Human resources Ch9
55) What usually occurs when employees rate themselves for performance appraisals? A) Ratings are reliable but invalid. B) Ratings are subject to halo effects. C) Ratings are higher than when provided by supervisors. D) Ratings are about the same as when determined by peers.
Answer: C Explanation: C) Employees usually rate themselves higher than they are rated by supervisors or peers. Self-ratings are neither reliable nor valid in most cases. Diff: 3 Chapter: 9 Objective: 6 Skill:Concept
43) The best method for reducing the problems of leniency or strictness in performance appraisals is to ________. A) keep critical incident logs B) require multiple appraisals C) impose a performance distribution D) reconsider the timing of the appraisal
Answer: C Explanation: C) Enforcing a performance distribution is one way of correcting leniency/strictness problems. Another option is to rank employees. Diff: 2 Chapter: 9 Objective: 5 Skill: Concept
35) Which of the following terms refers to an appraisal that is too open to interpretation? A) unclear standards B) halo effects C) leniency D) biased
Answer: A Explanation: A) An appraisal that is too open to interpretation has unclear standards. Specific standards are likely to result in consistent and more easily explained performance appraisals. Diff: 1 Chapter: 9 Objective: 5 Skill: Concept
28) Wilson Consulting is a management consulting firm with seventy employees. As associate vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the twelve employees under her direct supervision. Suzanne plans to use the behaviorally anchored rating scale (BARS) to evaluate the performance of her subordinates. Which of the following, if true, supports the argument that BARS is the most appropriate performance appraisal tool for Suzanne to use? A) Suzanne wants to provide her subordinates with specific examples of their good and poor job performance during the appraisal interview. B) Suzanne encourages her subordinates to review and make comments about their appraisal during a formal appeals process. C) Wilson Consulting recently installed an electronic performance monitoring system to help supervisors conduct appraisals. D) Suzanne provides her subordinates with upward feedback as a way to illustrate the ratings she assigns to each employee.
Answer: A Explanation: A) BARS, the most accurate appraisal tool, uses critical incidents as support for ratings, which helps supervisors explain appraisals more clearly to subordinates during the appraisal interview. Upward feedback is feedback about supervisors provided by subordinates. Diff: 3 AACSB: Analytic Skills Chapter: 9 Objective: 4 Skill: Critical Thinking Learning Outcome: Describe the process of performance appraisal and different appraisal methods
24) Which appraisal method combines the benefits of narrative critical incidents and quantified scales by assigning scale points with specific examples of good or poor performance? A) behaviorally anchored rating scale B) constant sums rating scale C) alternation ranking D) forced distribution
Answer: A Explanation: A) Behaviorally anchored rating scale (BARS)is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. Diff: 1 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
44) Which of the following has most likely occurred when a supervisor conducting a performance appraisal is influenced by a subordinate's individual differences such as age, sex, and race? A) bias B) halo affect C) central tendency D) unclear standards
Answer: A Explanation: A) Bias refers to the tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings that employees receive. Halo effect, unclear standards, and central tendency are other problems associated with performance appraisals. Diff: 1 Chapter: 9 Objective: 5 Skill: Concept
50) Which of the following would most likely result in a legally questionable appraisal process? A) basing appraisals on subjective supervisory observations B) administering and scoring appraisals in a standardized fashion C) using job performance dimensions that are too clearly defined D) assigning specific trait names when using graphic rating scales
Answer: A Explanation: A) Courts have ruled in favor of employees when performance appraisals were based on subjective factors such as age, sex, or gender rather than actual job performance. Performance appraisals are more legally sound if based on clearly specified job performance dimensions. Diff: 3 Chapter: 9 Objective: 5 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
70) Which of the following best depicts how information technology supports performance management? A) tracking team performance with digital dashboards B) conducting employee training through WebEx software C) filing benefits information through the company intranet D) monitoring market performance with electronic scorecards
Answer: A Explanation: A) Firms that implement performance management often use IT-supported tools like scorecard software and digital dashboards to continuously display, monitor, and assess each team's and employee's performance. IT is used by firms for other HR purposes, but monitoring employee and team performance is related to PM. Diff: 2 AACSB: Use of information technology Chapter: 9 Objective: 1 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
58) Which of the following terms refers to a performance appraisal based on surveys from peers, supervisors, subordinates, and customers? A) 360-degree feedback B) team appraisals C) upward feedback D) rating committee
