Exam 8: Performance Management and the Employee Appraisal Process

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?

Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors.

Surprisingly, self-appraisals are typically equal to or lower than the traditional approach to appraisals where a manager fills them out.

The balanced scorecard approach integrates four categories: financial, customer, processes, and outcomes.

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. What type of performance appraisal interview is Manuel delivering?

Most performance appraisals focus on long-term improvement, rather than short-term achievements.

A team appraisal approach is well suited for a company advocating a total-quality management philosophy.

Why is performance appraisal important?

Self-assessment is useful to ensure the employee knows against what criteria he or she is evaluated, thus eliminating surprises.

Which of the following has been shown to be true in court?

Reliability refers to measures that are consistent across raters and over time.

Identify and discuss the two general purposes of performance appraisal.

Ineffective handling of performance appraisal may result in court cases or other legal action.

Scenario 8.2 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 year's performance appraisal exercise. However, she doesn't want anyone to be fired, either, so she has also decided not to give out any very low ratings. -Refer to Scenario 8.2. How can Jane correct for this error?

The similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common.

Ideally, performance appraisals should be linked to the strategic objectives of the organization.

One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity.

Scenario 8.1 Med Supplies Ltd. is a manufacturer and distributor of over-the-counter medical devices such as blood pressure monitors. Med Supplies relies heavily on its sales team to push these products to pharmacies and medical clinics across Canada. Sales reps are paid a yearly bonus based on the team's performance, coupled with annual performance appraisals done by managers. Over the last three years, they have been paid bonuses based on the previous year's performance if it is similar in dollar figure despite losing shelf space in stores or declining individual performances. The managers claim that they do not have the time to do the appraisals, but their superiors think these appraisals are key and need to be the link between employees' goals and the organization's objectives. -Refer to Scenario 8.1. The VP Sales suggests the use of peer appraisals to ensure that each member of the team pulls his/her weight. Which of the following is NOT a reason why peer appraisals are not frequently used?

Organizational politics can introduce bias into even the most fairly administered performance appraisals.

How often should performance feedback be delivered?