Chapter 9: Performance Management and Appraisal

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

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

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

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

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
6. In most organizations, who is primarily responsible for appraising an
employee's performance?
A) The employee's direct supervisor
B) company appraiser
C) human resources manager
D) employee's subordinates

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

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

9. ________ means making sure that the manager and the subordinate agree
on the subordinate's job standards and the appraisal method to be used.
A) SMART goals
B) Organizational development
C) Defining the job
D) Forced distribution

10. Who is in the best position to observe and evaluate an employee's

performance for a performance appraisal?
A) customers
B) rating committees
C) top management
D) immediate supervisor
11. Employee performance appraisals are conducted by all of the following
EXCEPT ________.
A) peers
B) competitors
C) subordinates
D) Rating committees

12. Peer appraisals have been shown to result in a ________.

A) reduction of social loafing
B) reduction of group cohesion
C) decrease in task motivation
D) decrease in group satisfaction

13. In most firms, a rating committee used for performance appraisals

consists of ________ members.
A) 2-3
B) 4-5
C) 6-8
D) 9-10

14. 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

15. 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
16. According to research, what is the typical result of upward feedback?
A) Firms are protected against biased appraisals.
B) Managers get defensive.
C) Managers improve their performance.
D) Managers seek to find out who gave them bad ratings

17. 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

18. 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.
19.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

20. 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

21. 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

22. 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

23. The most popular method for ranking employees is the ________ method.
A) graphic ranking scale
B) alternation ranking
C) paired comparison
D) forced distribution
24. 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

25. Which performance appraisal tool is being used when a supervisor places
predetermined percentages of appraisees into various performance
categories?
A) behaviorally anchored rating scale
B) graphic ranking scale
C) alternation ranking
D) forced distribution
26. 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

27. 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
28. 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

29. Which performance appraisal tools require 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

30. Wilson Consulting is a management consulting firm with 70 employees. As

associate vice president of marketing, Suzanne Boyle is responsible for
conducting performance appraisals of the 12 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
31. Which of the following is a downside of the critical incident method of
compiling incidents?
A) doesn't provide examples of excellent work performance
B) doesn't produce relative ratings for pay raise purposes
C) doesn't make the supervisor think about the subordinate's appraisal all year
D) doesn't compile examples of ineffective work performance

32. 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

33. 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

34. The first step in developing a behaviorally anchored rating scale is to

________.
A) develop performance dimensions
B) write critical incidents
C) reallocate incidents
D) scale incidents
35. 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

36. 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

37. 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

38. 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

39. 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
40. 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

41. Which term refers to the ranking of employees from best to worst on a
trait or traits, choosing highest than lowest until all are ranked?
A) performance management
B) paired comparison
C) alternation ranking
D) direction sharing

42. Graphic rating scales are subject to all of the following problems EXCEPT
________.
A) unclear standards
B) halo effects
C) complexity
D) leniency

43. 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
44. 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
45. 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

46. 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 of
"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

47. 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

48. 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
49. 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

50. The ________ problem occurs when supervisors tend to rate all their
subordinates consistently low.
A) central tendency
B) leniency
C) strictness
D) halo effect
51. Which of the following is the best method for reducing the problems of
leniency or strictness in performance appraisals?
A) keep critical incident logs
B) require multiple appraisals
C) impose a performance distribution
D) reconsider the timing of the appraisal

52. Which of the following has most likely occurred when a supervisor
conducting a performance appraisal is influenced by a subordinate's
differences such as age, sex, and race?
A) bias
B) halo effect
C) central tendency
D) unclear standards

53. 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
54. 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

55. 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
56. 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

57. Which of the following is the primary advantage of using graphic rating
scales as performance appraisal tools?
A) eliminates central tendency errors
B) offers an extremely high rate of accuracy
C) provides a quantitative rating for each employee
D) links with mutually agreed-upon performance objectives
58. 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 on how to conduct appraisals
59. 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

60. 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

61. 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 be the LEAST effective option for maintaining
satisfactory performance in this situation?
A) time off
B) small bonus
C) recognition
D) professional development

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

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
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
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

66. 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

67. Which of the following is NOT one of performance management's six basic
elements?
A) habit creation
B) goal alignment
C) ongoing feedback
D) direction sharing