Answer: A Explanation: A) Many firms expand the idea of upward and peer feedback into "360-degree feedback." Here ratings are collected "all around" an employee, from supervisors, subordinates, peers, and internal or external customers. Diff: 1 Chapter: 9 Objective: 6 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
53) Peer appraisals have been shown to result in a(n) ________. A) reduction of social loafing B) reduction of group cohesion C) decrease in task motivation D) decrease in group satisfaction
Answer: A Explanation: A) Peer appraisals have been shown to improve social loafing, group viability, cohesion, task motivation, and satisfaction. Employees are often motivated to meet the expectations of their colleagues. Diff: 2 Chapter: 9 Objective: 6 Skill: Concept
40) The best way to reduce the problem of central tendency in performance appraisals is to ________. A) rank employees B) use graphic rating scales C) limit the number of appraisals D) appraise personal characteristics
Answer: A Explanation: A) Ranking employees instead of using graphic rating scales can reduce the problem of central tendency. Ranking means you can't rate all employees as average. Diff: 2 Chapter: 9 Objective: 5 Skill: Concept
7) Which of the following is most likely NOT a role played by the HR department in the performance appraisal process? A) conducting appraisals of employees B) monitoring the appraisal system's effectiveness C) providing performance appraisal training to supervisors D) ensuring the appraisal system's compliance with EEO laws
Answer: A Explanation: A) Supervisors rather than HR managers conduct the actual appraisals. However, the HR department monitors the system's effectiveness and compliance with EEO laws. HR managers also provide supervisors with tools, advice, and training in regards to performance appraisals. Diff: 3 Chapter: 9 Objective: 2 Skill: Concept
4) SMART goals are best described as ________. A) specific, measurable, attainable, relevant, and timely B) straightforward, meaningful, accessible, real, and tested C) strategic, moderate, achievable, relevant, and timely D) supportive, meaningful, attainable, real, and timely
Answer: A Explanation: A) The acronym SMART stands for specific, measurable, attainable, relevant, and timely. Diff: 1 Chapter: 9 Objective: 2 Skill: Concept
19) Which of the following measurement methods is similar to grading on a curve? A) forced distribution B) graphic rating scale C) constant sums rating D) behaviorally anchored rating scale
Answer: A Explanation: A) The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of ratees into several performance categories. Diff: 1 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
6) In most organizations, who is primarily responsible for appraising an employee's performance? A) employee's direct supervisor B) company appraiser C) human resources manager D) employee's subordinates
Answer: A Explanation: A) The supervisor—not HR—usually does the actual appraising, and a supervisor who rates his or her employees too high or too low (or all average) is doing a disservice to them and to the company. Subordinates rate supervisors in some organizations, but the upward feedback is not the primary appraisal of the supervisor. Diff: 2 Chapter: 9 Objective: 2 Skill: Concept
63) When an employee's performance is so poor that a written warning is required, the warning should ________. A) identify the standards by which the employee is judged B) provide examples of employees who met the standards C) provide examples of times when the employee met the standards D) be written by a labor law attorney in accordance with federal guidelines
Answer: A Explanation: A) Written warnings should identify the employee's standards, make it clear that the employee was aware of the standard, specify any deficiencies relative to the standard, and show the employee had an opportunity to correct his or her performance. Diff: 3 Chapter: 9 Objective: 7 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
11) Which performance appraisal technique lists traits and a range of performance values for each trait? A) behaviorally anchored rating scale B) graphic rating scale C) forced distribution D) critical incident
Answer: B Explanation: B) A graphic rating scale lists traits (such as "quality and reliability" or "teamwork") and a range of performance values (from "unsatisfactory" to "outstanding," or "below expectations" to "role model") for each trait. The supervisor rates each subordinate by circling or checking the score that best describes the subordinate's performance for each trait. The assigned values for the traits are then totaled. Diff: 1 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
13) All of the following are usually measured by a graphic rating scale EXCEPT ________. A) generic dimensions of performance B) performance of co-workers C) achievement of objectives D) job-related competencies
Answer: B Explanation: B) A paired comparison method involves making comparisons of employees with their co-workers. The graphic rating scale measures four job-relevant job dimensions including generic job dimensions, a job's actual duties, competencies, and objectives. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome:Describe the process of performance appraisal and different appraisal methods
