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. Recruitment
B. Employee selection
C. Performance appraisal
D. Employee orientation

ANSWER: C

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

In most organizations, which of the following is primarily responsible for

appraising an employee's performance?
A. Employee's direct supervisor
B. Company appraiser
C. Human resources manager
D. EEO representative

ANSWER: A

Which of the following is NOT one of the recommended guidelines for setting
effective employee goals?
A. Assigning specific goals
B. Assigning measurable goals
C. Assigning challenging but doable goals
D. Administering consequences for failure to meet goals

ANSWER: D

SMART goals are best described as _

A. Specific, measurable, attainable, relevant, and timely
B. Straight forward, meaningful, accessible, real, and tested
C. Strategic, moderate, achievable, relevant, and timely
D. Specific, measurable, achievable, relevant, and tested

ANSWER: A

All of the following are reasons for appraising an employee's performance EXCEPT _
A. Assisting with career planning
B. Correcting any work-related deficiencies
C. Creating an organizational strategy map
D. Determining appropriate salary and bonuses

ANSWER: C

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 effectiveness of the appraisal system
C. Providing performance appraisal training to supervisors
D. Ensuring the appraisal system's compliance with EEO laws

ANSWER: A

What is the first step in the appraisal process?

A. Giving feedback
B. Defining the job
C. Administering the appraisal tool
D. Making plans to provide training

ANSWER: B

All of the following are usually measured by a graphic rating scale EXCEPT_,
A. Generic dimensions of performance
B. Performance of 'actual duties
C. Performance of co-workers
D. Achievement of Objectives

ANSWER: C

When designing an actual appraisal method, the two basic considerations are
A. Who should measure and when to measure
B. When to measure and what to measure
C. What to measure and who should measure
D. What to measure and how to measure

ANSWER: D

Which of the following is the easiest and most popular technique for appraising
employee performance?
A. Alternation ranking
B. Graphic rating scale
C. Likert
D. MBO

ANSWER: B

Which performance appraisal technique lists traits and a range of performance

values for each
trait?
A. Behaviourally anchored rating scale
B. Graphic rating scale
C. Forced distribution
D. Critical incident

ANSWER: B

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. Employees in Suzanne's department who are categorized in the bottom 10% of the
firm's employees will be immediately dismissed.
C. Suzanne wants to ensure that the firm is protected from employee discrimination
lawsuits, so she has conducted a job analysis of each position.
D. Suzanne wants a quantitative rating of each employee based on competencies
important to the firm, such as problem-solving skills.

ANSWER: D
 Which performance appraisal tool requires supervisors to categorize employees from
best to worst on various traits?
A. Digital dashboard
B. Critical incident method
C. Graphic rating scale
D. Alternation ranking method

ANSWER: D

The most popular method for ranking employees is the ___________method.

A. Graphic ranking scale
B. Constant sum ranking scale
C. Alternation
D. Paired comparison

ANSWER: C

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

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. Comparison ranking scale
B. Graphic ranking scale
C. Alternation ranking
D. Paired comparison

ANSWER: D

John, the supervisor of the manufacturing dep~rtment 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. Management by objectives
C. Forced distribution
D. Alternation ranking

ANSWER: C

Which of the following measurement methods is similar to grading on a curve?

A. Critical incident method
B. Forced distribution
C. Graphic rating scale
D. Constant sums rating

ANSWER: B
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. Standardization of group sizes

ANSWER: B

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. Forced distribution
D. Critical incident

ANSWER: D

The first step in developing a behaviourally anchored rating scale is to _________

A. Develop performance dimensions
B. Generate critical incidents
C. Compare subordinates
D. Reallocate incidents

ANSWER: B

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.connecting specific incidents with performance goals
D.reflecting performance throughout the appraisal period
ANSWER : b

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, 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.Other departments at Wilson Consulting have seen employee performance improve as
a result of providing ongoing evaluations.
C.Suzanne will be conducting performance appraisals in conjunction with the HR
manager to ensure EEO compliance.
D.Due to economic difficulties, the firm will be laying off the two lowest
performing employees in Suzanne's department.

ANSWER: D

Graphic rating scales are subject to all of the following problems EXCEPT __ .
A. Unclear standards
B. Halo effects
C. Complexity
D. Leniency
ANSWER: C

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
) Graphic rating scale
D. Alternation ranking

ANSWER: A

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.Predetermined percentages of subordinates in various performance categories

ANSWER: B

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 do next?
A.Create a final appraisal instrument
B.Develop performance dimensions
C.Rank employees from high to low
D.Reallocate the incidents

ANSWER: B

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. Wilson Consulting provides training to all supervisors regarding legally
defensible performance appraisals.

