cap 17 test bank

Chapter 17 Test Bank KEY

1. Performance appraisal is best defined as the process of:

A. giving formal feedback on how well an employee is doing his or her job.

B. developing objectives that specify how each department will support organizational goals.

C. creating a back-up plan along with the original strategic plan.

D. identifying people interested in holding a particular job or working for an organization.

AACSB: Analytic

Accessibility: Keyboard Navigation

Bloom's: Remember

Difficulty: 1 Easy

Learning Objective: 17-01: Summarize the benefits of conducting performance appraisals.

Topic: Purposes of Performance Appraisal

Feedback: Performance appraisal is best defined as the process of giving formal feedback on how well an employee is doing his or her job. Most organizations require that supervisors conduct a performance appraisal of each of their employees regularly, typically once a year.

2. Which of the following is one of the advantages primarily associated with a performance appraisal?

A. It protects employees against discrimination on the basis of race.

B. It motivates employees to work on their shortcomings.

C. It encourages employees to play the role of the whistle-blower.

D. It accurately measures the resources of a firm.

AACSB: Analytic


Bloom's: Understand

Difficulty: 2 Medium



Feedback: Performance appraisals motivate employees to work on their shortcomings. Most people appreciate the time their supervisor spends discussing their work, as well as praise for good performance; just hearing the supervisor’s viewpoint can be motivating.

3. To deliver their potential benefits, performance appraisals must be completely:

A. fair and accurate.

B. subjective.

C. rigid and biased.

D. task-oriented.

AACSB: Analytic


Bloom's: Remember


Learning Objective: 17-02: Identify the steps in appraising performance systematically.

Topic: A Systematic Approach to Appraising Performance

Feedback: To deliver their potential benefits, appraisals must be completely fair and accurate.

Supervisors therefore should be systematic in appraising performance.

4. In the course of the performance appraisal process, a supervisor should ideally start with:

A. observing and measuring individual performance against standards.

B. establishing and communicating expectations for performance.

C. establishing and communicating standards for measuring performance.

D. reinforcing performance or providing remedies.

AACSB: Analytic


Bloom's: Remember




Feedback: In the course of the performance appraisal process, a supervisor should ideally start with establishing and communicating expectations for performance. A supervisor must make sure employees know and understand what is expected of them.

5. A supervisor ideally determines the expected accomplishments of a department or work group during the:

A. planning process.

B. reinforcement process.

C. directing process.

D. staffing process.

AACSB: Analytic


Bloom's: Remember




Feedback: A supervisor ideally determines the expected accomplishments of a department or work group during the planning process. Through action plans, a supervisor spells out who is to do what to accomplish those objectives.

6. Since expectations for performance are objectives, each expectation should be:

A. discreet.

B. indefinite.

C. ambiguous.

D. measurable.

AACSB: Analytic


Bloom's: Remember




Feedback: Since expectations for performance are objectives, each expectation should be measurable. In appraising performance, a supervisor’s task includes deciding how to measure employees’ performance and then making sure employees know what will be measured.

7. In the appraisal process, which step should a supervisor undertake after establishing and communicating expectations for performance?

A. Observe and measure individual performance against standards

B. Reinforce performance or provide remedies

C. Establish and communicate standards for measuring performance

D. Determine what a department or a work group should accomplish

AACSB: Analytic


Bloom's: Remember




Feedback: In the appraisal process, after a supervisor establishes and communicates expectations for performance, he or she should next establish and communicate standards for measuring performance. Because expectations for performance are objectives, each expectation should be measurable.

8. In the appraisal process, after a supervisor establishes and communicates standards for measuring performance, the next step is to:

A. observe and measure individual performance against set criteria.

B. reinforce performance or provide remedies.

C. establish and communicate expectations for performance.

D. determine what a department or a work group should accomplish.

AACSB: Analytic


Bloom's: Remember




Feedback: In the appraisal process, after a supervisor establishes and communicates expectations for performance, he or she should next observe and measure individual performance against set criteria. When preparing a performance appraisal, a supervisor compares the performance information with the standards for the employee being appraised.

9. Which of the following is true of the process of performance appraisal?

A. It is a random process that takes place in six steps.

B. It is a single, short-term event.

C. It ends with measuring individual performance against standards.

D. It enables supervisors to reinforce good performance.

AACSB: Analytic


Bloom's: Remember


Feedback: The process of performance appraisal enables supervisors to reinforce good performance. The final step of the appraisal process includes reinforcement for good performance. This can be as simple as pointing out to employees where they have performed well.

10. The last step in the performance appraisal process involves:

A. providing remedies or reinforcing performance.

B. establishing and communicating performance standards.

C. establishing and communicating performance expectations.

D. observing and measuring individual performance against standards.

AACSB: Analytic


Bloom's: Remember




Feedback: The last step in the performance appraisal process involves providing remedies or reinforcing performance. To keep employees motivated and informed, a supervisor needs to tell them when they are doing something right, not just when they are making a mistake.

11. In the appraisal process, while establishing and communicating expectations for performance, a supervisor:

A. investigates the underlying problem and identifies solutions.

B. determines what a department or a work group should accomplish.

C. decides how to measure employees’ performance.

D. gathers information about each employee’s performance.

AACSB: Analytic






Feedback: In the appraisal process, while establishing and communicating expectations for performance, a supervisor determines what a department or a work group should accomplish.

Through action plans, a supervisor spells out who is to do what to accomplish those objectives.

12. In the appraisal process, while establishing and communicating standards for measuring performance, a supervisor:



C. decides how to assess employees’ performance.


AACSB: Analytic






Feedback: In the appraisal process, while establishing and communicating standards for measuring performance, a supervisor decides how to assess employees’ performance.

Because expectations for performance are objectives, each expectation should be measurable.

