Chapter 9: Performance Management and Appraisal

Chapter 9: Performance Management and Appraisal Multiple Choice 1. a. b. c. d. e. 2. a. b. c. d. e. 3. a. b. c. d. e. 4. a. b. c. d. e. The process of evaluating employees current and/or past performance relative to their performance standards is called _____. recruitment employee selection performance appraisal organizational development training (c; easy) When goal setting, performance appraisal, and development are consolidated into a single, common system designed to ensure that employee performance supports a companys strategy, it is called _____. strategic organizational development performance management performance appraisal human resource management strategic management (b; easy) Performance management combines performance appraisal with _____ to ensure that employee performance is supportive of corporate goals. goal setting training incentive systems all of the above none of the above (d; moderate) Managers following a performance management approach to appraisals will usually meet with employees on a _____ basis. weekly monthly bi-annual yearly bi-monthly (a; moderate)

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5. a. b. c. d. e. 6. a. b. c. d. e. 7. a. b. c. d. e. 8. a. b. c. d. e. 9. a. b. c. d. e.

Managers following a traditional performance appraisal system will typically meet with employees on a _____ basis. daily weekly monthly bi-monthly yearly (e; moderate) The component of an effective performance management process that communicates the organizations higher level goals throughout the organization and then translates these goals into departmental goals is called _____. role clarification goal alignment developmental goal setting direction sharing coaching and support (d; difficult) The component of an effective performance management process that explains employees role in terms of their day-to-day work is called _____. role clarification goal alignment developmental goal setting direction sharing coaching and support (a; difficult) Which of the following is not one of the guidelines for effective goal setting? assign specific goals assign measurable goals assign challenging but doable goals assign consequences for performance encourage participation (d; moderate) The S in the acronym for SMART goals stands for _____. specific straightforward strategic source support (a; easy)

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10. a. b. c. d. e. 11. a. b. c. d. e. 12. a. b. c. d. e. 13. a. b. c. d. e. 14. a. b. c. d. e.

The M in the acronym for SMART goals stands for _____. moderate measurable meaningful mid-range merit (b; moderate) The A in the acronym for SMART goals stands for _____. actionable appropriate attainable attitude asset (c; moderate) Participatively set goals result in higher performance than assigned goals when _____. participatively set goals are more difficult assigned goals are more difficult the rewards are also higher participatively set goals are used consistently the goals are doable (a; moderate) When using goal setting in performance management, the goals should be _____. difficult challenging doable specific all of the above (e; easy) Who is the primary person responsible for doing the actual appraising of an employees performance? the employees direct supervisor the company appraiser the human resource manager the government department contact person none of the above (a; moderate)

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15. a. b. c. d. e. 16. a. b. c. d. e. 17. a. b. c. d. e. 18. a. b. c. d. e. 19. a. b. c. d. e.

Which of the following is not a role played by the HR department regarding performance appraisals? Training of supervisors Monitoring the appraisal system Appraising of employees Ensuring compliance with employment laws Advising regarding appraisal tools and procedures (c; moderate) When designing an actual appraisal method, the two basic considerations are _____. who should measure and when to measure when to measure and what to measure what to measure and who should measure what to measure and how to measure when to measure and how to measure (d; moderate) The most popular technique for appraising performance is the ______ method. alternation ranking graphic rating scale Likert scale MBO constant sum rating scale (b; moderate) Which performance appraisal technique lists traits and a range of performance? alternation ranking graphic rating scale Likert scale MBO constant sum rating scale (b; moderate) What do performance appraisals measure? generic dimensions of performance performance of actual duties employee competency achievement of objectives all of the above (e; moderate)

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20. a. b. c. d. e. 21. a. b. c. d. e. 22.

If a performance appraisal focuses on an employees ability to identify and analyze problems or to maintain harmonious and effective working relationships, then the performance appraisal is focused on measuring _____. generic dimensions of performance performance of actual duties employee competency achievement of objectives all of the above (c; moderate) If a performance appraisal focuses on an employees quality and quantity of wok, then the performance appraisal is focused on measuring _____. generic dimensions of performance performance of actual duties employee competency achievement of objectives all of the above (a; moderate) 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. alternation ranking graphic rating scale Likert scale MBO constant sum rating scale (a; moderate) Alternation ranking refers to an appraisal method, which _____. 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 that the supervisor keep a log of positive and negative examples of a subordinates work-related behavior d. requires a supervisor to evaluate performance by assigning predetermined percentages of those being rated into performance categories 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 (e; moderate)

a. b. c. d. e. 23.

