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MNGT Ch 10

1. An effective performance management system must have all the following
characteristics EXCEPT
a. it must link organizational strategy to ultimate
results.
b. it must allow individual employees flexibility
in how they will achieve ultimate results.
c. it must translate organizational strategies into
unit-level actions.
d. it must assign unit-level actions to individual
employees
b. it must allow individual employees flexibility
in how they will achieve ultimate results.
2. Which of the following statements is TRUE?
a. If ethical behavior were evaluated in a
performance appraisal system and rewarded,
employees would sometimes be rewarded for
causing immediate or long-term financial
losses to the organization.
b. Performance appraisal systems are most
effective when the behaviors evaluated are
objectively measurable or observable. This is
the main reason why most performance
appraisal systems do not incorporate specific
evaluations of the ethical aspect of employee
performance.
c. An organization’s ethical culture is
independent of its performance management
system.
d. A performance-driven organization culture,
especially one using management-byobjective
performance appraisal, is
incompatible with strict ethical standards for
employee behavior.
a. If ethical behavior were evaluated in a
performance appraisal system and rewarded,
employees would sometimes be rewarded for
causing immediate or long-term financial losses to the organization
3. ____ is the process of determining how well employees do their jobs relative to a
standard and communicating that information to the employee.
a. Employee development
b. Performance management
c. Process improvement
d. Performance appraisal
d. Performance appraisal
4. Ultimately, performance management links organizational strategy to
organizational
a. culture.
b. goal setting.
c. rewards.
d. results.
d. results.
5. In order to translate organizational strategies in to employee behaviors that
support these strategies, performance management systems use a variety of techniques at the
individual employee level. These techniques include all of the following EXCEPT
a. informing the employee of the expected
performance levels.
b. rewarding the individual employee based on
his/her performance.
c. ensuring that the individual employee is
satisfied with his/her performance appraisal.
d. providing feedback on individual employee
performance.
c. ensuring that the individual employee is
satisfied with his/her performance appraisal.
6. In comparison to some Asian countries such as China and Japan, U.S.
a. managers are brutally honest in communicating negative information to
employees in performance appraisals.
b. performance appraisal systems overemphasize
traits rather than behaviors.
c. performance appraisal systems are based on
fewer sources of information.
d. managers tend to be so tactful in
communicating performance decrements to
employees that employees often do not know
where they stand.
a. managers are brutally honest in communicating negative information to
employees in performance appraisals.
7. Which of the following statements is TRUE regarding performance management
in a global setting?
a. Because human psychology is the same
worldwide, a well-designed performance
management system will work in any cultural
setting.
b. Business organizations in every culture
include some type of formal performance
feedback for employees.
c. U.S.-style performance management systems
are becoming more widely used overseas
because of their effectiveness in increasing
employee performance.
d. U.S. companies may need to eliminate their
performance management processes in certain
countries.
d. U.S. companies may need to eliminate their
performance management processes in certain
countries.
8. Research has shown that performance-driven organizational cultures
a. are based on eliminating differentiations
among employees and commitment to
equality of rewards for employees.
b. is typically welcomed by employees when it
is instituted in a formerly entitlement-based
organizational culture.
c. require behavior-based performance
measures.
d. tend to have significantly higher financial
results compared with other types of
organizational cultures.
d. tend to have significantly higher financial
results compared with other types of
organizational cultures.
9. Which of the following statements is TRUE?
a. Pay-for-performance systems do not work
well for CEOs because most CEO
performance is not objectively measurable.
b. Performance-based pay systems for CEOs
typically build in penalties for unethical
behavior.
c. Performance-based pay systems for CEOs are
a key factor in an organization’s development
of a performance-driven culture.
d. Pay-for-performance systems do not work
well for CEOs because organizational
performance is strongly affected by economic
factors beyond the CEO’s control
c. Performance-based pay systems for CEOs are
a key factor in an organization’s development
of a performance-driven culture.
10. At SafeGreen, Inc., there is little variation in pay among employees within the
existing job categories. Raises are essentially the same for average and excellent performers.
Although performance appraisals are performed regularly, everyone views the process as papershuffling.
The from the point of view of its performance appraisal system, the culture of
SafeGreen, Inc., can best be described as
a. entitlement-based.
b. bureaucratic.
c. performance-driven.
d. equity-driven.
a. entitlement-based.
11. At Evergreen Cosmetics, the top executive team’s bonus is based on the
profitability of the firm. Each executive receives the same percentage bonus as the increase in
profits over the previous year. This shows
a. a lack of ambition on the part of the executive
team.
b. a disconnect between executive compensation
and the compensation of regular employees.
c. the pervasiveness of an entitlement culture
even into top management ranks.
d. executive commitment to performance
management.
c. the pervasiveness of an entitlement culture
even into top management ranks.
