HR Chapter 7 : Performance Management (chapter questions)

Performance appraisals can be used to determine which of the following types of compensation? Pay increments Pay levels All of these Contingent rewards

All of them

Which of the following influence the performance appraisal process?All of these Training and development None of these Compensation Selection and placement Job analysis

Answer: All of these Performance appraisal is directly influenced by several HR activities: job analysis, selection and placement, compensation, and training and development.

There are many ways to gather data on an individual. In choosing the performance appraisal method, when should the relevance of each source be considered? Any of the methods work the same After During Before

Answer: Before Sources for performance appraisals can include supervisors, peers, subordinates, self-appraisal, customers, and computer monitoring. While many of these can be used to gather data on an individual, the relevance of each source should be considered prior to choosing the performance appraisal method.

Which of the following methods of performance appraisals use qualitative instead of quantitative data? Paired comparisons Narrative essay Forced distribution method Alternative ranking

Answer: Narrative essay One of the simplest forms for evaluating employees is the narrative essay. The rater can describe the employee's strengths and weaknesses and suggest methods for improving performance. However, if the essay is unstructured, comparisons within a department or across departments, can be difficult. The essay only provides qualitative data and not quantitative data. Including behavior criteria on the form, such as critical incidents, a behavioral checklist, and forced-choice forms can significantly enrich the appraisal.

Performance appraisals have a positive impact on all of the following except...

Providing a framework for past employee development

Which of the following forms of performance evaluation is the most widely used? Conventional rating Straight rating Forced distribution method Narrative essay

Answer: Conventional rating The conventional rating is the most widely used form of performance evaluation. Conventional forms vary in the number of dimensions of performance they measure. Many use personality traits and characteristics such as aggressiveness, independence, maturity, etc. Many use output indicators such as quantity and quality of performance as well. They vary in the number of traits and output indicators they incorporate and also vary in the range of choices for each dimension. Conventional forms are used extensively because they are relatively easy to develop, and permit quantitative results that allow comparisons across employees and departments. However, they can be subject to several errors including leniency, strictness, and central tendency. Several traits or factors can also be grouped together, and they would be subject to various interpretations with different raters.

What is a way to minimize the errors caused by primary or recency effects? -Trying to remember what has happened throughout the rating period -Documenting ongoing critical events -Weighing more heavily the events that have occurred recently -Weighing more heavily the events that occurred at the beginning of the rating period.

Answer: Documenting ongoing critical events Incumbents and managers can minimize the two errors (primary and recency errors) by documenting ongoing critical events. While time-consuming to complete, these files ensure that information for the entire appraisal period is incorporated into judgments.

Before beginning performance management, all of the following must occur except... Establishment of competencies Understanding the organization's strategy Evaluation of the results Establishment of performance standards

Answer: Evaluation of the results Performance management begins with understanding the organization's strategy. The strategy dictates the important tasks that should be the focus of each unit (or department) and subsequently dictate the requirements for each employee's job. Once job requirements are known, competencies are established; expected performance standards are set; and the approach to evaluate the results and behaviors (performance management) are chosen.

True or False: The more objective the performance appraisal (PA) approach, the more vulnerable it is to legal challenges.

Answer: False In general, the more subjective the PA approach, the more it is vulnerable to legal challenges. As there are no solid facts to back up the appraisal.

True or False: Performance appraisals are often not problematic because supervisors and incumbents often view the process similarly.

Answer: False One reason that performance appraisals are problematic is that supervisors and incumbents often view the process from different perspectives.

True or False: Well thought-out plans for performance appraisal will guarantee their consistent application of them in the organization

Answer: False Despite the most well thought-out plans for performance appraisal, HR professionals are often frustrated by the failure of line managers to consistently apply and use them.

When does a contrast effect occur in performance appraisals? --When raters assign higher rating to those whom they feel are similar to themselves --When the appraisal is based on only recent eventsWhen past performance appraisal ratings are allowed to influence current ratings --When one subordinate's performance is unjustly affected by an earlier evaluation of another employee

Answer: Halo effect occurs when a supervisor allows one positive characteristic of an employee to overshadow all others. The most common error committed by raters occurs when superiors are rating an employee on several dimensions of performance, but allow one measure to influence all other dimensions. This is known as the halo effect. The opposite of the halo error is referred to as a horn error. A horn error occurs when a poor rating in one area unjustly affects ratings in other job performance areas, resulting in a poor overall appraisal.