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24. a. b. c. d. e. 25.

The most popular method for ranking employees is the _____ method. graphic ranking scale constant sum ranking scale alternation ranking paired comparison forced distribution (c; moderate) 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. graphic ranking scale constant sum ranking scale alternation ranking paired comparison forced distribution (d; moderate) Forced distribution refers to an appraisal method, which _____. 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 that the supervisor keep a log of positive and negative examples of a subordinates work-related behavior d. requires a supervisor to evaluate performance by assigning predetermined percentages of those being rated into performance categories 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 (d; moderate) When a supervisor evaluates performance by assigning predetermined percentages of ratees into performance categories, he or she has used the _____ method of performance appraisal. graphic ranking scale constant sum ranking scale alternation ranking paired comparison forced distribution (e; moderate)

a. b. c. d. e. 26.

27. a. b. c. d. e.

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28.

a. b. c. d. e. 29. a. b. c. d. e. 30. a. b. c. d. e. 31.

Joh, the supervisor of the manufacturing department, is in the process of evaluating his staffs 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. Joh is using a _____ method. graphic rating scale constant sum ranking scale forced distribution alternation ranking paired comparison (c; moderate) Which of the following measurement methods rates employee performance relative to other employees? graphic rating scale forced distribution likert scale constant sums rating critical incident method (b; moderate) With the _____ method, the supervisor keeps a log of positive and negative examples of a subordinates work-related behavior. alternation ranking constant sums rating forced distribution narrative forms critical incident (e; easy) The critical incident technique refers to an appraisal method, which _____. 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 that the supervisor keep a log of positive and negative examples of a subordinates work-related behavior d. requires a supervisor to evaluate performance by assigning predetermined percentages of those being rated into performance categories 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 (c; moderate)

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32. a. b. c. d. e. 33. a. b. c. d. e. 34.

All of the following are advantages of using the critical incident method for appraising performance except that _____. it provides examples of good performance it does not include a numerical rating it provides examples of poor performance it reflects performance from throughout the appraisal period incidents can be tied to performance goals (b; moderate) 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? behaviorally anchored rating scale graphic rating scale constant sums rating scale alternation ranking none of the above (a; easy) Behaviorally anchored rating scale (BARS) refers to an appraisal method, which _____. 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 that the supervisor keep a log of positive and negative examples of a subordinates work-related behavior d. requires a supervisor to evaluate performance by assigning predetermined percentages of those being rated into performance categories 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 (b; moderate) The first step in developing a behaviorally anchored rating scale is to _____. develop performance dimensions generate critical incidents reallocate incidents scale incidents develop a final instrument (b; moderate)

35. a. b. c. d. e.

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36. a. b. c. d. e. 37.

Which step in developing a behaviorally anchored rating scale involves clustering critical incidents into a smaller set of performance dimensions? first second third fourth fifth (b; moderate) 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? first second third fourth fifth (c; moderate) All of the following are advantages of behaviorally anchored rating scales (BARS) except that they _____. are more accurate provide clearer standards are time consuming are reliable help explain performance appraisal ratings to appraisees (c; easy) Management by objectives (MBO) refers to an appraisal method, which _____. 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 that the supervisor keep a log of positive and negative examples of a subordinates work-related behavior d. requires a supervisor to evaluate performance by assigning predetermined percentages of those being rated into performance categories 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 (a; moderate)

a. b. c. d. e. 38. a. b. c. d. e. 39.

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40. a. b. c. d. e. 41. a. b. c. d. e. 42. a. b. c. d. e. 43. a. b. c. d. e. 44.

Which of the following is a problem with using MBO? a tendency to set unclear objectives a tendency to set unmeasurable objectives it is time consuming tug of war between subordinate and manager regarding goals all of the above (e; moderate) Graphic rating scales are subject to all of the following problems except _____. unclear standards halo effects complexity central tendency leniency (c; difficult) When different supervisors define levels of performance (good, fair, poor) differently, unfair appraisals could result due to a problem with _____. unclear standards halo effects complexity central tendency leniency (a; moderate) _____ is defined as the influence of a raters general impression on ratings of specific ratee qualities. Impression management Halo effect Central tendency Stereotyping Bias (b; moderate; p. 328) Jon 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. Jons performance appraisal may be unfair due to _____. impression management bias stereotyping halo effects strictness (d; difficult)

a. b. c. d. e.

