42) The ________ problem occurs when supervisors tend to rate all their subordinates
consistently low.
A) central tendency
B) leniency
C) strictness
D) halo effect
43) The best method for reducing the problems of leniency or strictness in performance
appraisals is to ________.
A) keep critical incident logs
B) require multiple appraisals
C) impose a performance distribution
D) reconsider the timing of the appraisal
44) Which of the following has most likely occurred when a supervisor conducting a
performance appraisal is influenced by a subordinate’s individual differences such as age, sex,
and race?
A) bias
B) halo affect
C) central tendency
D) unclear standards
45) Which of the following is LEAST likely to cause a supervisor’s performance appraisal of a
subordinate to be biased?
A) purpose of the appraisal
B) location and time of the appraisal
C) personal characteristics of the subordinate
D) relationship between supervisor and subordinate
46) All of the following guidelines will most likely improve the effectiveness of a performance
appraisal EXCEPT ________.
A) maintaining a diary of employees’ performance during the year
B) using a graphic rating scale to ensure fair and consistent ratings
C) knowing the advantages and disadvantages of different appraisal tools
D) developing a plan to assist employees with performance improvement
47) Stephanie manages the accounting department at an advertising agency. She needs to
conduct performance appraisals for the eight employees in her department. Stephanie wants a
performance appraisal tool that is highly accurate, ranks employees, and uses critical incidents to
help explain ratings to appraisees. Which performance appraisal tool is best suited for Stephanie?
A) graphic rating scale
B) alternation ranking method
C) critical incident method
D) behaviorally anchored rating scale
48) Which of the following is the primary advantage of using graphic rating scales as
performance appraisal tools?
A) eliminates central tendency errors
B) offers extremely high rate of accuracy
C) provides quantitative rating for each employee
D) links with mutually agreed upon performance objectives
49) All of the following are considered best practices for administering fair performance
appraisals EXCEPT ________.
A) explaining how subordinates can improve their performance
B) basing the appraisal on observable job behaviors
C) using subjective performance data for appraisals
D) training supervisors how to conduct appraisals
50) Which of the following would most likely result in a legally questionable appraisal process?
A) basing appraisals on subjective supervisory observations
B) administering and scoring appraisals in a standardized fashion
C) using job performance dimensions that are too clearly defined
D) assigning specific trait names when using graphic rating scales
51) Who is in the best position to observe and evaluate an employee’s performance for the
purposes of a performance appraisal?
A) customers
B) rating committees
C) top management
D) immediate supervisor
52) Employee performance appraisals are conducted by all of the following EXCEPT ________.
A) peers
B) competitors
C) subordinates
D) rating committees
53) Peer appraisals have been shown to result in a(n) ________.
A) reduction of social loafing
B) reduction of group cohesion
C) decrease in task motivation
D) decrease in group satisfaction
54) In most firms, a rating committee used for performance appraisals consists of ________
members.
A) 1-2
B) 3-4
C) 5-6
D) 7-8
55) What usually occurs when employees rate themselves for performance appraisals?
A) Ratings are reliable but invalid.
B) Ratings are subject to halo effects.
C) Ratings are higher than when provided by supervisors.
D) Ratings are about the same as when determined by peers.
56) Which of the following terms refers to the process of allowing subordinates to rate their
supervisor’s performance anonymously?
A) supplemental evaluation
B) upward feedback
C) paired evaluation
D) peer evaluation
57) According to research, what is the typical result of upward feedback?
A) Firms are protected against biased appraisals.
B) Organizational strategies are quickly implemented.
C) Supervisors make changes to their management styles.
D) Critical incidents are documented and ranked by top managers.
58) Which of the following terms refers to a performance appraisal based on surveys from peers,
supervisors, subordinates, and customers?
A) 360-degree feedback
B) team appraisals
C) upward feedback
D) rating committee
59) Which of the following best describes the purpose of an appraisal interview?
