26) What are the main steps in the performance appraisal process? What advice would you give
to a supervisor who was about to conduct an appraisal interview?
AACSB: Reflective thinking
Chapter: 8
LO: 8.1: Explain the purpose of performance appraisal. 8.3: Give examples of potential
appraisal problems and how to deal with them.
Skill: Synthesis
27) Why is it important for a manager to appraise a subordinate’s performance? How can a
manager handle a subordinate who is defensive when told that his or her performance is poor?
AACSB: Reflective thinking
Chapter: 8
LO: 8.1: Explain the purpose of performance appraisal. 8.3: Give examples of potential
appraisal problems and how to deal with them.
Skill: Synthesis
11
28) What guidelines should supervisors follow to hold effective and legally defensible
appraisals? How can rating committees improve the fairness of the appraisal process?
AACSB: Reflective thinking
Chapter: 8
LO: 8.1: Explain the purpose of performance appraisal. 8.3: Give examples of potential
appraisal problems and how to deal with them.
Skill: Synthesis
29) What is the main difference between a performance appraisal and performance management?
AACSB: Application of knowledge
Chapter: 8
LO: 8.1: Explain the purpose of performance appraisal. 8.5: Explain how you would take a
performance management approach to appraisal.
Skill: Synthesis
30) All of the following are ways to improve 360-degree appraisals EXCEPT by ________.
A) basing the 360-degree items on behavioral competencies
B) training the people giving and receiving feedback
C) using a Web-based system to reduce costs
D) encouraging informal ratings
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
12
31) Which performance appraisal technique lists traits and a range of performance for each?
A) alternation ranking
B) graphic rating scale
C) paired comparison
D) constant sum rating scale
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
32) Wilson Consulting is a management consulting firm with seventy employees. As associate
vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals
of the twelve employees under her direct supervision. Suzanne plans to use a graphic rating scale
to evaluate the performance of her subordinates.
Which of the following, if true, best supports the argument that a graphic rating scale is the most
appropriate performance appraisal tool for Suzanne to use?
A) Employees in Suzanne’s department who are categorized in the bottom 10% of the firm’s
employees will be immediately dismissed.
B) Suzanne wants to ensure that the firm is protected from employee discrimination lawsuits, so
she has conducted a job analysis of each position.
C) Suzanne wants a quantitative rating of each employee based on competencies important to the
firm, such as problem-solving skills.
D) Employees in Suzanne’s department participated in developing their own performance
standards when they were first hired by the firm.
AACSB: Reflective thinking
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Critical Thinking
13
33) Which performance appraisal method involves distinguishing between the worst and best
employees based on a trait or traits?
A) alternation ranking
B) graphic rating scale
C) forced distribution
D) constant sum rating scale
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
34) Suppose you have five employees to rate. You make a chart of all possible pairs of
employees for each trait being evaluated. Then, you indicate the better employee of the pair for
each pair. Finally, you add up the number of positives for each employee. In this case, you have
used the ________ method of performance appraisal.
A) graphic ranking scale
B) alternation ranking
C) paired comparison
D) forced distribution
AACSB: Application of knowledge
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Application
14
35) Which performance appraisal tool is being used by a supervisor who places predetermined
percentages of rates into various performance categories?
A) graphic ranking scale
B) alternation ranking
C) forced distribution
D) paired comparison
AACSB: Application of knowledge
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Application
36) John, the supervisor of the manufacturing department, is in the process of evaluating his
staff’s performance. He has determined that 15% of the group will be identified as high
performers, 20% as above-average performers, 30% as average performers, 20% as below-
average performers, and 15% as poor performers. John is using a ________ method.
A) graphic rating scale
B) constant sum ranking scale
C) forced distribution
D) alternation ranking
AACSB: Application of knowledge
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Application
37) Which of the following is one of the primary complaints regarding the use of the forced
distribution method for performance appraisals?