13. In the appraisal process, while observing and measuring individual performance against standards, a supervisor:





AACSB: Analytic






Feedback: In the appraisal process, while observing and measuring individual performance against standards, a supervisor gathers information about each employee’s performance. This is an ongoing activity, not something the supervisor saves to do when filling out appraisal forms.

14. In the appraisal process, while reinforcing performance or providing remedies, a supervisor:





AACSB: Analytic






Feedback: In the appraisal process, while reinforcing performance or providing remedies, a supervisor investigates the underlying problem and identifies solutions. In investigating the underlying problem, a supervisor may gain important insights by asking what can be done to help the employee reach goals.

15. In the performance appraisal process, if a supervisor finds that the reason behind an employee’s poor performance is his lack of certain skills, the supervisor should ideally:

A. dismiss the concerned employee.

B. reprimand the employee in public.

C. provide the necessary training.

D. adjust the appraisal standards and ratings.

AACSB: Analytic


Bloom's: Remember




Feedback: In the performance appraisal process, if a supervisor finds that the reason behind an employee’s poor performance is his lack of certain skills, the supervisor should ideally provide the necessary training. In investigating the underlying problem, a supervisor may gain important insights by asking what can be done to help the employee reach goals.

16. In the appraisal process, while uncovering the underlying problems, if the problem is a lack of effort on an employee’s part, a supervisor should most appropriately:

A. apply the principles of motivation.

B. see that the employee gets the necessary training.

C. change the way work is done.

D. handle the situation with counseling and discipline.

AACSB: Analytic






Feedback: In the appraisal process, while uncovering the underlying problems, if the problem is a lack of effort on an employee’s part, a supervisor should most appropriately apply the principles of motivation. In investigating the underlying problem, a supervisor may gain important insights by asking what can be done to help the employee reach goals.

17. In the appraisal process, while uncovering the underlying problems, if organizational policies and procedures reward inefficient or less-than-high-quality behavior, a supervisor should most appropriately:


B. see that an employee gets the necessary training.



AACSB: Analytic






Feedback: In the appraisal process, if organizational policies and procedures reward inefficient or less-than-high-quality behavior, a supervisor should most appropriately change the way work is done. In investigating the underlying problem, a supervisor may gain important insights by asking what can be done to help an employee reach goals.

18. In the appraisal process, while uncovering the underlying problems, if performance is suffering because an employee has personal problems, a supervisor should most appropriately:


B. see that the employee gets the necessary training.



AACSB: Analytic






Feedback: In the appraisal process, if performance is suffering because an employee has personal problems, a supervisor should most appropriately handle the situation with counseling and discipline. In investigating the underlying problem, a supervisor may gain important insights by asking what can be done to help the employee reach goals.

19. During a performance appraisal, labeling people with certain characteristics is most likely to:

A. motivate employees.

B. increase the dedication of employees.

C. put employees on the defensive.

D. increase employee productivity.

AACSB: Analytic


Bloom's: Remember




Feedback: During a performance appraisal, labeling people with certain characteristics is most likely to put employees on the defensive. A performance appraisal should focus on behavior and results.

20. A performance appraisal should focus on an employee’s:

A. intelligence and experience.

B. personality and beliefs.

C. behavior and results.

D. age and qualification.

AACSB: Analytic


Bloom's: Remember




Feedback: A performance appraisal should focus on an employee’s behavior and results.

Focusing on behavior means that the appraisal should describe specific actions or patterns of actions. Focusing on results means describing the extent to which an employee has satisfied the objectives for which he or she is responsible.

21. Which of the following is a characteristic of effective performance appraisal measures?

A. They are subjective.

B. They are based on labels.

C. They are outside employees’ control.

D. They are related to specific tasks.

AACSB: Analytic


Bloom's: Remember




Feedback: Performance appraisal measures should be related to specific tasks in order to be effective. Additionally, they should be objective, job-related, based on behaviors, within employees’ control, and communicated to employees. If the performance appraisal measures are effective, they will motivate employees, not discourage them.

22. In the context of what to measure in an appraisal, focusing on behavior means that the appraisal should:

A. be based on the labels assigned to people who behave in a particular way.

B. describe specific actions or patterns of actions.

C. be subjective and outside employees’ control.

D. describe the extent to which an employee has satisfied the objectives for which he or she is responsible.

AACSB: Analytic






Feedback: In the context of what to measure in an appraisal, focusing on behavior means that the appraisal should describe specific actions or patterns of actions. If the performance appraisal measures are effective, they will motivate employees, not discourage them.

23. In the context of what to measure in an appraisal, focusing on results means that the appraisal should:

A. be based on the labels assigned to people who behave in a particular way.

B. describe specific actions or patterns of actions.

C. be subjective and outside employees’ control.

D. describe the extent to which an employee has satisfied the objectives for which he or she is responsible.

AACSB: Analytic






Feedback: In the context of what to measure in an appraisal, focusing on results means that the appraisal should describe the extent to which an employee has satisfied the objectives for which he or she is responsible. If the performance appraisal measures are effective, they will motivate employees, not discourage them.

24. The _____ published the Uniform Guidelines on Employee Selection Procedures, which include guidelines for designing and implementing performance appraisals.

A. Equal Employment Opportunity Commission

B. Association for Prohibiting Age Discrimination in Employment

C. Genetic Information Nondiscrimination Commission

D. Fair Employee Recruitment Directive

AACSB: Analytic


Bloom's: Remember


Learning Objective: 17-03: Discuss guidelines for avoiding discrimination in performance appraisals.


Feedback: The Equal Employment Opportunity Commission (EEOC) published the Uniform

Guidelines on Employee Selection Procedures, which include guidelines for designing and implementing performance appraisals. The EEOC is the government agency charged with enforcing federal laws against discrimination.