ANSWER: A

All of the following are benefits of using computerized or Web-based performance

appraisal systems EXCEPT _________
A.Merging examples with performance ratinqs
B.Helping managers maintain computerized notes
C.Allowing employees to perform self-evaluations
D.Enabling managers to monitor employees' computers

ANSWER: D

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

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. Discrimnation

ANSWER: B

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.Computerized performance appraisal system

ANSWER: B

Formal performance appraisals have been eliminated by almost all major firms and
replaced by daily assessments by peers in addition to extensive training
opportunities.
A. True
B. False
ANSWER: B

Which of the following terms refers to an appraisal that is too open to

interpretation?
A. Unclear standards
B. Halo effects
C. Strictness
D. Biased

ANSWER: A

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.Avoiding the use of extremely low ratings
D.Using descriptive phrases to illustrate traits

ANSWER: D

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 appraise. Which performance
appraisal tool is best suited for Stephanie?
A. Graphic rating scale
B. Alternation ranking method
C. Forced distribution method
D. Behaviorally anchored rating scale

ANSWER: D

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. Stereotyping
D. Halo effect

ANSWER: D

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. Compliments
D. Professional development

ANSWER: D

What usually occurs when employees rate themselves for performance appraisals?
A.Ratings are reliable but invalid.
B.Ratings are subject to halo effects.
C.Logrolling leads to unrealistic ratings.
D.Ratings are higher than when provided by supervisors.

ANSWER: D

Which of the following terms refers to the process of allowing subordinates to rate
their supervisor's performance anonymously?
A. Supplemental evaluation
B. Downward feedback
C. Upward feedback
D. Peer evaluation

ANSWER: C

Upward feedback primarily helps top-level managers to _

A.Protect the firm against biased appraisals
B.Implement organizational strategies
C.Compare appraisal techniques
D.Diagnose management styles

ANSWER: D

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

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.Providing constructive feedback to supervisors
D.Making plans to correct employee weaknesses

ANSWER: D

When conducting an appraisal interview, supervisors should do all of the following

EXCEPT _
A.Ask open-ended questions
B.Talk in terms of objective work data
C.Give specific examples of poor performance
D.Compare the person's performance to that of other employees

ANSWER: D

A performance appraisal is based on the assumption that an employee understood what

his or her performance standards were prior to the appraisal.
A. True
B. False
C. According to situation

ANSWER: A

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

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.Be mailed to the employee and to an EEOC representative
D.Provide examples of times when the employee met the standards

ANSWER: A

Based on corporate surveys, which of the following is a true statement?

A.Very few employers require any type of performance appraisal.
B.Very few employers conduct performance appraisals on an annual basis.
C.Most employers require a review and feedback session during the appraisal
process.
D.Most employers use behaviorally anchored rating scales for performance
appraisals.

ANSWER: C

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.Employee performance monitoring
B.Strategic management
C.Performance analysis
D.Performance management

ANSWER: D

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. Role clarification
B. Goal alignment
C. Performance monitoring
D. Direction sharing

ANSWER: D

In order to ensure that performance goals are challenging and relevant, Matthew, a
marketing manager, should independently set goals for. his subordinates because
participatively set goals usually produce lower job performance ..
A.True
B. False
ANSWER: B

Rewards offered to labors involved in production, are categorized as;

A. Salary
B. Fringe benefits
C. Wage
D. Commission

ANSWER: C

The goal of pre-retirement educational programs is to;

A.Improve job satisfaction
B.Increase employee commitment
C.Minimize medical claims from retirees
D.Ease the transition from working life to retirement

ANSWER: D

Alternative work arrangements include all of the following EXCEPT;

A. Part-time work
B. Flexible hours
C. On-site child care
D. Job sharing

ANSWER: C

Organizations put maximum effort in measuring performance of organizational people

because;
A.It makes procedures cost effective
B.It helps in detecting the problems
C.It leads to product innovation
D.It assists in implementing new technology
ANSWER: B

Willingness, capacity & opportunity to perform are said to be;

A.Performance outcomes
B.Determinants of performance
C.Performance appraisals
D.Types of performance standards

ANSWER: B

One of the major barriers to career advancement experiencing by working ladies is;
A.Difficulty in balancing work and family life
B.Top management is usually male oriented
C.Lack of educational opportunities
D.Common perception that woman cannot be better boss

ANSWER: A

Mr. Ahmed is a cashier and he feels dissatisfied at work. What best justifies this
situation?
A.His job may not be structured to suit his preferences
B.It involves physical toughness
C.It requires mental toughness
D.It involves too much customer interaction

ANSWER: A

The _______ problem occurs when supervisors tend to rate all their subordinates
consistently
high.
A. Central tendency
B. Leniency
C. Strictness
D. Halo effect
ANSWER: B

What is another term for 360-degree feedback?

