Chapter 6: Performance Appraisals

Trait Appraisal

-A trait is a characteristic that an individual possesses -Traits include things such as appearance, attitude, initiative, work ethic, leadership ability, a sense of ethics, loyalty, adaptability and judgment

Causes of Job Dissatisfaction

-Being underpaid -Limited career growth -Lack of interest -Poor management

Reliability Performance Appraisals

-if different people, often called raters, get the same result when using the system to rate the same employee or team -If different raters get different results, then the system's not consistent and not considered reliable

The CEO of XYZ Corp. will be conducting reviews with his top managers. He has asked them to get feedback from lower level supervisors and outside vendors with whom they work. Which method is the CEO using to review his top managers? Top Down Appraisals. Self Assessments. Management by Objectives. Collaborative Appraisals. 360 Degree Feedback.

360 Degree Feedback.

leniency errors and strictness errors

A rater is being too lenient if he rates everyone as excellent and is strict when rating everyone as poor.

Central tendency error

occurs when the rater doesn't give high or low scores. Instead, all employees are rated about the same, which is average.

employee appraisal

a method of measuring employee job performance based on a predetermined set of criteria: Behaviors Productivity Strengths and weaknesses

Employee appraisals are for _____. middle management all employees salaried employees hourly employees top management

all employees

Effective Performance Appraisals

relevant, sensitive, reliable, acceptable and practical

Forced Distributions method

requires that supervisors rating employees place a certain percentage or number of employees into various performance categories

Jill is concerned that her employees are stagnating and not developing their skills as she had hoped. Jill believes that _____ will help the employees assess their work and generate skill development plans. self assessments. top down appraisals. collaborative assessments. 360 degree feedback. M.B.O.

self assessments.

Top-down appraisals measure employee performance against goals _____ set by management. mandated by the company. set by the employee. set by management with the employee. set with 360-degree feedback.

set by management.

Why is it important for a company to monitor levels of employee dissatisfaction? Satisfied employees can be less productive Satisfied employees reduce company costs because they accept being underpaid Dissatisfied employees may create high turnover Dissatisfied employees are always disloyal It is best to have employees that are neither totally satisfied or dissatisfied

Dissatisfied employees may create high turnover

performance management

is a management practice focused on developing and implementing processes that help maximize the productivity and effectiveness of the organization and its members.

Sensitivity Performance Appraisals

it is able to distinguish between success and failure or between effective and ineffective employees

Which of the following statements is FALSE regarding the role of employees in the Management by Objective (MBO) process? Employees are able to benefit financially by purchasing stock in the company. Employees can speak without fear of reprisal or appearing to be a 'big mouth.' Employees will share common goals. Employees know their opinions will be heard and reviewed. Employees tend to form a more tightly knit, focused organization

Employees are able to benefit financially by purchasing stock in the company.

A performance appraisal is best used for: Evaluating the company at hiring effectiveness Evaluating the supervisor of the employee at management abilities Evaluating the need for employee termination Evaluating an employee's past performance and helping future development

Evaluating an employee's past performance and helping future development

Matt the manager is completing an appraisal that consists of answering multiple choice questions regarding his employees' traits. Which appraisal method is Matt using? Forced distribution Graphic rating scales Forced choice Narrative

Forced choice

A large corporation uses an appraisal method where the bottom 10% of employees must show immediate improvement or be terminated. Which appraisal method are they using? Critical incident Forced choice Forced distribution Narrative

Forced distribution

Lisa is reviewing the results of recent performance appraisals that have been plotted on a graph in the form of a bell curve. Which type of performance appraisal can be graphically represented this way? Graphic rating scales Forced choice Narrative Forced distribution

Forced distribution

Beth is a teller supervisor at the bank. She gives each teller a rating for their accuracy, customer service and salesmanship. Which appraisal method is Beth using? Graphic rating scales Critical incident There is no such method None of the answers are correct BARS

Graphic rating scales

Which one of the following is a benefit of performance appraisals? Guide to determine which employees can skip trainings Creates a lot of extra paperwork for management Cannot assess an organization's overall performance Guide for offering promotions and raises

Guide for offering promotions and raises

Which of the following is NOT an administrative use of performance appraisals? Individual employee feedback Analysis of the organization's development programs Personnel planning Legal protection

Individual employee feedback

Which of the following was established by Peter Drucker's Management by Objective (MBO) concept? It started the practice of management listening to employees, and marrying that with the thoughts and ideas of management. It empowered employees to do whatever they want without consulting management. It reaffirmed that managers should direct a company and establish its objectives. It confirmed that employees are unable to focus without clear direction set by management

It started the practice of management listening to employees, and marrying that with the thoughts and ideas of management.

