What are performance appraisals most often used for?
answer
making compensation decisions
question
Which of the following is NOT a developmental purpose of performance appraisal?
answer
validating selection procedures
question
Why is performance appraisal important?
answer
because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them
question
Which of the following are the two primary purposes of performance appraisals?
answer
administrative and developmental purposes
question
Which of the following is a typical reason that performance appraisal programs fail?
answer
Managers often lack adequate appraisal skills.
question
In developing a new performance appraisal system, Organization C made an appraisal plan, decided who would be doing the appraising, how it would be done, and even included appraisal training. Which one of the following is an important step that Organization C missed?
answer
examining the performance standards through job analysis
question
Which of the following represents why employees are concerned with the fairness of the performance appraisal system?
answer
The process is central to many HRM decisions
question
Which of the following is exemplified by a manager rating an employee higher than he or she deserves in order to look good as a manager in the eyes of the manager's own superiors?
answer
organizational politics
question
How does the strategic relevance of performance appraisal impact HR managers?
answer
It allows them to more clearly justify training expenses.
question
The strategic relevance of performance appraisals refers to which of the following?
answer
the extent to which standards relate to the overall objectives of the organization
question
If a performance standard is found to be stable or consistent over time, it is said to be which of the following?
answer
reliable
question
A waitress's performance is appraised on the basis of the quality of the food she delivers to the table. What is this an example of?
answer
criterion contamination
question
Suppose the performance appraisals that salespeople receive are based solely on sales revenue to the exclusion of other important factors. Which of the following would these performance evaluations suffer from?
answer
criterion deficiency
question
Suppose the performance evaluations that delivery drivers receive are partially influenced by the fact that some drivers operate in areas where there are major traffic problems while others operate in areas with few traffic problems. Which of the following would these performance evaluations suffer from?
answer
criterion contamination
question
How is reliability in performance appraisal measured?
answer
by correlating ratings made by different raters
question
Which of the following has been shown to be true in court?
answer
Organizations should have carefully defined and measurable performance standards.
question
Jay is a polite, helpful, conscientious employee who often helps his fellow auto sales representatives make sales and is popular with customers due to his customer service orientation. Based on his performance appraisal, which is focused on sales, Jay is being fired because he has not sold enough cars this month. Which of the following problems is at the root of his poor performance appraisal?
answer
criterion deficiency
question
In most instances, who is in the best position to perform the function of appraising an employee's performance?
answer
the employee's supervisor
question
Self-appraisals are best for which of the following?
answer
developmental purposes
question
Which of the following appraisal sources is most useful when the manager and the employee jointly establish future performance goals for each employee?
answer
self appraisal
question
Which of the following processes would be most helpful to an organization that was suffering from lack of inter-rater reliability in appraising employee performance?
answer
calibration
question
TQM concerns have led to the increased use of which of the following?
answer
team and customer performance appraisals
question
What is the most important thing an organization can do to ensure that a performance appraisal process can withstand legal scrutiny?
answer
Base the standards on a sound job analysis and make sure all involved know what the standards are.
question
Some organizations ask managers to place a percentage of their employees in the bottom performance category, which in some cases may mean they are fired, on every performance evaluation exercise. This is an example of which type of performance appraisal method?
answer
forced-distribution system
question
What advantage do peer appraisals have over other types of appraisals?
answer
Peers may have a more intimate view of the performance of fellow employees.
question
Which of the following is an important weakness of 360 feedback?
answer
It is hard to know what to conclude if the appraisal results in conflicting opinions
question
Jane is manager to 10 direct reports. She is currently concerned that she is perceived as a softy and so she has decided not to give out very many high ratings on this years performance appraisal exercise. However, she doesn't want anyone to be fired either, so she has decided not to give out any very low ratings either. Which of the following will Jane's ratings suffer from?
answer
central tendency error
question
Performance appraisal methods can be broadly classified as which of the following approaches?
answer
trait, behavioural, and results
question
Which of the following rating formats uses three specific behavioural descriptions relevant to each trait and then asks supervisors to evaluate whether an employee's behaviour is better than, equal to, or worse than the standard for each behaviour?