12. The performance committee of Everyoung Physical Therapy Associates has
identified: (1) the progress of the patient according to medical guidelines, (2) patient satisfaction,
(3) meeting treatment deadlines, and (4) therapist presence at work as ____ upon which the
committee will base the measure of physical therapist performance.
a. job duties
b. performance measures
c. subjective criteria
d. critical incidents
b. performance measures
13. All of the following are common criteria of employee performance EXCEPT
a. meeting deadlines.
b. achieving quality standards.
c. being present at work.
d. acting in accordance with ethical principles.
d. acting in accordance with ethical principles.
14. Essentially, ____ identify what the organization is paying an employee to do.
a. performance measures
b. job duties
c. job qualifications
d. expected performance levels
b. job duties
15. Clementine Import-Export, Inc., has a language-proficiency test for its sales
representatives in Latin America. Part of the test requires that sales representatives to be able to
ask and answer in Spanish basic questions about prices, quantities, shipping dates and product
characteristics. This performance standard can be classified as all of the following EXCEPT
a. the standard trait-based.
b. the standard is job-related.
c. the standard is observable.
d. the standard is non-numerical.
a. the standard trait-based.
16. Not all of an employee’s job duties are equally important. Performance appraisal
systems can best take this into account by
a. using results-oriented performance measures
for the most important duties and behaviorbased
or trait-based measures for the lesserimportant
duties.
b. measuring performance only for the most
important duties.
c. using a critical incident method to measure
employee performance.
d. weighting the more important duties more
highly than the less important duties.
d. weighting the more important duties more
highly than the less important duties.
17. One of the items on the performance appraisal form at Bioengineering Devices,
Inc., is “The employee demonstrates creativity, inventiveness and openness to new ideas.” This
can be considered ____ performance information.
a. results-oriented
b. behaviorally-based
c. objectively observable
d. trait-based
d. trait-based
18. SafeCleanGreen, Inc., has used a ________ performance appraisal system for
some 10 years. The company uses this for both administrative and development purposes.
SafeCleanGreen has terminated Jerry, who belongs to a protected class, because of inadequate
performance, especially on the “creative behavior” element of his performance. If Jerry sues the
company for discrimination, the courts will likely be unfavorably disposed to SafeCleanGreen’s
performance appraisal system.
a. trait-based
b. results-based
c. behavior-based
d. productivity-based
a. trait-based
19. Results-based information, used for evaluating performance,
a. is effective in promoting ethical behavior
since lawsuits and regulatory fines are easy to
measure.
b. is difficult to use for most jobs since few jobs
have observable and measurable results.
c. is best used on a group or organization-wide
basis since few individual employees have a
direct effect on organizational success..
d. may cause difficult-to-measure aspects of the
work to be neglected by employees.
d. may cause difficult-to-measure aspects of the
work to be neglected by employees.
20. At a large on-line catalog retail company, supervisors randomly listen in on calls
handled by customer representatives to make sure that the customers are greeted politely, orders
are taken accurately, order details are repeated to the customer, and that customers are thanked for
their orders. This is a ____ -based type of performance information.
a. productivity
b. trait
c. results
d. behavior
d. behavior
21. Which of the following is true about using behavior-based information for
evaluating job performance?
a. The aim is to identify the one critical
employee behavior which will lead to job
success.
b. In effect, behavior-based performance
appraisal systems penalize employees who
use unusual approaches to gain successful
results.
c. Behavior-based performance appraisal
systems are the easiest to develop.
d. Behavior-based information looks at what the
outcomes the employee has achieved.
b. In effect, behavior-based performance
appraisal systems penalize employees who
use unusual approaches to gain successful
results.
22. The auditors in a public accounting firm are assigned to new project teams as
their current projects end. Consequently, an auditor may work on one project for an entire year or
the auditor may be assigned to several different shorter-term projects during a year. All of the
following are behaviors that would be important to encourage through the performance appraisal
system EXCEPT
a. competitiveness.
b. achievement orientation.
c. initiative.
d. information-seeking.
a. competitiveness.
23. Michael, the owner of a moving company, has developed a performance
appraisal system for his customer representatives and truck drivers. He evaluates each of these
employees on accuracy of weight estimates, meeting delivery deadlines, and dollar value of
breakage. Michael’s performance appraisal system is ____ based.
a. trait
b. results
c. behavior
d. productivity
b. results
24. Counting the number of items a clerk scans per hour is be an example of a/an
____ measure of performance.
a. quality
b. subjective
c. behavior-based
d. objective
d. objective
25. Performance measures are said to be ____ if they leave out some important job
duties.
a. subjective
b. contaminated
c. deficient
d. biased
c. deficient
26. One of the performance criteria for a sales representative who covers
Saskatchewan as the sole Western Canadian representative is “relationship with co-workers.” This
criterion results in a performance measure that is
a. distorted.
b. contaminated.
c. deficient.
d. objective.
b. contaminated.
