Performance Management and Appraisal

Performance Management and Appraisal 1) Which of the following terms refers to the process of evaluating an employee's current and/or past performance relative to his or her performance standards? A) employee selection B) performance appraisal C) employee orientation D) organizational development Answer: B 2) The primary purpose of providing employees with feedback during a performance appraisal is to motivate employees to ________. A) apply for managerial positions B) remove any performance deficiencies C) revise their performance standards D) enroll in work-related training programs Answer: B 3) Which of the following is NOT one of the recommended guidelines for setting effective employee goals? A) creating specific goals B) assigning measurable goals C) administering consequences for failure to meet goals D) encouraging employees to participate in setting goals Answer: C 4) SMART goals are best described as ________. A) specific, measurable, attainable, relevant, and timely B) straightforward, meaningful, accessible, real, and tested C) strategic, moderate, achievable, relevant, and timely D) supportive, meaningful, attainable, real, and timely Answer: A 5) All of the following are reasons for appraising an employee's performance EXCEPT ________. A) correcting any work-related deficiencies B) creating an organizational strategy map C) determining appropriate salary and bonuses D) making decisions about promotions Answer: B 6) In most organizations, who is primarily responsible for appraising an employee's performance? A) employee's direct supervisor B) company appraiser C) human resources manager 1 D) employee's subordinates Answer: A 7) Which of the following is most likely NOT a role played by the HR department in the performance appraisal process? A) conducting appraisals of employees B) monitoring the appraisal system's effectiveness C) providing performance appraisal training to supervisors D) ensuring the appraisal system's compliance with EEO laws Answer: A 8) What is the first step of any performance appraisal? A) giving feedback B) setting work standards C) making plans to provide training D) assessing the employee's performance Answer: B 9) When designing an actual appraisal method, the two basic considerations are ________. A) when to measure and what to measure B) what to measure and who should measure C) what to measure and how to measure D) when to measure and how to measure Answer: C 10) Which of the following is the easiest and most popular technique for appraising employee performance? A) alternation ranking B) graphic rating scale C) forced distribution D) constant sum rating scale Answer: B 11) Which performance appraisal technique lists traits and a range of performance values for each trait? A) behaviorally anchored rating scale B) graphic rating scale C) forced distribution D) critical incident Answer: B 12) 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 2 appropriate performance appraisal tool for Suzanne to use? A) The firm wants Suzanne to evaluate her subordinates on an ongoing basis and to keep a log of critical incidents. 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. Answer: C 13) All of the following are usually measured by a graphic rating scale EXCEPT ________. A) generic dimensions of performance B) performance of co-workers C) achievement of objectives D) job-related competencies Answer: B 14) Which performance appraisal tool requires supervisors to categorize employees from best to worst on various traits? A) graphic rating scale B) critical incident method C) alternation ranking method D) electronic performance monitoring Answer: C 15) The most popular method for ranking employees is the ________ method. A) graphic ranking scale B) alternation ranking C) paired comparison D) forced distribution Answer: B 16) Kendra needs to rate five of her subordinates. She makes a chart of all possible pairs of employees for each trait being evaluated. Then, she indicates the better employee of each pair with a positive symbol on the chart. Finally, she totals the number of positive symbols for each employee. Which method of performance appraisal has Kendra most likely used? A) graphic ranking scale B) alternation ranking C) paired comparison D) forced distribution Answer: C 17) Which performance appraisal tool is being used when a supervisor places predetermined percentages of ratees into various performance categories? A) behaviorally anchored rating scale B) graphic ranking scale 3 C) alternation ranking D) forced distribution Answer: D 18) John, the supervisor of the manufacturing department at a computer firm, 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. Which performance appraisal tool has John chosen to use? A) behaviorally anchored rating scale B) forced distribution C) alternation ranking D) paired comparison Answer: B 19) Which of the following measurement methods is similar to grading on a curve? A) forced distribution B) graphic rating scale C) constant sums rating D) behaviorally anchored rating scale Answer: A 20) Which of the following is one of the primary complaints regarding the use of the forced distribution method for performance appraisals? A) difficult to implement B) harm to employee morale C) high costs of administration D) time consuming to administer Answer: B 21) Which performance appraisal tools requires a supervisor to maintain a log of positive and negative examples of a subordinate's work-related behavior? A) alternation ranking B) paired comparison C) critical incident D) graphic rating Answer: C 22) 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) reflecting performance throughout the appraisal period D) compiling examples of ineffective work performance Answer: B 4 23) 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, most likely undermines the argument that the critical incident method is the most appropriate performance appraisal tool for Suzanne to use? A) Employee performance standards are closely aligned with Wilson Consulting's long-term strategic plans. B) Suzanne will be conducting performance appraisals in conjunction with the HR manager to ensure EEO compliance. C) Wilson Consulting will be allowing employees to rate themselves as part of its organizational development strategy. D) Due to economic difficulties, the firm will be laying off the two lowest performing employees in Suzanne's department. Answer: D 24) Which appraisal method combines the benefits of narrative critical incidents and quantified scales by assigning scale points with specific examples of good or poor performance? A) behaviorally anchored rating scale B) constant sums rating scale C) alternation ranking D) forced distribution Answer: A 25) 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) diary of positive and negative examples of a subordinate's work performance D) list of