Chapter 9—Conducting Performance Management
MULTIPLE CHOICE
1. In the chapter opening vignette “Managing Human Resources at Frito–Lay”, the performance criteria
initially used to measure the success of route sales representatives were solely:
a.
input-based
b.
trait-based
c.
results-based
d.
behavioral-based
e.
environmental-based
2. In the chapter opening vignette “Managing Human Resources at Frito–Lay”, dissatisfaction with the
sales performance criteria initially used to measure the success of route sales representatives lead to
the restructuring of the criteria to include:
a.
input-based measures
b.
trait-based measures
c.
results-based measures
d.
behavioral-based measures
e.
multiple criteria measures
3. The detrimental effect of ineffective performance management practices that is of the least concern to
organizations is:
a.
decreased employee morale
b.
decreased employee productivity
c.
decreased employee turnover
d.
inability to achieve strategic objectives
e.
negative impact on financial performance
4. Performance management is used to do all of the following EXCEPT:
a.
to evaluate employees
b.
to motivate employees
c.
to measure employees’ performance
d.
to direct employees’ behaviors
e.
all of the above are uses of performance management
5. Which of the following is NOT a negative consequence of ineffective performance?
a.
low morale
b.
high turnover
c.
poor financial performance
d.
increased competition
e.
all of the above
6. Motivation consists of two elements. The first is the decision about which behaviors to engage in and
the second element is the decision about:
a.
which behaviors to not engage in
b.
how much status the behavior will bring you
c.
what you will gain from this behavior
d.
how much effort to expend on this behavior
e.
will your supervisor be aware of this behavior
7. According to expectancy theory, people tend to choose behaviors that they believe will help them
achieve their personal goals and avoid behaviors that they believe will lead to undesirable
consequences. Bill does not call in to report that he will be absent. This will result in an unexcused
absence that will lead to disciplinary action. Bill has had unexcused absences in the past for which he
has been disciplined. How is this action explained by this theory?
a.
Bill does not understand the instrumentality of his behavior for the negative consequence
b.
To Bill, the discipline he will incur does not have enough negative valence to offset the
positive valence of not calling in.
c.
Expectancy theory only explains positive behaviors, not negative behaviors.
d.
Bill doesn’t understand the expectancy built into the situation.
e.
Bill has an inability to process feedback.
8. Factors that influence employee motivation include all of following except
a.
performance expectations and goals
b.
performance of independent others
c.
employee confidence and competencies
d.
the KSA’s of the supervisor
e.
ongoing feedback
9. When an employee asks “What consequences will follow from my decision to perform?” they are
considering the _____ of their action.
a.
expectancy
b.
instrumentality
c.
valence
d.
outcome
e.
satisfaction
10. Good goals are:
a.
easy to achieve
b.
challenging
c.
subjective
d.
flexible
e.
independent of strategy
11. Armando has been working hard to earn a promotion. But when the promotion was posted, Armando’s
name was not on it. The promotion was awarded to Bill, an employee who was widely thought to be
the supervisor’s favorite. What impact will not getting the promotion likely have on Armando’s
performance?
a.
Armando may feel that performance has little instrumentality for meeting his goals.
b.
Armando might cut back on his work hours and effort.
c.
Armando may feel the organization is treating him unfairly.
d.
All of these might be impacts.
e.
None of these is an impact.
12. The performance of interdependent others:
a.
affects motivation and the relationship between motivation and performance
b.
may cause other highly motivated coworkers to perform poorly if their performance is
poor
c.
may cause a decrease in the motivation of dependent individuals
d.
all of the above are correct
e.
none of the above are correct
13. _______________ as a group reported the highest percentage of having their individual goals aligned
with corporate goals.
a.
Senior-level managers
b.
Middle managers
c.
Nonmanagers
d.
HR staff
e.
none of the above are correct
14. Monitoring the performance of employees at lower levels in the organization can be useful in:
a.
detecting organizational shortcomings
b.
identifying a deficiency in training
c.
uncovering poor recruitment and selection practices
d.
revamping a poorly designed incentive program
e.
all the above
15. To be effective, performance management activities should be aligned with:
a.
the organization’s internal environment
b.
the organization’s external environment
c.
other HR activities
d.
all of the above
e.
a and c only
16. Performance-driven cultures:
a.
have performance measurement and feedback as central elements of the HRM system
b.
focus on monitoring and improving performance
c.
often reflect the philosophies of the company’s CEO and/or founder
d.
often reward only the highest performing employees
e.
all of the above are correct
17. In the feature Managing with Metrics: Setpoint’s Public Performance, the culture of the company’s
performance-driven culture is reflected in all of the following EXCEPT:
a.
its incorporation of performance measurement and feedback as central elements of its
HRM system
b.
its focus on monitoring and improving performance
c.
the philosophies of the company’s CEO and/or founder
d.
its rewarding only the highest performing individuals
e.
all of the above are correct
18. Claudette has chronic pain syndrome. The paint causes her to have a contorted facial expression that
disturbs to some of her co-workers who are secretly avoiding working with her. Claudette is an
average performer. Oscar, one of the best performing workers, is particularly upset by Claudette’s
expressions, and he told you (his manager) that he intends to quit unless you discharge Claudette.
