Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 1
1. _____ is a series of activities designed to align and improve individual performance to drive organizational results.
a.
Performance management
b.
Organizational performance
c.
Organizational behavior
d.
Performance modelling
ANSWER:
a
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 provides a link between employee performance and power distance.
d.
Performance appraisal refers to the entire series of activities designed to ensure that the organization gets the
performance it needs from its employees.
ANSWER:
b
3. Which of the following statements is true of organizations that practice the entitlement approach?
a.
Employee rewards are determined only on the basis of employee performance.
b.
Employee rewards vary little from person to person and have little to do with differences in individual
performance.
c.
Employee rewards are determined on the basis of results and contributions made by employees.
d.
Employee rewards vary significantly from person to person because of managers’ biases.
ANSWER:
b
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 not valued by managers and employees and are often viewed as a
bureaucratic exercise.
c.
Employee rewards are standardized irrespective of job duties.
d.
Performance evaluations link results to employee compensation and development.
ANSWER:
d
5. Which of the following is a criticism of a pay-for-performance approach?
a.
It prevents teamwork in the workplace.
b.
It offers equal rewards for all employees.
c.
It fails to establish a clear set of goals for employees.
d.
It discourages individual employee contribution.
ANSWER:
a
6. In the context of performance information, which of the following is an example of trait-based information?
a.
Verbal persuasion
b.
Teamwork
c.
Timeliness of response
d.
Citizenship
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 2
ANSWER:
b
7. In the context of performance information, which of the following is an example of behavior-based information?
a.
Improved quality
b.
Sales volume
c.
Timeliness of response
d.
Cost reduction
ANSWER:
c
8. In the context of performance information, which of the following is an example of results-based information?
a.
Teamwork
b.
Initiative
c.
Customer satisfaction
d.
Sales volume
ANSWER:
d
9. Which of the following is an objective measure of performance?
a.
The total number of washing machines sold by an employee
b.
A supervisor’s rating of an employee’s integrity
c.
An employee’s attitude toward customers
d.
An organization’s perceptions of an employee’s values
ANSWER:
a
10. Which of the following is a subjective measure of performance?
a.
The total number of cars sold by an employee
b.
A supervisor’s rating of an employee’s integrity
c.
The number of hours worked by an employee
d.
The revenue an employee has brought in for the organization
ANSWER:
b
11. Which of the following statements is true of objective and subjective measures of performance appraisals?
a.
Subjective measures can be observed, and objective measures require judgment on the part of the evaluator.
b.
Both subjective and objective measures require judgment on the part of the evaluator and cannot be observed.
c.
Objective measures can be observed, and subjective measures require judgment on the part of the evaluator.
d.
Both subjective and objective measures can be observed and do not require judgment on the part of the
evaluator.
ANSWER:
c
12. Which of the following is true of performance standards?
a.
Performance standards must be based only on qualitative criteria.
b.
Performance standards should be established while the work is being performed.
c.
Performance standards must be based only on quantitative criteria.
d.
Performance standards should be established before the work is performed.
ANSWER:
d
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 3
13. Which of the following is most likely to help retain employees who are in high demand and improve their
performance?
a.
Conducting accelerated appraisals for these employees
b.
Emphasizing informal appraisals over systematic appraisals
c.
Emphasizing the negative aspects of performance during appraisal discussion
d.
Conducting peer evaluations for these employees
ANSWER:
a
14. Which of the following uses of performance appraisals looks within the organization to provide consistency between
individual and organization performance?
a.
An administrative use
b.
A strategic use
c.
A developmental use
d.
A training use
ANSWER:
b
15. When conducting performance appraisals, Steve, an Operations Manager at Pucoy Inc., provides his team members
with feedback about their work and discusses areas of improvement for their future growth in the company. In this
scenario, Steve demonstrates a(n) _____ use of performance appraisal.
a.
administrative
b.
strategic
c.
developmental
d.
associative
ANSWER:
c
16. _____ are the most widely used means of rating employees.
a.
Employee ratings of managers
b.
Self-ratings
c.
Peer ratings
d.
Supervisory ratings of subordinates
ANSWER:
d
17. Which of the following is most likely to make managers more responsive toward employees?
a.
Supervisory ratings of subordinates
b.
Self-rating
c.
Peer rating
d.
