Question 1

Which of the following enables evaluation to take place?
A)meeting of the minds between manager and subordinate
B)performance standards
C)managerial consensus
D)numerical measures of performance

Accepted Answer

Performance standards provide a benchmark against which actual performance can be measured and evaluated.

Question 2

The training of raters should centre on two main things. One is minimizing rater errors. Which of the following is the other?
A)documenting performance information
B)effectively timing performance appraisals
C)counselling subordinates to improve performance
D)communicating ratings to subordinates

Accepted Answer

Minimizing rater errors is one aspect of training raters. The other aspect is teaching them how to accurately assess and evaluate performance information. This involves ensuring that raters understand the performance criteria being used, are familiar with the performance expectations of the job, and can assess performance objectively and fairly. Documenting performance information, effectively timing performance appraisals, counselling subordinates, and communicating ratings to subordinates are all important aspects of performance appraisal, but they are not the other main focus of rater training.

Question 3

The manager of an automotive repair shop keeps a logbook in which she records both especially good and especially poor actions of the mechanics. Which of the following appraisal methods is the manager using?
A)forced distribution
B)essay
C)critical incident
D)BARS

Accepted Answer

The manager is using the critical incident appraisal method, where specific incidents of good or poor behavior are documented.

Question 4

One method of performance appraisal is based on the critical assumption that the performance of employees in a department corresponds to the classic bell-shaped curve. What is the name of this method?
A)statistical
B)critical incident
C)forced distribution
D)ranking

Accepted Answer

The method based on the assumption of a bell-shaped curve is called forced distribution, also known as forced ranking or rank and yank. This method requires the distribution of employees into predetermined categories, such as top performers, average performers, and poor performers, with a certain percentage of employees assigned to each category. This method is criticized for being demotivating and for not allowing for individual differences in performance.

Question 5

Which of the following statements identifies the practical effect of a central tendency error?
A)Everyone is rated the same.
B)The timing of information affects the rating.
C)Available information is insufficient or inaccurate.
D)Rater prejudices affect the ratings.

Accepted Answer

A central tendency error occurs when the rater gives everyone an average rating, regardless of their performance. This can result in unfair and inaccurate evaluations, as high-performing employees are not recognized and low-performing employees are not receiving feedback for improvement.

Question 6

An individual and a manager come to an agreement on which performance goals the employee will try to reach within an appropriate time. Which of the following appraisal methods is in use?
A)management by objectives (MBO)
B)strategic performance management
C)critical incident technique (CIT)
D)performance counselling

Accepted Answer

This scenario describes the management by objectives (MBO) method, which involves setting specific objectives/goals for the employee and evaluating their performance based on their achievement of those goals.

Question 7

Some managers tend to rate their subordinates relative to other subordinates rather than by applying performance standards. Which of the following terms best describes this error?
A)central tendency
B)contrast
C)generalization
D)halo

Accepted Answer

The error of rating employees relative to other employees is called the contrast error. This occurs when a manager rates an employee based on how they compare to others, rather than on specific performance standards. The other terms listed are different errors that can occur in performance appraisal, but do not apply specifically to this situation.

Question 8

Which hint for managers conducting appraisal interviews is the LEAST helpful?
A)Consider your own role in the subordinate's performance.
B)Focus on the past.
C)Allow the subordinate to talk.
D)Be specific about reasons for the ratings.

Accepted Answer

Focusing solely on the past can limit the effectiveness of the appraisal interview as it does not allow for discussion on future goals or areas for improvement. A more balanced approach would be suitable, where the past performance is discussed as well as future goals and areas for growth.

Question 9

Which of these types of employees would the management by objectives process work best for?
A)assembly-line employees at a commercial bakery
B)guides at a museum of natural history
C)managers in an oil refinery
D)clerical staff at an insurance company headquarters

Accepted Answer

The management by objectives process would work best for managers in an oil refinery as they are involved in decision-making activities that require a systematic approach to setting and achieving business objectives. Assembly-line employees, guides, and clerical staff are not typically involved in high-level decision-making, and their work is often task-oriented and repetitive, which may not benefit from the management by objectives process.