Claudette can be easily replaced. Oscar cannot. What is your response?
a.
Restructure Claudette’s performance standards to include a “pleasant facial expression.”
b.
Discharge Claudette because it is unfair to hinder the performance of the department.
c.
Document any performance problems caused by employee unwillingness to work with
Claudette. Once these performance problems have reached a certain level, you can make
the decision whether to keep or to discharge Claudette.
d.
Claudette’s facial expression is not a job-related performance issue for which you can
discharge her.
e.
All of the above are legal options.
19. If the performance appraisal for a sales representative does not measure the skill and care he uses in
providing follow-up service to his employees, the appraisal would be correctly described as:
a.
contaminated
b.
inadequate
c.
tainted
d.
flawed
e.
deficient
20. If the performance appraisal for a sales representative evaluated her skill as a driver as well as her
selling skills, the appraisal could be correctly described as:
a.
contaminated
b.
flawed
c.
faulty
d.
defective
e.
deficient
21. Which of the following guidelines should be used for creating legally defensible performance
appraisals?
a.
Employees should be given an opportunity to review their appraisals.
b.
Objective and uncontaminated data should be used whenever possible.
c.
Employees should be evaluated on specific work dimensions rather than a single global
measure.
d.
A formal system of appeal should be available for appraisal disagreements.
e.
All of the above guidelines should be used if the organization wants a legally defensible
performance evaluation system.
22. Which of the following does NOT describe a legally defensible comment for employee evaluation and
feedback?
a.
“I gave you a ‘Below Average’ on your performance appraisal because you have a bad
attitude.”
b.
“You missed three days last quarter, but you produced at 110% of your goal with an
acceptable proportion of nonconforming units.
c.
“As you know, it has been 12 months since your last appraisal.”
d.
“If you do not agree with this appraisal, do you understand the procedures for appeal?”
e.
All of these are legally defensible.
23. Because performance management occurs through interpersonal interactions, it naturally reflects
differences in country cultures. In ____ and _____ , employees expect their supervisors to negotiate
with them when setting performance goals.
a.
China, Turkey
b.
Denmark, Finland
c.
Germany, Sweden
d.
Japan, India
e.
Australia, Ireland
24. ___________ was the HR activity reported by managers as being the most tightly or somewhat
integrated with their firms’ performance management activities.
a.
Career planning
b.
Compensation
c.
Recruiting
d.
Succession planning
e.
Training/development
25. When performance management is tightly integrated with other HR activities to improve workforce
competencies, attitudes and motivation, _________is present in the organization.
a.
strategic human resource management (SHRM)
b.
goal-ordinated human resource management (GoHRM)
c.
a performance-redaction of human resources (PROHR)
d.
a high-performance work system (HPWS)
e.
the aligned training and development process (ATDP)
26. Organizations are not always successful in using performance management strategically, and one
reason is that ____________.
a.
most HR managers believe that performance problems are purely a line manager issue
b.
line employees resist performance measurement and feedback
c.
most HR managers want total control of the performance measurement and feedback
process
d.
most HR managers have no incentive for conducting performance measurement and
feedback
e.
line managers do not fully understand and appreciate the basic principles
27. One of the most common problems in an effective performance measurement and feedback system is
that:
a.
most HR managers believe that performance problems are purely a line manager issue
b.
employees resist performance measurement and feedback
c.
most HR managers want total control of the performance measurement and feedback
process
d.
most line managers have no incentive for conducting performance measurement and
feedback
e.
a reliable, valid and legal performance management system is nearly impossible to design
28. For performance evaluation, which of the following is not a personal trait?
a.
productivity
b.
dependability
c.
intelligence
d.
adaptability
e.
personal energy
29. Which of the following is an example of an organizational citizenship behavior?
a.
Sherman stayed late one night to help a co-worker finish preparing a video presentation
for the company’s stockholders.
b.