A) training supervisors in the rating process
B) identifying potential interpersonal problems
C) making plans to correct employee weaknesses
D) discussing and scheduling training programs
60) You are conducting an appraisal interview with an employee whose performance is
satisfactory but for whom promotion is not possible. Which incentive listed below would most
likely be the LEAST effective option for maintaining satisfactory performance in this situation?
A) time off
B) small bonus
C) recognition
D) professional development
61) When conducting an appraisal interview, supervisors should do all of the following EXCEPT
________.
A) ask open-ended questions
B) give specific examples of poor performance
C) write up an action plan with goals and dates
D) compare the person’s performance to that of other employees
62) When a supervisor must criticize a subordinate in an appraisal interview, it is most important
for the supervisor to ________.
A) limit negative feedback to once every year
B) provide specific examples of critical incidents
C) acknowledge the supervisor’s personal biases in the situation
D) hold the meeting with other people who can document the situation
63) When an employee’s performance is so poor that a written warning is required, the warning
should ________.
A) identify the standards by which the employee is judged
B) provide examples of employees who met the standards
C) provide examples of times when the employee met the standards
D) be written by a labor law attorney in accordance with federal guidelines
64) The continuous process of identifying, measuring, and developing the performance of
individuals and teams and aligning their performance with the organization’s goals is known as
________.
A) strategic management
B) performance analysis
C) performance appraisal
D) performance management
65) Which component of performance management refers to communicating a firm’s higher-
level goals throughout the organization and then translating them into departmental and
individual goals?
A) goal alignment
B) performance monitoring
C) direction sharing
D) developmental support
66) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The
firm has nearly 80,000 employees in 22 countries. Employees receive annual performance
appraisals from their supervisors that combine critical incidents with a graphic rating scale.
However, the firm’s CEO advocates shifting from performance appraisals to performance
management in an attempt to make Oshman more competitive and performance driven.
Which of the following, if true, best supports the argument to replace Oshman’s traditional
appraisal methods with the performance management approach?
A) Oshman’s competitors in the small appliance industry monitor the performance of their
employees through electronic performance monitoring systems.
B) Oshman executives want to align the firm’s strategic plan with individual employee goals and
development needs.
C) Oshman has experienced problems associated with central tendency and bias, and the firm
wants to ensure that appraisals are legally sound.
D) Oshman uses management by objectives as a primary appraisal method and requires
supervisors to develop SMART goals.
67) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The
firm has nearly 80,000 employees in 22 countries. Employees receive annual performance
appraisals from their supervisors that combine critical incidents with a graphic rating scale.
However, the firm’s CEO advocates shifting from performance appraisals to performance
management in an attempt to make Oshman more competitive and performance driven.
All of the following questions are relevant to Oshman’s decision to replace its traditional
appraisal methods with the performance management approach EXCEPT ________.
A) What technology is available to help managers gain immediate access to employee
performance data?
B) How would work procedures need to be modified to provide more frequent feedback to
employees?
C) How would the firm’s mission and vision translate into departmental, team, and individual
goals?
D) What procedures are already in place to effectively identify and measure critical incidents?
68) Which term refers to ranking of employees from best to worst on a trait or traits choosing
highest than lowest until all are ranked?
A) performance management
B) paired comparison
C) alternative ranking
D) direction sharing
69) A supervisor working for a firm that uses performance management should most likely
expect to ________.
A) conduct annual performance appraisals
B) compare team goals to industry standards
C) re-evaluate how employees accomplish tasks
D) use paper forms to handle performance appraisals
70) Which of the following best depicts how information technology supports performance
management?
A) tracking team performance with digital dashboards
B) conducting employee training through WebEx software
C) filing benefits information through the company intranet
D) monitoring market performance with electronic scorecards
71) A performance appraisal is based on the assumption that an employee understood what his or
her performance standards were prior to the appraisal.
72) Supervisors should provide employees with feedback, development, and incentives necessary
to help employees eliminate performance deficiencies or to continue to perform well.
73) Job descriptions serve as the primary tool for developing performance standards because
they already include specific job goals.