How can organizations help improve performance evaluations and help it so that employees don't block ways to improve their performance if they are assessed negatively? -Wait until the employee states that they want to work on their performance -Have two appraisal interviews, one for evaluation and one for development -Get working on the development of the lacking performance right away -Have one good interview that focuses on their evaluation as well as development

Answer: Have two appraisal interviews, one for evaluation and one for development For problem-solving to be effective, subordinates have to be open and superiors have to play the role of helper, not judge or prosecutor. Thus, if organizations want to serve both the evaluation and development purposes effectively, there should be two appraisal interviews. One interview can focus on evaluation and the other, at a different time of the year, can focus on development.

How do performance appraisals help the company be legally compliant? -Outlines the expected performance -Provides a format for dialogue between superior and subordinate -Helps establish the validity of employment decisions. -Audits management talent to evaluate the current supply of human resources

Answer: Helps establish the validity of employment decisions. Legal Compliance-- Performance appraisal helps establish the validity of employment decisions made on the basis of performance-based information (also helps to defend management actions such as demotions, transfers, or terminations).

Which of the following is how performance appraisals influence training and development? Determines pay levels and pay increments Helps understand the reason behind undesirable performance It helps ensure only candidates that will perform well are included in the pool of applicants Sets the foundation for job analysis

Answer: Helps understand the reason behind undesirable performance To provide appropriate training, it is necessary to be aware of the employee's current level of performance and any unsatisfactory aspects of performance. It is also necessary to know if the undesirable performance is caused by a lack of ability or motivation or by the situation. To gain this knowledge, HR professionals must use performance appraisals.

Which of the following EAPs could be categorized as "beneficial to the employee"? Resolving management problems Improving quality of life Improving productivity Limiting liability

Answer: Improving quality of life The advantages of EAPs can be categorized as either "beneficial to the employee" (such as reducing health risks, promoting wellness, and improving quality of life) or "beneficial to the organization" (such as improving productivity and profits, resolving management problems, and limiting employer liability). Some advantages apply to both parties (such as improving employee morale and helping troubled employees).

What is the formal structural system of measuring, evaluating, and influencing an employee's job-related attributes, behaviors, and outcomes? KSAs (knowledge, skills, and abilities) Training Performance appraisal Validity Development The ADDIE model

Answer: Performance appraisal The performance appraisal (or PA) is the formal structural system of measuring, evaluating, and influencing an employee's job-related attributes, behaviors, and outcomes.

Which of the following is an evaluation decision made using performance appraisal information? Salary increases or decreases Counseling employees Providing feedback Motivating employees to improve

Answer: Salary increases or decreases One purpose of performance appraisals is to evaluate performance. That is, appraisal information is used as input for making several administrative decisions: Salary increases or decreases Demotions Layoffs Promotions/transfers Terminations

What does it mean to account for performance in a self-serving manner? -Seeing the causes of poor performance as one's own lack of motivation -Seeing the causes of good performance as attributed to external factors -Seeing the causes of good performance as attributed to one's own ability -Seeing the causes of poor performance as one's own lack of ability

Answer: Seeing the causes of good performance as attributed to one's own ability The problem of seeing performance evaluations from a different perspective for the supervisor and the incumbent is accentuated by the tendency to account for performance in a self-serving manner. To protect one's ego, an incumbent is likely to attribute the causes of poor performance to external factors and attribute successful performance to one's motivation and ability. Supervisors may respond similarly

Which of the following effects occurs when past performance appraisal ratings, whether good or bad, are allowed to unjustly influence current/correct ratings? Similarity effect Spillover effect Contrast effect Recency effect

Answer: Spillover effect The spillover effect occurs when past performance appraisal ratings, whether good or bad, are allowed to unjustly influence correct ratings. It happens most often when new managers are being briefed on current employees by departing managers and the biased information is then passed on. One solution is to avoid examining past appraisal information. Another solution is to use past records in conjunction with current appraisals for the purpose of detecting trends and giving feedback to the incumbent.

Which of the following is an advantage to using appraisal by subordinates? Subordinates won't evaluate their superiors solely based on personality Subordinates won't inflate the evaluation of their superiors Subordinates may evaluate their superiors solely based on their own needs Subordinates may help the superiors understand what they can do to improve

Answer: Subordinates may help the superiors understand what they can do to improve Appraisals by subordinates can help the superior understand, from the perspective of the subordinate, if the learning experience can be improved and can help superiors be more aware of their impact on their subordinates. Sometimes, however, subordinates may evaluate their superiors solely on the basis of personality or in respect of their own needs rather than those of the organization. Finally, subordinates may inflate the evaluation of their superiors, particularly if they feel threatened by them and have no anonymity.

