Management 494 | Exam 1 Study Guide (Chapters 1-3)
In order to ensure that strategy cascades down the organization and leads to concrete actions, which of the following must be done? A. A conscious effort must be made to link the strategic plan with individual performance. B. Company executives must mandate that employees follow the plan. C. Employees must be involved in making the plan. D. Supervisors must be able to evaluate how well an employee is following the plan.
A. A conscious effort must be made to link the strategic plan with individual performance.
Which of the following external factors should be considered in any environmental analysis? A. Organizational culture B. Organizational politics C. Competitors D. Organizational structure
C. Competitors
Self-ratings of performance are important because they do all of the following EXCEPT: A. Emphasize discrepancies between the employee's and supervisor's views of performance B. Reduce employee defensiveness during an appraisal meeting C. Decrease employee satisfaction with the performance management system D. Increase employee ownership and commitment to the programs
C. Decrease employee satisfaction with the performance management system
_______________________ analyzes the external environment vis-à-vis the internal environment. A. Business analysis B. Environmental analysis C. Gap analysis D. Opportunity analysis
C. Gap analysis
A mission statement is a description of what the organization would like to become in the future.
FALSE
A performance management system is the systematic description of an employee's strengths and weaknesses.
FALSE
A problem is a situation where an external threat can be compensated by strengths in other areas.
FALSE
A reliable performance management system includes all relevant performance facets and does not include irrelevant performance facets.
FALSE
A gap analysis consists of pairing strengths/weaknesses with opportunities/threats and determining whether the situation is conducive to positive outcomes, negative outcomes, or a mixture of both.
TRUE
Ability is the physical, emotional, intellectual, and psychological aptitude to perform the work.
TRUE
An analysis of the economic environment would be included in the external environment analysis.
TRUE
Dangers of a poorly implemented performance management system include wasted time and money, lack of standardized employee ratings, and confusion on how ratings are obtained.
TRUE
Distributive justice is the perception that the performance evaluation received is fair relative to the work performed.
TRUE
Employees and supervisors should both evaluate employee performance during the performance assessment phase.
TRUE
Exempt employees are often employees in managerial or professional roles on salaries, and are not eligible for overtime pay.
TRUE
It is very important that the phases of a performance management system all be linked to one another.
TRUE
Leverage is a combination of an opportunity in the external environment and a matching strength in the organization.
TRUE
Linking each individual's performance to the organization's mission involves explaining to each employee how the employee's activities are helping the organization gain a competitive advantage.
TRUE
Performance management systems allow all employees to understand where the organization stands and where it needs to go and provide tools to employees so that their behaviors will help the organization meet its goals.
TRUE
Performance management systems in foreign subsidiaries often differ from those in home country headquarters as differences in the power distance (i.e., the degree to which a society accepts unequal distribution of power) increase between/among countries.
TRUE
Results criteria fall into the following categories: quality, quantity, cost effectiveness, and timeliness.
TRUE
Short-term incentives are one-time payments typically given quarterly or annually.
TRUE
Strategic planning is a process that involves describing the organization's destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward.
TRUE
The performance management criteria must be linked to the vision, mission, goals, and strategies of the organization and unit.
TRUE
Well-designed performance management systems define a clear path from organizational mission, vision, and goals to individual and team performance.
TRUE
Strategic consensus occurs when __________agree on a common set of _______. A. workers; unit-level goals B. organizational units; strategic priorities C. firms; industry-wide practices D. managers; organizational values
B. organizational units; strategic priorities
Pay that focuses on position and duties performed rather than on a specific individual's contribution is called: A. Base pay B. Pay raises C. Salary D. Relational returns
A. Base pay
Tangible returns include: A. Base pay B. Learning opportunities C. Respect from coworkers D. None of the above
A. Base pay
Dangers of a poorly implemented performance management system include all of the following EXCEPT: A. Increased emphasis on behaviors rather than results B. Lawsuits/internal complaints of discrimination C. Biased performance ratings D. Decreased employee motivation
A. Increased emphasis on behaviors rather than results
In what aspect is performance management generally different around the world? A. Interpersonal aspects B. Standardization of performance measurement C. Alignment of individual and organizational goals D. All of the above
A. Interpersonal aspects