subordinates from highest to lowest based on specific performance traits Answer: B 26) The first step in developing a behaviorally anchored rating scale is to ________. A) develop performance dimensions B) generate critical incidents C) compare subordinates D) scale incidents Answer: B 27) Stacey is using a behaviorally anchored rating scale as a performance appraisal tool. She has already asked employees and supervisors to describe critical incidents of effective and ineffective job performance. What should Stacey most likely do next? A) create a final appraisal instrument B) develop performance dimensions C) reallocate the incidents D) rate the incidents Answer: B 5 28) 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) Suzanne wants to provide her subordinates with specific examples of their good and poor job performance during the appraisal interview. B) Suzanne encourages her subordinates to review and make comments about their appraisal during a formal appeals process. C) Wilson Consulting recently installed an electronic performance monitoring system to help supervisors conduct appraisals. D) Suzanne provides her subordinates with upward feedback as a way to illustrate the ratings she assigns to each employee. Answer: A 29) What is the primary goal of using mixed standard scales? A) improving validity B) reducing rating errors C) clarifying performance standards D) illustrating feedback for subordinates Answer: B 30) 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 objective C) mixed standard scales D) forced distribution Answer: B 31) All of the following are benefits of using computerized or Web-based performance appraisal systems EXCEPT ________. A) merging examples with performance ratings B) helping managers maintain computerized notes C) combining different performance appraisal tools D) enabling managers to monitor employees' computers Answer: D 32) Which of the following enables supervisors to oversee the amount of computerized data an employee is processing each day? A) computerized performance appraisal system B) online management assessment center C) digitized high-performance work center D) electronic performance monitoring system Answer: D 6 33) Nick supervises a team of data entry specialists. Lately, productivity has been down, and Nick believes his subordinates are not working as efficiently as possible. Which of the following tools would provide Nick with daily information about each employee's rate, accuracy, and time spent entering data? A) digital dashboard device B) electronic performance monitoring system C) Web-based management oversight device D) electronic performance support system Answer: B 34) Graphic rating scales are subject to all of the following problems EXCEPT ________. A) unclear standards B) halo effects C) complexity D) leniency Answer: C 35) Which of the following terms refers to an appraisal that is too open to interpretation? A) unclear standards B) halo effects C) leniency D) biased Answer: A 36) Which of the following is the best way for a supervisor to correct a performance appraisal problem caused by unclear standards? A) focusing on performance instead of personality traits B) using graphic rating scales to rank employees C) using descriptive phrases to illustrate traits D) allowing employees to rate themselves first Answer: C 37) Which of the following is a performance appraisal problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits? A) recency effect B) halo effect C) central tendency D) stereotyping Answer: B 38) Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly. Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work." Which of the following problems has most likely affected Jason's performance appraisal? A) central tendency B) leniency C) halo effect D) recency effect 7 Answer: C 39) A supervisor who frequently rates all employees as average on performance appraisals most likely has a problem known as ________. A) halo effect B) stereotyping C) central tendency D) leniency Answer: C 40) The best way to reduce the problem of central tendency in performance appraisals is to ________. A) rank employees B) use graphic rating scales C) limit the number of appraisals D) appraise personal characteristics Answer: A 41) Which performance appraisal problem is associated with supervisors giving all of their subordinates consistently high ratings? A) central tendency B) leniency C) strictness D) halo effect Answer: B 42) The ________ problem occurs when supervisors tend to rate all their subordinates consistently low. A) central tendency B) leniency C) strictness D) halo effect Answer: C 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 Answer: C 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 8 C) central tendency D) unclear standards Answer: A 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 Answer: B 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 Answer: B 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 Answer: D 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 Answer: C 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 Answer: C 9 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 Answer: A 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 Answer: D 52) Employee performance appraisals are conducted by all of the following EXCEPT ________. A) peers B) competitors C) subordinates D) rating committees Answer: B 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 Answer: A 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 Answer: B 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. Answer: C 10 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 Answer: B 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. Answer: C 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 Answer: A 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 Answer: C 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) schedule flexibility D) professional development Answer: D 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 Answer: D 11 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 Answer: B 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 Answer: A 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 Answer: D 65) Which component of performance management refers to communicating a firm's higherlevel 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 Answer: C 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 12 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. Answer: B 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? Answer: D 68) Which term refers to the alignment of employee goals with departmental and company goals? A) performance management B) employee segmentation C) strategic congruence D) direction sharing Answer: C 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 Answer: C 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 Answer: A 13