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45. a. b. c. d. e. 46. a. b. c. d. e. 47. a. b. c. d. e. 48. a. b. c. d. e. 49. a. b. c. d. e.

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. halo effect stereotyping central tendency strictness leniency (c; moderate) The best way of reducing the problem of central tendency in performance appraisals is to _____. rank employees be aware of the problem train supervisors to avoid it impose a distribution for performance consider the purpose of the appraisal (a; difficult) The _____ problem occurs when supervisors tend to rate all their subordinates consistently high. central tendency leniency strictness bias halo effect (b; easy) The _____ problem occurs when supervisors tend to rate all their subordinates consistently low. central tendency leniency strictness bias halo effect (c; easy) Which big five personality trait is associated with performance appraisal ratings that are too strict? agreeableness extraversion conscientiousness openness neuroticism (c; difficult)

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50. a. b. c. d. e. 51. a. b. c. d. e. 52. a. b. c. d. e. 53.

Which big five personality trait is associated with performance appraisal ratings that are too lenient? agreeableness extraversion conscientiousness openness neuroticism (a; difficult) The best way of reducing the problems of leniency or strictness in performance appraisals is to _____. rank employees be aware of the problem train supervisors to avoid it impose a distribution for performance consider the purpose of the appraisal (d; difficult) When an employees personal characteristics such as age, race, and gender influence a supervisors evaluation of his or her performance, the problem of _____ has occurred. bias stereotyping central tendency halo affect strictness (a; easy) Which of the following could result in a legally questionable appraisal process? a. conduct a job analysis to establish criteria and standards for successful performance base appraisals on subjective supervisory observations administer and score appraisals in a standardized fashion use clearly defined job performance dimensions avoid abstract trait names when using graphic rating scales (b; difficult) Who is in the best position to observe and evaluate an employees performance for the purposes of a performance appraisal? peers customers rating committees top management immediate supervisor (e; easy)

b. c. d. e. 54. a. b. c. d. e.

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55. a. b. c. d. e. 56. a. b. c. d. e. 57. a. b. c. d. e. 58. a. b. c. d. e. 59. a. b. c. d. e. 60. a. b. c. d. e.

Performance appraisals may be conducted by _____. the immediate supervisor peers rating committees subordinates all of the above (e; easy) Rating committees, made up of an employees immediate supervisor along with other supervisors, usually have _____ members. 2-3 4-5 6-7 8-9 10 or more (b; easy) While peer appraisals have many benefits, one problem is _____, when several peers collaborate to rate each other highly. social loafing group think logrolling alliance forging impression management (c; moderate) Peer appraisals have been shown to result in a(n) _____. reduction of social loafing in the team reduction of group cohesion decrease in satisfaction with the group lower task motivation tendency to inaccurately predict who would be promoted (a; moderate) What usually occurs when employees rate themselves in a performance appraisal? interrater reliability is higher appraisals are subject to halo effects logrolling could occur ratings are higher than when rated by supervisors or peers ratings are about the same as when determined by peers (d; easy) Firms that use _____ let subordinates anonymously rate their supervisors performance. downward feedback upward feedback MBO narratives critical incidents (b; moderate) 145

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61. a. b. c. d. e. 62. a. b. c. d. e. 63. a. b. c. d. e. 64. a. b. c. d. e. 65. a. b. c. d. e.

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? strategic performance appraisal organizational development upward feedback MBO critical incidents (c; moderate) When subordinates provide feedback for supervisors, the comments should be anonymous because identifiable responses tend to result in _____. more critical ratings increased comfort with the process on the part of the subordinate more negative attitudes from managers receiving the feedback more inflated ratings all of the above (d; difficult; p. 333) What is another term for 360-degree feedback? feedback loop multi-source assessment upward feedback circle feedback wheel feedback (b; easy) 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? time off small bonus compliments additional professional development additional authority (d; difficult) Which is the easiest type of appraisal interview to conduct? satisfactory-not promotable satisfactory-promotable unsatisfactory-correctable unsatisfactory-uncorrectable final warning (b; moderate)

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66. a. b. c. d. e. 67. a. b. c. d. e. 68.