Robin’s co-workers gladly gave up a Saturday of their time to help the organization’s
program to clean up a city park.
c.
Tyler volunteered to help with the company’s booth at the trade show even though that
was not part of her job.
d.
The marketing manager cooperated with workers in other departments to develop a
mentoring program.
e.
All of the above are examples of organizational citizenship behaviors.
30. Which of the following is an example of an organizational citizenship behavior?
a.
Andre normally leaves work at five o’clock, but yesterday his boss ordered him to work
until eight o’clock.
b.
The manager at the loading dock was instructed to learn a new computer inventory
program.
c.
An office administrator volunteered to help a sales manager compile an organizational
history.
d.
Six of co-workers went out for hamburgers at noon yesterday to celebrate a birthday.
e.
All of the above are examples of organizational citizenship behaviors.
31. When designing a performance appraisal for a purchasing agent, the HR professional should look at:
a.
the individual’s personal discipline
b.
the individual’s written and oral skills
c.
whether the individual shows organizational citizenship
d.
whether the individual has high sales volume
e.
all of the above
32. The most frequently used form of performance management review is one that is occurs __________.
a.
weekly
b.
monthly
c.
quarterly
d.
bi-annually
e.
annually
33. Michelle works for a large fast-food restaurant chain. Her job is to visit different restaurants in the
chain to rate their speed of service, quality of food, cleanliness of store and restrooms, and properly
displayed promotional materials. From this brief description of Michelle’s job, it appears that the chain
uses _____ criteria in its performance measurements.
a.
input-based
b.
trait-based
c.
results-based
d.
behavioral-based
e.
environmental-based
34. Paul Fisher is an HR professional who is in charge of performance appraisals at his organization.
Performance appraisals are conducted for all of the company’s employees at the end of June each year.
That way employees in different departments can be compared as to how each is supporting the
organizational objectives. He spends most of May getting ready for this:
a.
review interval
b.
focal-point review
c.
fiscal review
d.
human resources audit
e.
annual organizational assessment
35. Which of the following statements about focal-point review systems is true?
a.
In a focal-point review system, each employee is appraised during the month in which he
or she was hired.
b.
Comparisons of individual employees are difficult with a focal-point review.
c.
Focal-point reviews prevent the job of appraising performance from becoming
burdensome.
d.
Focal-point reviews have no effect on productivity cycles.
e.
None of the above statements about focal-point review systems is true.
36. A performance appraisal evaluator who was using the anniversary model would perform evaluations:
a.
at the end of every fiscal year
b.
when specific projects were concluded
c.
according to when employees joined the organization
d.
according to the hierarchical levels of the organization
e.
every time the employee needed reinforcement
37. Sources of performance data for a retail clerk may include:
a.
the employee’s supervisor
b.
the employee herself
c.
the employee’s customers
d.
the employee’s peers
e.
all of the above
38. Which of the following sources of performance data typically provides the most reliable performance
judgments?
a.
the employee herself
b.
the employee’s peers or team members
c.
the employee’s subordinates
d.
the employee’s supervisor
e.
the employee’s customers
39. Upward appraisals occur when:
a.
customers fill out satisfaction forms
b.
a sample of customers are surveyed about employee competence
c.
employees evaluate their managers
d.
individual appraisals are combined to create departmental appraisals
e.
MBO is used
40. The 360-degree appraisal:
a.
looks to see what the employee contributed to the corporate objective(s) each day
b.
is a multiple-source evaluation
c.
is a complete reversal of the typical evaluation in that it allows employees to evaluate their
supervisors
d.
produces less valid results than the focal-point review
e.
is a single-source evaluation
41. In preparing the performance appraisals for her employees, the sales manager ranked Deb Ross as the
overall best salesperson because she had the highest level of sales and Dave Autry as the overall worst
salesperson because he had the lowest level of sales. The other salespeople were placed in order of
their sales between Ross and Autry. Which type of performance appraisal format is being used in this
example?
a.
forced distribution
b.
graphics rating scale
c.
absolute standard
d.
straight ranking
e.
direct index approach
42. Straight-ranking and forced distribution are two types of:
a.
norm-referenced appraisals
b.
out-based formats for appraisals
c.
absolute standard formats used for appraisals
d.
input-based rating formats
e.
subordinate-determined appraisals
43. A sales manager who was trying to rank fourteen salespeople was having trouble because two of her
salespeople had more than $100,000 in sales, three had less than $30,000 in sales, and the rest fell in
the middle. What method would you recommend the sales manager use if she wants to use a
norm-referenced appraisal?
a.
forced distribution
b.
graphics rating scale
c.
