Deck 8: Performance Management and the Employee Appraisal Process

Question 1

Which of the following is a typical reason that performance appraisal programs fail?

A) Managers rely on their knowledge of the job instead of proper appraisal procedures.
B) There is too much employee input into the development of the appraisal program.
C) The program is usually based on a job analysis rather than a competency analysis.
D) Managers often lack adequate appraisal skills.

Answer 1

D

Question 2

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?

A) criterion contamination
B) lack of reliability
C) criterion deficiency
D) lack of criterion relevance

Answer 2

C

Question 3

Which of the following represents why employees are concerned with the fairness of the performance appraisal system?

A) the process is central to many HRM decisions
B) they usually disagree with their ratings
C) their input is what makes it fair
D) a formal grievance process is required by law

Answer 3

A

Question 4

The strategic relevance of performance appraisals refers to which of the following?

A) the extent to which standards relate to the overall objectives of the organization
B) the extent to which standards capture the entire range of an employee's responsibilities
C) the extent to which individuals tend to maintain a certain level of performance over time
D) the extent to which factors outside the employee's control can influence performance

Question 5

Which of the following processes would be most helpful to an organization that was suffering from lack of interrater reliability in appraising employee performance?

A) rater training
B) calibration
C) job analysis
D) performance appraisals of managers

Question 6

Which of the following is NOT a developmental purpose of performance appraisal?

A) recognizing individual performance
B) validating selection procedures
C) improving communication
D) identifying an individual's strengths and weaknesses

Question 7

How often should performance feedback be delivered?

A) It should be done at least annually.
B) It depends on the organizational culture, industry, and supervisor's style.
C) It should be done at regular intervals-the more frequent the better.
D) It should be an ongoing, regular part of supervisor-subordinate interactions.

Question 8

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. What is the problem at the root of his poor performance appraisal?

A) criterion contamination
B) lack of reliability
C) criterion deficiency
D) lack of relevance

Question 9

How is reliability in performance appraisal measured?

A) by correlating ratings made by different raters
B) by determining validity of performance standards
C) by linking performance standards to organizational goals
D) by quantifying performance standards

Question 10

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

A) Vague performance standards can be acceptable when clearly written.
B) Organizations should have carefully defined and measurable performance standards.
C) While performance standards should be somewhat specific, there should be room for individual interpretation.
D) Descriptions of traits such as attitude and cooperation are acceptable performance standards.

Question 11

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?

A) criterion contamination
B) lack of relevance
C) lack of reliability
D) rater bias

Question 12

In developing a new performance appraisal system, Organization C made an appraisal plan, decided who would be doing the appraising and how it would be done, and even included appraisal training. Which one of the following is an important step that Organization C missed?

A) clearly communicating in advance the company's plans for employees who do not meet standards.
B) gaining support from top management, which should occur near the beginning of the process
C) informing employees how the process would go to alleviate anxiety
D) examining the performance standards through job analysis

Question 13

How does the strategic relevance of performance appraisal impact HR managers?

A) It allows them to more clearly justify training expenses.
B) It makes their job easier in that everyone is clear on objectives.
C) It puts the onus on them to establish the strategic relevance of all their HR activities.
D) It makes performance criteria much more useful, not just to HR managers but to the entire organization.

Question 14

What are performance appraisals most often used for?

A) making compensation decisions
B) creating a team environment
C) tracking down ineffective employees
D) creating distance between managers and employees

Question 15

Which of the following are the two primary purposes of performance appraisals?

A) informative and developmental purposes
B) managerial and administrative purposes
C) managerial and informative purposes
D) administrative and developmental purposes

Question 16

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?

A) criterion deficiency
B) criterion contamination
C) problems with the criteria
D) criterion reliability

Question 17

Why is performance appraisal important?

A) because it is key to the validation of selection procedures, which are the foundation of all HR practices
B) because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum
C) because employees need to know that they are being evaluated in order to perform at an appropriate level
D) because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them

Question 18

If a performance standard is found to be stable or consistent over time, it is said to be which of the following?

A) free from contamination
B) relevant
C) reliable
D) valid

Question 19

What is the most important thing an organization can do to ensure that a performance appraisal process can withstand legal scrutiny?

A) Base the standards on a sound job analysis and make sure all involved know what the standards are.
B) Make sure managers are not biased in their delivery of appraisal feedback.
C) Use calibration and train the managers on how to deliver feedback.
D) Make sure the tool is reliable.

Question 20

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?

A) criterion deficiency
B) organizational politics
C) criterion contamination
D) administrative appraisal purpose

Question 21

Some organizations ask managers to place a percentage of their employees in the bottom performance category on every performance evaluation exercise, which in some cases may mean they are fired. Which type of performance appraisal method does this exemplify?

A) forced-distribution system
B) checklist method
C) percent method
D) forced-choice method

Question 22

Which of the following is the primary limitation of the forced-choice method of appraisal?

A) It is expensive to initially develop.
B) Only highly trained raters can use the format.
C) It does not lend itself to peer and self-ratings.
D) It is expensive to establish and maintain its validity.

