Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
the question.
1) 
 Who is the primary person responsible for doing the actual appraising of an employee's
performance? 
 1) 
 _______
A) 
 the employee's direct supervisor
B) 
 the human resource manager
C) 
 the HR consultant
D) 
 the company appraiser
E) 
 none of the above

2) 
 When goal setting, performance appraisal, and development are consolidated into a single,
common system designed to ensure that employee performance supports a company's strategy, it is
called ________. 
 2) 
 _______
A) 
 human resource management
B) 
 performance management
C) 
 strategic management
D) 
 strategic organizational development
E) 
 performance appraisal

3) 
 'Alternation ranking' refers to an appraisal method which ________. 
 3) 
 _______

A) 
 is based on progress made toward the accomplishment of measurable goals
B) 
 combines the benefits of narratives, critical incidents, and quantified scales by assigning scale
points with specific examples of good or poor performance
C) 
 requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories
D) 
 involves listing all the subordinates to be rated, crossing out the names of any not known well
enough to rank, indicating the employee who is the highest on each characteristic being measured
and who is the lowest, and then alternating between the next highest and lowest until all employees
have been ranked
E) 
 requires that the supervisor keep a log of positive and negative examples of a subordinate's
work-related behavior

4) 
 Who is in the best position to observe and evaluate an employee's performance for the purposes
of a performance appraisal? 
 4) 
 _______
A) 
 immediate supervisor
B) 
 customers
C) 
 rating committees
D) 
 top management
E) 
 peers

5) 
 ________ is defined as the influence of a rater's general impression on ratings of specific ratee
qualities. 
 5) 
 _______
A) 
 Stereotyping
B) 
 Central tendency
C) 
 Impression management
D) 
 Halo effect
E) 
 Bias

6) 
 Participatively set goals result in higher performance than assigned goals when ________. 
 6)

 _______
A) 
 the rewards are also higher
B) 
 the goals are doable
C) 
 the assigned goals are more difficult
D) 
 participatively set goals are used consistently
E) 
 the participatively set goals are more difficult
7) 
 When an employee's personal characteristics such as age, race, and gender influence a
supervisor's evaluation of his or her performance, the problem of ________ has occurred. 
 7)

 _______
A) 
 stereotyping
B) 
 strictness
C) 
 bias
D) 
 central tendency
E) 
 halo effect

8) 
 The A in the acronym for SMART goals stands for ________. 
 8) 
 _______
A) 
 attainable
B) 
 attitude
C) 
 appropriate
D) 
 asset
E) 
 actionable

9) 
 When a supervisor evaluates performance by assigning predetermined percentages of ratees

into performance categories, he or she has used the ________ method of performance appraisal. 
 9)

 _______
A) 
 paired comparison
B) 
 constant sum ranking scale
C) 
 graphic ranking scale
D) 
 alternation ranking
E) 
 forced distribution

10) 
 You are conducting an appraisal interview with an employee who is satisfactory, but not
promotable. Which incentive listed below would likely be the least effective for maintaining satisfactory
performance in this situation? 
 10) 
 ______
A) 
 time off
B) 
 additional professional development
C) 
 compliments
D) 
 small bonus
E) 
 additional authority

11) 
 Which 'big five' personality trait is associated with performance appraisal ratings that are too
strict? 
 11) 
 ______
A) 
 conscientiousness
B) 
 openness
C) 
 neuroticism
D) 
 agreeableness
E) 
 extraversion

12) 
 The ________ method of performance appraisal involves listing all the subordinates to be rated,
crossing out the names of any not known well enough to rank, indicating the employee who is the
highest on each characteristic being measured and who is the lowest, and then alternating between
the next highest and lowest until all employees have been ranked. 
 12) 
 ______
A) 
 Likert
B) 
 alternation ranking
C) 
 graphic rating scale
D) 
 constant sum rating scale
E) 
 MBO

