Chapter 8 Practice Test
What are performance appraisals most often used for?
making compensation decisions
Surprisingly, self-appraisals are typically equal to or lower than the traditional approach to appraisals where a manager fills them out. :T/F
F
Team appraisals are a collection of the individual appraisals of a work unit. :T/F
F
The balanced scorecard approach integrates four categories: financial, customer, processes, and outcomes. :T/F
F
The main advantage of a BARS is that it requires minimal time and effort to develop. :T/F
F
The similar-to-me error, like contrast, results in less-than-accurate performance ratings, but would not be considered discriminatory. :T/F
F
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
T
A potential drawback of a trait-oriented performance appraisal is that it may be biased and subjective. :T/F
T
A significant weakness of 360-degree appraisal is the complexity associated with combining all the responses. :T/F
T
A team appraisal approach is well suited for a company advocating a total-quality management philosophy. :T/F
T
An error of central tendency is a performance-rating error in which all employees are more or less rated as average. :T/F
T
Attributions are beliefs that managers have about the causes of employee performance. :T/F
T
Behavioural methods are often useful for providing employees with developmental feedback. :T/F
T
Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest. :T/F
T
Criterion contamination occurs when factors outside an employee's control influence his or her performance. :T/F
T
Criterion deficiency occurs when performance standards focus on a single criterion to the exclusion of other important but less quantifiable performance dimensions. :T/F
T
Developmental approaches to performance appraisal recognize that a manager's purpose is to improve job behaviours, not just evaluate past performance. :T/F
T
One of the disadvantages of the critical incident method is that it tends to lead to recency error. :T/F
F
What is the most important thing an organization can do to ensure that a performance appraisal process can withstand legal scrutiny?
Base the standards on a sound job analysis and make sure all involved know what the standards are.
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
F
One of the primary strengths of results appraisals is that they encourage employees to focus on long-term performance indicators. :T/F
F
Results-oriented approaches are the most widely used, despite their subjectivity. :T/F
F
"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
F
Administrative purposes for performance appraisal include documenting personnel decisions and identifying individual training needs. :T/F
F
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
F
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
F
Criterion contamination occurs when correlations between two raters of an employee are inconsistent. :T/F
F
Depending on the industry, managers should provide performance feedback on an annual basis. :T/F
F
Developmental purposes for performance appraisal include validating selection criteria and meeting legal requirements. :T/F
F
Feedback is most useful when it is immediate and general in nature. :T/F
F
Graphic rating scales include sets of statements between which the rater must choose, such as "works hard" vs. "works quickly." :T/F
F
In most instances, one person can easily observe and evaluate an employee's performance. :T/F
F
In order to increase employee motivation levels, written performance standards should be objective but not defined in quantifiable and measurable terms. :T/F
F
Most performance appraisals focus on long-term improvement, rather than short-term achievements. :T/F
F
One disadvantage of peer appraisals is that they furnish less valid information than appraisals by superiors. :T/F
F
One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity. :T/F
F
What are the four basic considerations for establishing performance standards?
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.
Why do employee appraisal programs sometimes fail?
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.
How does the strategic relevance of performance appraisal impact HR managers?
It allows them to more clearly justify training expenses.
Why would a manager ask an employee to do a self-appraisal before meeting for the performance appraisal interview?
It ensures the employee knows evaluation criteria.
Which of the following is the primary limitation of the forced-choice method of appraisal?
It is expensive to establish and maintain its validity.
Which of the following is an important weakness of 360 feedback?
It is hard to know what to conclude if the appraisal results in conflicting opinions
Which of the following is a major advantage of a behaviourally anchored rating scale?
It requires a great deal of employee participation, which leads to acceptance.
How often should performance feedback be delivered?
It should be an ongoing, regular part of supervisor-subordinate interactions.
Which of the following is an essential component of an appraisal interview?
It should be held in two segments because the rater must perform the role of both evaluator and counsellor
Which of the following is a major weakness of the behaviourally anchored rating scale (BARS)?
It takes a long time and a lot of effort to develop.
Which of the following is a typical reason that performance appraisal programs fail?
Managers often lack adequate appraisal skills.
Which of the following has been shown to be true in court?
Organizations should have carefully defined and measurable performance standards.
What advantage do peer appraisals have over other types of appraisals?
Peers may have a more intimate view of the performance of fellow employees.
1. Identify and discuss the two general purposes of performance appraisal.
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.