answer
mixed standard scale
question
Every time Sandy makes a mistake at work, her manager writes it down in detail in her employee record. Sandy thinks this is a form of harassment. More likely, what is the manager trying to do?
answer
collect critical incidents
question
Which of the following is the primary limitation of the forced-choice method of appraisal?
answer
It is expensive to establish and maintain its validity.
question
Which of the following is a major weakness of the behaviourally anchored rating scale (BARS)?
answer
It takes a long time and a lot of effort to develop.
question
If your primary objective for a performance appraisal is to give employees developmental feedback, which of the following appraisal methods should you use?
answer
behavioural methods
question
Which of the following appraisal methods helps guard against recency error?
answer
critical incident method
question
Which of the following types of scale uses critical incidents as examples of different points along the scale?
answer
the behaviourally anchored rating scale
question
Which of the following is a major advantage of a behaviourally anchored rating scale?
answer
It requires a great deal of employee participation, which leads to acceptance.
question
Which of the following best describes a behaviourally anchored rating scale?
answer
it has content validity
question
With which type of appraisal method would supervisors most likely be inclined to forego needed maintenance on their equipment?
answer
results methods
question
Which of the following performance appraisal methods involves a mutual agreement of goals and metrics between supervisor and subordinate?
answer
management by objectives
question
Which of the following appraisal systems is based on the concept that learning helps organizations improve their internal processes and allows individuals to see how their performance ties in with the firm?
answer
balanced scorecard approach
question
The HR managers at Organization M are very keen to tie all their HR practices in with organizational strategy and performance appraisal is no exception. They would like to make clear the link between individual performance and organizational performance. Which of the following is the best type of appraisal method for the HR managers at Organization M?
answer
results based methods
question
The appraisal interview should be divided into two sessions. Which of the following best describes what those two sessions should contain?
answer
performance review and developmental planning
question
Which of the following is an essential component of an appraisal interview?
answer
It should be held in two segments because the rater must perform the role of both evaluator and counsellor
question
In delivering a performance appraisal interview, Manuel is attempting to convince his direct report that she needs to be more communicative with her peers about her work. The other aspects of her performance are excellent, so he is willing to provide incentives for her if she can improve in this aspect of her performance. Which of the following types of performance appraisal interview is Manuel delivering?
answer
tell and sell
question
In delivering a performance appraisal interview, Jacqui is taking a listening perspective. She wants to stimulate growth and development by discussing the problems, needs, satisfactions, and dissatisfactions the employee has encountered on the job. What type of performance appraisal interview is Jacqui delivering?
answer
problem solving
question
Why would a manager ask an employee to do a self-appraisal before meeting for the performance appraisal interview?
answer
It ensures the employee knows evaluation criteria.
question
Which of the following is the most accurate description of the possible facets of an appraisal interview?
answer
ask for a self-assessment, invite participation, express appreciation, and minimize criticism
question
How often should performance feedback be delivered?
answer
It should be an ongoing, regular part of supervisor-subordinate interactions.
question
Which of the following is a major issue surrounding "stretch goals"?
answer
They could be considered unethical for several reasons.
question
Which of the following are NOT an environmental factor that may be a source of ineffective performance?
answer
boredom and lack of ability
question
Managers often first assume poor performance of subordinates is due to which of the following?
answer
lack of ability
question
Which of the following is NOT an ability factor that may be a source of ineffective performance?
answer
career ambition
question
Which of the following is an accurate listing of the factors that affect performance?
answer
motivation, environment, and ability
question
Most performance appraisals focus on long-term improvement, rather than short-term achievements.
:T/F
answer
F
question
In general, performance appraisal can be classified as either administrative or developmental.
:T/F
answer
T
question
Performance appraisals program can be used for many purposes, including salary recommendations and the retention and termination of employees.
:T/F
answer
T
question
Developmental purposes for performance appraisal include validating selection criteria and meeting legal requirements.
:T/F
answer
F
question
Administrative purposes for performance appraisal include documenting personnel decisions and identifying individual training needs.
:T/F
answer
F
question
If an appraisal program is used to provide a written appraisal for salary action and at the same time used as a means of motivating employees to improve upon their performance, the administrative and developmental purposes may be in conflict.