13) 
 While peer appraisals have many benefits, one problem is ________, when several peers
collaborate to rate each other highly. 
 13) 
 ______
A) 
 social loafing
B) 
 logrolling
C) 
 group think
D) 
 alliance forging
E) 
 impression management
14) 
 'Forced distribution' refers to an appraisal method which ________. 
 14) 
 ______
A) 
 involves listing all the subordinates to be rated, crossing out the names of any not known well
enough to rank, indicating the employee who is the highest on each characteristic being measured
and who is the lowest, and then alternating between the next highest and lowest until all employees
have been ranked
B) 
 requires that the supervisor keep a log of positive and negative examples of a subordinate's
work-related behavior
C) 
 combines the benefits of narratives, critical incidents, and quantified scales by assigning scale
points with specific examples of good or poor performance
D) 
 requires a supervisor to evaluate performance by assigning predetermined percentages of
employees being rated into performance categories
E) 
 is based on progress made toward the accomplishment of measurable goals

15) 
 The ________ problem occurs when supervisors tend to rate all their subordinates consistently
high. 
 15) 
 ______
A) 
 central tendency
B) 
 leniency
C) 
 strictness
D) 
 bias
E) 
 halo effect

16) 
 'Critical incident technique' refers to an appraisal method which ________. 
 16) 
 ______
A) 
 is based on progress made toward the accomplishment of measurable goals
B) 
 requires that the supervisor keep a log of positive and negative examples of a subordinate's
work-related behavior
C) 
 requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories
D) 
 combines the benefits of narratives, critical incidents, and quantified scales by assigning scale
points with specific examples of good or poor performance
E) 
 involves listing all the subordinates to be rated, crossing out the names of any not known well
enough to rank, indicating the employee who is the highest on each characteristic being measured
and who is the lowest, and then alternating between the next highest and lowest until all employees
have been ranked

17) 
 All of the following are features of using the critical incident method for appraising performance
except that ________. 
 17) 
 ______
A) 
 it reflects performance from throughout the appraisal period
B) 
 incidents can be tied to performance goals
C) 
 it provides examples of poor performance
D) 
 it provides examples of good performance
E) 
 it does not include a numerical rating

18) 
 Which of the following responses is not typical during a negative appraisal interview? 
 18)

 ______
A) 
 retreat
B) 
 anger
C) 
 denial
D) 
 aggression
E) 
 relief

19) 
 The ________ problem occurs when supervisors tend to rate all their subordinates consistently
low. 
 19) 
 ______
A) 
 halo effect
B) 
 central tendency
C) 
 strictness
D) 
 leniency
E) 
 bias

20) 
 'Management by objectives (MBO)' refers to an appraisal method which ________. 
 20)

 ______
A) 
 requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories
B) 
 combines the benefits of narratives, critical incidents, and quantified scales by assigning scale
points with specific examples of good or poor performance
C) 
 is based on progress made toward the accomplishment of measurable goals
D) 
 involves listing all the subordinates to be rated, crossing out the names of any not known well
enough to rank, indicating the employee who is the highest on each characteristic being measured
and who is the lowest, and then alternating between the next highest and lowest until all employees
have been ranked
E) 
 requires that the supervisor keep a log of positive and negative examples of a subordinate's
work-related behavior

21) 
 Which 'big five' personality trait is associated with performance appraisal ratings that are too
lenient? 
 21) 
 ______
A) 
 conscientiousness
B) 
 openness
C) 
 neuroticism
D) 
 agreeableness
E) 
 extraversion

22) 
 When designing an actual appraisal method, the two basic considerations are ________. 
 22)

 ______
A) 
 what to measure and who should measure
B) 
 who should measure and when to measure
C) 
 when to measure and what to measure
D) 
 when to measure and how to measure
E) 
 what to measure and how to measure

23) 
 When different supervisors define levels of performance (good, fair, poor) differently, unfair
appraisals could result due to a problem with ________. 
 23) 
 ______
A) 
 central tendency
B) 
 complexity
C) 
 unclear standards
D) 
 leniency
E) 
 halo effects

24) 
 Which is the easiest type of appraisal interview to conduct? 
 24) 
 ______
A) 
 final warning
B) 
 unsatisfactory–uncorrectable
C) 
 unsatisfactory–correctable
D) 
 satisfactory–promotable
E) 
 satisfactory–not promotable