27. Higbee Farm Implements one location, a rural Iowa area. Higbee has been
experiencing slow sales of tractors and other expensive large agricultural equipment such as
combines over the last few years because of the low profitability of the farms in its sales region.
In order to increase its profits by increasing the sales of equipment, Higbee has announced that
the salesperson who writes the highest dollar volume in sales contracts will win an all-expensepaid
trip to Hawaii for two for a month. Naturally, this has motivated the sales staff. What is the
likely result of this contest?
a. The Higbee sales staff will work together
smoothly as a team to meet local farmers’
equipment needs.
b. Higbee’s salespersons will pressure farmers to
buy machinery they do not really need.
c. Higbee’s system for measuring performance is
contaminated.
d. This is a “rank and yank” system and will
result in Higbee’s sales staff becoming
demoralized.
b. Higbee’s salespersons will pressure farmers to
buy machinery they do not really need.
28. ____ define the level of performance that is expected by an employee.
a. Job criteria
b. Job expectations
c. Performance standards
d. Essential elements
c. Performance standards
29. All of the following are potential performance measures for an insurance
salesperson.
a. number of cold calls on potential clients per
week
b. materials cost per month
c. number of direct client-service hours per
month
d. dollar amount of new contracts written per
week
b. materials cost per month
30. All of the following are common reasons why performance appraisal systems are
ineffective EXCEPT
a. managers lack the courage to tell subordinates
they are performing inadequately.
b. managers and subordinates collude to inflate
performance appraisals.
c. managers inflate evaluations to protect
subordinates from being fired or losing
promotions.
d. managers use the performance appraisal
system to achieve political goals.
b. managers and subordinates collude to inflate
performance appraisals.
31. Performance appraisals are widely used for all the following types of employees
EXCEPT
a. non-exempt employees.
b. professional employees.
c. managers in service industries.
d. unionized production employees.
d. unionized production employees.
32. The two general uses of performance appraisal, which are often in conflict, are
a. salary administration and discipline.
b. training and development.
c. administrative and development.
d. coaching and career planning
c. administrative and development.
33. Which of the following best describes the manager’s role in the developmental
aspect of performance appraisal?
a. judge
b. parent
c. antagonist
d. coach
d. coach
34. Which of the following is an example of the administrative role of performance
appraisal?
a. identifying individual subordinate’s
weaknesses to determine coaching needs
b. measuring subordinate’s performance for
making retention decisions during a layoff
c. identifying the organization’s training needs
d. communicating feedback to the employee
b. measuring subordinate’s performance for
making retention decisions during a layoff
35. What is the purpose of developmental feedback?
a. to plan for the employee’s future opportunities
inside the organization
b. to motivate employees to perform at a higher
level
c. to compare individuals’ performance with
once another
d. to assure that employees know the reasons for
changes in their compensation
a. to plan for the employee’s future opportunities
inside the organization
36. All of the following are developmental uses for performance appraisals EXCEPT
a. selection of training seminars for a particular
employee for the upcoming year.
b. prioritizing employees for layoffs of various
sizes.
c. identification of jobs to which the employee
could be promoted.
d. counseling the employee in more effective
interpersonal relations.
b. prioritizing employees for layoffs of various
sizes.
37. During the performance appraisal process, employees tend to focus on
a. whether they will get a raise or not.
b. the emotional content of their supervisor’s
communications.
c. their areas of weaknesses as shown by the
performance appraisal.
d. the suggestions for future development
contained in the performance appraisal.
a. whether they will get a raise or not.
38. If most employees in an organization consider their pay raises inequitable, even
though the organization uses performance-based compensation, the most likely cause is that
a. the majority of employees are poor
performers.
b. the organization has an entitlement culture.
c. the work performed by the organization does
not lend itself to objective performance
appraisal.
d. some part of the appraisal process has failed.
d. some part of the appraisal process has failed.
39. As a vendor providing automated performance appraisal products, you would
probably be able to promise purchasers of your system all of the following EXCEPT
a. ease of use compared to manual performance
appraisal systems.
b. time savings compared to manual
performance appraisal systems.
c. aggregation of performance information.
d. lower total costs compared to manual
performance appraisal systems.
d. lower total costs compared to manual
performance appraisal systems.