Question 23

TQM concerns have led to the increased use of which of the following?

A) manager/supervisor appraisals
B) team and customer performance appraisals
C) self-appraisals
D) subordinate appraisals

Question 24

Self-appraisals are best for which of the following?

A) administrative purposes
B) developmental purposes
C) promotional purposes
D) regulatory purposes

Question 25

If your primary objective for a performance appraisal is to give employees developmental feedback, which of the following appraisal methods should you use?

A) behavioural methods
B) results methods
C) trait methods
D) attitudinal methods

Question 26

Which of the following best describes a behaviourally anchored rating scale?

A) It typically has construct validity.
B) It typically has content validity.
C) It can be used to rate employees across many different jobs.
D) It costs the least to develop.

Question 27

Which of the following performance appraisal methods involves a mutual agreement of goals and metrics between supervisor and subordinate?

A) all behavioural methods
B) productivity measures
C) forced distribution
D) management by objectives

Question 28

With which type of appraisal method would supervisors most likely be inclined to forgo needed maintenance on their equipment?

A) results methods
B) 360-degree appraisal
C) subordinate appraisal
D) trait methods

Question 29

Which rating format 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?

A) mixed-standard scale
B) forced-choice method
C) behaviourally anchored rating scale
D) behaviour observation scale

Question 30

Which of the following is an important weakness of 360-degree feedback?

A) In cases where feedback is not positive, it has been shown to increase voluntary turnover.
B) It is hard to know what to conclude if the appraisal results in conflicting opinions.
C) The quality of information is not as good as other types of appraisal systems.
D) The training can be demoralizing because it is so intense.

Question 31

Which appraisal method helps guard against recency error?

A) critical incident method
B) forced-choice method
C) graphic rating scales
D) mixed-standard scale

Question 32

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?

A) trait-based methods
B) results-based methods
C) behaviour-based methods
D) performance-based methods

Question 33

Which of the following is a major weakness of the behaviourally anchored rating scale (BARS)?

A) Ratees are often offended by the anchors.
B) It takes a long time and a lot of effort to develop.
C) The anchors become outdated quickly because they are so specific.
D) It takes a long time to fill out.

Question 34

In most instances, who is in the best position to perform the function of appraising an employee's performance?

A) someone from the HR department
B) a coworker
C) the employee
D) the employee's supervisor

Question 35

Which of the following appraisal sources is most useful when the manager and the employee jointly establish future performance goals for each employee?

A) team appraisal
B) peer appraisal
C) subordinate appraisal
D) self-appraisal

Question 36

Performance appraisal methods can be broadly classified as which of the following approaches?

A) trait, behavioural, and judgmental
B) trait, behavioural, and results
C) behavioural, judgmental, and results
D) behavioural, judgmental, and attitudinal

Question 37

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?

A) collect information in order to build a BARS
B) substantiate her termination in case Sandy files a complaint
C) evaluate her performance
D) collect critical incidents

Question 38

Which of the following uses critical incidents as examples of different points along the scale?

A) the mixed-standard scale
B) the global rating
C) the behaviourally anchored rating scale
D) dimensional rating

Question 39

Which of the following is a major advantage of a behaviourally anchored rating scale?

A) It requires a great deal of employee participation, which leads to acceptance.
B) The rating scale can be used across many jobs.
C) It takes a relatively short time to develop.
D) It allows the appraiser to observe rather than judge.

Question 40

What advantage do peer appraisals have over other types of appraisals?

A) Peers know the job better than most managers do.
B) Peers do not have a conflict of interest over honestly appraising a fellow employee.
C) Peers may have a more intimate view of the performance of fellow employees.
D) Peers don't have to worry about meeting standards for distributions.

Question 41

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?

A) balanced scorecard approach
B) 360-degree appraisal
C) customer-oriented approach
D) management by objectives

Question 42

Which of the following is an essential component of an appraisal interview?

A) It should take place in one session in order to give the employee a complete view of his or her performance.
B) It can be divided into two sections, though this is not advisable.
C) It is a time for the supervisor to give feedback on past performance and should not be used for developmental purposes.
D) It should be held in two segments because the rater must perform the role of both evaluator and counsellor.

Question 43

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?

A) by rating the reports highly if they displayed characteristics similar to her own
B) by rating everyone leniently
C) by collecting critical incidents
D) by rating everyone highly

Question 44

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. Med Supplies should consider using team appraisals to evaluate the team as a whole. Which of the following is true about team appraisals?

A) can help break down barriers and encourage joint effort
B) make it easier to separate individual contributions
C) readily identify leadership and interpersonal skills
D) provide 360-degree feedback

Question 45

Which of the following is NOT an environmental factor that may be a source of ineffective performance?

A) rules and policies
B) economic conditions
C) boredom and lack of ability
D) laws and regulations

Question 46

Scenario 8.3
Canadian Fasteners Inc. has recently implemented a Human Resource (HR)system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance appraisals for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance appraisals are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses. However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.
Refer to Scenario 8.3. Canadian Fasteners wants to embark on feedback sessions. Which of the following is NOT one of the key points to address?

