts will win an all-expense-paid trip to Hawaii for two for a month.Naturally,this has motivated the sales staff.What is the likely result of this contest?

Accepted Answer

The sales contest encourages salespeople to write the highest dollar volume in sales contracts, and this could lead to sales staff pressuring farmers to buy machinery they may not need. The focus shifts from meeting the farmers' equipment needs to meeting the sales goals of the sales staff. This could result in the sale of expensive equipment that the farmers might not be able to afford, leading to dissatisfaction and economic hardship. Ultimately, this approach to encouraging sales could damage Higbee's reputation in the community.

Question 2

If most employees in an organization consider their pay raises inequitable,even though the organization uses performance-based compensation,the most likely cause is that

Accepted Answer

If the majority of employees feel their pay raises are inequitable despite a performance-based compensation system, it suggests that there may be a flaw in the appraisal process. This could be due to unclear performance criteria, subjective evaluations, inconsistent application of standards, or inadequate communication of the results. If the performance evaluation process is flawed or perceived as unfair, it can erode employees' confidence in the system and lead to dissatisfaction and demotivation. It is important to identify and address any such issues in order to maintain a fair and effective performance-based compensation system.

Question 3

During the performance appraisal process,employees tend to focus on

Accepted Answer

Employees often focus on whether they will get a raise or not because it directly impacts their financial situation and is a tangible outcome of the appraisal process.

Question 4

____ define the level of performance that is expected by an employee.

Accepted Answer

Performance standards define the level of performance that is expected by an employee. Job criteria refers to the skills, knowledge, and experience required to perform the job. Job expectations refer to the general responsibilities and duties of the job. Essential elements are the necessary components that must be present for a job to be considered valid.

Question 5

Performance measures are said to be ____ if they leave out some important job duties.

Accepted Answer

Performance measures that leave out important job duties are considered deficient because they do not provide an accurate representation of an employee's performance. This can lead to inaccurate evaluations and potentially unfair consequences such as being passed over for promotions or bonuses.

Question 6

Which of the following is an example of the administrative role of performance appraisal?

Accepted Answer

Measuring subordinate's performance to make retention decisions during a layoff is an administrative role of performance appraisal as it involves making decisions related to the functioning of the organization. The other options are more related to development and improvement of individual and organizational performance.

Question 7

What is the purpose of developmental feedback?

Accepted Answer

The purpose of developmental feedback is to help employees grow and develop in their current role, as well as plan for future opportunities within the organization. It is focused on identifying strengths and areas for improvement to help the employee reach their full potential.

B and C are incorrect because although motivation and performance comparison may be outcomes of developmental feedback, they are not the primary purpose.

D is also incorrect because feedback is not related to changes in compensation.

Question 8

Which of the following best describes the manager's role in the developmental aspect of performance appraisal?

Accepted Answer

The manager's role in the developmental aspect of performance appraisal is to act as a coach. A coach helps employees identify their strengths and weaknesses and provides guidance to improve their performance. The focus here is on employee development, not just evaluation. The judge role focuses on evaluation of past performance, while the parent role may imply a lack of objectivity and professionalism. The antagonist role is not appropriate for any aspect of performance appraisal.

Question 9

All of the following are developmental uses for performance appraisals EXCEPT

Accepted Answer

Prioritizing employees for layoffs is not a developmental use for performance appraisals. The other choices all involve identifying areas for improvement and career development for employees.

Question 10

Michael,the owner of a moving company,has developed a performance appraisal system for his customer representatives and truck drivers.He evaluates each of these employees on accuracy of weight estimates,meeting delivery deadlines,and dollar value of breakage.Michael's performance appraisal system is ____ based.

Accepted Answer

Michael's performance appraisal system is based on the results achieved by the customer representatives and truck drivers. He evaluates them on the basis of accuracy of weight estimates, meeting delivery deadlines, and dollar value of breakage, which are all outcomes or results of their performance. Hence, this is a results-based appraisal system.

Question 11

One of the performance criteria for a sales representative who covers Saskatchewan as the sole Western Canadian representative is "relationship with co-workers." This criterion results in a performance measure that is

Accepted Answer

The criterion is contaminated because it includes factors that are not relevant to the sales representative's primary role, which is to cover the Saskatchewan region. "Relationship with co-workers" may not directly impact their sales performance.

Question 12

Which of the following comments by a supervisor during an appraisal interview illustrates the development function of performance appraisal?

Accepted Answer

Pairing the employee with another salesperson to learn techniques is an example of the development function of performance appraisal, which focuses on improving employee skills and abilities through training or feedback. The other options are examples of the administrative function (taking disciplinary action) or the evaluative function (setting performance goals or standards).

Question 13

Which of the following is true about using behavior-based information for evaluating job performance?

Accepted Answer

Behavior-based performance appraisal systems focus on how tasks are performed rather than just the outcomes. This approach can inadvertently penalize employees who achieve successful results through unconventional methods, as it emphasizes standard behaviors over innovative or unique approaches.

Question 14

All of the following are common reasons why performance appraisal systems are ineffective EXCEPT

Accepted Answer

Managers and subordinates colluding to inflate performance appraisals is not a common reason for performance appraisal systems being ineffective.

Question 15

All of the following are potential performance measures for an insurance salesperson.

Accepted Answer

The answer of All of the following are potential performance...

Question 16

As a vendor providing automated performance appraisal products,you would probably be able to promise purchasers of your system all of the following EXCEPT

Accepted Answer

Automated systems may have higher initial costs due to software and implementation expenses, which may not necessarily result in lower total costs compared to manual systems.

Question 17

Counting the number of items a clerk scans per hour is be an example of a/an ____ measure of performance.

Accepted Answer

Counting the number of items a clerk scans per hour is an objective measure of performance because it is based on actual data and can be quantified. It does not involve subjective opinions or judgments and is not based on behaviors. While quality can be a measure of performance, it is not relevant to this particular scenario.

Question 18

Performance appraisals are widely used for all the following types of employees EXCEPT

Accepted Answer

While performance appraisals are widely used for non-exempt employees, professional employees, and managers in service industries, unionized production employees may have their performance evaluation processes governed by collective bargaining agreements or other labor laws, making performance appraisals less common or more heavily regulated.

Question 19

The auditors in a public accounting firm are assigned to new project teams as their current projects end.Consequently,an auditor may work on one project for an entire year or the auditor may be assigned to several different shorter-term projects during a year.All of the following are behaviors that would be important to encourage through the performance appraisal system EXCEPT

Accepted Answer

Encouraging competitiveness may lead to negative behaviors such as working for individual recognition rather than collaborating with the team. Instead, it would be more beneficial to encourage behaviors such as achievement orientation, initiative, and information-seeking, which promote professional growth and strong teamwork.

Question 20

The two general uses of performance appraisal,which are often in conflict,are

Accepted Answer

The two general uses of performance appraisal are administrative and development. Administrative use includes salary administration and discipline, while development use includes training and development, coaching, and career planning. These two uses can often be in conflict, as the administrative use focuses on measuring and correcting performance, while the development use focuses on improving and enhancing performance. Therefore, the best choice is C.

Quiz 10: Performance Management and Appraisal