A) harm to employee morale
B) high cost of administration
C) standardization of group sizes
D) time consuming to administer
AACSB: Application of knowledge
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Application
15
38) Which of the following is LEAST likely to protect employers against bias claims stemming
from the use of the forced distribution method?
A) appointing a committee to review low rankings
B) basing scores on industry standards
C) training raters to be objective
D) using multiple raters
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
39) Which performance appraisal tool involves a supervisor maintaining a log of positive and
negative examples of a subordinate’s work-related behavior?
A) alternation ranking
B) constant sums rating
C) narrative forms
D) critical incident
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
16
40) Which of the following is NOT a characteristic of the critical incident method for
performance appraisal?
A) providing examples of excellent work performance
B) comparing and ranking employees within a group
C) connecting specific incidents with performance goals
D) compiling examples of ineffective work performance
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
41) Wilson Consulting is a management consulting firm with seventy employees. As associate
vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals
of the twelve employees under her direct supervision. Suzanne plans to use the critical incident
method to evaluate the performance of her subordinates.
Which of the following, if true, undermines the argument that the critical incident method is the
most appropriate performance appraisal tool for Suzanne to use?
A) Other departments at Wilson Consulting have seen employee performance improve as a result
of providing ongoing evaluations.
B) Due to economic difficulties, the firm will be laying off the two lowest-performing employees
in Suzanne’s department.
C) Employee performance standards are closely aligned with Wilson Consulting’s long-term
strategic plans.
D) Suzanne will be conducting performance appraisals in conjunction with the HR manager to
ensure EEO compliance.
AACSB: Analytical Thinking
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Critical Thinking
17
42) Which appraisal method combines the benefits of narratives, critical incidents, and quantified
scales by assigning scale points with specific examples of good or poor performance?
A) behaviorally anchored rating scale
B) graphic rating scale
C) alternation ranking
D) forced distribution
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
43) Which of the following best describes a behaviorally anchored rating scale?
A) chart of paired subordinates ranked in order of performance
B) combination of narrative critical incidents and quantified performance scales
C) predetermined percentages of subordinates in various performance categories
D) list of subordinates from highest to lowest based on specific performance traits
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
18
44) Wilson Consulting is a management consulting firm with seventy employees. As associate
vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals
of the twelve employees under her direct supervision. Suzanne plans to use the behaviorally
anchored rating scale (BARS) to evaluate the performance of her subordinates.
Which of the following, if true, supports the argument that BARS is the most appropriate
performance appraisal tool for Suzanne to use?
A) Wilson Consulting provides training to all supervisors regarding legally defensible
performance appraisals.
B) Suzanne provides her subordinates with upward feedback as a way to illustrate the ratings she
assigns to each employee.
C) Wilson Consulting recently installed an electronic performance monitoring system to help
supervisors conduct appraisals.
D) Suzanne wants to provide her subordinates with specific examples of their good and poor job
performance during the appraisal interview.
AACSB: Analytical Thinking
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Critical Thinking
45) Which of the following terms refers to setting specific measurable goals with each employee
and then periodically reviewing the progress made?
A) behaviorally anchored rating scale
B) management by objectives
C) narrative form technique
D) forced distribution
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
19
46) It is most important that supervisors who choose management by objectives as a performance
appraisal tool use ________.
A) BARS-based techniques
B) graphic rating scales
C) SMART goals
D) EPM systems
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
47) What is the first step in the MBO method of performance appraisal?
A) setting the organization’s goals
B) setting departmental goals
C) conducting employee reviews
D) defining expected results
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
48) Which of the following is a benefit of using computerized or Web-based performance
appraisal systems?
A) providing training for new employees
B) helping managers to determine sales activities
C) allowing employees to perform self-evaluations
D) enabling managers to monitor employees’ computers
AACSB: Information Technology
Chapter: 8
LO: 8.2: Discuss the pros and cons of at least eight performance appraisal methods.
Skill: Concept
20