Question 10

Which of the following statements presents the key factor underlying the management by objectives approach?
A)The manager and subordinate work together on the goals.
B)Goals are subjective.
C)The goals will push the subordinate to the highest limits of his/her abilities.
D)The manager has close, daily access to the subordinate in order to monitor progress.

Accepted Answer

The key factor underlying the management by objectives approach is that the manager and subordinate work together on setting the goals, making it a collaborative process. This approach emphasizes the importance of communication and involvement of both parties in the goal-setting process. Goals should be specific, measurable, achievable, relevant, and time-bound (SMART), and the subordinate should be aware of the manager's expectations. The approach encourages subordinates to be proactive and take responsibility for their performance.

Question 11

Curtis supervises a large number of clerical employees. Several of his subordinates have had babies this year. Curtis has considered this when conducting the performance appraisals of these subordinates because he knows that new mothers are frequently sleep-deprived and that this can negatively affect their accuracy and performance levels. Curtis raises these employees' evaluations higher than what objectively they should have been. Which kind of error has Curtis committed?
A)varying standards
B)leniency
C)contrast
D)similar to me

Accepted Answer

The answer of Curtis supervises a large number of clerical...

Question 12

The forced distribution method of performance appraisal is associated with several disadvantages; however, among the list below, which is NOT a disadvantage?
A)It may lead a manager making false distinctions between employees in an attempt to fill the required percentages.
B)It may mean that a supervisor is reluctant to place employees in the lowest or highest group.
C)It may be based on a faulty assumption, namely, that a bell-shaped or other distribution of performance exists.
D)It may cause supervisors to inflate ratings artificially.

Accepted Answer

The forced distribution method requires managers to distribute their employees across various performance categories, such as high, average, and low performers, which can lead to false distinctions or reluctance to place employees in extreme categories but does not inherently cause supervisors to inflate ratings artificially.

Question 13

Alvin, a sales representative for a company making industrial solvents, lost a major customer last month. Until then, Alvin's year was about average in the level of sales. Early in the year, Alvin brought in two new customers of about the size of the customer he lost last month. Alvin's supervisor gives Alvin an unsatisfactory rating in his annual performance appraisal. Which kind of error has Alvin's supervisor likely committed?
A)contrast
B)primacy
C)strictness
D)recency

Accepted Answer

Alvin's supervisor has likely committed the recency error, which means that the supervisor is focusing too much on the most recent event (losing a major customer) and not taking into account Alvin's earlier successes (bringing in two new customers of similar size). This can lead to an unfair or inaccurate evaluation of Alvin's overall performance.

Question 14

Cheryl, a branch manager at Prairie Ridge Bank, is upset that all the tellers in the various branches will be evaluated by the ranking system. The tellers' raises will be determined by their ranking, and the worst ranked teller in each branch will be terminated. Cheryl has many concerns about using the ranking method, and she goes to the executive vice president of HR to present her arguments. Which argument is the vice president LEAST likely to hear?
A)It will be too difficult for Cheryl to distinguish between her best and worst performers.
B)There are 17 branches, and the ranking system will be too unwieldy to use for so many groups.
C)The size of the difference in performance among individuals is not defined in the ranking method.
D)Cheryl's worst performing employee may be better than another branch manager's average performing employee.

Accepted Answer

The vice president is least likely to hear that it will be too difficult for Cheryl to distinguish between her best and worst performers, as ranking inherently involves distinguishing between different levels of performance.

Question 15

In one performance appraisal method, employee objectives are developed based on internal business processes and external outcomes. Which of the following is that method?
A)balanced scorecard
B)360-degree feedback
C)behaviourally anchored rating scales
D)management by objectives

Accepted Answer

The balanced scorecard method identifies critical internal business processes and external outcomes related to the organization's goals and objectives. Employee performance is evaluated based on their achievement in these areas.