What is the implicit assumption the rater makes when they make the "similarity error" in performance evaluations? -Past behavior is similar to what they will do in the future -Employees who follow rules exactly are the best employees -All employees are alike -That the rater is a "model" employee

Answer: That the rater is a "model" employee A similarity error occurs when raters evaluate more positively those whom they perceive to be similar to themselves. The implicit assumption underlying this error is that they (the rater) is (or has been) a "model" employee, and thus those subordinates whom these raters consider similar to themselves will most likely be perceived as reflecting good performance.

When it comes to performance appraisals, supervisors and incumbents often see the process from different perspectives. Which of the following is usually a factor seen from the perspective of the supervisor? The employee's ability Lack of cooperation from other co-workers The lack of support for the employee Problems with machinery

Answer: The employee's ability One reason that performance appraisals are problematic is that supervisors and incumbents likely view the process from different perspectives. For the incumbent, the focus is outward, keying on the environmental factors (the supervisor, lack of support, lack of cooperation among co-workers, problems with machinery, etc.) that impinge on his or her performance. The supervisor's focus, on the other hand, is on the incumbent and the displayed motivation and ability.

Why are conventional rating forms used extensively? They allow comparisons across employees and departments The descriptive words used have the same meanings to different raters Conventional forms are not subject to errors The forms are very objective and the rater has little control over the form

Answer: They allow comparisons across employees and departments. Conventional forms are used extensively because they are relatively easy to develop and permit quantitative results that allow comparisons across employees and departments. But because the rater has complete control in the use of the forms, conventional forms are subject to several errors. Often separate traits or factors are grouped together and the rater is given only one box to check. Frequently-used descriptive words can be subject to different meanings to different raters.

Why can appraisals by supervisors be effective? +They can alienate the employee if the employee does not perform well +Even without training they will give good feedback +They are most familiar with the job of the subordinate +They have reward and punishment power

Answer: They are most familiar with the job of the subordinate It is assumed that the supervisor is the one who is most familiar with the job of the subordinate and with his/her performance. While appraisals by supervisors can be effective, there can also be drawbacks, such as the supervisor having reward and punishment power that may cause the subordinate to feel threatened. The supervisor may also not be able to give good feedback without proper training. Another drawback is that if the supervisor must dole out punishment, they may alienate the subordinate.

An effective performance appraisal system generally serves which purposes? (Select all that apply) To future develop and guide individuals to perform better To cause line managers to apply and use the plans from HR To inform incumbents where they stand To recruit well-trained individuals

Answer: To inform incumbents where they stand; To future develop and guide individuals to perform better An effective performance appraisal system depends on several components of appraisal, but it generally serves two purposes: 1) to inform incumbents where they stand, and 2) to further develop and guide individuals to perform better.

All of the following are reasons why completing assessments of the performance appraisal system are important except... To make changes to fit modern models, even if they are not needed To make sure all legal considerations are observed To increase its effectiveness To see how well the development process is being met

Answer: To make changes to fit modern models, even if they are not needed The assessment of an organization's entire performance appraisal system can increase its effectiveness. Such assessments are necessary to help determine how well the evaluation and development processes are being met and whether all legal considerations are being observed. Changes should be made only when what is being used is either not working or is not legally compliant.

True or False: Ranking approaches used as the performance appraisal method may be used efficiently by the subordinates as well as supervisors for ranking themselves.

Answer: True Alternative ranking approaches can be used quite efficiently not only by a single supervisor, but by the subordinates themselves.

True or False: Revising current appraisal methods and including more effective strategies help set a better basis upon which to make compensation and training decisions.

Answer: True On the basis of assessments of an organization's entire performance appraisal system, revisions in current appraisal methods can be made and more effective strategies for improving performance can be developed and implemented. Once completed, an organization has a much better basis upon which to make other HR decisions, particularly those associated with compensation and training and development.

Which of the following will not help ensure effective performance evaluations? Making sure objective judgments are used Letting subordinates review their appraisals Using subjective criteria Conducting evaluations on all employees

Answer: Using subjective criteria To ensure effective performance evaluations, the organization and the HR department must conduct evaluations on all employees, and make sure that only objective judgments are used. When possible, subordinates should have the opportunity to review their appraisals and records. Subjective criteria can have biases and can lead to legal problems.