25) 
 Peer appraisals have been shown to result in a(n) ________. 
 25) 
 ______
A) 
 lower task motivation
B) 
 tendency to inaccurately predict who would be promoted
C) 
 reduction of social loafing in the team
D) 
 reduction of group cohesion
E) 
 decrease in satisfaction with the group

26) 
 The best way of reducing the problems of leniency or strictness in performance appraisals is to
________. 
 26) 
 ______
A) 
 rank employees
B) 
 consider the purpose of the appraisal
C) 
 be aware of the problem
D) 
 train supervisors to avoid it
E) 
 impose a distribution for performance

27) 
 What factor(s) do performance appraisals impact? 
 27) 
 ______

A) 
 transfers
B) 
 promotions
C) 
 termination
D) 
 lay-offs
E) 
 all of the above

28) 
 Managers following a traditional performance appraisal system will typically meet with
employees on a ________ basis. 
 28) 
 ______
A) 
 yearly
B) 
 weekly
C) 
 monthly
D) 
 daily
E) 
 bi-monthly

29) 
 The S in the acronym for SMART goals stands for ________. 
 29) 
 ______
A) 
 supportive
B) 
 straightforward
C) 
 strategic
D) 
 specific
E) 
 source

30) 
 The first step in developing a behaviorally anchored rating scale is to ________. 
 30) 
 ______
A) 
 scale incidents
B) 
 develop performance dimensions
C) 
 reallocate incidents
D) 
 develop a final instrument
E) 
 generate critical incidents

31) 
 Saeed, the supervisor of the manufacturing department, 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. Saeed is using a ________ method. 
 31) 
 ______
A) 
 alternation ranking
B) 
 constant sum ranking scale
C) 
 graphic rating scale
D) 
 forced distribution
E) 
 paired comparison

32) 
 Who provides 360-degree feedback? 
 32) 
 ______

A) 
 peers
B) 
 subordinates
C) 
 supervisors
D) 
 customers
E) 
 all of the above

33) 
 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 ________. 
 33) 
 ______
A) 
 coaching and support
B) 
 developmental goal setting
C) 
 goal alignment
D) 
 direction sharing
E) 
 role clarification

34) 
 Managers following a performance management approach to appraisals will usually meet with
employees on a ________ basis. 
 34) 
 ______
A) 
 weekly
B) 
 yearly
C) 
 bi-annual
D) 
 monthly
E) 
 bi-monthly
35) 
 Which of the following is not a role played by the HR department regarding performance
appraisals? 
 35) 
 ______
A) 
 advising regarding appraisal tools
B) 
 monitoring the appraisal system
C) 
 serving a policy-making role
D) 
 carrying out the appraisals
E) 
 training of supervisors

36) 
 When subordinates provide feedback for supervisors, the comments should be anonymous
because identifiable responses tend to result in ________. 
 36) 
 ______
A) 
 increased comfort with the process on the part of the subordinate
B) 
 more critical ratings
C) 
 more inflated ratings
D) 
 more negative attitudes from managers receiving the feedback
E) 
 all of the above

37) 
 Which appraisal method combines the benefits of narratives, critical incidents, and quantified
scales by assigning scale points with specific examples of good or poor performance? 
 37) 
 ______
A) 
 constant sums rating scale
B) 
 behaviorally anchored rating scale
C) 
 alternation ranking
D) 
 graphic rating scale
E) 
 none of the above

38) 
 The M in the acronym for SMART goals stands for ________. 
 38) 
 ______
A) 
 moderate
B) 
 mid-range
C) 
 meaningful
D) 
 merit-based
E) 
 measurable

39) 
 Muneer is generally considered unfriendly at work. His supervisor rates him low on the trait "gets
along well with others" but also rates him lower on other traits unrelated to socialization at work.
Muneer's performance appraisal may be unfair due to ________. 
 39) 
 ______
A) 
 impression management
B) 
 bias
C) 
 strictness
D) 
 halo effects
E) 
 stereotyping

40) 
 Graphic rating scales are subject to all of the following problems except ________. 
 40)

 ______
A) 
 halo effects
B) 
 complexity
C) 
 unclear standards
D) 
 leniency
E) 
 central tendency

41) 
 The most popular technique for appraising performance is the ________ method. 
 41)

 ______
A) 
 Likert
B) 
 MBO
C) 
 alternation ranking
D) 
 constant sum rating scale
E) 
 graphic rating scale

42) 
 Which of the following is not one of the guidelines for effective goal setting? 
 42) 
 ______
A) 
 assign measurable goals
B) 
 assign challenging but doable goals
C) 
 assign specific goals
D) 
 assign consequences for performance
E) 
 encourage participation

43) 
 Firms that use ________ let subordinates anonymously rate their supervisor's performance.