45) Which of the following is LEAST likely to cause a supervisor's performance appraisal of a subordinate to be biased? A) purpose of the appraisal B) location and time of the appraisal C) personal characteristics of the subordinate D) relationship between supervisor and subordinate
Answer: B Explanation: B) Appraisal bias has been shown to be caused by the appraisal's purpose but not the location or time of the appraisal. The personality of the supervisor, personal characteristics of the subordinate, and relationship between the two parties all tend to lead to bias. Diff: 3 Chapter: 9 Objective: 5 Skill: Concept
25) Which of the following best describes a behaviorally anchored rating scale? A) chart of paired subordinates ranked in order of performance B) combination of narrative critical incidents and quantified performance scales C) diary of positive and negative examples of a subordinate's work performance D) list of subordinates from highest to lowest based on specific performance traits
Answer: B Explanation: B) Behaviorally anchored rating scale (BARS) is an appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
22) Which of the following is NOT a characteristic of the critical incident method for performance appraisal? A) providing examples of excellent work performance B) comparing and ranking employees within a group C) reflecting performance throughout the appraisal period D) compiling examples of ineffective work performance
Answer: B Explanation: B) Compiling incidents provides examples of good and poor performance, makes the supervisor think about the subordinate's appraisal all during the year, and provides examples of what specifically the subordinate can do to eliminate deficiencies. The downside is that without some numerical rating, this method is not too useful for comparing employees or for salary decisions. Diff: 3 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
27) Stacey is using a behaviorally anchored rating scale as a performance appraisal tool. She has already asked employees and supervisors to describe critical incidents of effective and ineffective job performance. What should Stacey most likely do next? A) create a final appraisal instrument B) develop performance dimensions C) reallocate the incidents D) rate the incidents
Answer: B Explanation: B) Developing performance dimensions is the second step of the BARS process. Stacey should have these people group the incidents into 5 or 10 dimensions and then define each dimension, such as "salesmanship skills." The next steps involve reallocating incidents, rating the incidents, and developing a final instrument. Diff: 2 Chapter: 9 Objective: 4 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
33) Nick supervises a team of data entry specialists. Lately, productivity has been down, and Nick believes his subordinates are not working as efficiently as possible. Which of the following tools would provide Nick with daily information about each employee's rate, accuracy, and time spent entering data? A) digital dashboard device B) electronic performance monitoring system C) Web-based management oversight device D) electronic performance support system
Answer: B Explanation: B) Electronic performance monitoring (EPM) systems use computer network technology to allow managers access to their employees' computers and telephones. They thus allow managers to monitor the employees' rate, accuracy, and time spent working online. Diff: 2 AACSB: Use of information technology Chapter: 9 Objective: 4 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
37) Which of the following is a performance appraisal problem that occurs when a supervisor's rating of a subordinate on one trait biases the rating of that person on other traits? A) recency effect B) halo effect C) central tendency D) stereotyping
Answer: B Explanation: B) Experts define halo effect as "the influence of a rater's general impression on ratings of specific ratee qualities." For example, supervisors often rate unfriendly employees lower on all traits, rather than just on "gets along well with others." Diff: 1 Chapter: 9 Objective: 5 Skill:Concept
46) All of the following guidelines will most likely improve the effectiveness of a performance appraisal EXCEPT ________. A) maintaining a diary of employees' performance during the year B) using a graphic rating scale to ensure fair and consistent ratings C) knowing the advantages and disadvantages of different appraisal tools D) developing a plan to assist employees with performance improvement
Answer: B Explanation: B) Graphic rating scales do not necessarily lead to effective performance appraisals, and they are susceptible to problems like bias and central tendency. Keeping a diary, knowing which tool to use, and forming a performance improvement plan are all methods for improving the effectiveness of a performance appraisal. Diff: 3 Chapter: 9 Objective: 5 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
15) The most popular method for ranking employees is the ________ method. A) graphic ranking scale B) alternation ranking C) paired comparison D) forced distribution
Answer: B Explanation: B) It is usually easier to distinguish between the worst and best employees, and the alternation ranking method is the most popular choice for supervisors. Paired comparison and forced distribution are less popular methods for ranking employees from best to worst on a trait or traits. A graphic rating not ranking scale is a popular appraisal tool. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