When conducting an appraisal interview, supervisors should do all of the following except talk in terms of objective work data compare the persons performance to a standard encourage the employee to talk give specific examples of poor performance compare the persons performance to that of other employees (e; difficult) Which of the following responses is not typical during a negative appraisal interview? denial anger relief aggression retreat (c; easy) When a supervisor must criticize a subordinate in an appraisal interview, it is best to _____. a. hold the meeting with other people who can diffuse the negative situation provide examples of critical incidents acknowledge the supervisors personal biases in the situation provide feedback once per year e. surprise the employee so they cannot develop excuses for poor performance (b; difficult) Subordinates may feel dissatisfied with their appraisal interview when they _____. feel threatened during the interview have an opportunity to express their ideas have an opportunity to influence the course of the interview have a constructive interviewer conduct the interview are shown specific examples of their poor performance (a; moderate) When an employees performance is so poor that a written warning is required, the warning should _____. identify the standards by which the employee is judged provide examples of employees who met the standards provide examples of times when the employee did meet the standards d. be sent to the employee in question, to the managers superior, and to the government labor office all of the above (a; difficult) True/ False

b. c. d.

69. a. b. c. d. e. 70. a. b. c. e.

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71. 72.

Performance appraisals assume that the employee understood what his or her performance standards were. (T; easy) Supervisors should provide employees with feedback, development, and incentives necessary to help employees eliminate performance deficiencies or to continue to perform well. (T; easy) A properly designed performance management system utilizes yearly meetings to ensure continuous improvement in the employees capacity and performance. (F; moderate) Goals should be challenging, but not so difficult that they appear impossible or unrealistic. (T; easy) The evidence suggests that participatively set goals consistently result in higher performance than assigned goals. (F; moderate) The HR department conducts performance appraisals, develops the appraisal tools, and monitors the appraisal system. (F; difficult) The alternation ranking method is the simplest and most popular technique for appraising performance. (F; moderate) When actual job duties are appraised, the idea is to focus on the extent to which the employee exhibits the competencies that the employer values. (F; difficult) The forced distribution method is similar to grading on a curve meaning that predetermined percentages of those being rated are placed into performance categories. (T; moderate) 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. (T; moderate) Top employees often outperform the average employees by as much as 100%. (T; moderate) The alternation ranking method combines the benefits of narratives, critical incidents, and quantified scales by anchoring a rating scale with specific behavioral examples of good or poor performance. (F; easy) Electronic performance monitoring (EPM) allows supervisors to electronically monitor the amount of computerized data an employee is process each day. (T; easy) Employees tend to be overly optimistic about what their ratings will be in a performance appraisal. (T; moderate) Graphic rating scales are the most reliable for rating performance. (F; moderate)

73.

74. 75. 76. 77. 78. 79.

80.

81. 82.

83. 84. 85.

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86. 87.

Central tendency is defined as the influence of a raters general impression on ratings of specific ratee qualities. (F; moderate) 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. (T; moderate) Rater idiosyncratic biases account for the largest percentage of the observed variance in performance ratings. (T; difficult) Courts have often found that inadequacies in an employers appraisal system were related to illegal discriminatory actions in cases involving layoffs, promotions, and discharges. (T; moderate) Alliance-building occurs when peers charged with conducting team appraisals collude to rate each other highly. (F; moderate) Peer appraisals have been shown to have an immediate positive impact on improving task motivation, cohesion, and satisfaction, while reducing social loafing. (T; moderate) Managers who receive feedback from subordinates who identify themselves view the upward appraisal process more negatively than do managers who receive anonymous feedback. (F; difficult) 360-degree feedback is generally used for development purposes, rather than for pay increases. (T; moderate)360-degree feedback is sometimes called the wheel of feedback because ratings are collected from all around an employee. (F; easy) 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. (T; easy) The goal for a supervisor conducting an unsatisfactory-correctable appraisal interview is to encourage the employee by providing reinforcements like job enlargement and compliments. (F; difficult) Simply revealing the gap between where the employee should be and is will trigger improved performance. (F; moderate) While formal written warnings are provided too late to salvage an employees performance and position at the company, they are useful in court proceedings. (F; moderate) 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. (T; easy) Performance appraisals are a link between corporate strategy, departmental goals, employee goals and employee performance in the overall performance management process. (T; moderate) 149

88. 89.

90. 91.

92.

93.

94.

95.

96. 97.

98.

99.