Question 16

Performance appraisal feedback can cause change in the subordinate's behaviour. In order to achieve change, which of the following needs to be provided?
A)admission by the manager that he/she played a role in the subordinate's poor performance
B)punishment connected with poor performance
C)specific suggestions for action
D)a specific reward attached to improved performance

Accepted Answer

Specific suggestions for action are essential for a subordinate to know how to change their behaviour and improve their performance. Admission of the manager's role or punishment may have negative effects on the subordinate's motivation and morale, while a specific reward may be motivating but may not provide concrete guidance on how to improve.

Question 17

Neil, the director of HR for a commercial graphics design firm, has found that the supervisors in the company give generous and lenient appraisals to their subordinates. It is difficult to determine from the appraisals which employees deserve pay raises more than others. Neil has decided to address this problem. Which of the following approaches to performance appraisal is the most likely to implement?
A)category scaling
B)self-rating
C)narrative
D)comparative

Accepted Answer

The comparative approach to performance appraisal is best suited to address the problem of generous and lenient appraisals. This approach involves comparing the performance of employees with others in the same job or in comparable jobs within the organization. By doing so, it enables the supervisor to distinguish between high and low performers, making it easier to determine which employees deserve pay raises.

Question 18

In one form of appraisal, the manager records both highly favourable and unfavourable aspects of an employee's performance throughout a rating period. Which of the following terms best identifies this method?
A)paired comparisons
B)critical incident
C)essay
D)checklist

Accepted Answer

The described method is known as the critical incident method, where the manager records both positive and negative incidents of an employee's performance throughout a rating period. The other options listed - paired comparisons, essay, and checklist - do not involve recording incidents of performance.

Question 19

When an appraiser rates all employees within a narrow, usually average range, which kind of error has the appraiser committed?.
A)central tendency
B)leniency
C)contrast
D)generalization

Accepted Answer

The appraiser has committed the error of central tendency by rating all employees within a narrow, usually average range, without taking into account individual differences in performance. This can lead to inaccurate assessments and may result in low morale among employees who feel their efforts are not being properly recognized or rewarded.

Question 20

Which of the following is NOT a benefit of the balanced scorecard?
A)the whole organization focused on the key things needed to create breakthrough performance
B)strategic measures broken down to local levels
C)the organization helped to integrate various corporate programs, such as quality and customer service initiatives
D)employee commitment increased because objectives are developed from the bottom up

Accepted Answer

Employee commitment increasing because objectives are developed from the bottom up is actually a benefit of the balanced scorecard, so it is not the correct answer. The other options (A, B, and C) are all benefits of the balanced scorecard.

Quiz 9: Performance Management and Appraisal

Which of the following enables evaluation to take place?

The training of raters should centre on two main things. One is minimizing rater errors. Which of the following is the other?

The manager of an automotive repair shop keeps a logbook in which she records both especially good and especially poor actions of the mechanics. Which of the following appraisal methods is the manager using?

One method of performance appraisal is based on the critical assumption that the performance of employees in a department corresponds to the classic bell-shaped curve. What is the name of this method?

Which of the following statements identifies the practical effect of a central tendency error?

An individual and a manager come to an agreement on which performance goals the employee will try to reach within an appropriate time. Which of the following appraisal methods is in use?

Some managers tend to rate their subordinates relative to other subordinates rather than by applying performance standards. Which of the following terms best describes this error?

Which hint for managers conducting appraisal interviews is the LEAST helpful?

Which of these types of employees would the management by objectives process work best for?

Which of the following statements presents the key factor underlying the management by objectives approach?

The forced distribution method of performance appraisal is associated with several disadvantages; however, among the list below, which is NOT a disadvantage?

In one performance appraisal method, employee objectives are developed based on internal business processes and external outcomes. Which of the following is that method?

Performance appraisal feedback can cause change in the subordinate's behaviour. In order to achieve change, which of the following needs to be provided?

In one form of appraisal, the manager records both highly favourable and unfavourable aspects of an employee's performance throughout a rating period. Which of the following terms best identifies this method?

When an appraiser rates all employees within a narrow, usually average range, which kind of error has the appraiser committed?.

Which of the following is NOT a benefit of the balanced scorecard?