30) Which of the following terms refers to setting specific measurable goals with each employee and then periodically reviewing the progress made? A) behaviorally anchored rating scale B) management by objective C) mixed standard scales D) forced distribution
Answer: B Explanation: B) MBO refers to setting specific measurable goals with each employee and then periodically reviewing the progress made. MBO is used as a primary appraisal method and as a supplement to other methods. Diff: 1 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
56) Which of the following terms refers to the process of allowing subordinates to rate their supervisor's performance anonymously? A) supplemental evaluation B) upward feedback C) paired evaluation D) peer evaluation
Answer: B Explanation: B) Many employers let subordinates anonymously rate their supervisor's performance, a process some call upward feedback. The process helps top managers diagnose management styles, identify potential "people" problems, and take corrective action with individual managers as required. Diff: 1 Chapter: 9 Objective: 6 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
54) In most firms, a rating committee used for performance appraisals consists of ________ members. A) 1-2 B) 3-4 C) 5-6 D) 7-8
Answer: B Explanation: B) Many employers use rating committees. These committees usually contain the employee's immediate supervisor and two or three other supervisors. Diff: 1 Chapter: 9 Objective: 6 Skill: Concept
29) What is the primary goal of using mixed standard scales? A) improving validity B) reducing rating errors C) clarifying performance standards D) illustrating feedback for subordinates
Answer: B Explanation: B) Mixed standard scales generally list just a few behavioral examples for each performance dimensions. The employer then "mixes" the resulting behavioral examples statements when listing them. The aim is to reduce rating errors such as leniency, by making it less obvious to the supervisor (1) what performance dimensions he or she is rating, and (2) whether the behavioral example statements represent high, medium, or low performance. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
5) All of the following are reasons for appraising an employee's performance EXCEPT ________. A) correcting any work-related deficiencies B) creating an organizational strategy map C) determining appropriate salary and bonuses D) making decisions about promotions
Answer: B Explanation: B) Most employers still base pay and promotional decisions on the employee's appraisal. Appraisals also lets the boss and subordinate develop a plan for correcting any deficiencies, and serve a useful career planning purpose. Creating a strategy map is not a likely purpose for conducting a performance appraisal. Diff: 3 Chapter: 9 Objective: 2 Skill: Concept
8) What is the first step of any performance appraisal? A) giving feedback B) setting work standards C) making plans to provide training D) assessing the employee's performance
Answer: B Explanation: B) Performance appraisal always involves the 3-step performance appraisal process: (1) setting work standards, (2) assessing the employee's actual performance relative to those standards; and (3) providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par. Diff: 2 Chapter: 9 Objective: 3 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
1) Which of the following terms refers to the process of evaluating an employee's current and/or past performance relative to his or her performance standards? A) employee selection B) performance appraisal C) employee orientation D) organizational development
Answer: B Explanation: B) Performance appraisal means evaluating an employee's current and/or past performance relative to his or her performance standards. Performance appraisal always involves setting work standards, assessing the employee's actual performance relative to those standards, and providing feedback to the employee. Diff: 1 Chapter: 9 Objective: 1 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
52) Employee performance appraisals are conducted by all of the following EXCEPT ________. A) peers B) competitors C) subordinates D) rating committees
Answer: B Explanation: B) Performance appraisals are primarily performed by supervisors. However, firms are increasingly using peers, rating committees, and subordinates to conduct appraisals. Competitors are not used for performance appraisals. Diff: 1 Chapter: 9 Objective: 6 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
66) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's CEO advocates shifting from performance appraisals to performance management in an attempt to make Oshman more competitive and performance driven. Which of the following, if true, best supports the argument to replace Oshman's traditional appraisal methods with the performance management approach? A) Oshman's competitors in the small appliance industry monitor the performance of their employees through electronic performance monitoring systems. B) Oshman executives want to align the firm's strategic plan with individual employee goals and development needs. C) Oshman has experienced problems associated with central tendency and bias, and the firm wants to ensure that appraisals are legally sound. D) Oshman uses management by objectives as a primary appraisal method and requires supervisors to develop SMART goals.
