Deck 10: Evaluating Individuals

Question 1

Performance appraisals accurately reflect employees' performance.

Answer 1

False

Question 2

As a supervisor you have a tendency to rate all employees as "average" in everything.You are guilty of using which perceptual error?

A) halo error
B) contrast effect
C) central tendency error
D) recency effect

Answer 2

C

Question 3

The "beauty effect" is a rating error in performance appraisals.

Answer 3

True

Question 4

Which of the following is NOT an administrative reason for doing performance appraisals?

A) to identify employees for merit pay
B) to identify employees for promotion
C) to provide useful feedback to employees
D) to monitor the overall quality of performance of the firm

Question 5

Which statement best describes self-appraisals?

A) They tend to be deflated.
B) They tend to be inflated.
C) Poor performers tend to deflate their ratings the most.
D) Self-appraisals are of high value for pay purposes.

Question 6

Evidence appears to support the notion that supervisors often have desired outcomes in mind before they start a performance appraisal process.

Question 7

Which source uses many different rating groups to evaluate the employee's performance?

A) professional raters
B) tiered supervisors
C) 360-degree feedback
D) field review

Question 8

Including a self-appraisal component in the performance appraisal process encourages employees to reflect on the performance of peers

Question 9

Merit pay is one of the developmental reasons for performance appraisals.

Question 10

Karen's performance appraisal provided almost identical results when six different managers evaluated her performance.Which conclusion could you make about the performance appraisal process experienced by Karen?

A) It appears to be reliable; however,no conclusions can be made about its validity.
B) It appears to be reliable; hence,is it also valid.
C) Issues of central tendency need to be addressed.
D) It appears to be a very effective process.

Question 11

Three main categories capture the primary reasons why companies conduct performance appraisals: administrative,symbolic,and supervisory.

Question 12

Senior management determines how much money will be available for merit pay against performance metrics identified in the beginning of the fiscal year,and then distributes those funds across departments.Which approach has senior management used to determine the total amount of money available for merit pay?

A) top-down
B) across the board
C) organizational performance indicators
D) bottom-up

Question 13

Which statement associated with Management by Objectives (MBO)is NOT accurate?

A) Goals should be determined jointly between a manager and an employee.
B) To be effective,goals should be realistic.
C) Broad general goals are congruent with the MBO approach.
D) Regular evaluation and feedback against targets is critical.

Question 14

ABC Inc.uses "mystery shoppers" to appraise staff at its departmental stores.What type of performance appraisal method is ABC Inc.using?

A) graphic rating scales
B) field reviews
C) management by objectives
D) behavioural observation scales

Question 15

Which performance appraisal method is congruent with a management approach that dictates that no more than 15 percent of employees are to be rated as excellent,commanding a top percentage increase in merit pay?

A) forced distribution
B) paired comparison
C) behaviourally anchored rating scales
D) field review

Question 16

The 360-degree feedback method usually gathers data/information from three sources: subordinates,supervisors,and at times,customers.

Question 17

The majority of medium to large Canadian firms use performance appraisals.

Question 18

In an effort to "provide something to everyone," organizations may lump merit pay and cost of living increases together.This action dilutes the relationship between merit pay increases and performance.

Question 19

XYZ Inc.appraises its employees on key traits such as "initiative",on a scale of 1 to 6,with 1=inferior performance and 6=outstanding.What method of performance appraisals is XYZ Inc.using?

A) graphic rating scales
B) management by objectives
C) behavioural anchored rating scales
D) behavioural observation scales

Question 20

A major reason why performance appraisals may not work effectively is that they are applied in circumstances that are not appropriate.

Question 21

What is the first issue to decide when designing a merit pay system?

A) the objectives of the system
B) the amount of money to be distributed
C) how appraisals will be linked to pay
D) the methods to appraise employee performance

Question 22

Which performance appraisal method could be described as "win-lose," creating a situation whereby in order to improve his/her standing,an employee has to displace another team or department member?

A) graphic rating scale
B) paired comparison method
C) forced distribution
D) field review

Question 23

Which source is much less accurate in assessing the performance of managers?

A) peers
B) professional raters
C) subordinates
D) supervisors

Question 24

John tends to demonstrate behaviours that are counterproductive to strong work performance.Which appraisal method would most likely provide the most inaccurate ratings?