absolute standard
d.
behaviorally anchored rating scale
e.
direct index approach
44. The graphics rating scale:
a.
uses a norm-referenced format
b.
was developed in the early 1990s
c.
does not use direct output measures
d.
is very complex and is, therefore, difficult to implement
e.
is accurately described by all of the above
45. The primary advantage of the graphics rating scale is:
a.
the logical way in which it uses direct output measures
b.
the way in which the appraisal format removes all subjectivity from the evaluation process
c.
the ease with which it can be used to define employee performance dimensions
d.
its simplicity
e.
none of the above
46. Dissatisfaction with _____ led to the development of the behaviorally anchored rating scales.
a.
straight ranking
b.
forced distribution
c.
management by objectives
d.
output-based formats
e.
graphics rating scales
47. An advantage of behaviorally anchored rating scales over graphic rating scales is that:
a.
they are easier to develop
b.
they provide results that employees can more easily use to improve performance
c.
they are less time consuming to develop
d.
they are applicable to a wider range of positions
e.
All of the above are advantages of behaviorally-anchored rating scales.
48. Behaviorally anchored rating scales:
a.
must be modified as jobs change and performance expectations shift
b.
are time-consuming to develop
c.
provide employees with results they can use to improve their performances
d.
are based on behavioral incidents
e.
are accurately described by all of the above
49. Behavioral observation scales:
a.
measure how frequently employees engage in certain behaviors
b.
are a norm-referenced appraisal format
c.
require little time for completion of an appraisal using this format
d.
require less training for the rater than most other methods of appraisal
e.
are accurately described by all of the above
50. The direct index approach to performance appraisals is a results based-format that:
a.
uses subjective criteria such as turnover and absenteeism
b.
provides clear, unambiguous direction to employees regarding desired job outcomes
c.
uses an absolute standard format
d.
uses a norm-referenced format
e.
is more often adversely affected by rater bias than other performance appraisal methods
51. Results-based formats for performance measurement:
a.
work best for employees that perform different tasks on a daily basis like a lawyer or an
engineer
b.
are basically problem-free
c.
can ignore important job behaviors that are difficult to quantify
d.
are typically used by companies where how a task is accomplished is as important as if it
is accomplished
e.
are accurately described by all of the above
52. What type of measures would not be used if a rater were using a direct index approach to evaluating
the work of a delivery truck driver?
a.
the average number of deliveries made in a single day
b.
the number of complaints about late deliveries
c.
the average time spent in delivering a package from the company to the customer
d.
the driver’s friendliness
e.
the number of days the driver was late getting to work
53. Management by objectives (MBO)
a.
is a norm-referenced format for performance appraisals
b.
uses an absolute standard against which each employee is rated
c.
begins with the establishment of employee objectives for the upcoming performance
period
d.
is an input-based format for performance appraisals
e.
produces immediate increases in productivity for every company that has implemented the
system
54. Which of the following statements about management by objectives (MBO) is true?
a.
MBO will not succeed without the total commitment of management to the process.
b.
MBO requires subordinates to set their own goals as part of their growth and development.
c.
MBO begins with the establishment of employee objectives for the upcoming performance
period.
d.
Even under the best of circumstances, MBO does not lead to immediate increases in
productivity.
e.
All of the above statements about management by objectives (MBO) are true.
55. Assume a rater thinks all blondes are dumb. When rating a blond female and two other females who
are brunettes, the rater scored the blond lower on her performance evaluations even though her results
were the same as the other two. This sort of stereotype-induced bias produces a rating error called the:
a.
halo and horn
b.
strictness
c.
primacy
d.
recency
e.
leniency
56. When asked by her instructor to rate her fellow group members according to their performance in a
class project, Kirsten gave them all a grade of 75 even though it was obvious that some had worked
harder on the product than others. Kirsten was guilty of which of the following rating errors?
a.
horn and halo
b.
recency
c.
central tendency
d.
primacy
e.
leniency
57. During his first weeks on the job, Rick had a lot of trouble getting adjusted to his new position as
maintenance engineer for an amusement park. He made quite a few small mistakes while learning how
to perform his job. After three months on the job, Rick settled down and proved to be an excellent
maintenance engineer. However, Rick’s supervisor categorized Rick as a poor worker during those first
months on the job. The supervisor does not notice anything positive about Rick’s performance; he is
always looking for something wrong in the way Rick has performed his job. It was with this mindset
that the supervisor filled out Rick’s performance appraisal. The supervisor committed which of the
following rating errors?
a.
central tendency
b.
strictness
c.
halo and horn
d.
primacy
e.
recency
58. “Shows company spirit” is a _____ item on a performance rating scale because it is _____.
a.
good, a behavior
b.
good, it is objective
c.
bad, it involves multiple activities
d.
bad, it is ambiguous
e.
good, it is resistant to rater errors
59. Bill thinks that he received a poor evaluation because his boss “has it in for him.” What is an
appropriate response to remove this as an obstacle to effective appraisal?
a.