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
T
Feedback training for raters should include communicating effectively, diagnosing causes of performance problems, and setting goals. :T/F
T
Ideally, performance appraisals should be linked to the strategic objectives of the organization. :T/F
T
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
T
In general, performance appraisal can be classified as either administrative or developmental. :T/F
T
Ineffective handling of performance appraisal may result in court cases or other legal action. :T/F
T
Internal customers are the most important source of valuable performance information for both developmental and administrative purposes. :T/F
T
Measurable and quantifiable performance objectives are requirements for a successful MBO program. :T/F
T
Most organizations that implement 360-degree appraisal start with an exclusive focus on development. :T/F
T
One weakness of many performance appraisal programs is that supervisors are not adequately trained; consequently, they provide little meaningful feedback to subordinates. :T/F
T
Organizational politics can introduce bias into even the most fairly administered performance appraisals. :T/F
T
Peer appraisals should be used primarily for developmental purposes. :T/F
T
Performance appraisals program can be used for many purposes, including salary recommendations and the retention and termination of employees. :T/F
T
Performance is a function of ability, motivation, and environment. :T/F
T
Reliability refers to measures that are consistent across raters and over time. :T/F
T
Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors. :T/F
T
Results appraisals give employees more responsibility for outcomes and discretion over how to accomplish them. :T/F
T
Self-appraisals should be used primarily for developmental purposes. :T/F
T
Self-assessment is useful to ensure the employee knows against what criteria he or she is evaluated, thus eliminating surprises. :T/F
T
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
T
The best appraisal method to use depends upon the purpose of the appraisal. :T/F
T
The critical incident method facilitates employee feedback and development. :T/F
T
The similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common. :T/F
T
Three types of appraisal interviews are tell-and-sell, tell-and-listen, and problem-solving. :T/F
T
Trait appraisal approaches continue to be the most popular systems despite their inherent subjectivity. :T/F
T
Using the appraisal system for compensation decisions rather than developmental purposes may affect how the rater evaluates the employee. :T/F
T
Why are appraisal interviews important? What are some guidelines for effectiveness?
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.
Which of the following represents why employees are concerned with the fairness of the performance appraisal system?
The process is central to many HRM decisions
Which of the following is a major issue surrounding "stretch goals"?
They could be considered unethical for several reasons.
Which of the following are the two primary purposes of performance appraisals?
administrative and developmental purposes
Which of the following is the most accurate description of the possible facets of an appraisal interview?
ask for a self-assessment, invite participation, express appreciation, and minimize criticism
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?
balanced scorecard approach
Why is performance appraisal important?
because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them
If your primary objective for a performance appraisal is to give employees developmental feedback, which of the following appraisal methods should you use?
behavioural methods
Which of the following are NOT an environmental factor that may be a source of ineffective performance?
boredom and lack of ability
How is reliability in performance appraisal measured?
by correlating ratings made by different raters
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?
calibration
Which of the following is NOT an ability factor that may be a source of ineffective performance?
career ambition
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?
central tendency error
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?
collect critical incidents
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?
criterion contamination
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?
criterion contamination
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?
criterion deficiency
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?
criterion deficiency
Which of the following appraisal methods helps guard against recency error?
critical incident method
Self-appraisals are best for which of the following?
developmental purposes
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?
examining the performance standards through job analysis
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?
forced-distribution system
Which of the following best describes a behaviourally anchored rating scale?
it has content validity
Managers often first assume poor performance of subordinates is due to which of the following?
lack of ability
Which of the following performance appraisal methods involves a mutual agreement of goals and metrics between supervisor and subordinate?
management by objectives
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?
mixed standard scale
Which of the following is an accurate listing of the factors that affect performance?
motivation, environment, and ability
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?
organizational politics
The appraisal interview should be divided into two sessions. Which of the following best describes what those two sessions should contain?
performance review and developmental planning
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?
problem solving
If a performance standard is found to be stable or consistent over time, it is said to be which of the following?
reliable
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?
results based methods
With which type of appraisal method would supervisors most likely be inclined to forego needed maintenance on their equipment?
results methods
Which of the following appraisal sources is most useful when the manager and the employee jointly establish future performance goals for each employee?
self appraisal
Peer appraisals are useful for ratings on dimensions such as leadership and interpersonal skills. :T/F
t
TQM concerns have led to the increased use of which of the following?
team and customer performance appraisals
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?
tell and sell
Which of the following types of scale uses critical incidents as examples of different points along the scale?
the behaviourally anchored rating scale
In most instances, who is in the best position to perform the function of appraising an employee's performance?
the employee's supervisor
The strategic relevance of performance appraisals refers to which of the following?
the extent to which standards relate to the overall objectives of the organization
Performance appraisal methods can be broadly classified as which of the following approaches?
trait, behavioural, and results
Which of the following is NOT a developmental purpose of performance appraisal?
validating selection procedures