40. Which of the following comments by a supervisor during an appraisal interview
illustrates the development function of performance appraisal?
a. Unless you are able to meet your quota next
quarter, you will be terminated.
b. How can I support your sales efforts better in
the coming year?
c. I am going to pair you with Alex for a month
so that you can learn his technique in closing
sales.
d. Next year the dollar amount of contracts you
must sell for an acceptable rating will be
increased 10%.
c. I am going to pair you with Alex for a month
so that you can learn his technique in closing
sales.
41. The main responsibility for conducting performance appraisals lies with
a. HR specialists
b. managers
c. consultants
d. top management
b. managers
42. All of the following statements are true about team-based performance appraisal
EXCEPT
a. team performance appraisal is most effective
in the administrative aspect of performance
management.
b. teams tend to avoid awarding individual team
members larger or smaller pay increases
based on performance.
c. team members are often more familiar with a
team member’s work performance than the
supervisor is.
d. team members may use the team performance
appraisal as a way to attack other team
members.
a. team performance appraisal is most effective
in the administrative aspect of performance
management.
43. A/an ____ appraisal is conducted as part of the day-to-day working relationship
between a manager and an employee.
a. spontaneous
b. systematic
c. developmental
d. informal
d. informal
44. Which of the following statements is TRUE regarding informal appraisals?
a. Frequent informal feedback to employees can
prevent surprises later when the formal
evaluation is communicated.
b. Well-done and frequent informal appraisals
are more easily defended in court than
traditional annual performance appraisals.
c. Frequent informal performance appraisal can
make an annual formal performance appraisal
unnecessary.
d. The day-to-day working relationship between
a manager and an employee is disrupted by
unscheduled informal appraisals, so these
should be minimized.
a. Frequent informal feedback to employees can
prevent surprises later when the formal
evaluation is communicated.
45. Performance appraisals at Swamp Blossom Designs, Inc., always occur on the
employee’s anniversary of employment. A standard protocol is in place to report managerial
impressions and observations on employee performance. This is an example of
a. objective evaluation.
b. subjective evaluation.
c. systematic appraisal.
d. informal appraisal.
c. systematic appraisal.
46. In the typical division of appraisal responsibilities, the HR unit is responsible for
a. rating performance of employees.
b. designing and maintaining the formal system.
c. reviewing appraisals with employees.
d. providing regular informal appraisals.
b. designing and maintaining the formal system.
47. In most companies and for most employees, the typical time period for formal
performance appraisals is
a. semi-annual.
b. monthly
c. annual
d. continuous
c. annual
48. At Decahedron Software, Inc., appraisals for non-technical employees are
conducted annually. Technical employees receive evaluations every six months. This is probably
because the technical employees
a. have many job opportunities and semiannual
evaluations allows for raises every six months
as a retention tool.
b. need more performance guidance from their
managers than do non-technical employees.
c. tend to be younger employees who require
more intense management attention.
d. have shorter developmental cycles than nontechnical
employees because technology
changes so rapidly in the software industry.
evaluations allows for raises every six months
as a retention tool.
a. have many job opportunities and semiannual
evaluations allows for raises every six months
as a retention tool.
49. All of the following are requirements for performance appraisal supported by the
courts and the EEOC EXCEPT
a. performance criteria must be based on job
analysis.
b. appraisal activities must be documented.
c. the rater must have personal knowledge of
and contact with the appraised individual.
d. performance criteria must be numerical and
objective.
d. performance criteria must be numerical and
objective.
50. Why are job-related, non-discriminatory and documented performance appraisals
necessary when organizations terminate employees?
a. They help explain the connection between
merit and seniority.
b. They provide developmental information to
the employees.
c. They are a legal defense if employees sue
over such decisions.
d. They are an important input to the strategic
planning process.
c. They are a legal defense if employees sue
over such decisions.
51. In order to lessen the conflict between the administrative and the developmental
roles of performance appraisal, the recommended practice is to
a. combine both types of feedback into the same
appraisal interview, but deal with pay issues
first as that is the employee’s primary
concern.
b. separate the administrative feedback and the
developmental feedback into different
interviews.
c. have the employee’s manager deliver the
administrative feedback, including pay
information, and have HR staff address the
developmental issues in a separate interview.
d. communicate all feedback to the employee in
writing two weeks before the appraisal
interview so there will be no surprises during
the interview.
developmental feedback into different
interviews.
b. separate the administrative feedback and the
developmental feedback into different
interviews.