:T/F
answer
T
question
Developmental approaches to performance appraisal recognize that a manager's purpose is to improve job behaviours, not just evaluate past performance.
:T/F
answer
T
question
Organizational politics can introduce bias into even the most fairly administered performance appraisals.
:T/F
answer
T
question
Ideally, performance appraisals should be linked to the strategic objectives of the organization.
:T/F
answer
T
question
Criterion deficiency occurs when performance standards focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions.
:T/F
answer
T
question
Criterion contamination occurs when correlations between two raters of an employee are inconsistent.
:T/F
answer
F
question
Criterion contamination occurs when factors outside an employee's control influence his or her performance.
:T/F
answer
T
question
Reliability refers to measures that are consistent across raters and over time.
:T/F
answer
T
question
In order to increase employee motivation levels, written performance standards should be objective but not defined in quantifiable and measurable terms.
:T/F
answer
F
question
Ineffective handling of performance appraisal may result in court cases or other legal action.
:T/F
answer
T
question
In most instances, one person can easily observe and evaluate an employee's performance.
:T/F
answer
F
question
Surprisingly, self-appraisals are typically equal to or lower than the traditional approach to appraisals where a manager fills them out.
:T/F
answer
F
question
Self-appraisals should be used primarily for developmental purposes.
:T/F
answer
T
question
Peer appraisals should be used primarily for developmental purposes.
:T/F
answer
T
question
Peer appraisals are useful for ratings on dimensions such as leadership and interpersonal skills.
:T/F
answer
t
question
One disadvantage of peer appraisals is that they furnish less valid information than appraisals by superiors.
:T/F
answer
F
question
A team appraisal approach is well suited for a company advocating a total-quality management philosophy.
:T/F
answer
T
question
Team appraisals are a collection of the individual appraisals of a work unit.
:T/F
answer
F
question
Internal customers are the most important source of valuable performance information for both developmental and administrative purposes.
:T/F
answer
T
question
Most organizations that implement 360-degree appraisal start with an exclusive focus on development.
:T/F
answer
T
question
One weakness of many performance appraisal programs is that supervisors are not adequately trained; consequently, they provide little meaningful feedback to subordinates.
:T/F
answer
T
question
A significant weakness of 360-degree appraisal is the complexity associated with combining all the responses.
:T/F
answer
T
question
Using the appraisal system for compensation decisions rather than developmental purposes may affect how the rater evaluates the employee.
:T/F
answer
T
question
An error of central tendency is a performance-rating error in which all employees are more or less rated as average.
:T/F
answer
T
question
Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors.
:T/F
answer
T
question
Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest.
:T/F
answer
T
question
The similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common.
:T/F
answer
T
question
The similar-to-me error, like contrast, results in less-than-accurate performance ratings, but would not be considered discriminatory.
:T/F
answer
F
question
Feedback training for raters should include communicating effectively, diagnosing causes of performance problems, and setting goals.
:T/F
answer
T
question
Trait appraisal approaches continue to be the most popular systems despite their inherent subjectivity.
:T/F
answer
T
question
Results-oriented approaches are the most widely used, despite their subjectivity.
:T/F
answer
F
question
A potential drawback of a trait-oriented performance appraisal is that it may be biased and subjective.
:T/F
answer
T
question
One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity.
:T/F
answer
F
question
Graphic rating scales include sets of statements between which the rater must choose, such as "works hard" vs. "works quickly."
:T/F
answer
F
question
A major drawback of the essay method is that composing an essay that attempts to cover all of an employee's essential characteristics is very time-consuming.
:T/F
answer
T
question
Behavioural methods are often useful for providing employees with developmental feedback.
:T/F
answer
T
question
One of the disadvantages of the critical incident method is that it tends to lead to recency error.
:T/F
answer
F
question
The critical incident method facilitates employee feedback and development.
:T/F
answer
T
question
The main advantage of a BARS is that it requires minimal time and effort to develop.
:T/F
answer
F
question
Results appraisals give employees more responsibility for outcomes and discretion over how to accomplish them.
