Chapter 6—Performance Management and Appraisal
MULTIPLE CHOICE
1. _____ is a series of activities designed to ensure that the organization gets the performance it needs
from its employees.
a.
Performance management
b.
Performance appraisal
c.
Performance planning
d.
Performance improvement
2. Which of the following is true of performance appraisal?
a.
Performance management is a part of performance appraisal.
b.
Performance appraisal is the process of determining how well employees do their jobs
relative to a standard and communicating that information to them.
c.
Performance appraisal is the same as performance management.
d.
Performance appraisal refers to the entire series of activities designed to ensure that the
organization gets the performance it needs from its employees.
3. Which of the following statements is true of organizations that practice the entitlement approach?
a.
Employee rewards vary little from person to person and are based on individual
performance differences.
b.
Employee rewards vary significantly from person to person and are not much based on
individual performance differences.
c.
Employee rewards vary little from person to person and are not much based on individual
performance differences.
d.
Employee rewards vary significantly from person to person and are based on individual
performance differences.
4. Which of the following is true of organizations that practice a performance-driven approach?
a.
Employee rewards vary significantly from person to person and are not based on
individual performance.
b.
Performance appraisal activities are seen as being primarily a “bureaucratic exercise.”
c.
Employee rewards vary little from person to person and are not based on individual
performance.
d.
Performance evaluations link results to employee compensation and development.
5. Which of the following is trait-based information?
a.
Verbal persuasion
b.
Dispositions
c.
Units produced
d.
Customer satisfaction
6. Which of the following is behavior-based information?
a.
Improved quality
b.
Effective communication
c.
Timeliness of response
d.
Cost reduction
7. Which of the following is an example of results-based information?
a.
Teamwork
b.
Initiative
c.
Customer satisfaction
d.
Sales volume
8. Which of the following is true of performance standards?
a.
Only numerical performance standards can be established.
b.
Performance standards should be established while the work is being performed.
c.
Only nonnumerical performance standards can be established.
d.
Performance standards should be established before the work is performed.
9. Which of the following is true of the administrative and developmental roles of performance
appraisals?
a.
The rater plays the role of a judge in an administrative role and plays the role of a coach in
a developmental role.
b.
The rater plays the role of a coach in an administrative role and plays the role of a judge in
a developmental role.
c.
The rater plays the role of a coach in both the administrative role and the developmental
role of performance appraisals.
d.
The rater plays the role of a judge in both the administrative role and the developmental
role of performance appraisals.
10. Which of the following is typically a responsibility of managers in performance appraisals?
a.
Reviewing completed appraisals for consistency
b.
Tracking timely receipt of appraisals
c.
Identifying development areas
d.
Designing and maintaining appraisal systems
11. _____ is the most widely used means of rating employees.
a.
Outsider rating of employees
b.
Self-rating
c.
Peer rating
d.
Supervisory rating of subordinates
12. _____ can help make a manager more responsive toward employees.
a.
Rating of supervisors by subordinates
b.
Self-rating
c.
Peer rating
d.
Rating of subordinates by supervisors
13. _____ is especially useful when supervisors do not have the opportunity to observe each employee’s
performance but other work group members do.
a.
Outsider rating
b.
Self-rating
c.
Peer rating
d.
Employees rating managers
14. Employees working in isolation or possessing unique skills may be particularly suited to _____.
a.
outsider rating
b.
self-rating
c.
peer rating
d.
multisource rating
15. A panel of division managers evaluating a supervisor’s potential for advancement in an organization is
an example of _____.
a.
outsider rating
b.
self-rating
c.
peer rating
d.
multisource rating
16. _____ recognizes that for many jobs, employee performance is multidimensional and crosses
departmental, organizational, and even national boundaries.
a.
Outsider rating
b.
Self-rating
c.
Peer rating
d.