25. According to the Equal Employment Opportunity Commission’s general guidelines on performance appraisals, the behaviors or characteristics measured by a performance appraisal should strictly be:

A. related to the educational qualification of an employee.

B. related to the job and to succeeding on the job.

C. based on the company’s policies.

D. based on an employee’s personal views.

AACSB: Analytic


Bloom's: Remember




Feedback: According to the Equal Employment Opportunity Commission’s general guidelines on performance appraisals, the behaviors or characteristics measured by a performance appraisal should strictly be related to the job and to succeeding on the job.

Because of this requirement, a supervisor and others responsible for the content of performance appraisals should make sure that what they measure is still relevant to a particular job.

26. It has been observed that a majority of companies direct their managers to separate performance appraisals from discussions of pay. Which of the following is most likely to be the reason behind this?

A. The employees focus more on individual performance making them very self-centered and unwilling to work as part of a team.

B. The employees focus more on the pay leading them to utilize all kinds of unethical means to meet the set standards.

C. The employees are intimidated by this process leading to a drastic drop in their productivity.

D. The employees focus more on the pay making it difficult for supervisors to use performance evaluation as an opportunity for motivating and coaching.

AACSB: Analytic






Feedback: A majority of companies direct their managers to separate performance appraisals from discussions of pay because the employees focus more on the pay making it difficult for supervisors to use performance evaluation as an opportunity for motivating and coaching. In those organizations, a supervisor can more readily keep the appraisal focused on the employee’s performance.

27. In the context of performance appraisals and pay reviews, which of the following statements is true?

A. The pay of an employee has no link to his or her performance, as the pay for every employee is typically fixed by the EEOC.

B. The fixing of pay on the basis of performance makes training and coaching programs more effective.

C. Companies that do not base the pay structure on performance can more readily keep the appraisal focused on an employee’s performance.

D. A performance appraisal should not focus on behavior.

AACSB: Analytic






Feedback: Companies that do not base the pay structure on performance can more readily keep the appraisal focused on an employee’s performance. A majority of companies (68 percent in a recent study by Development Dimensions International) direct their managers to separate performance appraisals from discussions of pay.

28. A graphic rating scale is best defined as a performance appraisal:

A. that primarily marks the degree to which an employee has achieved various characteristics.

B. that primarily measures the relative performance of employees in a group.

C. that presents an appraiser with sets of statements describing employee behavior and requires the appraiser to rate the statements.

D. that requires a supervisor to keeps a written record of incidents that show positive and negative ways an employee has acted.

AACSB: Analytic


Bloom's: Remember


Learning Objective: 17-04: Compare types of appraisals.

Topic: Types of Appraisals

Feedback: A graphic rating scale is best defined as a performance appraisal that primarily rates the degree to which an employee has achieved various characteristics. The rating is often scored from 1 to 5, for example, with 5 representing excellent performance and 1 representing poor performance.

29. The most commonly used type of appraisal is the _____.

A. critical-incident appraisal

B. graphic rating scale

C. work-standards approach

D. behaviorally anchored rating scale

AACSB: Analytic


Bloom's: Remember




Feedback: The most commonly used type of appraisal is the graphic rating scale, which rates the degree to which an employee has achieved various characteristics, such as job knowledge or punctuality.

30. Which of the following is true of graphic rating scales?

A. They are relatively easy to use.

B. They involve ratings that are completely objective.

C. They measure the relative performance of employees in a group.

D. They are the least commonly used types of appraisals.

AACSB: Analytic


Bloom's: Remember




Feedback: Graphic rating scales are relatively easy to use. In addition, the scores provide a basis for deciding whether an employee has improved in various areas.

31. Which of the following is a disadvantage typically associated with the graphic rating scale appraisal method?

A. The rating is subjective.

B. It is very complicated to handle.

C. The rating is unfair.

D. It fails to measure the degree of improvement.

AACSB: Analytic






Feedback: A disadvantage typically associated with the graphic rating scale appraisal method is that the ratings are subjective. What one supervisor considers “excellent” may be only

“average” to another. Also, many supervisors tend to rate everyone at least a little above average.

32. Which of the following appraisal methods is best suited for measuring the relative performance of employees in a group?

A. Essay appraisal

B. Forced-choice approach

C. Paired-comparison approach

D. Critical-incident appraisal

AACSB: Analytic


Bloom's: Remember




Feedback: Paired-comparison approach is an appraisal method that is best suited for measuring the relative performance of employees in a group. A supervisor lists the employees in the group and then ranks them.

33. In which of the following types of appraisals does a supervisor list the employees in a group and then rank them?

A. Forced-choice approach

B. Work-standards approach

C. 360-degree feedback approach

D. Paired-comparison approach

AACSB: Analytic


Bloom's: Remember




Feedback: In paired-comparison approach, a supervisor lists the employees in a group and then ranks them. The paired-comparison approach measures the relative performance of employees in a group.

34. In the context of types of appraisals, the paired-comparison approach:

A. rates the degree to which an employee has achieved various characteristics.

B. combines assessments from several sources, including customers or peers.

C. can be used to identify the best candidate for a special assignment.

D. can be tailored to an organization’s objectives for employees.

AACSB: Analytic






Feedback: In the context of types of appraisals, the paired-comparison approach can be used to identify the best candidate for a special assignment. The paired-comparison approach is appropriate when a supervisor needs to find one outstanding employee in a group.

35. Which of the following is true of the paired-comparison appraisal approach?

A. It typically involves hiring organizational psychologists to analyze the performance of employees as a group.

B. It requires an appraiser to choose the most appropriate statement from a series of statements about an employee.

C. It is most effective when a supervisor wants to find one outstanding employee in a group.

D. It requires a supervisor to write a detailed description of an employee’s performance.

AACSB: Analytic






Feedback: The paired-comparison appraisal approach is most effective when a supervisor wants to find one outstanding employee in a group. It can be used to identify the best candidate for a promotion or special assignment.

