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51. What specific quality does the management-by-objectives goal-setting process offer
that simply trying to develop a SMART goal lacks?
a. The resulting goals are measurable.
b. Subordinates help determine the goals.
c. Group objectives, not individual objectives, are set.
d. The goals are highly specific.
52. In the management by objectives (MBO) process, when is a mid-level department
head in a medium-sized company likely to give input into company goals?
a. at the very beginning of the process
b. after employees have been surveyed about their personal objectives
c. after executives have established strategic goals
d. after employees have articulated specific goals
53. In the management by objectives (MBO) process, employees make the most input
into ______ goals.
a. individual
b. department-level
c. strategic
d. financial
54. In which of the following situations is a clawback most likely to occur?
a. A departmental manager skimmed off company receipts to earn petty cash.
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b. A CEO made millions on a fraudulent investment that cost investors billions.
c. A low-level employee was found to be taking small gifts or bribes from customers.
d. An employee was promoted to a management position but later was revealed to have
falsified customer receipts prior to the promotion.
55. Inserting a clawback provision into an executive’s employment contract is intended
to accomplish which of the following?
a. Motivate them for higher profits.
b. Ensure ethical behavior.
c. Encourage ecological contributions.
d. Encourage the development of SMART goals.
56. Which of the following is TRUE of stress and stress symptoms?
a. The effect of stress on company profits cannot be estimated.
b. Stress can be discomforting but rarely leads to bigger physical problems.
c. Work goals are by far the biggest contributor to most people’s stress.
d. A clear majority of people regularly experience physical and psychological stress
symptoms.
57. What form of mental self-regulation exercise is an important stress reducer and
offered as an employee benefit by companies like Google and Apple?
a. self-talk
b. therapy
c. personal goal setting
d. meditation
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58. Min-hae is about to try her first meditation session. She is at work, and her company
allows its employees to take a half-hour each day for personal meditation. What should
her first step be?
a. Find a quiet place.
b. Use a timer.
c. Regulate her breath.
d. Relax her muscles.
59. Deep into the process of her meditation, Rob suddenly remembers that he needs to
file an important report by the end of the day. What should he do?
a. Engage with the thought and repeat it gently.
b. Let the thought gently fade away; it will return when needed.
c. Force the thought away with a strong breath.
d. Quickly write it down and return to meditation.
60. As it is Jordyn’s first time meditating, what should she do with respect to the breaths
she takes during meditation?
a. Nothing; she should simply take breaths.
b. Count them up to a specific number, then repeat.
c. Chant a calming Buddhist phrase with each breath.
d. Hum while exhaling.
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61. Which of the following statements about employee performance appraisals is
accurate?
a. Appraisals should be conducted solely for the sake of employee development.
b. The specifics of the appraisal should change to fit employees with different tasks.
c. Gather information about the employee’s strengths and weaknesses after the
appraisal to judge honesty.
d. Goal or goal-achievement should generally not be a part of an appraisal
process/evaluation.
62. What do (good) employee performance appraisals have in common with the
manager-evaluation balanced scorecard approach?
a. They give ethical behavior priority over other behaviors.
b. They focus mostly on leadership skills.
c. They take a holistic approach.
d. They are designed to measure promotion potential.
63. Linking employee performance appraisal results to merit raises and promotions will
only result in greater ethical behavior if what component is present?
a. Bonuses are only awarded for ethical behavior.
b. Ethical misconduct is regularly punished.
c. The company’s culture is ethical in nature.
d. The appraisal itself has an ethics component.
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AACSB Standard: Social Impact
64. Which of the following is an ideal prompt for assessing ethical behavior as part of an
employee performance review?
a. Is the employee well-liked by coworkers?
b. Does the employee have a positive attitude?
c. Does the employee support ethics-based initiatives?
d. Is the employee supportive of the company’s strategic goals?
65. How often should managers assess their employee’s performance with respect to
the company’s code of ethics?
a. monthly
b. annually
c. when employees are up for promotions
d. when ethical incidents occur
66. What is an example of an ethics-based initiative that could be evaluated through
employee performance?
a. employee participation in personal philanthropy
b. affirmative action hiring goals
c. mood of employees in a department
d. how many promotions have been made in a year
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67. What effect is achieved by increasing the frequency of appraisals, up to a quarterly
rate?
a. minimizing ethical damages
b. causing high levels of stress among employees
c. increasing profits
d. encouraging a high turnover rate
68. Which of the following is recommended with respect to an individual employee’s
evaluation?
a. Relate scores to the employee’s working and private life.
b. Give average scores to extremely high achievers to avoid jealousy.
c. Use feedback from many different people who interact with the employee.
d. Give poor performers average ratings in their early term of employment.
69. Which of the following is involved in a 360-degree performance evaluation?
a. feedback from employees throughout the hierarchy
b. feedback only from managers of the employee
c. no feedback from the employee himself or herself
d. exclusively a self-assessment ranging across many different metrics
70. How does a 360-degree performance evaluation differ from a balanced scorecard-
type measurement?
a. It is used for individuals, not organizations.
b. It is well-rounded.
c. It has an ethical dimension.
