TOPIC 7: PERFORMANCE MANAGEMENT (End of Topic Review)

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

B) False Performance appraisals attempt to determine how well an employee does a job in relation to a set of predetermined standards. The standards are set before the appraisals are completed, and then the employees are measured against them.

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? A) Before B) After C) Any of the methods work the same D) During

A) 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.

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

A) 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.

Which of the following is a developmental purpose of obtaining performance appraisal information? A) Feedback B) Layoffs C) Promotions D) Salary increases

A) Feedback Information from performance appraisals can be used for developmental purposes: 1) identifying training needs 2) motivating employees to improve 3) providing feedback 4) counseling employees 5) spotting performance deficiencies 6) identifying and acknowledging strengths

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

A) 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.

Performance appraisals have a positive impact on all of the following except... A) Providing a framework for past employee development B) Outlining what performance is expected C) Encouraging supervisors to be aware of what their employees are doing D) Improving productivity of the organization

A) Providing a framework for past employee development Performance appraisal provides a framework for future employee development, so it is helpful in management development. It also helps to improve the organization's productivity, as well as performance measurement, feedback (outlining what performance is expected), HR planning, legal compliance, and communication and enhanced supervisory understanding of the job (forcing supervisors to be aware of what their employees are doing).

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

A) 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.

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. A) True B) False

A) 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. A) True B) False

A) 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.

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

A) True When performance evaluation is used to serve evaluation and development purposes, it can have a direct impact on the strategic goals of the organization.

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

A) 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.

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

A) When one subordinate's performance is unjustly affected by an earlier evaluation of another employee A contrast effect occurs when the evaluation or observation of one subordinate's performance is affected unjustly by an earlier evaluation or observation of another employee's performance. When compared to weak employees, an average employee will appear outstanding; when compared to an outstanding employee, the average employee will appear weak. The solution is to have specific performance criteria established prior to the evaluation.

True or False: Performance management is an important HR function, but is not linked to many other HR functions. A) True B) False

B) False Performance management is an important HR function. Because performance appraisal is linked to other HR functions, it is important to understand why PA data is gathered as well as how PA information is used.

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. A) True B) False

B) False Used in conjunction with job analysis, performance appraisal is necessary for implementing effective pre-employment training programs. The assessment of performance can also help the employee make a decision about changes in his/her career. Providing the appropriate training can significantly improve employee performance, but if the employee finds out that, in spite of training and aptitudes, he/she is unable to deliver a satisfactory performance, a change in career may be sought. This can be done internally (through a transfer) or externally (change to another organization).

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

B) All of these (A) Pay levels; C) Pay increments; D) Contingent rewards) One purpose of Performance Appraisals (PA) is to motivate employees. PA can be used as a basis upon which to distribute compensation. A valid appraisal is necessary for an organization to provide contingent rewards (rewards based on performance). Furthermore, PA information can be used in the determination of pay levels as well as pay increments.

Which of the following appraisal methods is the most objective? A) Appraisal by customers B) Computer monitoring C) Self-appraisal D) Peer appraisal

B) Computer monitoring With advances in technology, many organizations are now gathering performance data through computers. Although this method is fast and objective, it has raised a number of ethical issues such as an employee's right to privacy. Nevertheless, many organizations have found such data to be a critical part of performance appraisals.

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. A) True B) False

B) False Alternative ranking normally takes place in several steps. The first step is to put the best subordinate at the top of the list and the worst subordinate at the bottom, usually on the basis of overall performance. The superior then selects the next best and worst from the remaining subordinates, and so on. The middle position on the list is the last to be filled.

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

B) 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.

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

B) 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. A) True B) False

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

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

B) False Performance appraisals (or PA) is a FORMAL structural system of measuring, evaluating, and influencing an employee's job-related attributes, behaviors, and outcomes to discover how productive the employee is and whether he or she can increase productivity in the future.

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

B) Forced distribution The forced distribution method was designed to overcome a frequent complaint against other ranking methods in which employees are given a unique rank, and not allowing for two (or more) incumbents' performances to be very close to each other. The forced distribution method overcomes this problem and incorporates several factors, or dimensions, into the ranking process. A common forced distribution scale may be divided into five categories, with a fixed percentage of all subordinates in the group falling within each of these categories. Typically, the distribution follows a normal "bell-shaped" pattern.