Julie has worked in the same position for a financial firm for six years. She is generally happy but would like a new challenge. After two years, a new position finally becomes available, and she applies for it. She is qualified but is rejected in favor of Karen, an outsider with more experience. What can company management expect from Julie? Julie, having been with the firm for six years, won't seek employment elsewhere. Julie may be resentful of Karen and attempt to sabotage her work. Julie will perceive her current position as remaining important, but start calling in sick. Julie may become dissatisfied and perceive the firm as limiting her career growth. Julie will remain satisfied with her job and apply for the next open position.

Julie may become dissatisfied and perceive the firm as limiting her career growth.

The executive director wants to save time on his performance appraisals of mid-level management. He rates all of his managers as excellent to finish the process quickly. Which rating error is being committed? Central tendency error Similar-to-me error No error has been committed Leniency error

Leniency error

What is a formal system of assessing an employee's effectiveness and productivity called? Productivity Appraisal Performance appraisal Developmental analysis Effectiveness assessment

Performance appraisal

What is a formal system used to assess performance and effectiveness of employees and teams of employees known as? Results appraisal Performance testing None of the answers are correct. Performance management Performance appraisal

Performance appraisal

Which of the following is NOT a developmental function of performance appraisals? Help determine individual training needs Feedback for management Feedback for employees Personnel planning

Personnel planning

A performance appraisal using criteria correlated to the goal assessed has which characteristic? Relevancy Reliability Sensitivity Acceptability

Relevancy

Bob did a performance appraisal for an employee in his department. Ellen works in the same department and did a performance appraisal for the same employee. Bob and Ellen got different results. What is the performance appraisal lacking? Acceptability Relevance Sensitivity Reliability

Reliability

Fred is a football coach. The criteria for his appraisal will be how many games his team wins this year. Which type of standards are being used in his appraisal? Competencies Trait Behavioral Results Scientific

Results

An appraisal that can differentiate between effective employees and ineffective employees has which characteristic? Relevancy Sensitivity Practicality Acceptability

Sensitivity

Rating Scales

The most commonly used rating scale is a five point scale with the lowest rating being unsatisfactory, and the highest being outstanding

Acceptability Performance Appraisals

The performance appraisal must be acceptable to the organization's members. If it doesn't have the support of the employees who use it, then it is subject to not being used or even sabotaged

Relevance Performance Appraisals

means that the performance criteria are correlated to the performance goal it seeks to measure (evaluating the dress and grooming of a research scientist to determine her effectiveness in developing new drugs for the company is not a relevant criterion)

performance appraisal

the process of reviewing and evaluating the performance of individuals or teams on their work tasks

What general four categories does job dissatisfaction fall into? underpaid, limited career growth, poor management, lack of interest frustration, boredom, disillusionment, poor management underpaid, lack of perks, no oversight, lack of interest exit, voice, loyalty, neglect

underpaid, limited career growth, poor management, lack of interest

contrast error

when an employee rating is either biased up or down based upon the performance of another employee that has been rated (For example, an employee that objectively should be rated average may get rated very good if a very poor employee was just reviewed)

recency effect

where you remember recent events better than earlier events (For example, a supervisor rating an employee's performance may unduly focus on the most recent performance success or failure rather than looking at performance during the entire review period. This may lead to a wrong conclusion.)

A performance appraisal supported by an organization's members has which characteristic? Reliability Sensitivity Practicality Acceptability

Acceptability

Which of the following errors involves rating everyone pretty much as average? Leniency error Contrast error Central tendency error Strictness error

Central tendency error

Justin is a university professor in economics. The criteria for his performance appraisal is his knowledge of economics and his ability to teach it to students. Which type of standards are being used in his appraisal? Competencies Trait Results Administrative Behavioral

Competencies

A supervisor rated five very poor performers and then incorrectly rates the sixth as an above average performer even though the employee is only average. What type of rating error is this? Fatigue Central tendency error Contrast error Leniency error

Contrast error

Sara is a supervisor at a call center. She monitors her employees' calls and keeps a record for each employee of times when they provided exceptional customer service as well as when service was not helpful or substandard. Which appraisal method is Sara using? Sliding scale Critical incident Graphic BARS Graphic rating scales BARS

Critical incident

Which of the following is NOT part of the Management by Objective (MBO) process? Management states the areas of the company that need the most focus and why. Employees are asked to provide their input toward establishing the company objectives. Management and employees come to a consensus on the objectives. Management has the final say on the company's objectives. Management enlists employees in helping to develop the company's objectives.