Employee ratings of managers
ANSWER:
d
18. _____ is especially useful when supervisors do not have the opportunity to observe each employee’s performance.
a.
Outsider rating
b.
Self-rating
c.
Peer rating
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 4
d.
Employees rating managers
ANSWER:
c
19. Employees working in isolation or possessing unique skills may be particularly suited for _____.
a.
outsider ratings
b.
self-ratings
c.
peer ratings
d.
multisource ratings
ANSWER:
b
20. A panel of division managers evaluating a supervisor’s potential for advancement in the organization is an example of
_____.
a.
outsider ratings
b.
self-ratings
c.
peer ratings
d.
multisource ratings
ANSWER:
a
21. _____ 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
ANSWER:
d
22. In the context of peer ratings, employees are most likely to distinguish between good and poor performers when:
a.
they fear reprisals from their peers.
b.
their peers are not working in the same place.
c.
their peers belong to the same ethnicity.
d.
they establish performance standards based on their own performance.
ANSWER:
b
23. 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.
behavioral rating scale
ANSWER:
a
24. In the context of graphic rating scales, which of the following belongs to the descriptive category?
a.
Decision making
b.
Employee development
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 5
c.
Quantity of work
d.
Communication effectiveness
ANSWER:
c
25. In the context of graphic rating scales, which of the following is a behavioral dimension?
a.
Attendance
b.
Dependability
c.
Quantity of work
d.
Communication effectiveness
ANSWER:
d
26. The use of _____ can cause rater error because it might not accurately reflect the relative importance of certain job
characteristics.
a.
graphic rating scales
b.
critical incident methods
c.
comparative methods
d.
essay methods
ANSWER:
a
27. _____ require managers to differentiate the performance levels of their employees using techniques such as ranking
and forced distribution.
a.
Graphic rating scales
b.
Category scaling methods
c.
Comparative methods
d.
Narrative methods
ANSWER:
c
28. Which of the following is a comparative method of performance appraisals?
a.
The graphic rating scale
b.
The critical incident method
c.
The essay method
d.
The forced distribution method
ANSWER:
d
29. 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
ANSWER:
a
30. _____ 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.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 6
a.
Behavioral rating scales
b.
Forced distribution
c.
Peer distribution
d.
Critical incident
ANSWER:
b
31. Which of the following is a disadvantage of using comparative methods for performance appraisal?
a.
The performance of employees working in the same jobs cannot be measured using comparative methods.
b.
These methods fail to help managers identify good and poor performers within their teams.
c.
These methods reduce the level of cooperation and citizenship within the organization.
d.
Compensation is spread equally among employees rather than being based on performance.
ANSWER:
c
32. Which of the following is included in the narrative method of performance appraisals?
a.
The graphic rating scale
b.
The critical incident method
c.
The ranking method
d.
The forced distribution method
ANSWER:
b
33. In the _____ method, the manager keeps a written record of both favorable and unfavorable actions performed by an
employee during the entire rating period.
a.
forced distribution
b.
ranking
c.
essay
d.
critical incident
ANSWER:
d
34. The _____ method requires a manager to prepare a written statement describing each employee’s performance during
the rating period.
a.
forced distribution
b.
ranking
c.
essay
d.
critical incident
ANSWER:
c
35. Which of the following is typically the first stage in implementing a guided self-appraisal system using management
by objectives (MBO)?
a.
Frequent performance discussions
b.
Development of performance standards
c.
Setting of objectives
d.
Job review and agreement
ANSWER:
d
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 7
36. Which of the following is typically the last stage in implementing a guided self-appraisal system using management
by objectives (MBO)?
a.
Frequent performance discussions
b.
Development of performance standards
c.
Setting of objectives
d.
Job review and agreement
ANSWER:
a
37. Josh is an HR Manager at RoxCom LLC. He is responsible for conducting performance appraisals for all entry-level
employees in his organization. He implements a guided self-appraisal system using management by objectives (MBO). As
part of the process, he reviews the job description and the key activities that constitute each employee’s job. Which of the
following is most likely to be Josh’s next step?
a.
Frequent performance discussions
b.
Development of performance standards
c.
Setting of objectives
d.
Implementation of performance standards
ANSWER:
b
38. Zara, an HR Manager at Fluxin LLC, is responsible for implementing a guided self-appraisal system using
management by objectives (MBO) in her organization. She starts by developing specific standards for employee
performance. Which of the following is most likely to be Zara’s next step?
a.