Throw out that evaluation and have someone else perform it.
b.
Initiate multiple rater system to minimize this possible negative effect.
c.
Train Bill’s supervisor in rating techniques.
d.
Bill is paranoid. Send him to the E.A.P.
e.
If Bill doesn’t trust his supervisor, then an effective performance appraisal is not possible.
60. Which of the following is NOT a source of conflict associated with performance feedback?
a.
differing perspectives
b.
timing
c.
preparation
d.
content of the discussion
e.
third-party intervention
61. Which of the following statements about the timing of feedback for performance appraisals is true?
a.
Performance expectations should be established at the beginning of the appraisal period
and then reinforced with feedback.
b.
In general, immediate feedback is not necessary.
c.
Provide as much information as available when giving feedback-more is better.
d.
Continuous feedback is not as effective as intermittent feedback.
e.
There are no clear-cut rules on the timing of feedback.
62. The objective of diagnosis in the feedback session is to understand factors that affect an employee’s
performance so the parties can attempt to resolve them. Which of the following is NOT a question to
ask in the diagnosis process?
a.
Were the goals specific and communicated to the employee?
b.
Does performing as desired matter to the employee?
c.
Does performing as expected result in some negative consequence for the employee?
d.
Are there positive consequences for performing as required?
e.
All of these questions are useful
63. In order to use positive reinforcement correctly, an HR professional should:
a.
reward everyone the same way
b.
focus on job behavior
c.
allow employees to determine what must be done in order to earn rewards
d.
make sure everyone sees what happens when a co-worker is punished for some
undesirable behavior
e.
not tell employees what they are doing wrong
64. Punishment:
a.
is used to decrease the frequency of undesirable behavior
b.
has no undesirable side effects
c.
includes cuts in pay, demotion, and coaching
d.
should not be used if the organization wants to achieve immediate results
e.
is accurately described by all of the above
65. If after repeated warnings and counseling, an employee’s performance does not improve, the
organization can:
a.
transfer the individual to another job
b.
temporarily structure a job in such a way that the employee only performs noncritical tasks
c.
terminate the employee
d.
neutralize the employee
e.
do all of the above
TRUE/FALSE
1. Performance management is an informal, unstructured process used to measure, evaluate and influence
an employee’s job related attributes, behaviors, and performance results.
2. According to expectancy theory, people tend to choose behaviors that they believe will help them
achieve their personal goals and avoid behaviors that they believe will lead to undesirable
consequences.
3. The instrumentality question is “How much do I value the consequences associated with the intended
behavior?”
4. Expectancy suggests that an employee’s satisfaction is determined by perceptions of whether the
rewards received for performance are fair.
5. Performance-driven cultures often reflect the philosophies of the company’s founder.
6. The culture at Dell, Inc. is driven by the philosophies of its founder, Michael Dell.
7. One reason performance appraisals fall short of achieving strategic objectives is the ambiguity around
who owns responsibility for managing the performance management process.
8. In a focal-point review system, all employees are evaluated at approximately the same time.
9. Research has found that self-appraisals are most effective with culturally diverse employees.
10. As organizations restructure around teams, peer involvement in performance management is shifting
from supervisors to team members.
SHORT ANSWER
1. How would you describe a performance appraisal that does not measure job behaviors that are relevant
to the job and does measure job behaviors that are not relevant to the job?
2. List the three types of performance criteria.
3. What is another name for contextual performance?
4. List the sources of performance data for a retail store manager.
5. Of all the possible sources for performance judgments, why is the supervisor the best source for such
information?
6. Who is the evaluator in an upward appraisal?
7. List the two most common types of norm-referenced performance appraisals.
8. What is the primary advantage that the graphics rating scale has over other performance appraisal
formats?
9. What are the primary criteria for performance appraisals with a results-based format?
NAT: AACSB: Analytic | AACSB: HRM TOP: How to Measure
ESSAY
1. Why would an organization decide to use focal-point reviews instead of the less burdensome
anniversary model for performance appraisals?
2. Describe the attributes that goals should have in an MBO system.
3. Discuss neutralization as a means of dealing with an employee whose performance does not improve
after repeated warnings and counseling.