36. Which of the following is a defining characteristic of the forced-choice approach to appraisal?

A. It requires a supervisor to write a detailed description of an employee’s performance.

B. It requires hiring organizational psychologists to analyze the performance of employees as a group.

C. It requires a supervisor to keep a written record of incidents that show positive and negative ways an employee has acted.

D. It requires a supervisor to choose from sets of statements, the most characteristic and the least characteristic ones describing an employee.

AACSB: Analytic






Feedback: The forced-choice approach to appraisal involves a supervisor choosing from sets of statements, the most characteristic and the least characteristic ones describing an employee. These questionnaires tend to be set up in a way that prevents a supervisor from saying only positive things about employees.

37. In the _____ approach, the appraisal form gives a supervisor sets of statements describing employee behavior.

A. forced-choice

B. work-standards

C. 360-degree feedback

D. paired-comparison

AACSB: Analytic


Bloom's: Remember




Feedback: In the forced-choice approach, the appraisal form gives a supervisor sets of statements describing employee behavior. For each set of statements, a supervisor must choose one that is most characteristic and one that is least characteristic of an employee.

38. In the context of types of appraisals, the _____ approach is used when an organization determines that supervisors have been rating an unbelievably high proportion of employees as above average.

A. forced-choice

B. work-standards



AACSB: Analytic


Bloom's: Remember




Feedback: The forced-choice approach is used when an organization determines that supervisors have been rating an unbelievably high proportion of employees as above average.

In this approach, the appraisal form gives a supervisor sets of statements describing employee behavior.

39. In a(n) _____ appraisal, a supervisor must write a description of an employee’s performance, answering questions such as “What are the major strengths of this employee?”

A. checklist

B. essay

C. critical-incident

D. 360-degree feedback

AACSB: Analytic


Bloom's: Remember




Feedback: In an essay appraisal, a supervisor must write a description of an employee’s performance, answering questions such as “What are the major strengths of this employee?”

Essay appraisals often are used along with other types of appraisals, notably graphic rating scales.

40. The behaviorally anchored rating scales are best defined as a performance appraisal:

A. that only rates the degree to which an employee has achieved various characteristics.

B. in which an employee is rated on scales containing statements describing performance in several areas.

C. that presents an appraiser with sets of statements describing employee behavior and the appraiser rates the statements.

D. in which a supervisor typically keeps a written record of incidents that show positive and negative ways an employee has acted.

AACSB: Analytic






Feedback: The behaviorally anchored rating scale is best defined as a performance appraisal in which an employee is rated on scales containing statements describing performance in

several areas. Some organizations pay behavioral scientists or organizational psychologists to create behaviorally anchored rating scales (BARS).

41. The major advantage of using behaviorally anchored rating scales is that they:

A. prevent a supervisor from saying only positive things about employees.

B. can be tailored to an organization’s objectives for employees.

C. are more subjective than some other approaches.

D. do not allow the pay structure to be linked to performance.

AACSB: Analytic






Feedback: The major advantage of using behaviorally anchored rating scales is that they can be tailored to an organization’s objectives for employees. In addition, the BARS approach is less subjective than some other approaches because it uses statements describing behavior.

42. Which of the following is true of behaviorally anchored rating scales (BARS)?

A. Some organizations pay behavioral scientists or organizational psychologists to create

BARS.

B. The major drawback of using BARS is that they cannot be tailored to the organization’s objectives for employees.

C. The BARS approach is more subjective than some other approaches because it uses statements describing behavior.

D. Developing BARS is less time consuming and therefore relatively inexpensive.

AACSB: Analytic






Feedback: Some organizations pay behavioral scientists or organizational psychologists to create BARS. The major advantage of using BARS is that they can be tailored to an organization’s objectives for employees.

43. _____ rate employee performance using a series of statements that describe the range of performance from ineffective to effective.

A. Management by objectives

B. Behaviorally anchored rating scales

C. Critical-incident appraisals

D. Graphic rating scales

AACSB: Analytic


Bloom's: Remember




Feedback: Behaviorally anchored rating scales rate employee performance using a series of statements that describe the range of performance from ineffective to effective. The advantage of this performance rating system is that it can be tailored to specific jobs and specific organizations.

44. The appraisal method that contains a series of questions such as “Does the employee have adequate job knowledge?” to which an appraiser answers yes or no is known as the:

A. essay appraisal.

B. forced-choice approach.

C. graphic rating scale.

D. checklist appraisal.

AACSB: Analytic


Bloom's: Remember




Feedback: The appraisal method that contains a series of questions such as “Does the employee have adequate job knowledge?” to which an appraiser answers yes or no is known as the checklist appraisal. Thus, a checklist is merely a record of performance, not an evaluation by a supervisor.

45. Which of the following is a disadvantage of checklist appraisal?

A. A supervisor has no way to adjust the answers for any special circumstances that affect performance.

B. The quality of the appraisal completely depends on a supervisor’s writing skills.

C. It makes some employees look good at the expense of others, which can make it ineffective for motivating team performance.

D. Supervisors tend to record negative events more than positive ones, resulting in an overly harsh appraisal.

AACSB: Analytic






Feedback: A disadvantage of checklist appraisal is that a supervisor has no way to adjust the answers for any special circumstances that affect performance. The checklist can be difficult to prepare, and each job category will probably require a different set of questions.

46. A performance appraisal method in which a supervisor keeps a record of situations that show positive and negative ways an employee has acted and uses it to assess the employee’s performance is known as the:

A. critical-incident appraisal.

B. checklist appraisal.

C. graphic rating scale.

D. forced-choice approach.

AACSB: Analytic


Bloom's: Remember




Feedback: A performance appraisal method in which a supervisor keeps a record of situations that show positive and negative ways an employee has acted and uses it to assess the

employee’s performance is known as the critical-incident appraisal. The record should include dates, people involved, actions taken, and any other relevant details.