Answer: B Explanation: B) Performance management refers to the continuous process of aligning the performance of individuals and teams with an organization's goals. Performance management does not necessarily eliminate problems like central tendency and bias. Instead, the approach focuses on monitoring an employee's performance and making sure it matches the needs of the firm. Diff: 3 AACSB: Analytic Skills Chapter: 9 Objective: 1 Skill:Critical Thinking
41) Which performance appraisal problem is associated with supervisors giving all of their subordinates consistently high ratings? A) central tendency B) leniency C) strictness D) halo effect
Answer: B Explanation: B) Some supervisors tend to rate all their subordinates consistently high or low. Leniency refers to giving high ratings, while strictness refers to giving low ratings. Central tendency refers to giving average scores. Diff: 1 Chapter: 9 Objective: 5 Skill: Concept
20) Which of the following is one of the primary complaints regarding the use of the forced distribution method for performance appraisals? A) difficult to implement B) harm to employee morale C) high costs of administration D) time consuming to administer
Answer: B Explanation: B) The biggest complaints regarding the forced distribution method are that it damages morale, and it creates interdepartmental inequities. The tool is not difficult to implement, time consuming, or costly. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
18) John, the supervisor of the manufacturing department at a computer firm, is in the process of evaluating his staff's performance. He has determined that 15% of the group will be identified as high performers, 20% as above average performers, 30% as average performers, 20% as below average performers, and 15% as poor performers. Which performance appraisal tool has John chosen to use? A) behaviorally anchored rating scale B) forced distribution C) alternation ranking D) paired comparison
Answer: B Explanation: B) The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of ratees into several performance categories. Diff: 2 Chapter: 9 Objective: 4 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
10) Which of the following is the easiest and most popular technique for appraising employee performance? A) alternation ranking B) graphic rating scale C) forced distribution D) constant sum rating scale
Answer: B Explanation: B) The graphic rating scale is the simplest and most popular method for appraising performance. A graphic rating scale lists traits and a range of performance values for each trait. The supervisor rates each subordinate by circling or checking the score that best describes the subordinate's performance for each trait. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
2) The primary purpose of providing employees with feedback during a performance appraisal is to motivate employees to ________. A) apply for managerial positions B) remove any performance deficiencies C) revise their performance standards D) enroll in work-related training programs
Answer: B Explanation: B) The purpose of providing feedback to the employee is to motivate him or her to eliminate performance deficiencies or to continue to perform above par. Diff: 2 Chapter: 9 Objective: 1 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
62) When a supervisor must criticize a subordinate in an appraisal interview, it is most important for the supervisor to ________. A) limit negative feedback to once every year B) provide specific examples of critical incidents C) acknowledge the supervisor's personal biases in the situation D) hold the meeting with other people who can document the situation
Answer: B Explanation: B) When you must criticize, it should be done privately and should include examples of critical incidents and specific suggestions of what to do and why. Avoid once-a-year "critical broadsides" by giving feedback periodically, so that the formal review contains no surprises. Criticism should be objective and free of personal bias. Diff: 3 AACSB: Communication abilities Chapter: 9 Objective: 7 Skill: Concept Learning Outcome: Describe effective interviewing techniques
26) The first step in developing a behaviorally anchored rating scale is to ________. A) develop performance dimensions B) generate critical incidents C) compare subordinates D) scale incidents
Answer: B Explanation: B) Writing about critical incidents is the first step in BARS. A supervisor will ask persons who know the job (jobholders and/or supervisors) to describe specific illustrations (critical incidents) of effective and ineffective job performance. Diff: 2 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
49) All of the following are considered best practices for administering fair performance appraisals EXCEPT ________. A) explaining how subordinates can improve their performance B) basing the appraisal on observable job behaviors C) using subjective performance data for appraisals D) training supervisors how to conduct appraisals
Answer: C Explanation: C) Appraisals should be based on objective rather than subjective performance data and also on observable job behaviors. Appraisers should explain how subordinates can improve their performance, clarify in advance the performance objectives, and train supervisors in how to conduct appraisals. Diff: 3 Chapter: 9 Objective: 5 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
39) A supervisor who frequently rates all employees as average on performance appraisals most likely has a problem known as ________. A) halo effect B) stereotyping C) central tendency D) leniency
Answer: C Explanation: C) Central tendency refers to the tendency of supervisors to rate all employees the same way, such as rating them all average. Diff: 2 Chapter: 9 Objective: 5 Skill: Concept