52. Lisa is a project manager for a large consulting firm. She supervises multiple
project teams over a single year. Often, the teams work at distant locations, so Lisa rarely meets
with every employee on each project team. Nevertheless, Lisa’s company requires her to conduct
performance appraisals on each team member. Lisa is concerned that her performance appraisals
will not hold up in court if the one of her subordinates later sues for discrimination. Lisa is correct
to be concerned because in the present performance appraisal system
a. one manager evaluates each employee.
b. individuals are being evaluated even though
they work on teams.
c. the manager has little personal knowledge of
and contact with the appraised individual.
d. this type of evaluation is prima facie evidence
of disparate impact.
c. the manager has little personal knowledge of
and contact with the appraised individual.
53. Traditional ratings of employees by supervisors is based on the assumption that
a. employees are more receptive to criticism
from their immediate supervisors than from
other sources such as co-workers or managers
who are not their direct supervisors.
b. supervisors have regular day-to-day
opportunities for informal appraisals.
c. the supervisor is the person most qualified to
evaluate the employee’s performance
realistically and fairly.
d. supervisors are more aware of their
subordinates’ desires and goals than are other
potential evaluators.
c. the supervisor is the person most qualified to
evaluate the employee’s performance
realistically and fairly.
54. The vice-president of HR for Blue Horizon Mental Health is designing a
performance appraisal system that includes subordinate ratings of their supervisors. The
supervisors are concerned about this and have raised all of the following objections EXCEPT
a. the supervisors are concerned that they will be
rated on how nice they are to subordinates
rather than on their true supervisory
performance.
b. the supervisors believe that employee
feedback will be overly focused on objective
performance criteria and not intangible
leadership qualities.
c. the supervisors are most opposed to using the
evaluations for administrative purposes,
although they are more open to using the
evaluations for development purposes.
d. the supervisors argue that subordinates will
not want to give them negative feedback
because of fear of reprisals.
b. the supervisors believe that employee
feedback will be overly focused on objective
performance criteria and not intangible
leadership qualities.
55. All of the following are reasons to have subordinates evaluate the performance of
their supervisors EXCEPT
a. compensation for managers tends to be more
equitable when subordinates have input into
these decisions.
b. employee ratings can identify competent
managers.
c. when subordinates rate managers, managers
become more responsive to their subordinates.
d. subordinates can identify areas for growth for
their managers.
a. compensation for managers tends to be more
equitable when subordinates have input into
these decisions.
56. In which of the following situations would peer ratings be most appropriate?
a. A group of salespeople meets monthly as a
committee to talk about strategies for
improving customer relations.
b. The manager is too busy to meet with each
subordinate for a formal appraisal interview.
c. The members of the work group are highly
cohesive and have strong friendships with one
another.
d. The supervisor manages a large geographical
region and travels extensively, while the
employees work with each other daily.
d. The supervisor manages a large geographical
region and travels extensively, while the
employees work with each other daily.
57. Common difficulties with team appraisals include all of the following EXCEPT
a. some employees may use the appraisal as an
excuse to attack a team member.
b. team members feel the supervisor is
abdicating his/her responsibility to make
tough decisions.
c. team members may “go easy” on their
colleagues to spare feelings.
d. potential negative effects on teamwork.
b. team members feel the supervisor is
abdicating his/her responsibility to make
tough decisions.
58. How can teams be useful in the appraisal process?
a. Team members tend to be more objective in
their ratings than are supervisors.
b. Team members may have more opportunities
to view an employee’s performance than does
a supervisor.
c. Team ratings are useful for development
information because the anonymity of the
evaluation makes the raters “brutally honest.”
d. Teams are better able to allocate rewards
based on merit than are supervisors.
b. Team members may have more opportunities
to view an employee’s performance than does
a supervisor.
59. The HR director feels it is necessary for each individual employee to analyze his
or her personal strengths and weaknesses and set concrete goals for improvement. Consequently,
the HR director is designing a ____ program.
a. facilitated appraisal
b. self-appraisal
c. team evaluation
d. introspective analysis
b. self-appraisal
60. An artist has been a visiting instructor at a noted art academy for three years. The
academy’s process for moving a temporary/visiting instructor to regular faculty status is to have
the artist’s portfolio of work examined by a panel of noted artists who are not affiliated with the
academy. This is a version of a/an
a. field review.
b. external audit.
c. body-of-work appraisal.
d. team appraisal.
a. field review.
61. “Multisource” rating, also called ____, recognizes that employee performance
crosses departmental, organizational and, in some cases, global boundaries.
a. team appraisal
b. global rating
c. field review
d. 360° feedback
d. 360° feedback
62. As director of HR, you have decided to implement a multisource rating system
for employee performance. The employee population for which you will use this system numbers
about 1,000, with an average of 15 employees in each work unit. Which of the following
statements is likely to be TRUE?
a. You will need to implement this as a Web based system.
b. This system will be most useful for making compensation decisions affecting employees.
c. There will be fewer problems with rater bias because individual biases “wash out” statistically when there are multiple raters.
d. Employees tend to rate co-workers more
harshly than they rate themselves, so performance ratings will need to be adjusted
for rating deflation.
a. You will need to implement this as a Web based system.