47. Which of the following is an advantage of a critical-incident appraisal?

A. It is relatively less time consuming.

B. It is less objective than some other approaches.

C. It allows supervisors to focus more on positive events.

D. It allows focusing on actual behaviors.

AACSB: Analytic






Feedback: An advantage of a critical-incident appraisal is that it allows focusing on actual behaviors. However, keeping records of critical incidents can be time consuming, and even if a supervisor is diligent, important incidents could be overlooked.

48. Work-standards approach to appraisal is best defined as a performance appraisal:

A. that marks the degree to which an employee has achieved various characteristics.

B. in which an employee is rated on scales containing statements describing performance in several areas.

C. that presents an appraiser with sets of statements describing employee behavior and requires the appraiser to rate the statements.

D. in which an appraiser compares an employee’s performance to objective measures of what an employee should do.

AACSB: Analytic


Bloom's: Remember




Feedback: Work-standards approach to appraisal is best defined as a performance appraisal in which an appraiser compares an employee’s performance to objective measures of what an employee should do. Although the work-standards approach has been applied largely to production workers, the principle of objectively measuring outcomes makes sense for a variety of jobs.

49. To use the _____ approach, a supervisor tries to establish objective measures of performance.

A. forced-choice

B. work-standards



AACSB: Analytic


Bloom's: Remember




Feedback: To use the work-standards approach, a supervisor tries to establish objective measures of performance. Work standards are one of the tools that Bank of Newport uses to appraise its tellers’ performance.

50. The performance appraisal method in which a supervisor compares each employee’s accomplishments with the goals for that employee is referred to as:

A. critical-incident appraisal.

B. checklist appraisal.

C. work-standards approach.

D. management by objectives.

AACSB: Analytic


Bloom's: Remember




Feedback: The performance appraisal method in which a supervisor compares each employee’s accomplishments with the goals for that employee is referred to as management by objectives. The main advantages of this system are that an employee knows what is expected and a supervisor focuses on results rather than more subjective criteria.

51. Which of the following approaches to performance appraisal is also used as a planning tool in organizations?

A. Behaviorally anchored rating scales

B. Checklist appraisals

C. Graphic rating scales

D. Management by objectives

AACSB: Analytic


Bloom's: Remember




Feedback: Management by objectives approach to performance appraisal is also used as a planning tool in organizations. A supervisor compares each employee’s accomplishments with the objectives for that employee.

52. Which of the following is a defining characteristic of the 360-degree feedback performance appraisal method?

A. It requires that only a supervisor assess the subordinates.

B. It combines assessments from several sources.

C. It combines the checklist appraisal and the work-standards approach.

D. It is also known as peer review.

AACSB: Analytic






Feedback: 360-degree feedback performance appraisal method combines assessments from several sources. A recent survey found that about one out of five organizations were using some form of 360-degree feedback, including appraisal information from customers or peers.

53. Combining several sources of appraisals is called _____.

A. 360-degree feedback

B. checklist appraisal

C. essay appraisal

D. work-standards approach

AACSB: Analytic


Bloom's: Remember




Feedback: Combining several sources of appraisals is called 360-degree feedback. A recent survey found that about one out of five organizations were using some form of 360-degree feedback, including appraisal information from customers or peers.

54. Performance appraisals conducted by an employee’s co-workers are known as _____.

A. checklist appraisals

B. peer reviews

C. 360-degree appraisals

D. graphic rating scales

AACSB: Analytic


Bloom's: Remember




Feedback: Performance appraisals conducted by an employee’s co-workers are known as peer reviews. Appraisals by peers are less common, but their use is growing, especially in organizations that use teamwork.

55. For 360-feedback to be effective, the person managing the review process should:

A. ensure that the responses are anonymous.

B. exclude employees’ peers from the appraisal process.

C. only share feedback that is positive and unbiased.

D. avoid the use of self-assessments.

AACSB: Analytic






Feedback: For 360-feedback to be effective, the person managing the review process should ensure that the responses are anonymous. Subordinates especially may be afraid to respond honestly if they think that the person being reviewed will retaliate for negative comments.

56. In the context of assessments by someone other than a supervisor, supervisors:

A. often know how an employee behaves at all times and in all situations.

B. always appreciate the full impact of an employee’s behavior on people inside and outside an organization.

C. can use subordinate appraisals to supervise more effectively and to make their organization more competitive.

D. should ensure that the employees’ names and their individual responses are revealed to everyone involved.

AACSB: Analytic






Feedback: In the context of assessments by someone other than a supervisor, supervisors can use subordinate appraisals to supervise more effectively and to make their organization more competitive. At an increasing number of major corporations, subordinates rate how well their bosses manage. Typically, ratings are anonymous, to protect the workers.

57. Which of the following types of appraisals can provide information that is more useful for problem solving and employee development than the typical results of a traditional top-down appraisal?

A. Subordinate appraisals and 360-degree feedback

B. Management by objectives and checklist appraisal

C. Graphic rating scales and paired-comparison approach

D. Forced-choice approach and work-standards approach

AACSB: Analytic


Bloom's: Remember




Feedback: Subordinate appraisals and 360-degree feedback can provide information that is more useful for problem solving and employee development than the typical results of a traditional top-down appraisal. For 360-feedback to be effective, the person managing the review process should ensure that the responses are anonymous.

58. Rating employees more severely than their performances merits is referred to as _____ bias.

A. proximity

B. harshness

C. recency

D. leniency

AACSB: Analytic


Bloom's: Remember


Learning Objective: 17-05: Describe sources of bias in appraising performance.