65) Which component of performance management refers to communicating a firm's higher-level goals throughout the organization and then translating them into departmental and individual goals? A) goal alignment B) performance monitoring C) direction sharing D) developmental support
Answer: C Explanation: C) Direction sharing means communicating the company's higher-level goals (including its vision, mission, and strategy) throughout the company and then translating these into doable departmental, team, and individual goals. Coaching and developmental support, goal alignment, and performance monitoring are other elements of performance management. Diff: 1 Chapter: 9 Objective: 1 Skill: Concept
3) Which of the following is NOT one of the recommended guidelines for setting effective employee goals? A) creating specific goals B) assigning measurable goals C) administering consequences for failure to meet goals D) encouraging employees to participate in setting goals
Answer: C Explanation: C) Effective goals should be specific, measurable, attainable, relevant, and timely. Goals should be challenging but doable, and employee participation should be encouraged. Giving consequences for failing to meet goals is not recommended and unlikely to motivate employees. Diff: 2 Chapter: 9 Objective: 2 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
38) Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly. Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work." Which of the following problems has most likely affected Jason's performance appraisal? A) central tendency B) leniency C) halo effect D) recency effect
Answer: C Explanation: C) Experts define halo effect as "the influence of a rater's general impression on ratings of specific ratee qualities." Central tendency refers to rating all employees average. Recency effect means focusing on the most recent behavior of an employee rather than his or her performance over a year. Diff: 2 Chapter: 9 Objective: 5 Skill:Application
48) Which of the following is the primary advantage of using graphic rating scales as performance appraisal tools? A) eliminates central tendency errors B) offers extremely high rate of accuracy C) provides quantitative rating for each employee D) links with mutually agreed upon performance objectives
Answer: C Explanation: C) Graphic rating scales are simple to use and provide quantitative ratings for each employee. However the tool has problems with central tendency and unclear standards. Diff: 3 Chapter: 9 Objective: 5 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
12) Wilson Consulting is a management consulting firm with seventy employees. As associate vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the twelve employees under her direct supervision. Suzanne plans to use a graphic rating scale to evaluate the performance of her subordinates. Which of the following, if true, best supports the argument that a graphic rating scale is the most appropriate performance appraisal tool for Suzanne to use? A) The firm wants Suzanne to evaluate her subordinates on an ongoing basis and to keep a log of critical incidents. B) Suzanne wants to ensure that the firm is protected from employee discrimination lawsuits, so she has conducted a job analysis of each position. C) Suzanne wants a quantitative rating of each employee based on competencies important to the firm, such as problem-solving skills. D) Employees in Suzanne's department participated in developing their own performance standards when they were first hired by the firm.
Answer: C Explanation: C) Graphic rating scales with competency-based appraisal forms enable an employer to focus on the extent to which an employee exhibits the competencies essential for the job. Graphic rating scales do not track critical incidents, and they are not the best tool for protecting a firm from legal charges because of problems with bias, central tendency, and halo effect. Diff: 3 AACSB: Analytic Skills Chapter: 9 Objective: 4 Skill: Critical Thinking Learning Outcome: Describe the process of performance appraisal and different appraisal methods
69) A supervisor working for a firm that uses performance management should most likely expect to ________. A) conduct annual performance appraisals B) compare team goals to industry standards C) re-evaluate how employees accomplish tasks D) use paper forms to handle performance appraisals
Answer: C Explanation: C) Performance management means continuously re-evaluating and (if need be) modifying how the employee and team get their work done. Depending on the issue, this may mean additional training, changing work procedures, or instituting new incentive plans, for in-stance. Performance management also involves continuous rather than annual performance appraisals, which are managed through computerized systems. Diff: 2 Chapter: 9 Objective: 1 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
42) The ________ problem occurs when supervisors tend to rate all their subordinates consistently low. A) central tendency B) leniency C) strictness D) halo effect
Answer: C Explanation: C) Some supervisors tend to rate all their subordinates consistently high or low. Leniency refers to giving high ratings, while strictness refers to giving low ratings. Central tendency refers to giving average scores. Diff: 1 Chapter: 9 Objective: 5 Skill: Concept
68) Which term refers to the alignment of employee goals with departmental and company goals? A) performance management B) employee segmentation C) strategic congruence D) direction sharing
Answer: C Explanation: C) Strategic congruence is central to performance management: each employee's goals must be aligned with departmental and company goals. Direction sharing and segmentation are other aspects of performance management. Diff: 1 Chapter: 9 Objective: 1 Skill: Concept