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d. It does not have an ethical dimension.
71. When it comes to employee performance evaluations, how does a rating system
differ from a ranking system?
a. It is better related to an employee’s actual job tasks.
b. It is less ethical because it eliminates competition.
c. It is not based on an absolute standard of performance.
d. It does not sufficiently describe an employee’s value to their work unit.
72. What is a danger of a ranking system like the General Electric three-tier 20-70-10
ranking system?
a. The best employee in a unit is likely to be rated as a “middle” performer.
b. Most employees are rated as good regardless of their performance.
c. Employees might conclude that trying to perform the best is pointless.
d. A very good employee could be rated “lowest” or “worst” performer.
73. Which of the following is most desirable in an employee performance appraisal
feedback session?
a. praise for what the employee is doing right
b. feedback that is not overly specific
c. avoiding mentions of specific behaviors
d. a very loose and informal style
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74. Illana has just recently completed performance appraisals for all her direct report
employees. Which of the following is the best course of action for feedback?
a. Email results to the employee and let them know her door is open for any questions.
b. Allow an ECO or human resources representative to go over the results with each
employee.
c. Hold a feedback session individually with each employee in the conference room.
d. Hold a feedback session individually with each employee in her office.
75. Johan feels that employees were very tense and uncomfortable during the appraisal
feedback sessions, and wants to reduce tension for the next year’s appraisals. What
should Johan do to achieve this?
a. Remind employees that pay raises are linked to good performance appraisals.
b. Regularly remind employees about missed goals.
c. Increase the rate of formal appraisals to twice a year.
d. Give more frequent informal feedback.
76. Sydney had to give a very negative performance appraisal to one of her newest
employees. If ethical, what should her next move be regarding this employee?
a. If the employee is hurting the work unit, she must dismiss the employee to protect
others.
b. She must give the employee a chance to improve under a specific timeline and goals.
c. She should not try to discipline the employee yet and take a wait-and-see approach.
d. She must praise the good work the employee is doing and hope this elevates overall
performance.
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77. What is of utmost importance that a manager first do when a 360-degree-
performance appraisal process uncovers unethical behavior on the part of the
employee?
a. Send the employee to ethics training.
b. Give the employee a chance to transfer to another department.
c. Investigate the incident to be sure of its nature.
d. Discipline the employee to show that such behavior will not be tolerated.
78. Which of the following is legal when it comes to polygraph testing?
a. determining if an employee lied to manager
b. investigating employee theft
c. evaluating candidates for promotion
d. examining drug usage
79. Which of the following is an example of an action that would occur in the first leg of
the tripartite reconciliation process?
a. The offending employee voluntarily removes him or herself from contact with the
victim.
b. The offending employee apologizes to anyone that was hurt by his or her actions.
c. The offending employee must develop a personal code of ethics.
d. Third parties to the offense must provide individualized feedback to the offender.
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80. According to Robert Enright’s four-phase forgiveness model, when a violated person
begins to focus on the inherent worth of the person who caused the violation, the
______ phase has been initiated.
a. work
b. uncovering
c. decision
d. outcome
True/False
1. When a manager’s position changes and her title changes from “department head” to
“vice president,” she has increased in legitimate power.
2. There is no best leadership style; leadership style needs to fit the type of employee
being managed.
3. Ethical behavior in a manager’s private life is mostly irrelevant to employees’ view of
them as an ethical manager.
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4. If an employee has an ethical leader, it has been shown that she is more likely to
exhibit moral courage.
5. The balanced scorecard approach avoids focus on company financial performance to
escape unethical assessment.
6. A triple bottom line assessment of a for-profit company would be very high if that
company has superior ecological performance but low financial performance.
7. Employee performance appraisals can be linked to merit raises and promotions.
8. 360-degree performance evaluations place much more emphasis on the employee’s
self-assessment than on the feedback of other parties.
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9. In tripartite reconciliation, third parties not directly affected by the violation still
represent a full leg of the process.
10. Ethical leadership means trying not to discipline or fire employees.
Short Answer
1. Describe referent power and give an example.
2. How does being a moral manager differ from being a moral person?
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3. Why do employers implement stretch goals with employees?
4. Why is giving an employee a rating preferred to a ranking?
5. What happens in the decision phase of Robert Enright’s forgiveness model?
Essay
1. Why might a theory Y manager have trouble managing an employee with low
competence and low motivation?
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2. How does servant leadership differ from a basic ethical leadership? What does it
add?
3. Compare the balanced scorecard approach to the triple bottom line approach for
assessing organizational performance.
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4. A new manager, Faiza, has finished her employee performance appraisals and is
about to have her first feedback meeting with an employee who has received a
relatively poor rating. Describe the most ideal way for her to conduct this.
5. How do minor infractions relate to major infractions when determining how to
discipline an employee?