Which of the following is the definition of what a central tendency bias error is when evaluating the performance of employees? When managers rate employees based on what has happened recently When managers rate the majority of incumbents in the middle of the pack When managers give unfavorable ratings regardless of the performance, to impress others with their strictness When managers rate subordinates higher than they should be rated, in order to avoid conflict

Answer: When managers rate the majority of incumbents in the middle of the pack Rather than using extremes in ratings, there is a tendency on the part of many raters to "play it safe" and evaluate employees as average, even when performance varies. This bias is referred to as the error of central tendency. Raters with a large span of control and little opportunity to observe behavior are likely to rate the majority of incumbents in the middle of the scale rather than too high or too low.

Which of the following causes more errors to occur when trying to conduct an accurate performance evaluation? When performance criteria are unclear When there are incentives for accurate evaluations When job duties are stated clearly When performance criteria are clearly stated

Answer: When performance criteria are unclear When performance criteria are not clearly specified and there are no incentives associated with conducting an accurate performance evaluation, a variety of errors may occur.

When is the error of leniency most likely to happen? -When there are no sanctions against high ratings -When raters are trying to impress supervisors by showing how strict they are -When raters have a large span of control and little opportunity to observe -When the employee is perceived to be similar to the rater

Answer: When there are no sanctions against high ratings The error of leniency is often intentional and occurs most often when, to avoid conflict, a manager rates subordinates higher than they should be rated. This is most likely to occur when there are no organizational sanctions against high ratings, when rewards are not part of a fixed and limited pot, and when dimensional ratings are not required.

Which of the following appraisal methods is the most objective? Self-appraisal Computer monitoring Appraisal by customers Peer appraisal

Computer monitoring

What does EAP stand for? Employee action program Employee assessment policies Employee assessment program Employee assistance program

Employee assistance program These are designed specifically to assist employees with personal problems that hinder their job performance and attendance. One way for an organization to support employees is to provide employee assistance programs.

How do performance appraisals help in performance measurement? Performance appraisals:

Establish the relative value of an individual's contribution to the company

Performance appraisals involve all of the following except: Exactly predicting the employee's future performance Providing feedback Making sure the organization's goals are aligned with required jobs and KSAs Setting work standards

Exactly predicting the employee's future performance

True or False: If performance appraisals and job analysis are used together, the organization can hire anyone, and that person would be able to turn out a satisfactory performance.

False

True or False: Performance appraisals are an informal system for measuring and evaluating employees.

False

True or False: Standards for performance appraisals are set after all the employee appraisals are done.

False

True or False: The first step in alternative ranking is when a superior lists the subordinates in order, from best to worst, usually on the basis of overall performance.

False

Which of the following is a developmental purpose of obtaining performance appraisal information? Layoffs Promotions Salary increases Feedback

Feedback

Which method allows two or more incumbents' performances to be ranked together? Straight ranking Paired comparisons Alternative ranking Forced distribution

Forced Distribution

How does performance appraisal (PA) help in the selection process?

It helps ensure the company job description is accurate

What is the foundation of the performance appraisal (PA)?

Job analysis

An advantage to this type of performance evaluation method is that each incumbent gets compared to every other incumbent, one by one. Which type of performance evaluation method is it? Straight ranking Paired comparison Alternative ranking Forced distribution

Paired Compensation

Which of the following types of employment would be best suited for using appraisal by customers? Administrative Factory workers Restaurants Construction

Restaurants

Which of the following is the simplest method of performance appraisal method? Paired comparisons Narrative essay Straight ranking Alternative ranking

Straight Ranking

Which of the following terms refers to the person doing the appraising when discussing performance appraisal systems?

Superior

Which of the following is an advantage to using an employee's supervisor as the rater for the performance appraisal? Which of the following is an advantage to using an employee's supervisor as the rater for the performance appraisal?

They are subject to biases and distortions when used for evaluative purposes

Which of the following is not a purpose of performance appraisals?To further develop individuals To inform incumbents where they stand based on an evaluation To guide individuals to perform better To inform incumbents where they stand based on subjective thinking

To inform incumbents where they stand based on subjective thinking An effective performance appraisal system depends upon several components of appraisal, but it generally serves two purposes: 1) performance appraisals use evaluation to inform incumbents where they stand 2) performance appraisals are used to further develop and guide individuals to perform better

True or False: Performance evaluation serves evaluation and development purposes, but it can also have a direct impact on strategic goals as well.

True

Which of the following comes after the performance appraisal?

Using the information from the evaluation for future planning

When would peer appraisals be appropriate to use? When the organizational reward system is based on performance When there is a low level of trust among subordinates When the culture is highly competitive When the culture is highly participatory

When the culture is highly participatory

When do 360-degree evaluations take place?

When the rater is a colleague