360-degree rating
17. The simplest methods for appraising performance are _____, which require a manager to mark an
employee’s level of performance on a specific form divided into categories of performance.
a.
graphic rating scales
b.
category scaling methods
c.
comparative methods
d.
narrative methods
18. The _____ allows the rater to mark an employee’s performance on a continuum indicating low to high
levels of a particular characteristic.
a.
graphic rating scale
b.
category scaling method
c.
comparative method
d.
narrative method
19. Which of the following belongs to the descriptive category in graphic rating scales?
a.
Decision making
b.
Employee development
c.
Quantity of work
d.
Communication effectiveness
20. Which of the following belongs to the behavioral dimensions in graphic rating scales?
a.
Attendance
b.
Dependability
c.
Quantity of work
d.
Communication effectiveness
21. The use of _____ can cause rater error because the form might not accurately reflect the relative
importance of certain job characteristics, and some factors might need to be added to the ratings for
one employee, while others might need to be dropped.
a.
graphic rating scales
b.
category scaling methods
c.
comparative methods
d.
narrative methods
22. _____ require that managers directly evaluate the performance levels of their employees against one
another, and these evaluations can provide useful information for performance management.
a.
Graphic rating scales
b.
Category scaling methods
c.
Comparative methods
d.
Narrative methods
23.The _____ method lists the individuals being rated from highest to lowest based on their performance
levels and relative contributions.
a.
ranking
b.
critical incident
c.
essay
d.
forced distribution
24. Which of the following is a comparative method of performance appraisals?
a.
Behavioral rating scales
b.
Critical incident
c.
Essay
d.
Forced distribution
25. _____ is a technique for distributing ratings that are generated with any of the other appraisal methods
and comparing the ratings of people in a work group.
a.
Behavioral rating scales
b.
Forced distribution
c.
Essay method
d.
Critical incident
26. If employers do not require a(n) _____, performance appraisal ratings often do not match the normal
distribution of a bell-shaped curve.
a.
ranking method
b.
critical incident
c.
forced distribution
d.
essay method
27. Which of the following is a narrative method of performance appraisals?
a.
Behavioral rating scales
b.
Critical incident
c.
Ranking
d.
Forced distribution
28. In the _____ method, the manager keeps a written record of both highly favorable and unfavorable
actions performed by an employee during the entire rating period.
a.
forced distribution
b.
ranking
c.
essay
d.
critical incident
29. The _____ method requires a manager to write a short write-up describing each employee’s
performance during the rating period.
a.
forced distribution
b.
ranking
c.
essay
d.
critical incident
30. Which of the following is typically the first stage in implementing a guided self-appraisal system using
MBO?
a.
Continuing performance discussions
b.
Development of performance standards
c.
Setting of objectives
d.
Job review and agreement
31. Which of the following is typically the last stage in implementing a guided self-appraisal system using
MBO?
a.
Continuing performance discussions
b.
Development of performance standards
c.
Setting of objectives
d.
Job review and agreement
32. Josh, an HR manager at RoxCom LLC, is responsible for implementing a guided self-appraisal system
using management by objectives in his organization. He has reviewed the job description and the key
activities that constitute the employee’s job. Which of the following is typically the next step for Josh?
a.
Continuing performance discussions
b.
Development of performance standards
c.
Setting of objectives
d.
Implementation of the standards
33. Zara, an HR manager at Fluxin LLC, is responsible for implementing a guided self-appraisal system
using management by objectives in her organization. She has developed specific standards for
performance. Which of the following is typically the next step for Zara?
a.
Continuing performance discussions
b.
Implementation of the performance standards
c.
Setting of objectives
d.
Job review and agreement
34. Luke, an HR manager at Rexi LLC, is responsible for implementing a guided self-appraisal system
using management by objectives in his organization. He has established objectives that are realistically
attainable. Which of the following is typically the next step for Luke?
a.
Continuing performance discussions
b.
Development of performance standards
c.
Determining a satisfactory level of performance
d.