 43) 
 ______
A) 
 narratives
B) 
 upward feedback
C) 
 MBO
D) 
 critical incidents
E) 
 downward feedback

44) 
 Rating committees, made up of an employee's immediate supervisor along with other
supervisors, usually have ________ members. 
 44) 
 ______
A) 
 3-4
B) 
 6-7
C) 
 10 or more
D) 
 8-9
E) 
 1-2

45) 
 What usually occurs when employees rate themselves in a performance appraisal? 
 45)

 ______
A) 
 appraisals are subject to halo effects
B) 
 logrolling could occur
C) 
 ratings are about the same as when determined by peers
D) 
 interrater reliability is higher
E) 
 ratings are higher than when rated by supervisors or peers

46) 
 With the ________ method, the supervisor keeps a log of positive and negative examples of a
subordinate's work-related behavior. 
 46) 
 ______
A) 
 narrative
B) 
 alternation ranking
C) 
 critical incident
D) 
 forced distribution
E) 
 paired comparison

47) 
 'Behaviorally anchored rating scale (BARS)' refers to an appraisal method which ________.

 47) 
 ______
A) 
 is based on progress made toward the accomplishment of measurable goals
B) 
 involves listing all the subordinates to be rated, crossing out the names of any not known well
enough to rank, indicating the employee who is the highest on each characteristic being measured
and who is the lowest, and then alternating between the next highest and lowest until all employees
have been ranked
C) 
 combines the benefits of narratives, critical incidents, and quantified scales by assigning scale
points with specific examples of good or poor performance
D) 
 requires that the supervisor keep a log of positive and negative examples of a subordinate's
work-related behavior
E) 
 requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories

48) 
 If a performance appraisal focuses on an employee's quality and quantity of work, then the
performance appraisal is focused on measuring ________. 
 48) 
 ______
A) 
 achievement of objectives
B) 
 generic dimensions of performance
C) 
 performance of actual duties
D) 
 employee competency
E) 
 all of the above

49) 
 The process of evaluating an employee's current and/or past performance relative to his or her
performance standards is called ________. 
 49) 
 ______
A) 
 performance appraisal
B) 
 recruitment
C) 
 organizational development
D) 
 training
E) 
 employee selection

50) 
 With the ________ method, the supervisor keeps a log of positive and negative examples of a
subordinate's work-related behavior. 
 50) 
 ______
A) 
 critical incident
B) 
 alternation ranking
C) 
 constant sums rating
D) 
 forced distribution
E) 
 narrative forms

51) 
 Suppose you have five employees to rate. You make a chart of all possible pairs of employees
for each trait being evaluated. Then, you indicate the better employee of the pair for each pair. Finally,
you add up the number of positives for each employee. In this case, you have used the ________
method of performance appraisal. 
 51) 
 ______
A) 
 graphic ranking scale
B) 
 paired comparison
C) 
 alternation ranking
D) 
 constant sum ranking scale
E) 
 forced distribution

52) 
 All of the following are advantages of behaviorally anchored rating scales (BARS) except that
they ________. 
 52) 
 ______
A) 
 are more accurate
B) 
 help explain performance appraisal ratings to appraisees
C) 
 provide clearer standards
D) 
 are consistent
E) 
 all of the above are advantages of BARS

53) 
 Which step in developing a behaviorally anchored rating scale involves clustering critical
incidents into a smaller set of performance dimensions? 
 53) 
 ______
A) 
 second 
 B) 
 first 
 C) 
 fourth 
 D) 
 third 
 E) 
 fifth

54) 
 When using goal setting in performance management, the goals should be ________. 
 54)

 ______
A) 
 doable
B) 
 measurable
C) 
 specific
D) 
 challenging
E) 
 all of the above

55) 
 Some supervisors, when filling in rating scales, tend to avoid the highs and lows on the scale
and rate most people in the middle. This ________ means that all employees may be rated average.