Human Resource Management: An Asian Perspective (Second Edition)

Essay/ Short Answer 100. There are several components important for an effective performance management process. Name and explain five of these components. (moderate) Answer: There are eleven components identified in Figure 9-1 for an effective performance management process. They are listed and explained below: Direction sharing means communicating the organizations higher level goals throughout the organization and translating these into doable departmental goals. Role clarification means clarifying each employees 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 employee. Goal alignment means having a process in place that allows any manager to see the link between an employees goals and those of the department and organization. Developmental goal setting involves ensuring that each employee understands what must be done to accomplish the goals. Ongoing performance monitoring means using computer-based systems to measure and report on employee progress 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 target. Workflow and process control and return on investment management means making sure that the employees performance is linked a meaningful way via goal setting to the companys overall measurable performance. 101. Explain what the SMART acronym tells us about goal setting. (easy) Answer: 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 the company want to achieve. The goals should be timely and reflect deadlines and milestones.

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102.

Why is it important for managers to appraise subordinates performance? Provide three reasons for performance appraisals. (moderate) Answer: There are four reasons for conducting performance appraisals. First, appraisals play an integral role in the performance management process. Second, it lets the manager and subordinate develop a plan for correcting any deficiencies that might exist and to reinforce and support things that are done well. Third, appraisals can serve a useful career planning purpose by providing the opportunity to review the employees career plans in light of his or her strengths and weaknesses. Finally, the appraisal usually plays a part in salary and promotion decisions.

103.

Explain the three steps in the performance appraisal process. (easy) Answer: The performance appraisal process itself contains three steps: 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 employees 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 employees performance and progress and make plans for any development required.

104.

What are the four types of performance that performance appraisals can measure? Explain each one. (moderate) Answer: The employer may measure generic dimensions of performance such as quantity or quality of work. The performance appraisal may focus on the jobs 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 competencies that the employer values. The employer could also appraise the employee based on the extent to which he or she is achieving his or her objectives.

105.

What is a behaviorally anchored rating scale (BARS)? How would one go about developing a BARS? (difficult) Answer: A behaviorally anchored rating scale 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. Each step is explained below. 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 cluster the incidents into a smaller set of performance dimensions and to define each dimension with a name. 151

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106.

Step 3: Reallocate incidents. Another group of people, who also know the job, should reallocate the original critical incidents. They will receive the cluster definitions and the list of critical incidents. They will then reassign each incident into the cluster they think it fits best. If the assignments made 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 as to how effectively or ineffectively it represents performance on the dimension. Step 5: Develop a final instrument. Six or seven of the incidents as the dimensions behavioral anchors.

Explain how an MBO program works and describe the six steps involved in this type of program. (moderate) Answer: MBO programs basically require managers to set specific and measurable goals with each employee and then to periodically discuss the employees 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 organizations goals. The first step involves the establishment of an organization-wide 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 all subordinates and ask employees to set their own preliminary individual goals. These individual goals should show how each employee can contribute to the departments 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 employees actual and targeted performance. Step 6: Provide feedback. Department heads and employees discuss and evaluate the employees progress.

107.

Describe the four basic types of appraisal interviews. (moderate) Answer: The first type of appraisal interview is the satisfactory-promotable appraisal interview. This occurs when the persons performance is satisfactory and there is a promotion ahead. The objective is to discuss the persons career plans and to develop a specific action plan for the educational and professional development the person needs to move to the next job. 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

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performance. The best option is to find incentives that are important to the person. The third type of interview is the unsatisfactory but 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 persons poor performance is tolerated or the person is dismissed. 108. What four techniques can help to avoid and/or minimize appraisal problems like bias, leniency, and central tendency? (moderate) Answer: 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. Finally, supervisors can keep a diary of critical incidents to file and use for later reference for subordinates appraisals. This technique helps to ensure that both negative and positive incidents are recorded. 109. There are several guidelines for developing an appraisal process that is legally defensible. Identify four of these guidelines. (moderate) Answer: Fourteen guidelines are suggested in the text. Conduct a job analysis to establish criteria and standards for successful performance. Incorporate these criteria and standards into a rating system. Use clearly defined job performance dimensions rather than global measures of performance. Communicate performance standards to employees and supervisors in writing. Avoid abstract trait names when using graphic rating scales. Use subjective supervisory ratings for no more than one part of the overall appraisal process. Allow appraisers substantial daily contact with the employees they are evaluating Base appraisals on separate ratings for each job performance dimension. Have more than one appraiser conduct the appraisal. Give employees the opportunity to review the appraisal, make comments, and appeal the decision. Document all information and reasons bearing on any personnel decision. Provide corrective guidance to assist poor performers in improving performance.

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Of these fourteen guidelines, research of court decisions suggests that the important guidelines are to perform a job analysis, provide raters with written instructions, permit employees to review the results, and obtain agreement among multiple raters.

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