Methods of conducting a job analysis include all of these EXCEPT: A. Reading textbooks B. Observation of employees in action C. Off-the-shelf questionnaires D. Interviews with employees
A. Reading textbooks
______________________ leads people to believe that others behave similarly to themselves and hence lead people to think about themselves instead of people in general when reporting KSAs for their jobs. A. Social projection bias B. Optimism bias C. Availability heuristic D. Self-serving bias E. False consensus bias
A. Social projection bias
In what manner is performance management typically similar around the world? A. Standardization of performance measurement B. Emphasis on behavior versus results of employee performance C. Interpersonal aspects D. None of the above
A. Standardization of performance measurement
The mission statement summarizes: A. The organization's most important reason for existing B. The mission C. The organization's values D. The organization's needs
A. The organization's most important reason for existing
The two main steps in the prerequisites phase of performance management are: A. Understanding the organization's mission and conducting job analysis B. Developing the organization's mission and conducting job analysis C. Conducting job analysis and writing a development plan D. Understanding the organization's mission and writing a development plan
A. Understanding the organization's mission and conducting job analysis
An ideal PM system is __________, which means that performance is evaluated and feedback is given on an ongoing basis, the appraisal meeting consists of two-way communication, and performance standards are clear. A. open B. standardized C. ethical D. specific
A. open
Performance renewal and recontracting is a phase similar to the ______________ phase of the performance management process. A. performance planning B. prerequisites C. performance evaluation D. performance assessment
A. performance planning
The main goal of the strategic planning process is to: A. Write the mission statement to provide direction to the organization B. Allocate resources to provide the organization with a competitive advantage C. Form the foundation for the performance management process D. None of the above
B. Allocate resources to provide the organization with a competitive advantage
The process of describing the organization's destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward is called ____________________________. A. organizational planning B. strategic planning C. business planning D. successful planning
B. strategic planning
A Web-based training program, designed to reduce rater bias, does all of the following EXCEPT: A. Provides a common point of reference B. Allows raters to define each rating criterion C. Defines the scale anchors D. Describes what behaviors were indicative of each rating criterion E. Permits raters to practice their rating skills
B. Allows raters to define each rating criterion
_____________ focuses on positions and duties, rather than on an individual's contribution A. Contingent pay B. Base pay C. Cost-of-living adjustments D. Short-term incentives
B. Base pay
__________ are clusters of measurable KSAs. A. Job duties B. Competencies C. Performance standards D. Key accountabilities
B. Competencies
Pay added to base pay that depends upon an employee's performance is called: A. An allowance B. Contingent pay C. Relational return D. A benefit
B. Contingent pay
A good vision statement is all of the following EXCEPT: A. Focused B. Detailed C. Inspiring D. A statement of future aspirations
B. Detailed
The strategic planning process consists of all of the following EXCEPT: A. An environmental analysis B. Development of the marketing plan C. Creation of a mission statement D. Setting organizational goals
B. Development of the marketing plan
All of the following are possible benefits of a performance management system EXCEPT: A. Protection from lawsuits B. Employees become more ethical C. Employees become more competent D. The definitions of job and criteria are clarified
B. Employees become more ethical
Which of the following has been shown to be the best predictor of firm performance? A. Create strategic priorities and goals simultaneously. B. Establish strategic priorities before setting goals. C. Identify the strength and weaknesses of the firm, and then let firm-level strategic priorities emerge naturally. D. Focus on goals, and then create strategic priorities on how to compete.
B. Establish strategic priorities before setting goals.
Information gained from the organizational maintenance purpose of a PM system is used for all of the following EXCEPT: A. Workforce planning B. Evaluating the effectiveness of job descriptions C. Evaluating the effectiveness of HR programs D. Creating talent inventories
B. Evaluating the effectiveness of job descriptions
In the context of performance management, validity means that all the employees agree with the rating process. A. True B. False
B. False
In the context of performance management, validity means that the measures of performance are trusted and perceived as fair by the employees. A. True B. False
B. False
An ideal performance management system is correctable. What does this mean? A. If an employee is dissatisfied with a rating, it will be changed. B. If an employee is dissatisfied with a rating, there is a process to appeal the rating decision. C. An ideal performance management system is not correctable. D. None of the above is correct.