Frequent performance discussions
b.
Implementation of the performance standards
c.
Setting of objectives
d.
Job review and agreement
ANSWER:
c
39. Raul, an HR Manager at Rexi LLC, is responsible for implementing a guided self-appraisal system using management
by objectives (MBO) in his organization. He starts by establishing objectives that are realistically attainable. Which of the
following is most likely to be Raul’s next step?
a.
Frequent performance discussions
b.
Development of performance standards
c.
Determining a satisfactory level of performance
d.
Job review and agreement
ANSWER:
a
40. _____ occurs when an evaluator’s values or prejudices distort the rating.
a.
The leniency error
b.
Rater bias
c.
The halo effect
d.
A sampling error
ANSWER:
b
41. The _____ occurs when a rater gives greater weight to information received first when appraising an individual’s
performance.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 8
a.
leniency error
b.
recency effect
c.
primacy effect
d.
central tendency error
ANSWER:
c
42. The _____ occurs when a rater gives all employees a score within a narrow range in the middle of the scale.
a.
similar-to–me error
b.
recency effect
c.
primacy effect
d.
central tendency error
ANSWER:
d
43. 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
ANSWER:
a
44. The _____ occurs when a manager uses only the lower end of the scale to rate employees.
a.
leniency error
b.
recency effect
c.
primacy effect
d.
strictness error
ANSWER:
d
45. The _____ occurs when a rater scores an employee high on all job criteria because of performance in one area of the
assigned work responsibilities.
a.
halo effect
b.
horns effect
c.
contrast error
d.
similar-to–me error
ANSWER:
a
46. 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
ANSWER:
b
47. The _____ is the tendency to rate people relative to others rather than against performance standards.
a.
halo effect
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 9
b.
horns effect
c.
contrast error
d.
strictness error
ANSWER:
c
48. If a rater has seen only a small specimen of an employee’s work, the appraisal may be subject to _____.
a.
the halo effect
b.
the horns effect
c.
rater bias
d.
a sampling error
ANSWER:
d
49. The appraisal discussion is an emotional experience for managers because:
a.
managers must frequently communicate both praise and constructive criticism to employees.
b.
managers must emphasize only the positive aspects of employees’ performance.
c.
managers must overlook the positive aspects of employees’ performance and emphasize their negative aspects.
d.
managers must avoid communicating the results of appraisals to employees.
ANSWER:
a
50. An effective performance management system should:
a.
be used only as an administrative tool.
b.
be effective in documenting employee performance.
c.
provide equal rewards to all employees.
d.
avoid categorizing employees as high, average, and low performers.
ANSWER:
b
51. The performance management process starts by identifying the strategic goals an organization needs to accomplish to
remain competitive and profitable.
a.
True
b.
False
ANSWER:
True
52. Performance appraisal has a broad organizational focus.
a.
True
b.
False
ANSWER:
False
53. In a performance-driven organizational culture, employee rewards vary little from person to person and have little to
do with differences in individual performance.
a.
True
b.
False
ANSWER:
False
54. In organizational cultures based on an entitlement approach, performance evaluations link results to employee
compensation and development.
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 10
a.
True
b.
False
ANSWER:
False
55. Feedback and recognition are important aspects of a performance-driven culture as they give employees information
and encouragement for their accomplishments.
a.
True
b.
False
ANSWER:
True
56. In the context of performance information, employee attitude is classified as trait-based information.
a.
True
b.
False
ANSWER:
True
57. The ability of a waiter at a restaurant to persuade his or her customer to order an expensive item from the menu is an
example of behavior-based information.
a.
True
b.
False
ANSWER:
True
58. The number of cars sold by a car salesman is classified as a subjective measure of performance.
a.
True
b.
False
ANSWER:
False
59. A supervisor’s rating of an employee’s attitude is classified as an objective measure of performance.
a.
True
b.
False
ANSWER:
False
60. Performance standards should be established before work is performed because they define the level of satisfactory
job performance.
a.
True
b.
False
ANSWER:
True
61. A strategic use of performance appraisal looks within the organization to provide consistency between individual and
organization performance.
a.
True
b.
