HR 8-10

Performance appraisal methods can be broadly classified as either __________, __________, or __________ approaches. a. trait, behavioral, judgmental b. behavioral, judgmental, results c. trait, behavioral, results d. behavioral, judgmental, attitudinal

c

In most instances, who is in the best position to perform the function of evaluating an employee's performance? a. Co-workers b. The employee c. The HR personnel d. The employee's supervisor

d

Contemporary reasons given by organizations for implementing incentive plans are a. all of the above. b. linking compensation rewards to the achievement of results. c. improving or maintaining high levels of productivity. d. focusing employee efforts on specific performance targets.

a

Enterprise incentive plans include a. stock options. b. the Scanlon plan. c. sales incentives. d. improshare.

a

If one rates an average employee's performance high because one compared the employee to poor performers, one commits a a. contrast error. b. leniency error. c. central tendency error. d. recency error.

a

Pay-for-performance programs a. tie rewards to employee effort. b. tie rewards to firm profitability. c. result in negligible increases in output. d. are easy to implement and measure.

a

Robix Industries has announced the rollout of a new incentive program for its production team. A baseline of performance has been established based upon actual production numbers from the last six quarters. If productivity exceeds that deadline in a quarter, 80 percent of the money that is saved will be given to the employees. What type of plan is this? a. Gain sharing b. Profit sharing c. Stock option d. Perquisite

a

Steve has to submit a timecard every week and his compensation is based upon the amount of time he works, rather than what he accomplishes. Steve is compensated based on a. hourly work. b. skilled labor. c. piecework. d. competence.

a

When the organization pays wages that are relatively equal to that of other employers for similar work, it is the basis of a. external equity. b. comparable worth. c. equal pay. d. compensable factors.

a

__________ includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs. a. Nonfinancial compensation b. Financial compensation c. Indirect compensation d. Direct compensation

a

A method of rating performance in which the rater chooses from statements that appear equally favorable or equally unfavorable is known as the a. graphic rating scales. b. forced-choice method. c. behaviorally anchored rating scale d. forced-distribution method.

b

Administrative purposes of performance appraisal include all of the following EXCEPT a. documenting personnel decisions. b. providing performance feedback. c. evaluating training programs. d. determining promotion candidates.

b

Developmental purposes of performance appraisal include all of the following EXCEPT a. identifying strengths and weaknesses. b. validating selection procedures. c. recognizing individual performance. d. improving communication.

b

Employees whose compensation is calculated on the basis of weekly, biweekly, or monthly periods are classified as a. white-collar employees. b. salaried employees. c. hourly employees. d. management employees.

b

If a performance standard is found to be stable or consistent, it is said to be a. relevant. b. reliable. c. valid. d. free from contamination.

b

If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important factors, the performance management system suffers from a. lack of reliability. b. criterion deficiency. c. organizational politics. d. criterion contamination.

b

Piecework is appropriate when a. productivity standards are difficult to develop. b. a job is fairly standardized. c. quality is more important than quantity. d. technology changes are frequent.

b

The strategic relevance of performance appraisals refers to the extent to which a. individuals tend to maintain a certain level of performance over time. b. standards relate to the overall objectives of the organization. c. factors outside the employee's control can influence performance. d. standards capture the entire range of an employee's responsibilities.

b

The term pay-for-performance can encompass all of the following EXCEPT a. cash bonuses. b. base salary. c. gainsharing plans. d. merit pay.

b

When setting performance measures for incentive systems, we can say that the best measures are those that a. are qualitative, flexible, and create competition between employees. b. are quantitative, simple to understand, and show a clear relationship to improved performance. c. reduce administrative costs, determine rewards based only on quantity, and reward only exceptional employees. d. allow employers to "ratchet up" standards and base rewards on qualitative standards.

b

Which system of job evaluation are raters using when they take cards that list the duties and responsibilities of the job and arrange them in order of the importance of the jobs? a. Job grade system b. Job ranking c. Factor comparison method d. Point method

b

__________ encompasses employee wages and salaries, incentives, bonuses, and commissions. a. Component compensation b. Direct compensation c. Nonfinancial compensation d. Indirect compensation

b

A performance rating error in which the rater tends to give employees either extremely high or extremely low ratings is referred to as a(n) a. error of central tendency. b. recency error. c. leniency or strictness error. d. halo error.

c

Employees on the T13 production line at Robix are paid a set rate for each unit produced. They are working under the __________ incentive plan. a. individual rate pay b. differential piece rate c. straight piecework d. standard piece rate

c

Group incentive plans include a. profit sharing. b. straight salary plan. c. improshare. d. straight commission plan.

c

If one inflates the evaluation of people with whom one has something in common, one commits a a. central tendency error. b. recency error. c. similar-to-me error. d. leniency error.

c

In __________, employees are paid according to the number of units they produce. a. hourly work b. commission c. piecework d. production work

c

The pay for employees on the KRX line at Robix is not based on the actual amount of time it takes them to complete a job. Rather, they are paid based on a predetermined amount of time for completing the job. These employees are working under the a. completion pay system. b. time division plan. c. standard hour plan. d. piece rate plan.

c

The reliability of the standards used to rate employee performance at TrueBlue has been called into question. TrueBlue claims that the standards are reliable. One way TrueBlue can substantiate this claim is by a. correlating the ratings of an employee at two different points in time. b. linking performance standards to organizational goals. c. correlating the ratings made by two or more different raters. d. using quantifiable performance standards

c

Which of the following is NOT a reason for the failure of appraisal programs? a. They are not useful for the majority of employees in the middle in terms of performance. b. They discourage teamwork by focusing on workers' individual achievements. c. They lay more focus on employee input into the development of the appraisal program. d. They often focus on short-term achievements rather than long-term improvement and learning.

c

Employees covered by the overtime provisions of the Fair Labor Standards Act are labeled a. exempt employees. b. protected workers. c. salaried workers. d. nonexempt employees.

d

Employees on the XL27 production line at Robix whose work exceeds a standard level of output receive a higher rate of pay than those whose work meets the standard. They are working under the __________ incentive plan. a. standard piece rate b. exception bonus rate c. individual rate pay d. differential piece rate

d

If one rates an employee's performance largely on the basis of the employee's behavior in the last month, rather than considering the entire six-month evaluation period, one commits a a. leniency error. b. contrast error. c. central tendency error. d. recency error.

d

Raj likes to give small rewards to employees "caught in the act" of doing something good, even if that effort is not directly tied to a performance standard. When he does this, Raj is making use of a a. merit pay. b. piece rate plan. c. differential piece rate. d. spot bonus.

d

Self-appraisals are best for a. administrative purposes. b. promotional purposes. c. regulatory purposes. d. developmental purposes.

d

The fact that people make comparisons to others is central to a. expectancy theory. b. the need for pay secrecy. c. pay-for-performance programs. d. equity theory.

d

The two primary purposes of performance appraisals are a. managerial and informative. b. informative and developmental. c. managerial and administrative. d. administrative and developmental.

d

Which is the simplest and oldest method of job evaluation? a. Point system b. Job worth system c. Job grade system d. Job ranking system

d

Which of the following is an example of a nonfinancial compensation? a. Commissions b. Bonuses c. Health insurance d. Employee recognition programs

d

Which of the following is an external factor that can influence the rates at which employees are paid? a. The employees' relative worth b. The employer's ability to pay c. The worth of the job d. Cost of living

d

Which of the following is an internal factor that can influence the rates at which employees are paid? a. Collective bargaining b. Labor market conditions c. Cost of living d. The employer's ability to pay

d