B. If an employee is dissatisfied with a rating, there is a process to appeal the rating decision.
"KSA" in the text refers to what? A. Knowledge, social skills, and aptitude B. Knowledge, skills, and abilities C. Knowledge, skills, and agility D. Knowledge of situation and action
B. Knowledge, skills, and abilities
When employees of an organization do not see the PM system as fair, the organization may witness from its employees all of the following EXCEPT: A. Job burnout B. Lowered self-esteem C. Increased turnover D. Lawsuits
B. Lowered self-esteem
Relational returns include all of the following EXCEPT: A. Challenging work B. Performance bonuses C. Employment security D. Recognition and status
B. Performance bonuses
________________ is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. A. Strategic planning B. Performance management C. Reward system D. Performance appraisal
B. Performance management
The correct order of the phases of a performance management process is: A. Performance planning, prerequisites, performance execution, performance assessment, performance review, performance renewal and recontracting B. Prerequisites, performance planning, performance execution, performance assessment, performance review, performance renewal and recontracting C. Performance planning, prerequisites, performance execution, performance review, performance assessment, performance renewal and recontracting D. Prerequisites, performance execution, performance planning, performance assessment, performance review, performance renewal and recontracting
B. Prerequisites, performance planning, performance execution, performance assessment, performance review, performance renewal and recontracting
A purpose of a performance management system is to: A. Get rid of poorly performing employees B. Provide documentation C. Increase profits D. Give the HR department something to do
B. Provide documentation
At the beginning of each performance cycle, the supervisor and employee meet to discuss and agree upon: A. The employee's salary B. Results, behaviors, and a development plan C. Performance, corrections, and a timeline D. The supervisor's expectations
B. Results, behaviors, and a development plan
___________________ are the descriptions of game plans to reach the stated objectives. A. Mission statements B. Strategies C. Goals D. Vision statements
B. Strategies
Influenced by industrial organization research, a subfield of economics, _______ is a more recent way of thinking about strategic consensus than is the one promoted as the dominant approach in the early development of strategic management: A. creating strategic priorities and goals simultaneously B. establishing strategic priorities before setting goals C. identifying the strength and weaknesses of the firm and then letting firm-level strategic priorities emerge naturally D. focusing on goals, and then creating strategic priorities on how to compete
B. establishing strategic priorities before setting goals
Characteristics of the external environment that can help the organization succeed are known as ______________________. A. advantages B. opportunities C. good situations D. expectant situations
B. opportunities
________________ are what the organization intends to do in the short term, say, one to three years. A. Strategies B. Strategic plans C. Goals D. Game plans
C. Goals
Which of the following statements is true according to the text? I. Employees are primarily responsible for finding resources for development plans in the performance execution state. II. Both employees and supervisors should rate performance in the performance assessment phase. III. Any discrepancy between employee and supervisor ratings is unacceptable. IV. Many sources can be utilized for data regarding performance. A. All of the statements are correct. B. I, II, and IV only are correct. C. II and IV only are correct. D. None of the statements are correct.
C. II and IV only are correct.
All of the following are characteristics of an ideal performance management system EXCEPT: A. Reliability B. Meaningfulness C. Inexpensive D. Thorough
C. Inexpensive
Which one of the following is an example of Strategic priorities à Goals? A. Each salesperson will increase $10,000 in sales by the end of the quarter. B. Our company must double the number of our product lines to gain greater diversity and customer satisfaction. C. Our firm will reduce the price of our items by 20 percent to compete in the East Asian market within the next five years. To do so, each store must increase employee productivity by 8 percent and implement a one-year hiring freeze. D. Each team is required to propose a set of team goals that will help the organization achieve its organizational goals.
C. Our firm will reduce the price of our items by 20 percent to compete in the East Asian market within the next five years. To do so, each store must increase employee productivity by 8 percent and implement a one-year hiring freeze.
An examination of the internal environment includes a consideration of: A. Employees and supervisors B. Supply and demand C. Strengths and weaknesses D. Employees and customers
C. Strengths and weaknesses
Job descriptions are a key prerequisite for any performance management system because: A. Without them, employees will not "buy in" to the system. B. Performance management systems are not applicable unless certain job elements are present. C. They provide the criteria that will be used in measuring performance. D. They provide information to employees as to what tasks are most important in their jobs.
C. They provide the criteria that will be used in measuring performance.
The ___________ purpose of PM systems is to furnish valid and useful information for making employment decisions including salary adjustments, promotions, and terminations. A. strategic B. informational C. administrative D. developmental
C. administrative
Performance execution is linked to _____________ and _____________. A. prerequisites; performance planning B. performance planning; performance review C. performance planning; performance assessment D. performance assessment; performance review
C. performance planning; performance assessment
Since the 1997 Asian financial crisis, the main ongoing challenge for many organizations in South Korea has been to __________. A. incorporate the traditional emphasis on social harmony to PM systems B. recruit and incentivize a more internationally and racially diverse workforce C. reconcile a merit-based approach with more traditional, seniority-based values D. develop greater sensitivity to equal opportunity and due process issues
C. reconcile a merit-based approach with more traditional, seniority-based values
In the performance planning stage, the term "results" refers to what? A. Customer reactions B. Ratings that result from performance C. Customer complaints resulting from performance D. Outcomes an employee must produce