 55) 
 ______
A) 
 leniency
B) 
 central tendency
C) 
 halo effect
D) 
 stereotyping
E) 
 strictness

56) 
 When conducting an appraisal interview, supervisors should do all of the following except
________. 
 56) 
 ______
A) 
 give specific examples of poor performance
B) 
 talk in terms of objective work data
C) 
 encourage the employee to talk
D) 
 compare the person's performance to that of other employees
E) 
 compare the person's performance to a standard
57) 
 The best way of reducing the problem of central tendency in performance appraisals is to
________. 
 57) 
 ______
A) 
 consider the purpose of the appraisal
B) 
 impose a distribution for performance
C) 
 rank employees
D) 
 train supervisors to avoid it
E) 
 be aware of the problem

58) 
 Performance appraisals may be conducted by ________. 
 58) 
 ______

A) 
 the immediate supervisor
B) 
 rating committees
C) 
 peers
D) 
 subordinates
E) 
 all of the above

59) 
 Performance management combines performance appraisal with ________ to ensure that
employee performance is supportive of corporate goals. 
 59) 
 ______
A) 
 goal setting
B) 
 training
C) 
 incentive systems
D) 
 all of the above
E) 
 none of the above

60) 
 When an employee's performance is so poor that a written warning is required, the warning
should ________. 
 60) 
 ______
A) 
 be sent to the employee in question and to the manager's superior
B) 
 provide examples of times when the employee did meet the standards
C) 
 provide examples of employees who met the standards
D) 
 identify the standards by which the employee is judged
E) 
 all of the above

61) 
 Which of the following is not a basic type of appraisal interview? 
 61) 
 ______
A) 
 unsatisfactory–correctable
B) 
 unsatisfactory–uncorrectable
C) 
 satisfactory–not promotable
D) 
 satisfactory–promotable
E) 
 unsatisfactory–not promotable

62) 
 The most popular method for ranking employees is the ________ method. 
 62) 
 ______
A) 
 alternation ranking
B) 
 paired comparison
C) 
 forced distribution
D) 
 graphic ranking scale
E) 
 constant sum ranking scale

63) 
 To achieve a company's strategic aims, performance management systems focus more on
________. 
 63) 
 ______
A) 
 generic dimensions of performance
B) 
 employee competencies
C) 
 achievement of objectives
D) 
 performance of actual duties
E) 
 all of the above

64) 
 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 ________. 
 64) 
 ______
A) 
 coaching and support
B) 
 goal alignment
C) 
 role clarification
D) 
 direction sharing
E) 
 developmental goal setting

65) 
 What process allows top management to diagnose the management styles of supervisors,
identify potential 'people' problems, and take corrective action with individual supervisors as
necessary? 
 65) 
 ______
A) 
 strategic performance appraisal
B) 
 critical incidents
C) 
 MBO
D) 
 organizational development
E) 
 upward feedback

66) 
 Which step in developing a behaviorally anchored rating scale involves clustering definitions and
critical incidents, reassigning each incident to the cluster where it fits best and then determining the
level of agreement among the group as to the allocation of incidents? 
 66) 
 ______
A) 
 third 
 B) 
 second 
 C) 
 first 
 D) 
 fifth 
 E) 
 fourth

67) 
 Which performance appraisal technique lists traits and a range of performance? 
 67) 
 ______
A) 
 Likert
B) 
 MBO
C) 
 constant sum rating scale
D) 
 graphic rating scale
E) 
 alternation ranking

68) 
 Which of the following measurement methods rates employee performance relative to other
employees? 
 68) 
 ______
A) 
 graphic rating scale
B) 
 Likert scale
C) 
 constant sums rating
D) 
 critical incident method
E) 
 forced distribution

69) 
 When a supervisor must criticize a subordinate in an appraisal interview, it is best to ________.