False
ANSWER:
True
62. The developmental function of performance appraisals can identify areas in which the employee might wish to grow.
a.
True
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 11
b.
False
ANSWER:
True
63. An informal appraisal is used when a system is in place to report managerial observations and assessment of employee
performance.
a.
True
b.
False
ANSWER:
False
64. Peer and team ratings are especially useful only when supervisors can observe each employee’s performance.
a.
True
b.
False
ANSWER:
False
65. A disadvantage of the outsider rating approach is that outsiders may not know the important demands within the work
group or organization.
a.
True
b.
False
ANSWER:
True
66. The major purpose of 360-degree feedback is to increase uniformity by soliciting like-minded views.
a.
True
b.
False
ANSWER:
False
67. One concern of multisource rating is that peers who rate poor-performing coworkers tend to inflate the ratings so that
the peers themselves can get higher overall evaluation results in return.
a.
True
b.
False
ANSWER:
True
68. Companies must use multisource feedback only as an administrative tool.
a.
True
b.
False
ANSWER:
False
69. The graphic rating scale allows the rater to mark an employee’s performance on a continuum indicating low to high
levels of a particular characteristic.
a.
True
b.
False
ANSWER:
True
70. When creating a behaviorally anchored rating scale (BARS) system, identifying important job dimensions, which are
the most important performance factors in a job description, is done first.
a.
True
Name:
Class:
Date:
Copyright Cengage Learning. Powered by Cognero.
Page 12
b.
False
ANSWER:
True
71. The forced distribution method lists the employees being rated from highest to lowest based on their performance
levels and relative contributions.
a.
True
b.
False
ANSWER:
False
72. In the ranking method, the ratings of employees’ performance are distributed along a bell-shaped curve.
a.
True
b.
False
ANSWER:
False
73. In the critical incident method, a manager keeps a written record of both favorable and unfavorable actions performed
by an employee during the entire rating period.
a.
True
b.
False
ANSWER:
True
74. Development of performance standards is typically the first stage of a guided self-appraisal system using management
by objectives (MBO).
a.
True
b.
False
ANSWER:
False
75. The recency effect occurs when a rater gives greater weight to information received first when appraising an
individual’s performance.
a.
True
b.
False
ANSWER:
False
76. The leniency error occurs when ratings of all employees fall at the high end of the scale.
a.
True
b.
False
ANSWER:
True
77. The contrast error occurs when a rater scores an employee high on all job criteria because of performance in one area.
a.
True
b.
False
ANSWER:
False
78. The halo effect is the tendency to rate people relative to others rather than against performance standards.
a.
True
b.
False
Name:
Class:
Date:
ANSWER:
False
79. A major concern for managers in an appraisal discussion is how to emphasize the positive aspects of an employee’s
performance while still discussing ways to make needed improvements.
a.
True
b.
False
ANSWER:
True
80. Clarity, conflicts, confidence, and conviction are the four elements of feedback that can inspire employees to improve
their performance.
a.
True
b.
False
ANSWER:
True
81. Define performance management. What is the purpose of a performance management system?
ANSWER:
Performance management is a series of activities designed to align and improve individual performance to
drive organizational results. A performance management system has the following purposes:
• Clarifying organizational expectations
• Documenting performance for personnel records
• Identifying areas of success and needed development
• Providing performance feedback to employees
82. Differentiate between the entitlement approach and the performance-driven approach in organizations.
ANSWER:
Some cultures are based on an entitlement approach, meaning that adequate performance and stability
dominate the organization. Employee rewards vary little from person to person and have little to do with
differences in individual performance. As a result, performance management is not valued by managers or
employees and might be viewed as a “bureaucratic exercise.” At the other end of the spectrum is a
performance-driven organizational culture, which focuses on results and contributions made by employees. In
this context, performance evaluations link results to employee compensation and development.
83. What are the common employee performance measures?
ANSWER:
Performance criteria vary from job to job, but common employee performance measures include the
following:
• Quantity of output/productivity
• Quality of output
• Timeliness of output/meeting deadlines
• Punctuality and attendance
• Efficiency of work completed
• Effectiveness of work completed
84. Differentiate between the subjective and objective measures of performance appraisals.
ANSWER:
Performance measures can be viewed as objective or subjective. The objective measures can be observed. For
example, the number of dinner specials sold or the number of tables serviced can be counted, which make
them objective performance metrics. Subjective measures require judgment on the part of the evaluator and
are more difficult to determine. One example of a subjective measure is a supervisor’s ratings of an employee’s
attitude, which can be difficult to evaluate based on varying ideas and preferences.