A) peer
B) self
C) subordinate
D) supervisor

Question 25

John,a sales manager with a local coffee distributor,sits down with each salesperson at the beginning of the fiscal year to determine performance targets for the year.Then,on a regular basis,John reviews each employee's performance against these jointly determined targets.What performance appraisal method is John likely using?

A) graphic rating scale
B) management by objectives
C) results anchored rating scales
D) behavioural observation scales

Question 26

There are several critical issues that need to be addressed in designing an effective merit system.What is NOT identified as a critical issue in the textbook?

A) ultimate goal(s)of the merit system
B) process for training evaluators
C) manner in which feedback will be provided
D) process that ensures equal increases across employee job ratings

Question 27

Which statement does NOT accurately describe performance management?

A) Goal setting is central to its application.
B) Although 90 percent or more of Canadian companies use some performance management process,only 10 percent find it "effective or very effective."
C) It tends to work best in organizations using a high-involvement or human relations strategies.
D) Development of benchmarks that are valid and reliable is critical.

Question 28

Which source of appraisals can be expected to work well only in classical organizations?

A) peers
B) supervisors
C) self
D) subordinates

Question 29

Which statement would you NOT associate with a multisource/360-degree feedback process?

A) They tend to be seen by recipients as fair.
B) They are more accurate than single-source processes.
C) They tend to be more effective when results are linked to merit pay.
D) They are more credible to the recipient.

Question 30

Which statement best summarizes the general sentiment expressed by stakeholders in describing performance appraisals in Canada?

A) Managers find the process much more worthwhile than employees.
B) A great majority of companies tend to pick one process and stick with it over long periods of time.
C) Managers and employees have little faith that the process leads to valid and reliable results.
D) Employees are much more likely to embrace and find the process valuable.

Question 31

Which statement best describes peer evaluation ratings?

A) Peers tend to be more lenient than superiors.
B) Peers tend to be less lenient than superiors.
C) There is no difference between peer and superior ratings.
D) Peer ratings are the most valid of the sources of appraisals.

Question 32

What is NOT generally a source of employee performance appraisals?

A) supervisors
B) board of directors
C) subordinates
D) professional raters

Question 33

According to research cited in the textbook,which source is used by the majority of Canadian employers?

A) supervisory and self-appraisals
B) only supervisory appraisals
C) 360-degree feedback
D) supervisory,self,and peer appraisals

Question 34

From your perspective as a compensation officer,what is the most important category of reasons for doing performance appraisals?

A) supervisory
B) administrative
C) developmental
D) symbolic

Question 35

John has fabulous interpersonal skills.This causes raters to ignore some of his weaknesses,which include time management,technical,and leadership skills.Which perceptual error is likely impacting John's rating?

A) central tendency error
B) halo error
C) leniency effect
D) contrast effect

Question 36

What is NOT a key element of performance management?

A) goal setting
B) encouragement and support
C) feedback
D) multisource input

Question 37

A particular organization uses a forced ranking system to appraise employees.As a peer appraiser,why might an employee be tempted to give colleagues a low rating?

A) Rating errors can be balanced out.
B) A limited amount of merit pay is available.
C) Conflict and ill will among peers is reduced.
D) You can all benefit if you rate each other low.

Question 38

What two key elements make management by objectives a highly effective approach to employee motivation?

A) goals and feedback
B) trust and open communication
C) core competencies and engagement
D) involvement and business strategy

Question 39

Many organizations do not offer merit raises to employees who are at the top of their pay ranges.This can cause morale problems for these employees.What is a potential solution to this issue?

A) Cut pay for employees who are below the top of the pay range.
B) Give merit bonuses to the affected employees.
C) Re-evaluate the performance appraisal methods.
D) Increase minimum pay for all employees.

Question 40

Which performance appraisal method builds on the behavioural anchored rating scales by requiring that management provide a "frequency rating" associated with positive behaviour?

A) behaviourally anchored rating scales
B) graphic rating scale
C) behavioural observation scale
D) ranking and forced distribution

Question 41

Identify the key characteristics and advantages of 360-degree feedback appraisal system.

Question 42

Identify and describe the various perceptual errors that can affect appraisal accuracy.

Question 43

Define and describe the key elements of performance management.

Question 44

Describe the conditions under which recognizing individual contribution levels may be essential.

Question 45

Identify and briefly explain the main categories of reasons for doing appraisals.

Question 46

You have been tasked with developing an effective merit system for an organization.What critical issues would you have to address to ensure the merit system is effective?