Which of the following statements is true? A) Halo effect occurs when a poor rating in one area affects all other areas resulting in a poor overall appraisal B) Halo effect occurs when a supervisor allows one positive characteristic of an employee to overshadow all others C) Horn effect occurs when all areas are poor, but the overall appraisal is high D) Horn effect occurs when a supervisor does not allow one characteristic of an employee to overshadow all others

B) 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? A) Get working on the development of the lacking performance right away B) Have two appraisal interviews, one for evaluation and one for development C) Have one good interview that focuses on their evaluation as well as development D) Wait until the employee states that they want to work on their performance

B) 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.

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

B) Restaurants Appraisal information can come from customers or clients of the job incumbents, especially for workers who have direct contact with the customers. Car dealerships and restaurants are two such industries where this may be beneficial.

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? A) Problems with machinery B) The employee's ability C) Lack of cooperation from other co-workers D) The lack of support for the employee

B) 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.

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

B) 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.

Which of the following comes after the performance appraisal? A) Establishing competencies B) Using the information from the evaluation for future planning C) Knowing the job requirements that go along with the organization's strategy D) Setting expected performance standards

B) Using the information from the evaluation for future planning Performance management begins with understanding the organization's strategy. The strategy dictates the important tasks that should be the focus of each unit 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 appraisal) are then chosen, then the performance of employees or teams is reported back to top management, which uses that information for future strategic and operational planning.

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

C) 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.

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

C) 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 methods of performance appraisals use qualitative instead of quantitative data? A) Alternative ranking B) Paired comparisons C) Narrative essay D) Forced distribution method

C) 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.

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

C) 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? A) Providing feedback B) Counseling employees C) Salary increases or decreases D) Motivating employees to improve

C) 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? A) Seeing the causes of poor performance as one's own lack of motivation B) Seeing the causes of poor performance as one's own lack of ability C) Seeing the causes of good performance as attributed to one's own ability D) Seeing the causes of good performance as attributed to external factors

C) 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 terms refers to the person doing the appraising when discussing performance appraisal systems? A) Ratee B) Manager C) Superior D) Subordinate

C) Superior It's important to note that the terms supervisor and manager are generally not used in discussing performance appraisal systems, because the appraiser and the appraisee may both be managers or supervisors. Thus, the terms superior or rater are used to refer to the person doing the appraising, and the terms subordinate or ratee are used to refer to the employee who is being appraised.

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

C) 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? A) They have reward and punishment power B) Even without training they will give good feedback C) They are most familiar with the job of the subordinate D) They can alienate the employee if the employee does not perform well

C) 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.

What is a disadvantage of self-appraisals? A) Creates a hostile dialogue between the subordinate and the superior B) Not very effective when focusing on goal commitment C) They are subject to biases and distortions when used for evaluative purposes D) Subordinates become less involved with the goals of the organization

C) They are subject to biases and distortions when used for evaluative purposes Self-appraisals are subject to systemic biases and distortions when used for evaluative purposes. On the other hand, self-appraisals are often effective tools for programs focusing on self-development, personal growth, and goal commitment. They also may help the subordinate become more involved and committed to the goals of the organization and can help clarify employee roles and reduce conflict. Another advantage is that self-appraisals can open dialogues regarding performance.

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

C) 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

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

C) 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 causes more errors to occur when trying to conduct an accurate performance evaluation? A) When performance criteria are clearly stated B) When job duties are stated clearly C) When performance criteria are unclear D) When there are incentives for accurate evaluations

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

C) When the culture is highly participatory Peer appraisals appear to be useful predictors of performance. However, the validity of peer appraisals is reduced somewhat if the organizational reward system is based on performance and is highly competitive, or if there is a low level of trust among subordinates. On the other hand, peer-appraisal can be very useful when teamwork and participation are part of the organizational culture.

When do 360-degree evaluations take place? A) When the rater is an outside contractor B) When the rater is a manager C) When the rater is a colleague D) When the rater is from the HR department

C) When the rater is a colleague 360-degree evaluations take place where the rater may be a colleague or subordinate to the person being appraised. 360-degree evaluations are meant to help the employee get a complete interpretation of their performance from those people who see them daily.