Name:
Class:
Date:
improve the financial and operational performance of their organizations.
ANSWER:
Performance standards define the expected levels of employee performance. Sometimes they are labeled
benchmarks, goals, or targets—depending on the approach taken. Realistic, measurable, clearly understood
performance standards benefit both organizations and employees. Performance standards should be
established before work is performed because they define the level of satisfactory job performance.
86. Differentiate between the strategic uses and administrative uses of performance appraisals.
ANSWER:
A strategic use of performance appraisal looks within the organization to provide consistency between
individual and organization performance. Companies can use performance appraisals to enhance their
strategies and to align individual performance objectives with organizational priorities.
Administrative uses are often based on a backward-looking perspective. Employees’ past performance is used
to determine pay adjustments; make job placement decisions on promotions, transfers, layoffs, and demotions;
and choose employee disciplinary actions up to and including termination of employment.
87. Discuss supervisory ratings of subordinates.
ANSWER:
The most widely used means of rating employees is based on the assumption that the immediate supervisor is
the person most qualified to evaluate an employee’s performance realistically and fairly. To help provide
accurate evaluations, some supervisors keep records of employees’ performance so that they can refer to these
notes when rating performance. For instance, a Sales Manager might periodically observe a salesperson’s
interactions with clients and make notes so that constructive performance feedback can be provided.
88. What is multisource rating?
ANSWER:
Multisource rating, or 360-degree feedback, has grown in popularity. Multisource feedback recognizes that for
many jobs, employee performance is multidimensional and crosses departmental, organizational, and even
national boundaries. Therefore, information is needed from many sources to adequately and fairly evaluate an
incumbent’s performance in one of these jobs.
89. Define behaviorally anchored rating scales (BARSs).
ANSWER:
Behaviorally anchored rating scales (BARSs) describe specific examples of job behavior, which are then
“anchored” or measured against a scale of performance levels.
90. Describe the features necessary for a performance management system to be effective.
ANSWER:
To be effective, a performance management system, including the performance appraisal processes, should be
• Beneficial as a development tool,
• Useful as an administrative tool,
• Legal and job related,
• Viewed as generally fair by employees,
• Effective in documenting employee performance, and
• Clear about who are high, average, and low performers.
91. Describe performance-focused organizational cultures.
ANSWER:
Organizational cultures can vary on many dimensions, one of which involves the degree to which performance
is emphasized. Some cultures are based on an entitlement approach, meaning that adequate performance and
stability dominate the organization. Employee rewards vary little from person to person and have little to do
with differences in individual performance. As a result, performance management is not valued by managers
or employees and might be viewed as a “bureaucratic exercise.”
and contributions made by employees. In this context, performance evaluations link results to employee
compensation and development. There are benefits to developing a performance-focused culture throughout
the organization. This approach can be particularly useful when assessing top leaders because their goal is to
Name:
Class:
Date:
termination of employment.
A performance appraisal system is often the link between employee job performance and the additional pay
on performance accomplishments rather than length of service (seniority) or as part of automatic raises granted
However, a pay-for-performance approach can present several challenges to organizations. For example, pay-
for-performance plans used in organizations with an entitlement philosophy can be seen as creating inequity,
particularly if some employees get bonuses and others receive no extra compensation. Tying bonuses to
criteria such as employee performance may also be met with harsh criticism because some claim that the
process prevents teamwork in the workplace.
Despite these issues, it appears that a performance-based-pay culture is desirable. It is sometimes argued that
companies are not doing enough about poor performers and that failure to deal with poor performance is unfair
to those who work hard. Employees who are not taking care of their work responsibilities can become
combative over their poor performance.
92. Describe the different types of performance information.
ANSWER:
Managers can use three different types of information about employee performance.
Trait-based information identifies a character trait of an employee, such as attitude, initiative, or creativity, and
may or may not be job related. For example, conscientiousness is often found to be a trait that is an important
determinant of job performance. However, many traits tend to be ambiguous, and rater bias can affect how
traits are viewed, so courts have generally held that trait-based performance appraisals are too vague to use
when making HR decisions such as promotions or terminations. Further, since traits are relatively stable and
enduring over time, it is unrealistic to focus on changing these individual attributes of employees. Therefore,
assessing employee performance by measuring traits is not recommended.