63. Brownbrass, Inc., has instituted a multisource rating system. The results will be
used for both developmental and administrative purposes, such as compensation and promotion
decisions. As an HR consultant hired by the organization, you can predict that
a. there will be fewer legal issues with this
system than with a supervisory rating system.
b. the employees will view the multisource
ratings as more valid than if they were rated
only by their supervisors.
c. there will be little variation in performance
ratings across sources.
d. the performance ratings will be inflated.
d. the performance ratings will be inflated.
64. The 360° rating method appears to be less threatening to employees when it is
used for ____ purposes.
a. administrative
b. customer relations
c. development
d. benchmarking
c. development
65. The simplest methods for appraising performance are the
a. behaviorally anchored rating scales (BARS).
b. category scaling methods.
c. comparative methods.
d. written methods.
b. category scaling methods.
66. Performance appraisal systems that combine information from team members
and other employee “clients” to develop appraisals for individual employees are best used for
____ decisions.
a. compensation
b. developmental
c. promotion
d. disciplinary
b. developmental
67. At High Flyer Airlines, managers rate their subordinates on a continuum from 1
to 7. A score of 1 indicates unsatisfactory performance, and a score of 7 indicates superior
performance. High Flyer uses a ____ as its performance appraisal method.
a. ranking system
b. checklist
c. multisource appraisal
d. graphic rating scale
d. graphic rating scale
68. All of the following statements are true about graphic rating scales EXCEPT
a. graphic rating scales are easy to develop.
b. separate traits or performance factors are
sometimes grouped together which leads to
inconsistency in how evaluators interpret the
scale item.
c. graphic rating scales can either use verbal or
numerical scales.
d. graphic rating scales require less rater training
than other methods because the descriptive
terms used carry widely-understood
interpretations.
d. graphic rating scales require less rater training
than other methods because the descriptive
terms used carry widely-understood
interpretations.
69. Which of the following is characteristic of graphic rating scales?
a. Descriptive words used may have different
meanings to different raters.
b. Graphic rating scales are difficult to develop.
c. Raters typically try to place the same number
of employees at each level of scale.
d. Raters can use these scales without training
because they are self-explanatory.
a. Descriptive words used may have different
meanings to different raters.
70. Phrases such as “Greeted customer within 10 seconds of customer’s entry into
store,” and “Failed to greet customer until customer addressed employee,” would be typical of a
____ performance appraisal method.
a. forced distribution
b. a management by objectives
c. behaviorally-anchored rating scale
d. ranking
c. behaviorally-anchored rating scale
71. Statements that describe both desirable and undesirable employee behaviors on a
numerical scale are called
a. critical incidents.
b. categorical descriptions
c. MBO targets
d. anchors.
d. anchors.
72. What is the first step in constructing behavioral scales?
a. determining a “standard of excellence” for
each job dimension
b. identifying the most important performance
factors in an employee’s job description
c. assessing the performance of the current job
holder(s)
d. specifying the performance goals that each
employee must meet within stated time
deadlines.
b. identifying the most important performance
factors in an employee’s job description
73. Comparative methods of rating
a. are most acceptable to employees when they
are applied to administrative decisions rather
than to developmental decisions.
b. can either be statistically-based (such as
forced distribution) or simply rankings of
each employee against his/her co-workers.
c. are useful for small groups because the results
can be statistically adjusted for small
numbers.
d. are preferred by managers because the results
are easy to explain to subordinates.
b. can either be statistically-based (such as
forced distribution) or simply rankings of
each employee against his/her co-workers.
74. Karl handles the HR duties in a small commercial bakery of only 16 employees.
Nine of these employees are bakery assistants with the same job duties. Karl has decided to make
a list of the bakery assistants placing the best employee at the top and the worst employee at the
bottom, with the other bakery assistants placed in between according to how they compare with
the best and the worst employees. He is fairly satisfied that this system will work for his small
company. Karl is using the ____ system.
a. checklist
b. graphic rating scale
c. ranking
d. forced distribution
c. ranking
75. Cheryl, a branch manager at Prairie Ridge Bank, is upset that all the tellers in the
various branches will be evaluated by the ranking system. The tellers’ raises will be determined
by their ranking, and the worst-ranked teller in each branch will be terminated. Cheryl has many
concerns about using the ranking method, and she has an appointment with the executive vice
president of HR to present her arguments. All of the following are concerns she will raise
EXCEPT
a. the size of the difference in performance
among individuals is not defined in the
ranking method.
b. Cheryl’s worst performing employee may be
better than another branch manager’s average
performing employee.
c. It will be too difficult for Cheryl to
distinguish between her best and worst
performers.
d. There are 17 branches and the ranking system
will be too unwieldy to use for so many
groups.
c. It will be too difficult for Cheryl to
distinguish between her best and worst
performers.