Management has the final say on the company's objectives.

How is Management by Objective (MBO) BEST defined? Employees do not need to know the company's objectives or the reasons behind them. Managers should direct the company, and employees do what their jobs say they should do. Employees can offer their opinions, but their opinions will not be reviewed or acted upon. Managers and employees collaborate to set objectives; their collective buy-in increases the organization's success

Managers and employees collaborate to set objectives; their collective buy-in increases the organization's success.

Edward is a supervisor evaluating an employee by writing an essay about the employee's performance. Which type of appraisal method is he using? Critical incident Performance storytelling Qualitative analysis Narrative

Narrative

Sarah the supervisor would like an appraisal system that doesn't rank employees or compare them with one another. Which appraisal method should Sarah use? Forced distribution Graphic rating scales Forced choice Narrative

Narrative

Joe works in the data entry department. He has become dissatisfied with his job. He never used to take time off, but lately he has been taking sick days. His work is now sloppy and full of errors. Which response to dissatisfaction is Joe demonstrating? Disloyalty Loyalty Voice Neglect Exit

Neglect

Which of these is a major benefit to using graphic rating scales? They allow subjective comparisons between employees. They are based on job analysis. They are based on work sampling. They are easy to design and use. They are in essay form

They are easy to design and use.

Why would performance appraisals be useful to a company that is investing in employee development? To assess the employee's expertise in engaging the training To assess the value of developing employees versus simply hiring new ones To assess the effectiveness of their development training by evaluating the employee before and after To assess whether or not the employee deserves a raise

To assess the effectiveness of their development training by evaluating the employee before and after

The most commonly used appraisals are:

Top-down appraisal Management by objectives (MBO) Self-assessment 360 degree feedback

Kate is a data entry clerk. Part of her performance appraisal is how much she is never satisfied with her work if it isn't perfect. Which type of standards are being used in her appraisal? Trait Behavioral Results Performance Competencies

Trait

Competencies Appraisal

-Competencies are the knowledge, skills, abilities and behaviors that a person needs to accomplish a task

Employee Responses to Dissatisfaction

-Exit: They will leave the company and find other employment that better suits their needs -Voice: They will become vocal about what needs to be changed and potentially work to change it. -Loyalty: Much like a golden retriever, they will be loyal. However, in the case of an employee, that loyalty is centered on waiting for those things to change and get better. -Neglect: The employee will begin to do less-than-good work, be absent more and potentially not care about the job they do

Results Appraisal

-Sometimes, results are the best measure of performance -If an employee or team meets a predetermined goal, then they are viewed as effective

Performance Appraisal Challenges

-The overarching challenge of performance appraisals is accuracy -if an appraisal doesn't accurately distinguish between effective performance and ineffective performance, the appraisal may actually be counterproductive

Behavioral Appraisal

-While traits are characteristics, behaviors are actions -to be effective, the behaviors must be related to the performance being appraised (behaviors that demonstrate cooperation and team building when developing team appraisals. Salespeople may be assessed on their persistency in making cold calls to doctors to set up appointments.)

Narratives Appraisal Method

-also called an essay, is simply a written analysis of an employee's performance -one of the oldest appraisal methods -The method is very individualized and qualitative in nature, also takes a long time, and is subject to a high degree of bias from the person writing the essay given its subjective nature, very difficult to compare employees given the lack of quantitative measures

Administrative Uses of Performance Appraisals

-help identify strong and weak performers and thereby assist in making decisions regarding promotions, transfers, raises, bonuses and other types of employee rewards -evaluate the effectiveness of the company's training and development programs (compare appraisals of employees taken before and after completion of development programs to see if there is marked improvement) -Personnel planning also benefits from the data collected from performance appraisals (review the appraisals to determine the strengths and weaknesses of the company's current complement of workers that will help her determine whether the company needs additional workers or workers with different skills) -performance appraisals can be used to help document decisions that may lead to lawsuits

Peter Drucker and his book, The Practice of Management

-if a company banded together to set objectives collectively, then the reward would be much greater than just passing down the objectives from upper management -if employees were part of the objective-setting process, the benefits would be tremendous and help the company to achieve its goals.