A. Feedback loop
C. Upward feedback
B. Multi-source assessment
D. Circle feedback

ANSWER: B

The relationship between critical incident method & BARS (behaviorally anchored
rating scale)
is;
A.No relationship exists
B.Different methods to evaluate performance
C.Both are similar PA methods
D.Comparison method is used for PA, while BARS is related to training evaluation

ANSWER: C

Standards are established to;

A.Achieve desired outcomes
B.Meet legal compliance
C.Achieve competitive advantage
D.Promote goodwill in MARKET

ANSWER: A

The point method to evaluate job i~ an extension of; ,

A.Ranking method
B.Factor comparison method
C.Classification method
D.Point factor method

ANSWER: B

Job evaluation is based on the;

A.Physical skills required by the job
B.Relative job worth for an organization
C.Complexity of the job to perform
D.Conceptual skill required by the job

ANSWER: B

Who is in the best position to observe and evaluate an employee's performance for
the purposes of a performance appraisal?
A. Peers,
B. Customers
C. Top management
D. Immediate supervisor

ANSWER: D

Groups are calleD if jobs are similar.

A. Classes
B. Grades
C. Scales
D. Roles

ANSWER: A

Train the raters prior to conduct the performance appraisal is an important

responsibility of;
A.Top management
C.Line managers
B.HR department
D.Production department

ANSWER: B

Currently Organizations are providing benefits to their employees;

A.To attract new blood in the organization
B.To create stronger customer relationship
C.To enhance the MARKET share
D.All of the above

ANSWER: A

Following are all examples of direct compensation EXCEPT;

A. Pension
B. Salary
C. Bonus
D. Income

ANSWER: A

One of the main flaws of Classification method to evaluate the jobs is;
A.It is an expensive method
B.Only beneficial for small organizations
C.Maximum probability of biasness
D.Not useful when jobs are different

ANSWER: D

Which of the following measurement methods rates employee performance? relative to

other employees?
A.Graphic rating scale
B.Comparative method
C.Essay method
D.Critical incident method

ANSWER: B

The aim of performance management is to:

A.Ensure employee has the tools needed to perform the job.
B.Consolidate goal setting.
C.Evaluate employee's performance against standards.
D.Ensure employee's performance is supporting the company's strategic aims,

ANSWER: D

The increasing use of performance management reflects:

A.Traditional performance appraisals are often counter-productive.
B.The popularity of TOM concepts.
C.Every employee's efforts must focus on helping the company achieve its _____
strategic
goals.
D.All of the above.

ANSWER: D

Reasons for appraising a subordinate's performance includes

A.Appraisals play an integral role in performance management.
B.Appraisals playa part in the employer's salary raise decisions.
A.The supervisor and the employee together develop a plan for correcting the
employee's deficiencies.
B.All of the above.

ANSWER: D

Steps that supervisors should follow in the performance appraisal process include
all the following except:
A.Prepare detailed forms and procedures to be used.
B.Provide feedback.
C.Define the job.
D.Appraise performance.

ANSWER: A

The simplest and most popular technique for appraising performance is the ______
method.
A. Critical incident
C.Forced distribution
B.Alternation ranking
D.Graphic rating scale
ANSWER: D

The __ performance appraisal method ranks the highest employees and lowest
employees in alternate order.
A.Paired comparison
B.Forced distribution
C.Behaviorally anchored rating scale
D.Alternation ranking

ANSWER: D

The S in the acronym for SMART goals stands for __ .

A. Specific
B. Straightforward
C. Strategic
D. Source

ANSWER: A

0Supervisors using the forced distribution appraisal method can protect against
bias claims by:
A.Training raters to be objective.
B.Using multiple raters.
C.Appointing a review committee.
D.All of the above.

ANSWER: D

A __ appraisal method combines the benefits of narratives, critical incidents, and

quantified scales with specific behavioral examples of good or poor performance.
A.Graphic rating scale
B.BARS
C.MBO
D.Narrative

ANSWER: B

Performance management combines performance appraisal with __ to ensure that

employee performance is supportive of corporate goals.
A. Goal setting
B. Training
C. Incentive systems
D. All of the above

ANSWER: D

Managers following a performance management approach to appraisals will usually

meet with employees on a __ basis.
A. Weekly
B. Monthly
C. Bi-annual
D. Yearly

ANSWER: A

Managers following a traditional performance appraisal system wi" typically meet

with employees on a __ basis.
A.Daily
B.Weekly
C.Monthly
D.Yearly

ANSWER :D

The component of an effective performance management process that communicates the

organization's higher-level goals throughout the organization and then translates
these goals into
departmental goals is called __ .
A. Role clarification
B. Goal alignment
C. Developmental goal setting
D. Direction sharing

ANSWER: D

The component of an effective performance management process that explains each

employee's role in terms of his or her day-to-day work is called __ .
A. Role clarification
B. Goal alignment
C. Developmental goal setting
D. Direction sharing

ANSWER: A

Which of the following is not one of the guidelines for effective goal setting?
A.Assign specific goals
B.Assign measurable goals
C.Assign challenging but doable goals
D.Assign consequences for performance

ANSWER: D

The M in the acronym for SMART goals stands for __ .

A. Moderate
B. Measurable
C. Meaningful
D. Merit

ANSWER: B

When using goal setting in performance management, the goals should be

A.Difficult
C.Doable
B.Challenging
D.All of the above

ANSWER: D