 69) 
 ______
A) 
 provide feedback once per year
B) 
 acknowledge the supervisor's personal biases in the situation
C) 
 provide examples of critical incidents
D) 
 surprise the employee so they cannot develop excuses for poor performance
E) 
 hold the meeting with other people who can defuse the negative situation

70) 
 Which of the following is a problem with using MBO? 
 70) 
 ______
A) 
 a tendency to set unclear objectives
B) 
 it is time consuming
C) 
 tug of war between subordinate and manager regarding goals
D) 
 both A and C
E) 
 all of the above

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
71) 
 In self ratings, employees usually rate themselves higher than they are rated by supervisors or
peers. 
 71) 
 ______

72) 
 Written formal warnings of poor performance should make it clear that the employee was aware
of the standards and show the employee had an opportunity to correct the behavior. 
 72) 
 ______

73) 
 The evidence suggests that participatively set goals consistently result in higher performance
than assigned goals. 
 73) 
 ______

74) 
 MBO relates an employee's work goals to his or her departmental goals and to the
organization's goals. 
 74) 
 ______
75) 
 The basic problem with rankings is that while it is not difficult to identify the extreme good and
bad performers, it is difficult to differentiate meaningfully between the others. 
 75) 
 ______

76) 
 The alternation ranking method is the simplest and most popular technique for appraising
performance. 
 76) 
 ______

77) 
 The 360-degree feedback method of appraisal is highly popular and universally applied because
of its thoroughness. 
 77) 
 ______

78) 
 Graphic rating scales are the most reliable for rating performance. 
 78) 
 ______

79) 
 Top employees often outperform the average employees by as much as 100 percent. 
 79)

 ______

80) 
 An appraisal interview is used to make plans for new hires as they move through the selection
and training process. 
 80) 
 ______

81) 
 A properly designed performance management system utilizes yearly meetings to ensure
continuous improvement in the employee's capacity and performance. 
 81) 
 ______

82) 
 Managers who receive feedback from subordinates who identify themselves view the upward
appraisal process more negatively than do managers who receive anonymous feedback. 
 82)

 ______

83) 
 The goal for a supervisor conducting a satisfactory-not promotable appraisal interview is to
maintain satisfactory performance by finding incentives that are important to the person. 
 83)

 ______

84) 
 Central tendency is defined as the influence of a rater's general impression on ratings of specific
ratee qualities. 
 84) 
 ______

85) 
 The forced distribution method is similar to grading on a curve, meaning that predetermined
percentages of those being rated are placed into performance categories. 
 85) 
 ______

86) 
 Data from a random sample of 74 organizations has shown that performance appraisals had
significantly more impact in private than public organizations on several key HR-related factors. 
 86)

 ______

87) 
 The advantages of the BARS appraisal tool include accuracy, clear standards, and consistency.

 87) 
 ______

88) 
 While formal written warnings are provided too late to salvage an employee's performance and
position at the company, they are useful in court proceedings. 
 88) 
 ______

89) 
 360-degree feedback is generally used for development purposes, rather than for pay
increases. 
 89) 
 ______

90) 
 When a supervisor tells someone his or her performance is poor, the first reaction is often
agreement, along with a plan for improvement. 
 90) 
 ______

91) 
 The HR department conducts performance appraisals, develops the appraisal tools, and
monitors the appraisal system. 
 91) 
 ______

92) 
 The goal for a supervisor conducting an unsatisfactory–correctable appraisal interview is to

encourage the employee by providing reinforcements like job enlargement and compliments. 
 92)

 ______

93) 
 BARS is a rating approach that involves keeping a record of uncommonly good or undesirable
examples of an employee's work-related behavior and reviewing it with the employee at
predetermined times. 
 93) 
 ______
94) 
 Goals should be challenging, but not so difficult that they appear impossible or unrealistic. 
 94)

 ______

95) 
 Peer appraisals have been shown to have an immediate positive impact on improving task
motivation, cohesion, and satisfaction, while reducing social loafing. 
 95) 
 ______

96) 
 Performance appraisal ratings tend to be more positive when the purpose is to award
promotions and/or pay raises than when the purpose is to determine employee development needs.