A) direct the feedback toward behaviour the employee can control
B) give specific examples of desirable and undesirable behaviours
C) provide timely feedback
D) focus feedback on the person, not behaviour

Question 47

Which of the following is NOT an ability factor that may be a source of ineffective performance?

A) interpersonal skill
B) career ambition
C) technical skill
D) physical limitation

Question 48

The appraisal interview should be divided into two sessions. Which of the following best describes what those two sessions should contain?

A) positive comments and negative comments
B) performance review and developmental planning
C) performance review and compensation discussion
D) establishing performance standards and reviewing performance

Question 49

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?

A) those receiving low ratings might retaliate against their peers
B) peer ratings are simply a popularity contest
C) managers want to give up control over the appraisal process
D) peers rely on stereotypes in ratings

Question 50

Which of the following is the most accurate description of the possible facets of an appraisal interview?

A) minimize criticism, change the person not the behaviour, and encourage feedback
B) change the person not the behaviour, minimize criticism, express appreciation, and invite participation
C) ask for a self-assessment, invite participation, express appreciation, and minimize criticism
D) ask for a self-assessment, change the person not the behaviour, and encourage feedback

Question 51

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?

A) tell-and-listen
B) tell-and-sell
C) tell-and-train
D) problem-solving

Question 52

Why would a manager ask an employee to do a self-appraisal before meeting for the performance appraisal interview?

A) It makes the employee feel like he or she is involved in some small way.
B) It ensures the employee knows evaluation criteria.
C) It increases employee satisfaction.
D) It is expected in certain industries through convention.

Question 53

Feedback is most useful when it is immediate and general in nature.

Question 54

Scenario 8.3
Canadian Fasteners Inc. has recently implemented a Human Resource (HR)system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance appraisals for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance appraisals are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses. However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.
Refer to Scenario 8.3. If Canadian Fasteners were to provide ongoing performance feedback to its employees, this would be a key step in which of the following?

A) strategic and managerial process
B) performance management process
C) compensation rating process
D) promotion process

Question 55

Which of the following is a major issue surrounding "stretch goals"?

A) They demoralize the employee.
B) They increase voluntary turnover.
C) They could be considered unethical for several reasons.
D) They cause disruptive behaviours to the point that they are more costly to the organization than they are financially advantageous.

Question 56

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. Which of the following will Jane's ratings suffer from?

A) similar-to-self bias
B) leniency error
C) forced distribution
D) central tendency error

Question 57

Scenario 8.3
Canadian Fasteners Inc. has recently implemented a Human Resource (HR)system that assists with the recruitment and selection process, as well as administering a pension and benefits program. Included with these programs are training and development programs as well as yearly performance appraisals for both managers and agents who are jointly responsible for bringing in new accounts and maintaining existing ones. While these performance appraisals are done each year, mangers and agents do not receive feedback unless they are unhappy with their salary increases or bonuses. However, HR is now pushing the need for ongoing feedback as it is a key component of its compensation process.
Refer to Scenario 8.3. According to research, which of the following is TRUE about providing feedback?

A) employees who receive no feedback from their supervisors exhibit the least amount of engagement
B) feedback is least useful when it is immediate
C) only provide positive feedback to employees
D) feedback should not be specific to a particular situation

Question 58

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?

A) tell-and-listen
B) tell-and-sell
C) tell-and-train
D) problem-solving

Question 59

Managers often first assume poor performance of subordinates is due to which of the following?

A) inadequate training
B) poor motivation
C) external constraints
D) lack of ability

Question 60

Which of the following is an accurate listing of the factors that affect performance?

A) motivation, environment, and ability
B) motivation, organizational culture, and traits
C) organizational culture, motivation, and ability
D) ability, job design, and motivation

Question 61

Criterion deficiency occurs when performance standards focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions.

Question 62

Peer appraisals should be used primarily for developmental purposes.

Question 63

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

Question 64

Developmental approaches to performance appraisal recognize that a manager's purpose is to improve job behaviours, not just evaluate past performance.

Question 65

In general, performance appraisal can be classified as either administrative or developmental.

Question 66

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

Question 67

Developmental purposes for performance appraisal include validating selection criteria and meeting legal requirements.

Question 68

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

Question 69

A performance appraisals program can be used for many purposes, including salary recommendations and the retention and termination of employees.

Question 70

Criterion contamination occurs when correlations between two raters of an employee are inconsistent.

Question 71

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.

Question 72

In order to increase employee motivation levels, written performance standards should be objective but not defined in quantifiable and measurable terms.

Question 73

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

Question 74

Self-appraisals should be used primarily for developmental purposes.

Question 75

In most instances, one person can easily observe and evaluate an employee's performance.

Question 76

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

Question 77

Criterion contamination occurs when factors outside an employee's control influence his or her performance.

Question 78

Depending on the industry, managers should provide performance feedback on an annual basis.

Question 79

Administrative purposes for performance appraisal include documenting personnel decisions and identifying individual training needs.

Question 80

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