Topic: Sources of Bias

Feedback: Rating employees more severely than their performances merits is referred to as harshness bias. New supervisors are especially susceptible to this error, because they may feel a need to be taken seriously.

59. Rating employees more favorably than their performances merits is referred to as _____ bias.

A. proximity

B. harshness

C. recency

D. leniency

AACSB: Analytic


Bloom's: Remember




Feedback: Rating employees more favorably than their performances merits is referred to as leniency bias. A supervisor who does this may want credit for developing a department full of “excellent” workers.

60. The difference between a harshness bias and a leniency bias is that:

A. the former involves selecting employee ratings in the middle of a scale, and the latter involves selecting employee ratings toward the ends.

B. the former involves rating employees more severely than their performance merits, and the latter involves rating employees more favorably than their performance merits.

C. the former involves assigning similar scores to items that are near each other on a questionnaire, and the latter involves leaving out items placed close together.

D. the former involves judging others more negatively when they are like oneself, and the latter involves judging others more positively when they are like oneself.

AACSB: Analytic






Feedback: The difference between a harshness bias and a leniency bias is that the former involves rating employees more severely than their performance merits, and the latter involves rating employees more favorably than their performance merits. Each appraisal should directly reflect an employee’s performance, not any biases of a supervisor.

61. Which of the following supervisors best demonstrates harshness bias?

A. A supervisor who gives poor ratings to good performers

B. A supervisor who focuses more on events that have occurred lately

C. A supervisor who generalizes one positive aspect of an employee to the employee’s entire performance

D. A supervisor who forms preconceived judgments about an employee based on the employee’s membership in a group

AACSB: Analytic






Feedback: A supervisor who gives poor ratings to good performers best demonstrates harshness bias. Some supervisors are prone to a harshness bias, that is, rating employees more severely than their performance merits.

62. The tendency to select employee ratings in the middle of a rating scale is called:

A. leniency bias.

B. rating tendency.

C. central tendency.

D. similarity bias.

AACSB: Analytic


Bloom's: Remember




Feedback: The tendency to select employee ratings in the middle of a rating scale is called central tendency. This bias causes a supervisor to miss important opportunities to praise or correct employees.

63. Which of the following is true of central tendency as a source of bias in performance appraisals?

A. People are comfortable taking a strong stand at either extreme than on the middle of a scale.

B. This bias causes a supervisor to miss important opportunities to praise or correct employees.

C. It is the tendency to assign similar scores to items that are near each other on a questionnaire.

D. Supervisors with this bias rate their employees more favorably than their performance merits.

AACSB: Analytic





Feedback: Central tendency causes a supervisor to miss important opportunities to praise or correct employees. People seem more comfortable on middle ground than taking a strong stand at either extreme.

64. _____ bias refers to the tendency to judge others more positively when they are like ourselves.

A. Proximity

B. Similarity

C. Recency

D. Leniency

AACSB: Analytic


Bloom's: Remember




Feedback: Similarity bias refers to the tendency to judge others more positively when they are like ourselves. Thus, supervisors tend to look more favorably on people who share their interests, tastes, background, or other characteristics.

65. The tendency to assign similar scores to items that are near each other on a questionnaire is called:

A. harshness bias.

B. similarity bias.

C. proximity bias.

D. central tendency.

AACSB: Analytic


Bloom's: Remember




Feedback: The tendency to assign similar scores to items that are near each other on a questionnaire is called proximity bias. This tendency can result in misleading appraisals.

66. Jake shares his supervisor’s views on political issues and also his interest in golf. It is observed that Jake is given an excellent appraisal report even though he deserved only an average. This form of bias is referred to as:

A. halo effect.

B. similarity bias.

C. central tendency.

D. harshness bias.

AACSB: Reflective Thinking


Bloom's: Apply

Difficulty: 3 Hard



Feedback: The form of bias explained in the scenario is similarity bias. The similarity bias refers to the tendency to judge others more positively when they are like ourselves.

67. _____ refers to the human tendency to place the most weight on events that have occurred lately.

A. Recency syndrome

B. Proximity bias

C. Halo effect

D. Central tendency

AACSB: Analytic


Bloom's: Remember




Feedback: Recency syndrome refers to the human tendency to place the most weight on events that have occurred lately. In a performance appraisal, a supervisor might give particular weight to a problem an employee caused last week or an award an employee just won, but he or she should be careful to consider events and behaviors that occurred throughout the entire period covered by the review.

68. Which of the following supervisors best demonstrates recency syndrome?


B. A supervisor who focuses more on events that have occurred lately while reviewing performance



AACSB: Analytic






Feedback: A supervisor who focuses more on events that have occurred lately best demonstrates recency syndrome. In a performance appraisal, a supervisor might give particular weight to a problem an employee caused last week or an award an employee just won, but he or she should be careful to consider events and behaviors that occurred throughout the entire period covered by the review. The most accurate way to do this is to keep records throughout the year with conducting a critical-incident appraisal.

69. While conducting performance appraisals, Mike gives more weight to factors such as a problem an employee caused last week or to an award an employee just won. This tendency is specifically referred to as the:

A. recency syndrome.

B. similarity bias.

C. proximity bias.

D. halo effect.

AACSB: Analytic






Feedback: In the scenario, Mike’s tendency is specifically referred to as recency syndrome.

The recency syndrome refers to the human tendency to place the most weight on events that have occurred most recently.

70. Which of the following appraisal methods would be most effective in checking the recency syndrome?

A. Critical-incident appraisal

B. Peer review

C. Essay appraisal

D. Graphic rating scale method

AACSB: Analytic


Bloom's: Remember




Feedback: Critical-incident appraisal methods would be most effective in checking the recency syndrome. The recency syndrome refers to the human tendency to place the most weight on events that have occurred most recently.