 96) 
 ______

97) 
 Electronic performance monitoring (EPM) allows supervisors to electronically monitor the
amount of computerized data an employee is processing each day. 
 97) 
 ______

98) 
 Performance appraisals assume that the employee understood what his or her performance
standards were. 
 98) 
 ______

99) 
 360-degree feedback is sometimes called the 'wheel of feedback' because ratings are collected
from all around an employee. 
 99) 
 ______

100) 
 Performance ratings amplify the quality of the personal relationship between boss and
employee. 
 100) 
 _____

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
101) 
 What are the three types of performance that performance appraisals can measure? Explain
each one.

102) 
 What fifth techniques can help to avoid and/or minimize appraisal problems like bias, leniency,
and central tendency?

103) 
 There are several components important for an effective performance management process.
Name and explain five of these components.

104) 
 Explain what the SMART acronym tells us about goal setting.

105) 
 Describe the four basic types of appraisal interviews.

106) 
 Why is it important for managers to appraise subordinates' performance? Provide four reasons
for performance appraisals.

107) 
 Give an example of how the interpersonal nature of the appraisal process is felt and perceived
by Arab employees.

108) 
 Explain the three steps in the performance appraisal process.

109) 
 What is a behaviorally anchored rating scale (BARS)? How would you go about developing a
BARS?