76. Neil, the director of HR for a paper mill, has found that the supervisors in the
company give very generous and lenient appraisals to their subordinates, and it is difficult to
determine from these appraisals which employees deserve pay raises more than others. Neil has
decided to implement a ____ approach to performance appraisal to address this problem.
a. graphic rating scale
b. management-by-objectives
c. forced distribution
d. peer evaluation
c. forced distribution
77. The assumption that the performance of employees in a department correspond to
the classic “bell shaped curve” is essential to the ____ method of performance appraisal.
a. ranking
b. forced distribution
c. critical incident
d. statistical
b. forced distribution
78. Of the following performance appraisal systems, the ones most likely to be the
subject of a discrimination lawsuit is/are
a. the forced distribution system.
b. systems based on critical incidents.
c. systems using behaviorally-anchored rating
scales.
d. systems using numerical measures of
performance.
a. the forced distribution system.
79. You are the director of HR for a medium-sized regional utility company. Your
CEO attended a speech by Jack Welch, and now she wants to implement his “differentiation”
performance appraisal system in the company. This system is similar to ranking and forced
distribution. You have some concerns about the appropriateness this system because
a. this system works best in unionized
workplaces and your company is nonunion.
b. this system can be applied to managerial jobs,
but not to non-managerial jobs.
c. the performance measures in this system tend
to be both contaminated and deficient.
d. forced distribution systems have been subjects
of discrimination lawsuits.
d. forced distribution systems have been subjects
of discrimination lawsuits.
80. All of the following are recommendations for making a performance appraisal
system more effective and more defensible legally EXCEPT
a. the use of specific, objective criteria and
standards.
b. involve employees in planning and designing
the program.
c. train managers and review their ratings to
ensure favoritism is not involved.
d. use multisource methods of performance
appraisal.
d. use multisource methods of performance
appraisal.
81. In the ____ method, the manager keeps a written record of both highly favorable
and unfavorable actions in an employee’s performance during the entire rating period.
a. checklist
b. paired comparisons
c. essay
d. critical incident
d. critical incident
82. The manager of a automotive repair shop keeps a logbook in which she records
both especially good and especially poor actions of the mechanics. The manager is using the
a. essay.
b. forced distribution method.
c. BARS method.
d. critical incident method.
d. critical incident method.
83. Management-by-objectives is best for
a. reducing interrater reliability problems.
b. linking individual performance to
organizational goals.
c. minimizing instrument development time.
d. evaluating non-exempt employees.
b. linking individual performance to
organizational goals.
84. ____ specifies the performance goals that an individual and his or her manager
agree to try to attain within an appropriate length of time.
a. Performance counseling
b. Strategic performance management
c. The critical incident technique (CIT)
d. Management by objectives (MBO)
d. Management by objectives (MBO)
85. The key factor underlying the management by objectives approach is that
a. the manager and subordinate work together to
develop the goals.
b. the manager has close and daily access to the
subordinate in order to monitor his/her
progress.
c. the goals are subjective and intangible.
d. the goals will push the subordinate to the very
highest limits of his/her abilities.
a. the manager and subordinate work together to
develop the goals.
86. Of the following steps in the development of an MBO performance appraisal system,
_____________ falls earliest in the process.
a. continuous performance discussions between
the subordinate and the supervisor.
b. setting objectives for individual employees
based on organizational objectives.
c. developing accurate job descriptions
d. devising performance standards
c. developing accurate job descriptions
87. Of the types of employees listed below, the management by objective process
would work best for
a. assembly line employees at a commercial
bakery.
b. commercial loan officers in a national bank.
c. police dispatchers at in an urban police
department.
d. emergency room physicians.
b. commercial loan officers in a national bank.
88. Which of the following is FALSE?
a. Narrative methods and MBO work better for
higher-level jobs than for lower-level jobs.
b. Category scaling methods are not helpful in
measuring strategic accomplishments of
employees.
c. The MBO method takes quite a bit of time to
define expectations and explain the process to
employees.
d. It is important to use only one type of
performance appraisal method for each
category of employee.
d. It is important to use only one type of
performance appraisal method for each
category of employee.
89. The training of raters should center on minimizing rater errors and
a. documenting performance information.
b. communicating ratings to subordinates.
c. counseling subordinates to improve
performance.
d. identifying essential performance criteria.
a. documenting performance information.
