Fundamentals of Human Resource Management, 5e (Dessler)
Chapter 8 Performance and Talent Management
1) The process of evaluating an employee’s current and/or past performance relative to his or her
performance standards is called ________.
A) recruitment
B) employee selection
C) performance appraisal
D) organizational development
2) Which of the following is NOT one of the recommended guidelines for setting effective
employee goals?
A) assigning specific goals
B) assigning measurable goals
C) administering consequences for poor performance
D) encouraging employees to participate in setting goals
3) SMART goals are best described as ________.
A) specific, measurable, attainable, relevant, and timely
B) strategic, moderate, achievable, relevant, and timely
C) specific, measurable, achievable, relevant, and tested
D) straightforward, meaningful, accessible, real, and tested
4) All of the following are reasons for appraising an employee’s performance EXCEPT
________.
A) assisting with career planning
B) making decisions about promotions
C) creating an organizational strategy map
D) determining appropriate salary and bonuses
5) In most organizations, which of the following is primarily responsible for appraising an
employee’s performance?
A) employee’s direct supervisor
B) human resources manager
C) EEO representative
D) employee’s peers
6) Which of the following is LEAST likely to be used by firms as an alternative source of
performance appraisal information?
A) peers
B) rating committees
C) the employee
D) outside experts
7) Peer appraisals have been shown to result in a ________.
A) reduction of social loafing
B) reduction of group cohesion
C) decrease in satisfaction with the group
D) tendency to inaccurately predict promotions
8) At Dixon Consulting, employees are allowed to rate themselves for performance appraisals.
Which of the following is the most likely result?
A) Interrater reliability is higher.
B) Appraisals are subject to halo effects.
C) Ratings are higher than when supervisors give ratings.
D) Ratings are about the same as when determined by peers.
9) At M&M Enterprises, subordinates rate supervisor performances anonymously. Which of the
following refers to the process used at M&M?
A) downward feedback
B) upward feedback
C) paired evaluation
D) peer evaluation
10) Upward feedback primarily helps top-level managers to ________.
A) implement organizational strategies
B) compare appraisal techniques
C) diagnose management styles
D) document critical incidents
11) When subordinates provide feedback for supervisors, the comments should be anonymous
because identifiable responses tend to result in a higher incidence of ________.
A) critical responses
B) negative attitudes
C) inflated ratings
D) contradictory statements
12) Which of the following terms refers to a performance appraisal based on surveys from peers,
supervisors, subordinates, and customers?
A) committee rating
B) team appraisal
C) upward feedback
D) 360-degree feedback
13) Which of the following is LEAST likely to occur during a performance appraisal?
A) setting work standards
B) providing employee feedback
C) initiating job enlargement procedures
D) comparing employee performance to standards
14) Setting work standards, assessing an employee’s performance against those standards, and
providing employee feedback are the three steps of the ________.
A) orientation process
B) development analysis
C) ratio analysis method
D) performance appraisal cycle
15) In order to be the most effective, the performance management process should occur
________.
A) occasionally
B) continuously
C) periodically
D) annually
16) Laurie received a performance appraisal from her immediate supervisor and three other
supervisors at MJX Enterprises. Which of the following performance appraisal methods is most
likely used by MJX Enterprises?
A) rating committee
B) peer appraisal
C) 360-degree feedback
D) self-rating
17) Which term refers to the continuous process of identifying, measuring, and developing the
performance of individuals and teams and aligning their performance with the organization’s
goals?
A) organizational development
B) performance management
C) strategic management
D) performance appraisal
18) According to the text, Ball Corporation improved production by ________.
A) assigning work teams daily performance goals
B) giving applicants valid selection tests
C) encouraging employee referrals
D) using online training programs
19) What is a benefit of using rating committees for performance appraisals?
A) improve managerial performance
B) rank employees on a scale
C) minimize rater bias
D) align assessments
20) Crowd-sourcing recognition and appraisal software tools enable employers to gather
comments from ________ for employee performance appraisals.
A) supervisors
B) co-workers
C) suppliers
D) customers
21) In order to ensure that performance goals are challenging and relevant, Matthew, a marketing
manager, should independently set goals for his subordinates because participatively set goals
usually produce lower job performance.
22) 360-degree feedback is usually used for developmental purposes rather than pay purposes.
23) Studies suggest that managers who receive upward feedback from identified subordinates
view the upward appraisal process more negatively than do managers who receive anonymous
upward feedback.
24) What is the purpose of performance appraisals? Who do you think should conduct
performance appraisals? Why?
25) What are the advantages and disadvantages of using upward feedback?
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?
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?
28) What guidelines should supervisors follow to hold effective and legally defensible
appraisals? How can rating committees improve the fairness of the appraisal process?
29) What is the main difference between a performance appraisal and performance management?
30) All of the following are ways to improve 360-degree appraisals EXCEPT by ________.
A) making sure the feedback is unbiased.
B) training the people giving and receiving feedback
C) using a Web-based system to reduce costs
D) encouraging informal ratings
31) Which performance appraisal technique lists job dimensions and a range of performance for
each?
A) alternation ranking
B) graphic rating scale
C) paired comparison
D) constant sum rating scale
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.
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
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
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
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(n) ________ method.
A) graphic rating scale
B) constant sum ranking scale
C) forced distribution
D) alternation ranking
37) Which of the following is one of the primary complaints regarding the use of the forced
distribution method for performance appraisals?
A) counterproductive in the long term
B) high cost of administration
C) standardization of group sizes
D) time consuming to administer
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
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
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
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.
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
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
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.
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
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
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