Top-Down Appraisal

-is a commonly used method and involves an employee evaluation by a direct supervisor and is based on the completion of pre-set goals set by management -Productivity, behavior, and goal completion are generally measured -Outcomes of this method are used for raises and promotions

360 Degree Feedback

-is a form of feedback about an employee's performance from many different people within the company and outside the company. used mainly for self-development -Feedback is given from those internal to the company, like subordinates, peers, supervisors and oneself, and externally from customers and vendors

Self-Assessment

-is an assessment of performance done by the employee himself or herself -Outcomes of this method are generally goal attainment, behavioral, problem solving skills, communication skills and teamwork

Graphic Rating Scales

-lists characteristics that are viewed as valuable for effective performance, and an employee is rated on each of the characteristics -pretty easy to design and use -allow employers to make quantitative comparisons between the scores achieved by different employees

Developmental Uses of Performance Appraisals

-provides a mechanism for communication and feedback (2-way feedback) -identify goals for employees and also help with evaluation of goal achievement -determine individual and organizational training and development needs

critical incident method

-records samples of an employee's good performance and bad performance as each relates to performance objectives that have been previously set for the employee -also referred to as work sampling

Forced Choice Technique

-requires raters to pick among equally good or equally bad traits in assessing employee performance -supervisors are given a series of multiple-choice questions regarding the employee. Each question asks the supervisor to select one choice from a list of traits or behaviors related to performance

What MBO Delivers

-some well-needed changes in organizational philosophy -Employees were now more motivated because they had input into how the company ran -Communication improved dramatically with MBO -all employees knew where they were going and why the company was going there

Management by Objectives (MBO)

-takes a more collaborative approach because it involves the manager and employee setting objectives together. -Once goals have been set and agreed upon, management uses the outcomes to provide feedback.

Performance Appraisal Benefits

-they help an organization and its members become more effective. -providing a sound basis for many employee-related administrative decisions and by making important contributions to employee and organizational development -help companies identify good performers and poor performers -A company can use performance appraisals to determine who should be rewarded with raises and promotions, which employees need more training and who should be terminated

Which of the following is NOT a benefit of Management by Objective (MBO)? Employees are more motivated. Employees have an increased sense of accountability. Employees have a sense of ownership. Communication increases throughout the company. A company's stock increases in price.

A company's stock increases in price.

Sal is a supervisor for a cellphone assembly contractor. To design a new appraisal method, he has brought in a consultant. They will do a thorough job analysis to identify the most efficient way to assemble phones and the behaviors assemblers need to have. Which appraisal method are they working on? Graphic rating scales Critical incident Sliding scales BARS Graphic incident

BARS

Which of the following appraisal methods uses vertical scales based, in part, upon job analysis? Narrative Graphic rating scales Forced choice Critical incident BARS

BARS

How should a company respond if employees voice their issues or appear dissatisfied with their jobs? Hire new workers to replace those employees who complain Reduce employee hours or give them less pleasant tasks so they will better appreciate their current jobs Tell the employees they should be happy to have a job Be attentive and try to resolve employees' concerns Let the issues resolve themselves

Be attentive and try to resolve employees' concerns

Bethany is a salesperson at the cellphone store. Her performance appraisal is based on her ability to talk to the customers and build relationships with them. Which type of standards are being used in her appraisal? Human relations Competencies Trait Results Behavioral

Behavioral

How would a manager implement Management by Objective (MBO) in her employee appraisals? By dictating goals to each employee By collaborating with each employee on goal setting By taking measurable goals out of the appraisal By letting employees decide what the goals should be By letting the work team decide the goals for everyone

By collaborating with each employee on goal setting

Steve is considering Paul's performance on the job within the last few months. Which of the following rater errors is he most likely to make because he is thinking about a current impression of an employee's performance? The primacy effect The recency effect Central tendency Contrast error

The recency effect

behaviorally anchored rating scale (BARS)

an appraisal method that focuses on rating an employee based upon behaviors that are indicative of good performance according to job analysis and critical incident assessments.

Similar-to-me errors

occur when a rater makes an upward biased rating of an employee with whom the rater has something in common (For example, a manager may give a higher rating to executives who are alumni of his business school.)

Sarah has complained that the performance appraisal her company has her use is too complicated for many to understand, and simply isn't very useable. Sarah is complaining that the performance appraisal is lacking: relevancy. reliability. acceptability. practicality

practicality

Practicality Performance Appraisals

simplicity and ease of use. If the system is hard to understand and use, people will not use it