Question 1

When evaluators rate other people in the same way that the evaluators perceive themselves, they make a halo error.

Accepted Answer

The halo error occurs when an evaluator's overall impression of a person, object, or institution biases their ratings on specific dimensions, not necessarily related to how the evaluators perceive themselves.

Question 2

Wherever performance evaluations are conducted, a particular structure must be followed. This structure exists to facilitate documentation that often allows for quantifiable evaluation.

Accepted Answer

The structure of performance evaluations is designed to facilitate documentation and often includes quantifiable measures.

Question 3

MATCHING KEY TERMS AND DEFINITIONS
-Employees are evaluated on how well they accomplish a specific set of objectives determined as critical in the successful completion of their job.
A)Absolute standards
B)Relative standards
C)Individual ranking
D)360-degree appraisals
E)Peer evaluation
F)Performance measurement
G)Halo error
H)Graphic rating scale
I)Leniency error
J)Documentation
K)Paired comparison
L)Similarity error
M)Attribution theory
N)Management by objectives (MBO)
O)Forced-choice appraisal

Accepted Answer

Management by Objectives (MBO) is a performance appraisal method where employees are evaluated based on their achievement of specific objectives that are deemed critical for the successful completion of their job.

Question 4

MATCHING KEY TERMS AND DEFINITIONS
-A performance evaluation theory that attempts to differentiate between elements the employee controls (internal) versus those the employee cannot control (external).
A)Absolute standards
B)Relative standards
C)Individual ranking
D)360-degree appraisals
E)Peer evaluation
F)Performance measurement
G)Halo error
H)Graphic rating scale
I)Leniency error
J)Documentation
K)Paired comparison
L)Similarity error
M)Attribution theory
N)Management by objectives (MBO)
O)Forced-choice appraisal

Accepted Answer

Attribution theory

Answer: A
 Absolute standards

Answer: N
 Management by objectives (MBO)

Answer: D
 360-degree appraisals

Answer: E
 Peer evaluation

Answer: F
 Performance measurement

Answer: G
 Halo error

Answer: H
 Graphic rating scale

Answer: I
 Leniency error

Answer: J
 Documentation

Answer: K
 Paired comparison

Answer: L
 Similarity error

Answer: O
 Forced-choice appraisal

Question 5

Central tendency is a factor that distorts performance appraisals.

Accepted Answer

Central tendency is the tendency of raters to give average or middle-of-the-road ratings to all employees, which can result in a lack of differentiation between high and low performers. This can lead to unfair and inaccurate performance appraisals.

Question 6

About 50% of all U.S. organizations use some form of performance evaluations.

Accepted Answer

The answer of About 50% of all U.S. organizations use...

Question 7

The performance method that selects one job trait, and then compares each employee in a group with the others is the group order ranking method.

Accepted Answer

The group order ranking method involves ranking employees from best to worst on some overall criterion, not selecting one job trait for comparison. The method described is more akin to paired comparison.

Question 8

The appraisal process begins with establishment of performance standards in accordance with the organization's strategic goals.

Accepted Answer

The appraisal process must begin with establishing performance standards in line with the organization's strategic goals.

Question 9

It is important for managers to recognize that no performance appraisal system is perfect.

Accepted Answer

No performance appraisal system is perfect because they involve subjective opinions and biases, rely on limited data, and can be influenced by external factors. Managers should aim to use a system that minimizes these issues, but should also be open to feedback and continuously improving the system.

Question 10

MATCHING KEY TERMS AND DEFINITIONS
-A record of performance appraisal process outcomes.
A)Absolute standards
B)Relative standards
C)Individual ranking
D)360-degree appraisals
E)Peer evaluation
F)Performance measurement
G)Halo error
H)Graphic rating scale
I)Leniency error
J)Documentation
K)Paired comparison
L)Similarity error
M)Attribution theory
N)Management by objectives (MBO)
O)Forced-choice appraisal

Accepted Answer

Documentation refers to recording and maintaining a record of the performance appraisal process outcomes. It helps in identifying areas of improvement and provides evidence for future reference.

Question 11

MATCHING KEY TERMS AND DEFINITIONS
-The third step in the appraisal process.
A)Absolute standards
B)Relative standards
C)Individual ranking
D)360-degree appraisals
E)Peer evaluation
F)Performance measurement
G)Halo error
H)Graphic rating scale
I)Leniency error
J)Documentation
K)Paired comparison
L)Similarity error
M)Attribution theory
N)Management by objectives (MBO)
O)Forced-choice appraisal

Accepted Answer

The answer of MATCHING KEY TERMS AND DEFINITIONS
-The third step...

Question 12

A major advantage to absolute standards is that they tend to be biased by positive leniency; that is, evaluators lean toward packing their subjects into the high part of the rankings.

Accepted Answer

Absolute standards are not biased by positive leniency. In fact, they prevent leniency bias by providing clear and consistent criteria for evaluating performance. This ensures that everyone is held to the same standard, regardless of the evaluator's personal biases or preferences.

Question 13

Research finds that more than 90% of all U.S. organizations evaluate employees more than once a year.

Accepted Answer

According to research conducted by the Society for Human Resource Management (SHRM), only 12% of organizations evaluate employees on a quarterly basis, while 4% evaluate them monthly. The majority of organizations (72%) evaluate employees annually, while 11% evaluate employees every two years or longer. Therefore, it can be concluded that more than 90% of organizations do not evaluate employees more than once a year.

Question 14

Given that personality plays a major role in appraising performance, evidence suggests that training appraisers does not make them more accurate raters.

Accepted Answer

The answer of Given that personality plays a major role...

Question 15

EEO laws require performance appraisal systems be objective, job related, reliable, and valid, as they are used for promotion or termination.

Accepted Answer

EEO laws, specifically Title VII of the Civil Rights Act, require that performance appraisal systems be objective, job-related, reliable, and valid to ensure that employment decisions are not made based on discriminatory factors such as race, gender, or age. This is important especially when performance appraisals are used for promotion or termination decisions.

Question 16

There are two main constituencies in the performance management system: employees and supervisors.

Accepted Answer

The answer of There are two main constituencies in the...

Question 17

MATCHING KEY TERMS AND DEFINITIONS
-Measuring an employee's performance against some established standards.
A)Absolute standards
B)Relative standards
C)Individual ranking
D)360-degree appraisals
E)Peer evaluation
F)Performance measurement
G)Halo error
H)Graphic rating scale
I)Leniency error
J)Documentation
K)Paired comparison
L)Similarity error
M)Attribution theory
N)Management by objectives (MBO)
O)Forced-choice appraisal

Accepted Answer

The answer of MATCHING KEY TERMS AND DEFINITIONS
-Measuring an employee's...

Question 18

The major advantage of the forced-choice appraisal method is the appraiser does not know the "right" answers; hence bias and distortion are increased.

Accepted Answer

The statement is incorrect. The major advantage of the forced-choice appraisal method is that it helps to reduce rater bias and distortion by providing equal positive and negative statements about the employee, and the appraiser must choose the most accurate statement. This method is also useful in preventing leniency or severity bias in performance appraisal.

Question 19

The fourth and last step of the appraisal process is to compare actual performance with standards.

Accepted Answer

The fourth and last step of the appraisal process is to take corrective action if necessary, after comparing actual performance with standards.

Question 20

The primary purpose of performance appraisal systems is to let employees know their pay raises.

Accepted Answer

The primary purpose of performance appraisal systems is to evaluate and provide feedback on an employee's performance, identify strengths and weaknesses, and set goals for improvement. Pay raises may be a part of the process, but they are not the primary purpose.

Quiz 10: Performance Management