Job review and agreement
35. The _____ occurs when a rater gives greater weight to the latest events when appraising an
individual’s performance.
a.
leniency error
b.
recency effect
c.
primacy effect
d.
central tendency error
36. The _____ occurs when a rater gives greater weight to information received first when appraising an
individual’s performance.
a.
leniency error
b.
recency effect
c.
primacy effect
d.
central tendency error
37. The _____ occurs when a rater gives all employees an average rating.
a.
leniency error
b.
recency effect
c.
primacy effect
d.
central tendency error
38. The _____ occurs when ratings of all employees fall at the high end of the scale.
a.
leniency error
b.
recency effect
c.
primacy effect
d.
central tendency error
39. The _____ occurs when a manager uses only the lower part of the scale to rate employees.
a.
leniency error
b.
recency effect
c.
primacy effect
d.
strictness error
40. The _____ occurs when a rater scores an employee high on all job criteria because of performance in
one area.
a.
halo effect
b.
horns effect
c.
contrast error
d.
similar-to-me error
41. The _____ occurs when a low rating on one characteristic leads to an overall low rating.
a.
halo effect
b.
horns effect
c.
contrast error
d.
similar-to-me error
42. The _____ is the tendency to rate people relative to one another rather than against performance
standards.
a.
halo effect
b.
horns effect
c.
contrast error
d.
similar-to-me error
43. If the rater has seen only a small specimen of the person’s work, an appraisal may be subject to _____.
a.
halo effect
b.
horns effect
c.
contrast error
d.
sampling error
44. Which of the following is true of appraisal interviews?
a.
Managers must communicate both praise and constructive criticism.
b.
Managers must communicate only praise and not constructive criticism.
c.
Managers must communicate only constructive criticism and not praise.
d.
Managers must not communicate praise or constructive criticism.
TRUE/FALSE
1. The performance management process starts by identifying the strategic goals an organization needs to
accomplish to remain competitive and profitable.
2. Performance appraisal is the entire series of activities designed to ensure that the organization gets the
performance it needs from its employees.
3. In the performance-driven organizational culture, employee rewards vary little from person to person
and are not much based on individual performance differences.
4. The entitlement approach of organizational culture links performance evaluations to employee
compensation and development.
5. Employee attitude is classified as trait-based information.
6. Menu up-selling by a waitperson is classified as behavior-based information.
7. The number of cars sold by a car salesman is classified as a subjective measure of performance.
8. Both numerical and nonnumerical performance standards can be established.
10. The administrative role of performance appraisals often creates stress for managers doing the
appraisals and the employees being evaluated because the rater is placed in the role of judge.
11. The developmental function of performance appraisals can identify areas in which the employee might
wish to grow.
12. An informal appraisal is used when a system is in place to report managerial impressions and
observations on employee performance and feature a regular time interval.
13. Peer and team ratings are especially useful only when supervisors have the opportunity to observe each
employee’s performance.
14. A disadvantage of the outsider rating approach is that outsiders may not know the important demands
within the work group or organization.
15. The major purpose of 360-degree feedback is to increase uniformity by soliciting like-minded views.
16. One concern of multisource rating is that those peers who rate poor-performing coworkers tend to
inflate the ratings so that the peers themselves can get higher overall evaluation results in return.
17. Companies must only use multisource feedback primarily as an administrative tool.
18. The category scaling method allows the rater to mark an employee’s performance on a continuum
indicating low to high levels of a particular characteristic.
19. When creating a BARS system, identifying important job dimensions, which are the most important
performance factors in a job description, is done first.
20. With the ranking method, the ratings of employees’ performance are distributed along a bell-shaped
curve.
21. The forced distribution method lists the individuals being rated from highest to lowest based on their
performance levels and relative contributions.
22. In the critical incident method, the manager keeps a written record of both highly favorable and
unfavorable actions performed by an employee during the entire rating period.
23. Development of performance standards is typically the first stage of management by objectives.
24. The recency effect occurs when a rater gives greater weight to information received first when
appraising an individual’s performance.
25. The leniency error occurs when ratings of all employees fall at the high end of the scale.