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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
8) The A in the acronym for SMART goals stands for ________. 8) _______
A) attainable
B) attitude
C) appropriate
D) asset
E) actionable
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
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
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
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
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
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
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
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
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
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
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
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) ______
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) ______
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) ______
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) ______
98) Performance appraisals assume that the employee understood what his or her
performance standards were. 98) ______
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?
104) Explain what the SMART acronym tells us about goal setting.
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
18) E
19) C
20) C
21) D
22) E
23) C
24) D
25) C
26) E
27) E
28) A
29) D
30) E
31) D
32) E
33) E
34) A
35) D
36) C
37) B
38) E
39) D
40) B
41) E
42) D
43) B
44) A
45) E
46) C
47) C
48) B
49) A
50) A
51) B
52) E
53) A
54) E
55) B
56) D
57) C
58) E
59) D
60) D
61) E
62) A
63) B
64) D
65) E
66) A
67) D
68) E
69) C
70) E
71) TRUE
72) TRUE
73) FALSE
74) TRUE
75) TRUE
76) FALSE
77) FALSE
78) FALSE
79) TRUE
80) FALSE
81) FALSE
82) FALSE
83) TRUE
84) FALSE
85) TRUE
86) TRUE
87) TRUE
88) FALSE
89) TRUE
90) FALSE
91) FALSE
92) FALSE
93) FALSE
94) TRUE
95) TRUE
96) TRUE
97) TRUE
98) TRUE
99) FALSE
100) 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 translating 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 specif
goals for each employee.
• Goal alignment means having a process in place that allows any manager to see the link betw
an employee's goals and those of the department and organization.
• Developmental goal setting involves ensuring that each employee understands what must be d
to accomplish the goals.
• Ongoing performance monitoring means using computer-based systems to measure and report
employee progress toward meeting performance goals.
• Ongoing feedback includes face-to-face and computer-based feedback regarding progress tow
goals.
• Coaching and support should be an integral part of the feedback process.
• Performance appraisals should focus on planning and focusing employee performance to impro
company results.
• Rewards, recognition, and compensation provide the consequences necessary to keep employ
performance on target.
• Workflow and process control and return on investment management means making sure that
employee's performance 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 objec
is to maintain satisfactory performance. The best option is to find incentives that are important
person.
• The third type of interview is the unsatisfactory–correctable interview. In this situation, the
objective is to develop an action plan for correcting the unsatisfactory performance.
• The final type of interview is the unsatisfactory–uncorrectable interview. In this situation, the
interview may even be skipped. 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 th
employee's appraisal.
2. Appraisals play an integral role in the employer's performance management process. It does l
good to translate the employer's strategic goals into specific employee goals, if you don't period
review performance.
3. The appraisal lets the boss and subordinate develop a plan to correct any deficiencies, and to
reinforce the things the subordinate does right.
4. Appraisals should serve a useful career planning purpose. They provide an opportunity to revi
the employee's career 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 effective and ineffective performance.
Step 2: Develop performance dimensions. The people who know the job are then asked to cluste
incidents into a smaller set of performance dimensions and to define each dimension with a nam
Step 3: Reallocate incidents. Another group of people, who also know the job, should reallocate
original critical incidents. They will receive the cluster definitions and the list of critical inciden
They will then reassign each incident into the cluster they think it fits best. If the assignments m
by the first group and second group match well, then that critical incident is retained.
Step 4: Scale the incidents. The second group then rates the behavior described by the incident
how effectively or 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
plan for the coming year 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
subordinates and ask employees to set their own preliminary individual goals. These individual g
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 individua
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.