14) Which performance appraisal tool requires supervisors to categorize employees from best to worst on various traits? A) graphic rating scale B) critical incident method C) alternation ranking method D) electronic performance monitoring
Answer: C Explanation: C) The alternation ranking method involves ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked. A graphic rating scale lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait. Diff: 1 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
59) Which of the following best describes the purpose of an appraisal interview? A) training supervisors in the rating process B) identifying potential interpersonal problems C) making plans to correct employee weaknesses D) discussing and scheduling training programs
Answer: C Explanation: C) The appraisal typically culminates in an appraisal interview. Here, the supervisor and the subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths. Diff: 1 Chapter: 9 Objective: 7 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
36) Which of the following is the best way for a supervisor to correct a performance appraisal problem caused by unclear standards? A) focusing on performance instead of personality traits B) using graphic rating scales to rank employees C) using descriptive phrases to illustrate traits D) allowing employees to rate themselves first
Answer: C Explanation: C) The best way to fix a problem associated with unclear standards is to include descriptive phrases that define or illustrate each trait. Specificity results in more consistent and more easily explained appraisals. Diff: 3 Chapter: 9 Objective: 5 Skill: Application
34) Graphic rating scales are subject to all of the following problems EXCEPT ________. A) unclear standards B) halo effects C) complexity D) leniency
Answer: C Explanation: C) The graphic rating scale is the simplest and most popular method for appraising performance. However, graphic-type rating scales in particular are susceptible to several problems including unclear standards, halo effect, central tendency, leniency or strictness, and bias. Diff: 2 Chapter: 9 Objective: 5 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
16) Kendra needs to rate five of her subordinates. She makes a chart of all possible pairs of employees for each trait being evaluated. Then, she indicates the better employee of each pair with a positive symbol on the chart. Finally, she totals the number of positive symbols for each employee. Which method of performance appraisal has Kendra most likely used? A) graphic ranking scale B) alternation ranking C) paired comparison D) forced distribution
Answer: C Explanation: C) The paired comparison method helps make the ranking method more precise. For every trait (quantity of work, quality of work, and so on), you pair and compare every subordinate with every other subordinate. Diff: 2 Chapter: 9 Objective: 4 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
9) When designing an actual appraisal method, the two basic considerations are ________. A) when to measure and what to measure B) what to measure and who should measure C) what to measure and how to measure D) when to measure and how to measure
Answer: C Explanation: C) The two basic questions in designing the actual appraisal tool are what to measure and how to measure it. For example, in terms of what to measure, we may measure the employee's performance in terms of generic dimensions or with respect to achieving specific goals. In terms of how to measure it, there are various methodologies, including graphic rating scales, the alternation ranking method, and "MBO." Who should do the appraisal and when are less critical issues to address. Diff: 2 Chapter: 9 Objective: 3 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
57) According to research, what is the typical result of upward feedback? A) Firms are protected against biased appraisals. B) Organizational strategies are quickly implemented. C) Supervisors make changes to their management styles. D) Critical incidents are documented and ranked by top managers.
Answer: C Explanation: C) Upward feedback lets subordinates anonymously rate their supervisor's performance. Research indicates that most managers make changes based on the evaluations they receive. Diff: 2 Chapter: 9 Objective: 6 Skill: Concept
21) Which performance appraisal tools requires a supervisor to maintain a log of positive and negative examples of a subordinate's work-related behavior? A) alternation ranking B) paired comparison C) critical incident D) graphic rating
Answer: C Explanation: C) With the critical incident method, the supervisor keeps a log of positive and negative examples (critical incidents) of a subordinate's work-related behavior. Every 6 months or so, supervisor and subordinate meet to discuss the latter's performance, using the incidents as examples. Diff: 1 Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
23) Wilson Consulting is a management consulting firm with seventy employees. As associate vice president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the twelve employees under her direct supervision. Suzanne plans to use the critical incident method to evaluate the performance of her subordinates. Which of the following, if true, most likely undermines the argument that the critical incident method is the most appropriate performance appraisal tool for Suzanne to use? A) Employee performance standards are closely aligned with Wilson Consulting's long-term strategic plans. B) Suzanne will be conducting performance appraisals in conjunction with the HR manager to ensure EEO compliance. C) Wilson Consulting will be allowing employees to rate themselves as part of its organizational development strategy. D) Due to economic difficulties, the firm will be laying off the two lowest performing employees in Suzanne's department.