110) 
 Explain how a management by objectives (MBO) program works and describe the six steps
involved in this type of program.
1) 
 A
2) 
 B
3) 
 D
4) 
 A
5) 
 D
6) 
 E
7) 
 C
8) 
 A
9) 
 E
10) 
 B
11) 
 A
12) 
 B
13) 
 B
14) 
 D
15) 
 B
16) 
 B
17) 
 E
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 A
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 A
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60) 
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 TRUE
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 TRUE
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 FALSE
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 TRUE
101) 
 The employer may measure generic dimensions of performance such as quantity or quality of
work. The performance appraisal may focus on the job's actual duties and assess how well the
employee did in exercising his or her specific job duties. Competency-based appraisals focus on the
extent to which the employee exhibits the behaviorally recognizable competencies essential for the
job.
102) 
 The first technique is to learn and understand the potential problem and possible solutions.
Simply understanding the potential for the problem can help to avoid it. Second, using the right
appraisal tool for each situation is important. Third, supervisors should be trained to reduce rating
errors such as halo, leniency, and central tendency. Fourth, training isn't always enough to overcome
the supervisor's outside distractions–improving appraisal accuracy might also require reducing the
effects of outside factors, such as union pressure and time constraints. Finally, supervisors can keep
a diary of critical incidents to file and use for later reference for subordinate's appraisals. This
technique helps to ensure that both negative and positive incidents are recorded.
103) 
 Any five from the following:
• Direction sharing means communicating the organization's higher level goals throughout the organization and translat
these into doable departmental goals.
• Role clarification means clarifying each employee's role in terms of his or her day-to-day work.
• Goal setting and planning means translating organizational and departmental goals into specific goals for each emplo
• Goal alignment means having a process in place that allows any manager to see the link between an employee's goa
those of the department and organization.
• Developmental goal setting involves ensuring that each employee understands what must be done to accomplish the
• Ongoing performance monitoring means using computer-based systems to measure and report on employee progres
toward meeting performance goals.
• Ongoing feedback includes face-to-face and computer-based feedback regarding progress toward goals.
• Coaching and support should be an integral part of the feedback process.
• Performance appraisals should focus on planning and focusing employee performance to improve company results.
• Rewards, recognition, and compensation provide the consequences necessary to keep employee performance on tar
• Workflow and process control and return on investment management means making sure that the employee's perform
is linked a meaningful way via goal setting to the company's overall measurable performance.
104) 
 SMART stands for specific, measurable, attainable, relevant, and timely. Goals should be
specific and the desired result should be clearly stated. The goals should be measurable and answer
the question 'how much.' The goals should be attainable and not too difficult or too easy. The goals
should be relevant and clearly derive from what the manager and company want to achieve. The
goals should be timely and reflect deadlines and milestones.
105) 
 • The first type of appraisal interview is the satisfactory–promotable appraisal interview. This
occurs when the person's performance is satisfactory and there is a promotion ahead. The objective
is to discuss the person's career plans and to develop a specific action plan for the educational and
professional development the person needs to move up.
• The second type of interview is the satisfactory–not promotable appraisal interview. This is for employees whose
performance is satisfactory but for whom promotion is not possible. The objective is to maintain satisfactory performanc
best option is to find incentives that are important to the person.
• The third type of interview is the unsatisfactory–correctable interview. In this situation, the objective is to develop an a
plan for correcting the unsatisfactory performance.
• The final type of interview is the unsatisfactory–uncorrectable interview. In this situation, the interview may even be sk
The person's poor performance is tolerated or the person is dismissed.
106) 
 There are four reasons to appraise subordinates' performance.
1. From a practical point of view, most employers still base pay and promotional decisions on the employee's appraisal
2. Appraisals play an integral role in the employer's performance management process. It does little good to translate th
employer's strategic goals into specific employee goals, if you don't periodically review performance.
3. The appraisal lets the boss and subordinate develop a plan to correct any deficiencies, and to reinforce the things th
subordinate does right.
4. Appraisals should serve a useful career planning purpose. They provide an opportunity to review the employee's car
plans in light of his or her exhibited strengths and weaknesses.
107) 
 In Oman, a researcher examined the influence of cultural orientation on employee preferences
for HR policies and practices among 712 employees of six large organizations. Employees who
believed that maintaining the status hierarchy in society and organizations was important showed a
preference for hierarchy-oriented HR practices, such as personnel decisions based on loyalty and
seniority, and top-down decision making on performance evaluation and training needs. It is therefore
clear that in Oman, as in other Arab countries, the interpersonal nature of the appraisal process
affects how it is perceived by employees and implemented in organizations.
108) 
 The three steps in the performance appraisal process are: 1) define the job, 2) appraise
performance, and 3) provide feedback. Defining the job means making sure that the manager and
employee agree on his or her duties and job standards. Appraising performance means comparing
the employee's actual performance to the standards that have been set. Finally, the performance
appraisal process requires one or more feedback sessions. In these sessions, the manager and
employee discuss the employee's performance and progress and make plans for any development
required.
109) 
 A BARS is a rating scale that is anchored with specific behavioral examples of good or poor
performance. Because of the anchors, which are based on the dimensions of performance illustrated
by critical incidents, a BARS combines the benefits of narratives, critical incident, and quantified
scales. There are five steps required for developing a BARS:
Step 1: Generate critical incidents. In this step, people who know the job are asked to describe specific illustrations of e
and ineffective performance.
Step 2: Develop performance dimensions. The people who know the job are then asked to cluster the incidents into a s
set of performance dimensions and to define each dimension with a name.
Step 3: Reallocate incidents. Another group of people, who also know the job, should reallocate the original critical incid
They will receive the cluster definitions and the list of critical incidents. They will then reassign each incident into the clu
they think it fits best. If the assignments made by the first group and second group match well, then that critical incident
retained.
Step 4: Scale the incidents. The second group then rates the behavior described by the incident as to how effectively o
ineffectively it represents performance on the dimension.
Step 5: Develop a final instrument. Six or seven of the incidents as the dimension's behavioral anchors.
110) 
 MBO programs basically require managers to set specific and measurable goals with each
employee and then to periodically discuss the employee's progress toward these goals. It is usually a
comprehensive, organization-wide goal setting and appraisal program. The six steps it consists of are
listed below.
Step 1: Set the organization's goals. The first step involves the establishment of an organization-wide plan for the comi
and to set company goals.
Step 2: Set departmental goals. Next, department heads will take these company goals and, in conjunction with their
superiors, set goals for their departments.
Step 3: Discuss departmental goals. Department heads will discuss the departmental goals with all subordinates and a
employees to set their own preliminary individual goals. These individual goals should show how each employee can
contribute to the department's goals.
Step 4: Define expected results. Department heads and their employees set short-term individual performance targets.
Step 5: Performance reviews. Department heads compare each employee's actual and targeted performance.
Step 6: Provide feedback. Department heads and employees discuss and evaluate the employee's
progress.