71. The most effective way to overcome the bias resulting from the recency syndrome is to:

A. focus on the recent information.

B. keep records throughout the year.

C. use the employee’s co-workers to do the rating.

D. use the essay appraisal method.

AACSB: Analytic






Feedback: The most effective way to overcome the bias resulting from the recency syndrome is to keep records throughout the year. The recency syndrome refers to the human tendency to place the most weight on events that have occurred most recently.

72. _____ refers to the tendency to generalize one positive or negative aspect of a person to the person’s entire performance.

A. Recency syndrome

B. Similarity bias

C. Central tendency

D. Halo effect

AACSB: Analytic


Bloom's: Remember




Feedback: Halo effect refers to the tendency to generalize one positive or negative aspect of a person to the person’s entire performance. Thus, if a supervisor thinks that a pleasant telephone manner is what makes a good customer service representative, he is apt to give high marks to a representative with a pleasant voice, no matter what the employee actually says to the customers or how reliable the performance.

73. Which of the following supervisors best demonstrates halo effect?


B. A supervisor who places the most weight on events that have occurred lately

C.

A supervisor who generalizes one positive aspect of an employee to the employee’s entire performance


AACSB: Analytic






Feedback: A supervisor who generalizes one positive aspect of an employee to the employee’s entire performance best demonstrates halo effect. The halo effect refers to the tendency to generalize one positive or negative aspect of a person to the person’s entire performance.

74. When uncertain how to answer or when the overall scoring on a test looks undesirable, a supervisor is most likely to make _____.

A. gross errors

B. guesstimates

C. random choices

D. fair judgments

AACSB: Analytic


Bloom's: Remember




Feedback: When uncertain how to answer or when the overall scoring on the test looks undesirable, a supervisor is most likely to make random choices. When using a type of appraisal that requires answers to specific questions, a supervisor might succumb to making random choices.

75. When using a type of appraisal that requires answers to specific questions, a supervisor might succumb to making _____.

A. gross errors

B. guesstimates

C. random choices

D. biased judgments

AACSB: Analytic


Bloom's: Remember




Feedback: When using a type of appraisal that requires answers to specific questions, a supervisor might succumb to making random choices. A supervisor might do this when uncertain how to answer or when the overall scoring on a test looks undesirable.

76. Sarah believes that all graduates from a certain university have poor engineering skills and uses this belief as a base to appraise the performance of all employees from that university. In this case, Sarah’s _____ is affecting the appraisal process.

A. central tendency

B. narcissism

C. ethical belief

D. prejudice

AACSB: Reflective Thinking


Bloom's: Apply

Difficulty: 3 Hard



Feedback: In the scenario, Sarah’s prejudice is affecting the appraisal process. A supervisor’s prejudices about various types of people can unfairly influence a performance appraisal.

77. Which of the following supervisors best demonstrates prejudice?


B. A supervisor who places the most weight on events that have occurred lately



AACSB: Analytic






Feedback: A supervisor who forms preconceived judgments about an employee based on the employee’s membership in a group best demonstrates prejudice. A supervisor’s prejudices about various types of people can unfairly influence a performance appraisal.

78. Which stage of the appraisal process occurs in an interview between supervisor and employee?

A. The stage at which a supervisor reinforces performance or provides remedies

B. The stage at which a supervisor establishes and communicates standards for measuring performance

C. The stage at which a supervisor establishes and communicates expectations for performance

D. The stage at which a supervisor observes and measures individual performance against standards

AACSB: Analytic


Bloom's: Remember


Learning Objective: 17-06: Explain the purpose of conducting performance appraisal interviews.

Topic: The Performance Appraisal Interview

Feedback: The last stage of the appraisal process—the stage at which a supervisor reinforces performance or provides remedies—occurs in an interview between supervisor and employee. At this time, a supervisor describes what he or she has observed and discusses this appraisal with the employee. Together they agree on areas for improvement and development.

79. The primary purpose of holding an appraisal interview should be to:

A. allow employees to demand salary increases.

B. communicate information about an employee’s performance.

C. form informal groups so as to improve employee performance.

D. sort out the problem of nepotism.

AACSB: Analytic






Feedback: The primary purpose of holding an appraisal interview should be to communicate information about an employee’s performance. Once a supervisor has evaluated an employee’s performance, the supervisor needs to convey his or her thoughts to the employee.

80. In the context of conducting an appraisal interview, a supervisor should:

A. fill the appraisal form just one hour before the interview to prevent his prejudices from clouding his judgment.

B. notify the employees about the appraisal interview ahead of time so that they get the time to think about their performance.

C. arrange the interview in an area that is easily accessible to the other employees to increase the transparency of the system.

D. discourage the employees from offering any form of feedback as this would only lead to an argument.

AACSB: Analytic




Learning Objective: 17-07: Tell how supervisors should prepare for a performance appraisal interview.


Feedback: In the context of conducting an appraisal interview, a supervisor should notify the employees about the appraisal interview ahead of time so that they get the time to think about their performance. Then the employee can contribute ideas during the interview.

81. When conducting an appraisal interview, a supervisor should first:

A. attempt to put the employee at ease.

B. reprimand the employee for his or her poor performance.

C. provoke the employee to act instinctively.

D. try to look over the mistakes of the employee.

AACSB: Analytic




Learning Objective: 17-08: Describe guidelines for conducting the interview.


Feedback: When conducting the appraisal interview, a supervisor should first attempt to put the employee at ease. Then the supervisor and employee should go over the self-appraisal, if any, and the supervisor’s appraisal of the employee.

82. In the process of conducting a performance appraisal interview, after putting the employee at ease, what should a supervisor ideally do next?