Answer: D Explanation: D) A firm that will be laying off the two lowest performing employees needs employees to be ranked from best to worst, and the critical incident method makes ranking difficult. Strategic plans, EEO compliance, and organizational development are less relevant to the decision. Diff: 3 AACSB: Analytic Skills Chapter: 9 Objective: 4 Skill: Critical Thinking Learning Outcome: Describe the process of performance appraisal and different appraisal methods
32) Which of the following enables supervisors to oversee the amount of computerized data an employee is processing each day? A) computerized performance appraisal system B) online management assessment center C) digitized high-performance work center D) electronic performance monitoring system
Answer: D Explanation: D) Electronic performance monitoring (EPM) systems use computer network technology to allow managers access to their employees' computers and telephones. They thus allow managers to monitor the employees' rate, accuracy, and time spent working online. Diff: 1 AACSB: Use of information technology Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
31) All of the following are benefits of using computerized or Web-based performance appraisal systems EXCEPT ________. A) merging examples with performance ratings B) helping managers maintain computerized notes C) combining different performance appraisal tools D) enabling managers to monitor employees' computers
Answer: D Explanation: D) Employers increasingly use computerized or Web-based performance appraisal systems. These enable managers to keep computerized notes on subordinates during the year, merge notes with ratings, and generate written text to support each part of the appraisal. Most appraisal software combines several appraisal methods. Electronic performance monitoring (EPM) systems use computer network technology to allow managers access to their employees' computers and telephones. Diff: 3 AACSB: Use of information technology Chapter: 9 Objective: 4 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
60) You are conducting an appraisal interview with an employee whose performance is satisfactory but for whom promotion is not possible. Which incentive listed below would most likely be the LEAST effective option for maintaining satisfactory performance in this situation? A) time off B) small bonus C) schedule flexibility D) professional development
Answer: D Explanation: D) For employees whose performance is satisfactory but for whom promotion is not possible, the objective is to maintain satisfactory performance. The best option is usually to find incentives that are important to the person and sufficient to maintain performance, such as extra time off, a small bonus, praise, and schedule flexibility. Professional development would most likely be motivating for an employee who cannot be promoted. Diff: 3 Chapter: 9 Objective: 7 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
47) Stephanie manages the accounting department at an advertising agency. She needs to conduct performance appraisals for the eight employees in her department. Stephanie wants a performance appraisal tool that is highly accurate, ranks employees, and uses critical incidents to help explain ratings to appraisees. Which performance appraisal tool is best suited for Stephanie? A) graphic rating scale B) alternation ranking method C) critical incident method D) behaviorally anchored rating scale
Answer: D Explanation: D) For those for whom accuracy is a great concern, BARS are superior, but require much more time to develop and use. The integration of critical incidents help a supervisor explain ratings to appraisees. Graphic rating scales and alternation rankings do not include critical incidents, while the critical incident method includes examples without rankings. Diff: 3 AACSB: Reflective thinking skills Chapter: 9 Objective: 4, 5 Skill: Synthesis Learning Outcome: Describe the process of performance appraisal and different appraisal methods
67) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's CEO advocates shifting from performance appraisals to performance management in an attempt to make Oshman more competitive and performance driven. All of the following questions are relevant to Oshman's decision to replace its traditional appraisal methods with the performance management approach EXCEPT ________. A) What technology is available to help managers gain immediate access to employee performance data? B) How would work procedures need to be modified to provide more frequent feedback to employees? C) How would the firm's mission and vision translate into departmental, team, and individual goals? D) What procedures are already in place to effectively identify and measure critical incidents?
Answer: D Explanation: D) Issues related to performance management include the technology used to monitor employee performance, methods for providing feedback, development of goals, and incentives. Identifying critical incidents is an issue related to traditional appraisal methods rather than performance management. Diff: 3 AACSB: Analytic Skills Chapter: 9 Objective: 1 Skill: Critical Thinking
64) The continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals is known as ________. A) strategic management B) performance analysis C) performance appraisal D) performance management
Answer: D Explanation: D) Performance management is the continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals. Diff: 1 Chapter: 9 Objective: 1 Skill: Concept
51) Who is in the best position to observe and evaluate an employee's performance for the purposes of a performance appraisal? A) customers B) rating committees C) top management D) immediate supervisor
Answer: D Explanation: D) Supervisors' ratings are the heart of most appraisals. The supervisor usually is in the best position to evaluate the subordinate's performance and is responsible for that person's performance. Diff: 1 Chapter: 9 Objective: 6 Skill: Concept
17) Which performance appraisal tool is being used when a supervisor places predetermined percentages of ratees into various performance categories? A) behaviorally anchored rating scale B) graphic ranking scale C) alternation ranking D) forced distribution
Answer: D Explanation: D) The forced distribution method is similar to grading on a curve. With this method, you place predetermined percentages of ratees into several performance categories. Diff: 1 Chapter: 9 Objective: 4 Skill: Application Learning Outcome: Describe the process of performance appraisal and different appraisal methods
61) When conducting an appraisal interview, supervisors should do all of the following EXCEPT ________. A) ask open-ended questions B) give specific examples of poor performance C) write up an action plan with goals and dates D) compare the person's performance to that of other employees
Answer: D Explanation: D) When a supervisor conducts an appraisal interview, it is advisable to speak in terms of objective work data with specific examples of poor performance. A supervisor should also ask the employee open-ended questions to encourage conversation and write up an action plan. It is inappropriate to compare a person's performance with another person. Diff: 3 AACSB: Communication abilities Chapter: 9 Objective: 7 Skill: Concept Learning Outcome: Describe the process of performance appraisal and different appraisal methods