90. Alvin, a sales representative for a company making industrial solvents, lost a
major customer last month. Until then, Alvin’s year has been about average in the dollar amount
of sales. Early in the year, Alvin brought in two new customers of about the size of the customer
he lost last month. Alvin’s supervisor gives Alvin an unsatisfactory rating in his annual
performance appraisal. It is likely that Alvin’s supervisor has committed the ____ error.
a. contrast
b. strictness
c. recency
d. primacy
c. recency
91. A ____ is committed when an appraiser rates all employees as average.
a. contrast error
b. central tendency error
c. generalization error
d. leniency error
b. central tendency error
92. Curtis supervises a large number of clerical employees. Several of his female
subordinates have had babies this year. Curtis has taken this into account when conducting the
performance appraisals of these subordinates, because he knows that new mothers are frequently
sleep-deprived and that this can negatively affect their accuracy and performance levels. Curtis
raises these employees’ evaluations higher than what they would have objectively been otherwise.
Curtis has committed the error of
a. leniency.
b. similar to me.
c. contrast.
d. varying standards.
d. varying standards.
93. Ambrose was rated as having average performance levels when he worked in the
design department of the Midwestern region of the company. Last year Ambrose was transferred
to the Northeastern region where he holds the same job. Although Ambrose’s production numbers
have been consistent, he has been rated as an outstanding performer this year. It is most likely that
Ambrose’s varying performance appraisals have been affected by the ____ error.
a. central tendency
b. primacy
c. halo
d. contrast
d. contrast
94. During the appraisal interview with a poor-performing subordinate, the manager
should NOT
a. focus on future development issues because
the performance being evaluated is in the past.
b. insist on the subordinate’s agreement with the
negative evaluation.
c. consider his or her own role in the
subordinate’s poor performance.
d. allow the subordinate to respond to negative
feedback
b. insist on the subordinate’s agreement with the
negative evaluation.
95. Glenda was transferred into her current department in October. In December,
Glenda is required to evaluate her subordinates’ performance. Glenda’s ratings are likely to be
affected by
a. central tendency error.
b. the varying standards effect.
c. similar to me error.
d. sampling error.
d. sampling error.
96. An appraisal interview technique that encourages employees to identify their own
performance deficiencies is termed a/an ____________ approach.
a. self-auditing
b. confessional
c. introspective
d. analytic
a. self-auditing
97. In order for employee performance data to be evaluated as evidence of good or
poor performance,
a. it is necessary for performance standards to be
developed.
b. the performance data must be quantifiable.
c. a specific action plan for performance
improvement must result.
d. multiple sources of performance data must be
combined.
a. it is necessary for performance standards to be
developed.
98. The performance appraisal interview is a type of feedback system. The components of a
feedback system include all of the following EXCEPT
a. evaluation of data.
b. data.
c. acceptance of the evaluation as fair.
d. action based on the evaluation.
c. acceptance of the evaluation as fair.
99. George supervises the work of 15 subordinates. These individuals are in a statesubsidized
work program for the chronically-unemployed that is intended to help them learn good
work habits and job skills that will allow them to move into jobs in the local economy. George is
required to appraise his subordinates’ performance each month. George
a. should focus on positive feedback because
these employees may have a low sense of
self-efficacy and will be discouraged by
negative feedback.
b. must keep in mind that his performance
appraisal may negatively affect the
employee’s ability to continue in this work
program and the employee’s ability to actually
earn a living in the future.
c. must emphasize the performance shortfalls of
the employees so that they understand the
competitive, win/lose environment they will
be in when they get jobs in the local economy.
d. owes each of these employees a true picture
of his/her performance, no matter how
difficult the conversation may be or how
difficult the employee is.
d. owes each of these employees a true picture
of his/her performance, no matter how
difficult the conversation may be or how
difficult the employee is.
100. George is a supervisor of 15 employees. Because the company pays wages lower
than the average in the locality, many of George’s subordinates have substandard skills and poor
work habits. George views his department as a training ground, where low-quality workers have
the opportunity to become higher-quality workers. Consequently, George takes the approach that
performance appraisal
a. should show his subordinates how they would
compare with employees in a higher-quality
organization as well as how they are meeting
the expectations of their current employer.
b. in this situation is best used as a tool to
develop substandard employees into more
valuable resources.
c. should be a meeting of the minds between
himself and the subordinate he is appraising
where both agree on the performance
appraisal.
d. is best used as a disciplinary tool to focus
workers’ attention on the performance
standards required.
b. in this situation is best used as a tool to
develop substandard employees into more
valuable resources.

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