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

C) 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 influence the performance appraisal process? A) Job analysis B) None of these C) Training and development D) All of these E) Selection and placement F) Compensation

D) All of these (A) Job analysis; C) Training and development; E) Selection and placement; F) Compensation) Performance appraisal is directly influenced by several HR activities: job analysis, selection and placement, compensation, and training and development.

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

D) 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.

What does EAP stand for? A) Employee action program B) Employee assessment policies C) Employee assessment program D) Employee assistance program

D) Employee assistance program EAP stands for employee assistance programs. 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.

EAPs - along with everything else in HR - have evolved over time. What has the focus of EAPs shifted to? A) Employer profits B) Productivity C) Reducing liabilities D) Employee well-being

D) Employee well-being The literature on EAPs suggests that, as EAPs have evolved, its purpose has shifted from programs focused on improving productivity to a programs focused on employee well-being. These changes have profound implications for the way EAPs are organized, staffed, and designed to function.

How do performance appraisals help in performance measurement? Performance appraisals: A) Provide a framework for future employee development B) Help establish the validity of employment decisions C) Outline what performance is expected D) Establish the relative value of an individual's contribution to the company

D) Establish the relative value of an individual's contribution to the company Performance appraisals establishes the relative value of an individual's contribution to the company and help evaluate individual accomplishments.

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

D) Exactly predicting the employee's future performance Performance appraisals involve the following: 1) Making sure that the organization's goals are aligned with required jobs and KSAs 2) Setting work standards to clarify performance expectations 3) Creating measures and metrics that document the level and scope of these standards 4) Assessing the employee's actual performance relative to these standards 5) Providing feedback to the employee with the aim of motivating that person to eliminate performance deficiencies or to continue to perform above standard Performance appraisals may set goals to help the employee's future performance, but the goal is not to predict exactly how the employee will perform.

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

D) 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).

How does performance appraisal (PA) help in the selection process? A) It establishes the validity of rewards B) It motivates the applicants C) It helps determine the applicants' goals D) It helps ensure the company job description is accurate

D) It helps ensure the company job description is accurate Many companies take the opportunity during performance appraisals to review and revise job descriptions. The employee and managers' discussion during a performance appraisal may result in an update to job tasks and functions on the formal job description. Those updates may create a need to change the selection steps or testing.

What is the foundation of the performance appraisal (PA)? A) Compensation B) Selection and placement C) Training and development D) Job analysis

D) Job analysis The foundation of the performance appraisal (PA) is job analysis. If a formal job analysis has not been conducted to establish the validity of the PA form, then the company may be accused of discrimination.

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? A) Alternative ranking B) Straight ranking C) Forced distribution D) Paired comparison

D) Paired comparison The paired comparison method involves comparing each employee to every other incumbent, two at a time on a single standard, to determine which is better. A rank order can be obtained by counting the number of times each individual is selected as the better of a pair. An advantage to this approach, over traditional ratings, is that it overcomes the problem of an "elevation set." That is, it forces the assessor to compare the performance of each incumbent to all other incumbents, one by one.

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

D) 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 the simplest method of performance appraisal? A) Narrative essay B) Paired comparisons C) Alternative ranking D) Straight ranking

D) Straight ranking Perhaps the most simple method of performance appraisal is the straight ranking method. In the straight ranking method, a superior lists the subordinates in order, from best to worst, usually on the basis of overall performance. However, as the number of incumbents increases, it becomes difficult to discern differences in the performance of all incumbents - particularly those incumbents who are "average."

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

D) 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.

Which of the following is an advantage to using an employee's supervisor as the rater for the performance appraisal? A) They are guaranteed to have the skills to give good feedback B) When they give punishments, the subordinate doesn't get frustrated because it is from someone close to them. C) The reward and punishment power they have makes the employee feel at ease D) They are the most familiar with the subordinate's work

D) They are the most familiar with the subordinate's work An advantage to using the supervisor is that they are the most familiar with the job of the subordinate and with his/her performance. Some drawbacks are that because they have reward and punishment power, the subordinate may feel threatened; also without training the supervisor may not have the skills to give good feedback; and by giving punishments the supervisor may alienate the subordinate.

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

D) To inform incumbents where they stand; A) 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.