D. Outcomes an employee must produce
Which of the following is characteristic of a good vision statement? A. Controversial B. Free of a specific timeline to create flexibility C. Long-lasting D. Provides a stretch goal
D. Provides a stretch goal
Which of the following are examples of work/life focus? A. Counseling B. Financial planning C. Relational returns D. A and B
D. A and B
Performance management systems should be thorough, meaning that: A. All employees should be evaluated B. An employee's flaws should be discussed at length C. The review should cover the entire review period D. A and C
D. A and C
Which of the following internal factors should be considered in an environmental analysis? A. Organizational culture B. Competitors C. Organizational structure D. A and C
D. A and C
The text offers six recommended steps for conducting productive performance reviews. Included in those steps are which of the following? A. Cite specific positive and negative behaviors B. Agree on a bonus C. Agree on an action plan D. A and C only E. None of the above F. All of the above
D. A and C only
A good mission statement contains which of the following? A. Statement of why the organization exists B. Description of the organization's customers C. List of the organization's products and services D. All of the above
D. All of the above
A job description includes a summary of: A. Job duties B. Working conditions C. Needed KSAs D. All of the above
D. All of the above
During the collection of information from individuals for the purpose of conducting a job analysis, why might different people in the same position and same job duties rate certain knowledge, skills, and abilities (KSAs) as more important than other KSAs? A. People tend to believe that the KSAs on which they score highly drive success in their jobs but not the KSAs on which they score poorly. B. Insufficient rater training was provided prior to the collection of information from the individuals. C. Even if the raters have the same position and duties, some of the raters may be more highly involved in certain job duties than are other raters. D. All of the above
D. All of the above
In which country is PM usually adapted to the country's unique culture? A. South Korea B. South Africa C. Australia D. All of the above
D. All of the above
Income protection programs include: A. Pension Plans B. Medical Insurance C. Social Security D. All of the above
D. All of the above
PM system information is important for the effective implementation of which of the following HR function(s)? A. Workforce planning B. Training C. Recruitment and selection D. All of the above
D. All of the above
Performance reviews should focus on: A. What has been done and how (past) B. What compensation may be received as a consequence (present) C. Goals for the upcoming review period (future) D. All of the above
D. All of the above
The poor implementation of the performance planning phase will result in the poor implementation of the: A. Performance execution phase B. Performance assessment phase C. Performance review phase D. All of the above
D. All of the above
Which of the following are primarily the responsibilities of the employee in terms of performance execution? A. Communication with supervisor B. Collection and sharing of performance data C. Commitment to goal achievement D. All of the above
D. All of the above
Which of the following are primarily the responsibilities of the supervisor in terms of performance execution? A. Regular performance feedback and coaching B. Observation and documentation C. Reinforcement D. All of the above E. B and C only
D. All of the above
O*NET is: A. An online resource for pay scale information B. An online resource for job testing C. An online resource for finding jobs D. An online resource for generic job descriptions
D. An online resource for generic job descriptions
Relational returns include: A. Income protection B. Recognition and status C. Challenging work D. B and C
D. B and C
The prerequisites to the implementation of a performance management system are: A. Money and time B. Knowledge of the organization's culture and knowledge of the jobs in question C. Knowledge of the organization's mission and knowledge of the organization's culture D. Knowledge of the organization's mission and knowledge of the jobs in question
D. Knowledge of the organization's mission and knowledge of the jobs in question
Which of the following does the text identify as a possible danger of a poorly implemented performance management system? A. Salaries must be increased. B. Poorly performing employees will always stay at the organization. C. No time or money is spent on the system. D. Motivation to perform is decreased.
D. Motivation to perform is decreased.
People tend to attribute success to themselves and failure to external causes (i.e., factors outside of their control). This tendency is called: A. Social projection bias B. Optimism bias C. Availability heuristic D. Self-serving bias E. False consensus bias
D. Self-serving bias
A description of what the organization would like to become in the future is called: A. The mission statement B. The organizational plan C. The strategic plan D. The vision statement
D. The vision statement
___________________leads people to believe that others share the same beliefs and attitudes as themselves. A. Social projection bias B. Optimism bias C. Availability heuristic D. Self-serving bias E. False consensus bias
E. False consensus bias
A vision statement provides more specific information on how the mission will be implemented.
FALSE
After the performance renewal and recontracting phase, the performance management process is complete.
FALSE
Employees should be measured exclusively on the results that they achieve.
FALSE
Environmental analysis is an examination of the external environment where the organization operates.
FALSE
Feedback often decreases motivation to perform because it points out what an employee does wrong.
FALSE
HR support is sufficient for a successful performance management system; employee and top management buy-in is not necessary.
FALSE
Intangible returns include benefits and work/life programs.
FALSE
Job descriptions should focus only on an individual's tasks and responsibilities.
FALSE
Job descriptions stay stable over time and therefore do not need to be updated.
FALSE
Key accountabilities are the yardstick used to evaluate how well an employee has achieved each objective.
FALSE
Knowledge is having the information to do the job and having experience at the job.
FALSE
The only purpose of a strategic plan is to guide employees' daily activities.
FALSE
The strategic purpose of PM systems involves constructing the strategic vision for the organization.
FALSE