:T/F
answer
T
question
One of the primary strengths of results appraisals is that they are not likely to suffer from contamination by external factors that employees cannot influence.
:T/F
answer
F
question
Measurable and quantifiable performance objectives are requirements for a successful MBO program.
:T/F
answer
T
question
"Management-by-objectives" is one of the best performance appraisal approaches to use if a company's production system is surrounded by uncertainty and variability.
:T/F
answer
F
question
One of the primary strengths of results appraisals is that they encourage employees to focus on long-term performance indicators.
:T/F
answer
F
question
The balanced scorecard approach integrates four categories: financial, customer, processes, and outcomes.
:T/F
answer
F
question
The balanced scorecard approach translates broad goals into increasingly specific goals, so that individuals can see how their performance relates to the overall performance of the firm.
:T/F
answer
T
question
The best appraisal method to use depends upon the purpose of the appraisal.
:T/F
answer
T
question
Dividing the appraisal interview into two sessions, one for the performance review and the other for the employee's growth plans, is a good strategy to improve communication between the parties.
:T/F
answer
T
question
Three types of appraisal interviews are tell-and-sell, tell-and-listen, and problem-solving.
:T/F
answer
T
question
Because the appraisal interview is for developmental purposes, the interviewer rather than the employee should spend the majority of the time sharing information.
:T/F
answer
F
question
Self-assessment is useful to ensure the employee knows against what criteria he or she is evaluated, thus eliminating surprises.
:T/F
answer
T
question
Appraisal discussions should focus on the employee's attitudes rather than on his or her specific behaviours because the attitude goes more to the root cause.
:T/F
answer
F
question
Feedback is most useful when it is immediate and general in nature.
:T/F
answer
F
question
Depending on the industry, managers should provide performance feedback on an annual basis.
:T/F
answer
F
question
Performance is a function of ability, motivation, and environment.
:T/F
answer
T
question
Attributions are beliefs that managers have about the causes of employee performance.
:T/F
answer
T
question
1. Identify and discuss the two general purposes of performance appraisal.
answer
Performance appraisal programs serve many purposes, which in general terms fall into two categories: administrative and developmental. Administrative purposes relate to who will be promoted, transferred, or laid off, and compensation decisions. Developmental purposes relate to improving and enhancing an individual's capabilities (e.g., identifying a person's strengths and weaknesses, eliminating external performance obstacles, and establishing training needs). These two purposes of performance appraisal reflect HRM's larger role, which is to integrate the individual with the organization.
question
Why do employee appraisal programs sometimes fail?
answer
In many organizations, performance appraisals are seen as a necessary evil. Managers frequently avoid conducting appraisals because they dislike playing the role of judge. Further, if managers are not adequately trained, subjectivity and politics can distort the reviews. This situation tends to be self-defeating in that such managers frequently do not develop good feedback skills and are often not prepared to conduct an appraisal. As a consequence, the appraisal is done once a year and then forgotten about.
question
What are the four basic considerations for establishing performance standards?
answer
First, performance standards should have strategic relevance. Strategic relevance refers to the extent to which performance standards relate to the strategic objectives of the organization. A second consideration in establishing performance standards is the extent to which the standards capture the entire range of an employee's responsibilities. When performance standards focus on a single criterion to the exclusion of other important performance dimensions, then the appraisal system is said to suffer from criterion deficiency. Third, performance standards can also be contaminated. When performance standards include factors outside an employee's control that can influence his or her performance, then the appraisal system is said to suffer from criterion contamination. Fourth, performance standards should be reliable. Reliability refers to the stability or consistency of a performance standard, or the extent to which individuals tend to maintain a certain level of performance over time.
question
Why are appraisal interviews important? What are some guidelines for effectiveness?
answer
The degree to which the performance appraisal program benefits the organization and its members is directly related to the quality of the appraisal interviews that are conducted. Interviewing skills are best developed through instruction and supervised practice. Although there are various approaches to the interview, research suggests that employee participation and goal setting lead to higher satisfaction and improved performance. Discussing problems, showing support, minimizing criticism, and rewarding effective performance are also beneficial practices. In the interview, deficiencies in employee performance can be discussed and plans for improvement can be made.
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