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True / False Questions
1.
(p. 321)
The supervisor must use informal reviews to reinforce good performance and discourage
poor performance.
Difficulty: 2 Medium
2.
(p. 321)
The quality of an employee's performance is determined by a combination of three factors:
effort, ability, and direction.
Difficulty: 2 Medium
3.
(p. 321)
Direction refers to how hard a person works.
Difficulty: 1 Easy
4.
(p. 321-322)
Environmental factors are those things on a job that are within an employee's
control.
5.
(p. 322)
If an employee has above-average ability and puts forth a great deal of effort, then that
employee should be a satisfactory performer.
Difficulty: 2 Medium
6.
(p. 323)
Job specifications state the characteristics of a job and the types of work performed in the
job.
Difficulty: 2 Medium
7.
(p. 323)
One of the purposes of a performance appraisal system is to prepare employees for future
opportunities that may arise.
Difficulty: 1 Easy
8.
(p. 325)
Supervisors usually decide which type of performance appraisal system an organization will
use.
9.
(p. 325)
With the graphic rating scale, the supervisor does not actually evaluate but merely records
performance.
Difficulty: 2 Medium
10.
(p. 326)
One problem with the essay appraisal is that the length and content of the written
statements can vary considerably from supervisor to supervisor.
Difficulty: 1 Easy
11.
(p. 327)
The forced-choice rating method attempts to eliminate bias by forcing the supervisor to
choose between statements that are not obviously distinguishable.
Difficulty: 2 Medium
12.
(p. 327)
With the critical-incident appraisal, the supervisor simply keeps a written record of only the
negative actions of each employee.
13.
(p. 328)
Two of the most commonly used ranking methods of performance appraisal are alternation
ranking and paired-comparison ranking.
Difficulty: 2 Medium
14.
(p. 329)
The forced-distribution ranking makes each employee's performance evaluation a function
of the performance of other employees in the job.
Difficulty: 2 Medium
15.
(p. 330)
Central tendency occurs when the supervisor groups all of the ratings at the positive end
instead of spreading them through the performance scale.
Difficulty: 1 Easy
16.
(p. 331)
The halo effect occurs when a supervisor allows a single prominent characteristic of an
employee to influence his or her judgment on each of the items during a performance appraisal.
16-5
17.
(p. 332)
The employee should be given at least a week's notice of an upcoming performance
appraisal.
Difficulty: 1 Easy
18.
(p. 332)
After the completion of the performance evaluation, ideally, the employee must get a
signed copy of the evaluation.
Difficulty: 2 Medium
19.
(p. 333)
The supervisor's only alternative in dealing with a poor performer is termination.
Difficulty: 1 Easy
20.
(p. 336)
Many extrinsic rewards provided by organizations do not lend themselves to being related
to performance.
Difficulty: 2 Medium
Multiple Choice Questions
21.
(p. 321)
Conducting a performance appraisal, ideally, involves:
Difficulty: 2 Medium
22.
(p. 321)
________________ refers to how well the person understands what is expected on the job.
Difficulty: 2 Medium
23.
(p. 321)
Performance should be measured in terms of:
Difficulty: 1 Easy
24.
(p. 323)
Identify the correct statement about job descriptions.
Difficulty: 2 Medium
25.
(p. 324-325)
When performance appraisals are based on personal characteristics, which of the
following may be a problem?
26.
(p. 326)
Which of the following performance appraisal methods requires the supervisor to write a
series of statements about an employee's past performance, potential for promotion, and
strengths and weaknesses?
Difficulty: 1 Easy
27.
(p. 326)
Which of the following techniques is most likely to be biased by the supervisor's writing
skills?
28.
(p. 326)
The performance appraisal method where the supervisor only records performance rather
than evaluating is the:
Difficulty: 2 Medium
29.
(p. 326)
Which of the following is NOT one of the disadvantages of the checklist form of
performance appraisals?
30.
(p. 327)
The supervisor keeps a written record of unusual positive and negative actions by an
employee in which of the following techniques?
Difficulty: 1 Easy
31.
(p. 328)
A major advantage of the ________________ approach is that it bases the performance
appraisal on factors that are generally more objective than those used in other methods.
32.
(p. 329)
One problem associated with the use of the forced-distribution method and not with other
methods is that:
Difficulty: 3 Hard
33.
(p. 329)
What is the major problem with the paired-comparison method?
34.
(p. 329)
The supervisor and employee should jointly agree on the worker's objectives and
standards of evaluation in which type of performance appraisal method?
Difficulty: 2 Medium
35.
(p. 330)
________________ is the grouping of ratings at the positive end instead of spreading them
throughout the performance scale.
36.
(p. 331)
This kind of performance appraisal error occurs when the rater allows a single
characteristic of an employee to influence his or her judgment.
Difficulty: 2 Medium
37.
(p. 332)
In overcoming performance appraisal errors, the rater should receive training in all of the
following areas EXCEPT:
38.
(p. 333)
Which of the following is NOT one of the preparations that should be undertaken while
dealing with a poor performer?
Difficulty: 2 Medium
39.
Difficulty: 2 Medium
40.
(p. 336)
Identify the correct statement about incentives.
Difficulty: 2 Medium
Short Answer Questions
41.
(p. 321)
What is a formal performance appraisal and what is an informal performance appraisal?
What is the difference between the two?
Difficulty: 1 Easy
42.
(p. 321)
What are the three factors that must be present to some extent if the employee is
expected to perform well?
43.
(p. 323)
List the three principal purposes of having a performance appraisal system.
Difficulty: 1 Easy
44.
(p. 325)
List four performance appraisal methods.
Difficulty: 1 Easy
45.
(p. 327)
What is the critical-incident appraisal?
46.
(p. 328)
What is the work-standards approach?
Difficulty: 1 Easy
47.
(p. 329-330)
Define 360-degree feedback.
48.
(p. 330-331)
List and define three potential errors in performance appraisals.
Difficulty: 2 Medium
49.
(p. 331)
What are the purposes of communicating the performance appraisal to the employee?
50.
(p. 337)
List eight desirable preconditions that have been identified and generally accepted for
successfully implementing a merit pay program.