Behavior-based information focuses on specific behaviors that lead to job success. For a bartender, the
behavior “drink up-selling” can be observed and used as performance information because a customer is
encouraged to purchase a higher-priced beverage. Another example is an operations director who visits all the
key work areas in a manufacturing plant during a morning walk-through. These behaviors increase visibility
and communication with employees. Behavioral information can specify the behaviors management expects
employees to exhibit. A potential problem arises when any of several behaviors can lead to successful
“attitude,” which can be difficult to evaluate based on varying ideas and preferences. Consequently, subjective
support such evaluations.
Name:
Class:
Date:
Name:
Class:
Date:
often fail. Emphasizing penalties for not meeting objectives defeats the development and participative nature
96. Describe multisource/360-degree rating.
ANSWER:
Multisource rating, or 360-degree feedback, has grown in popularity. Multisource feedback recognizes that for
many jobs, employee performance is multidimensional and crosses departmental, organizational, and even
national boundaries. Therefore, information is needed from many sources to adequately and fairly evaluate an
incumbent’s performance in one of these jobs.
The major purpose of 360-degree feedback is not to increase uniformity by soliciting like-minded views.
Instead, it is designed to capture evaluations of the employee’s different roles to provide richer feedback
during an evaluation.
Significant administrative time and paperwork are required to request, obtain, and summarize feedback from
multiple raters. Using electronic systems for the information can greatly reduce the administrative demands of
multisource ratings and increase the effectiveness (i.e., privacy and expediency) of the process.
97. Describe the graphic rating scale.
ANSWER:
The graphic rating scale allows the rater to mark an employee’s performance on a continuum indicating low to
high levels of a particular characteristic. Because of the straightforwardness of the process, graphic rating
scales are common in performance evaluations. Three aspects of performance can be appraised using graphic
rating scales: descriptive categories (e.g., quantity of work, attendance, and dependability), job duties (taken
from the job description), and behavioral dimensions (e.g., decision-making, employee development, and
communication effectiveness).
Each of these types can be used for different jobs. How well employees meet established standards is often
expressed either numerically (e.g., 5, 4, 3, 2, and 1) or verbally (e.g., outstanding, meets standards, and below
standards). If two or more people are involved in the rating, they should discuss their interpretations of each
level of performance before conducting their evaluations to decrease inconsistent ratings.
98. Discuss the management by objectives (MBO) method.
ANSWER:
Management by objectives (MBO) is a specific performance appraisal method that highlights the performance
goals that an individual and manager identify together. Each manager sets objectives derived from the overall
goals and objectives of the organization; however, MBO should not be a disguised means for a superior to
dictate the objectives of individual managers or employees. Other names for MBO include appraisal by
results, target coaching, work planning and review, performance objective setting, and mutual goal setting.
The goal setting that occurs as part of this process can be helpful in a variety of managerial functions.
Name:
Class:
Date:
positive climate for goal setting.
99. Describe the different types of rater errors.
ANSWER:
There are many possible sources of error in the performance appraisal process. One of the major sources is the
rater. Although completely eliminating errors is impossible, making raters aware of potential errors and biases
helps to reduce them. The different types of rater errors are as follows:
• Recency and primacy effects: The recency effect occurs when a rater gives greater weight to recent
Name:
Class:
Date:
100. Describe the appraisal discussion.
ANSWER:
The appraisal discussion presents both an opportunity and a challenge. It can be an emotional experience for
the manager and the employee because the manager must communicate both praise and constructive criticism.
A major concern for managers is how to emphasize the positive aspects of the employee’s performance while
still discussing ways to make needed improvements. If the conversation is handled poorly, the employee may
feel resentment, which could lead to future performance problems. Consequently, a manager should clearly
communicate how an employee’s positive contributions have helped the organization perform well. When poor
performance must be discussed, managers could use a series of questions and discussion points that enable
employees to identify their own performance deficiencies and come up with useful plans for performance
improvement.
Employees often approach an appraisal discussion with some anxiety. They may feel that discussions about
performance are both personal and important to their continued job success. At the same time, they want to
know how their managers view their performance.