A. Review appraisal ratings and basis for ratings

B. Request and listen to the employee’s feedback

C. Decide together how to solve problems identified

D. Sign appraisal form and close on a positive note

AACSB: Analytic


Bloom's: Remember




Feedback: After putting the employee at ease, a supervisor should ideally review appraisal ratings and basis for ratings in the process of conducting a performance appraisal interview.

Following these steps in the process of conducting a performance appraisal interview will enable a supervisor to have a productive and meaningful discussion with an employee and should lead to continued employee improvement.

83. In the process of conducting a performance appraisal interview, after reviewing appraisal ratings and basis for ratings, what should a supervisor ideally do next?

A. Put the employee at ease

B. Request and listen to the employee’s feedback

C. Decide together how to solve problems identified


AACSB: Analytic


Bloom's: Remember




Feedback: In the process of conducting a performance appraisal interview, after reviewing appraisal ratings and basis for ratings, a supervisor should next request and listen to the employee’s feedback. Following these steps in the process of conducting a performance appraisal interview will enable a supervisor to have a productive and meaningful discussion with an employee and should lead to continued employee improvement.

84. In the process of conducting a performance appraisal interview, after listening to the employee’s feedback, what should a supervisor ideally do next?


B. Review appraisal ratings and basis for ratings

C. Decide with the employee how to solve problems identified


AACSB: Analytic


Bloom's: Remember




Feedback: In the process of conducting a performance appraisal interview, after listening to the employee’s feedback, a supervisor should next decide with the employee how to solve problems identified. Following these steps in the process of conducting a performance appraisal interview will enable a supervisor to have a productive and meaningful discussion with an employee and should lead to continued employee improvement.

85. In the process of conducting a performance appraisal interview, after deciding with the employee how to solve problems identified, what should a supervisor ideally do next?


B. Review appraisal ratings and basis for ratings

C. Decide with the employee how to solve problems identified


AACSB: Analytic


Bloom's: Remember




Feedback: In the process of conducting a performance appraisal interview, after deciding with the employee how to solve problems identified, a supervisor should next sign the appraisal form and close the interview on a positive note. Following these steps in the process of conducting a performance appraisal interview will enable a supervisor to have a productive and meaningful discussion with an employee and should lead to continued employee improvement.

86. In the context of conducting an appraisal interview, what is the first step toward resolving any problems described in the appraisal?

A. Reviewing the employee’s self-appraisal

B. Explaining the contents of the appraisal form

C.

Hearing the employee’s reactions

D. Describing areas for improvement

AACSB: Analytic


Bloom's: Remember




Feedback: In the context of conducting an appraisal interview, hearing the employee’s reactions is the first step toward resolving any problems described in the appraisal. This is an important time for a supervisor to keep an open mind and apply the listening skills.

87. At the end of the appraisal interview, a supervisor and an employee should ideally:

A. explain the basis for the ratings.

B. ask the human resources department to fill the appraisal form.

C. sign the appraisal form.

D. review the employee’s self-appraisal.

AACSB: Analytic






Feedback: At the end of the appraisal interview, a supervisor and an employee should ideally sign the appraisal form. By doing so, they acknowledge that the interview has been conducted and that the employee has read and understood the form.

88. Which of the following is true of the process of conducting a performance appraisal interview?

A. As soon as the interview is over, a supervisor discontinues appraising performance.

B. The first stage of the appraisal process occurs in an interview between supervisor and employee.

C. Before the appraisal interview, a supervisor should allow plenty of time for completing the appraisal form.

D. The purpose of holding an appraisal interview is to communicate information about an organization’s long-term objectives.

AACSB: Analytic






Feedback: Before the appraisal interview, a supervisor should allow plenty of time for completing the appraisal form. The form should be completed carefully and thoughtfully, not

0in a rush during the hour before the interview.

89. In the context of conducting a performance appraisal interview, what is true of follow-up?

A. A supervisor needs to follow up on any actions planned during the interview.

B. A follow-up need not be an ongoing process.

C. A follow-up should be left for the next year’s performance appraisal.

D. As soon as the interview is over, a supervisor stops appraising performance.

AACSB: Analytic






Feedback: A supervisor needs to follow up on any actions planned during the interview. Even after the interview is over, a supervisor continues appraising performance. The follow-up should be an ongoing process, not an activity left for the next year’s performance appraisal.

90. In the context of conducting a performance appraisal interview, after the interview is over, _____.

A. a supervisor and an employee should go over the self-appraisal, if any, and the supervisor’s appraisal of the employee

B. a supervisor and an employee should work together to develop solutions to any problems identified

C. a supervisor signs the appraisal form, and then closes with a positive comment

D. a supervisor needs to follow up to make sure that planned actions are taken

AACSB: Analytic






Feedback: In the context of conducting a performance appraisal interview, after the interview is over, the supervisor needs to follow up to make sure that planned actions are taken. The follow-up should be an ongoing process, not an activity left for the next year’s performance appraisal.

91. A formal performance appraisal ensures that feedback to an employee covers all important aspects of the employee’s performance.

TRUE

Feedback: A formal performance appraisal ensures that feedback to an employee covers all important aspects of the employee’s performance. On the basis of this information, the employee and supervisor can plan how to improve weak areas.

AACSB: Analytic


Bloom's: Remember




92. A performance appraisal should focus on categorizing and labeling employees to make the process more transparent.

FALSE

Feedback: Labeling people with certain characteristics is not a constructive approach to conducting an appraisal. Labels tend to put people on the defensive, and they are difficult, if not impossible, to prove.

AACSB: Analytic


Bloom's: Remember




93. The main disadvantage of a graphic rating scale is that it is relatively complex to use.

FALSE

Feedback: The main advantage of a graphic rating scale is that it is relatively easy to use. In addition, the scores provide a basis for deciding whether an employee has improved in various areas.

AACSB: Analytic


Bloom's: Remember




94. Subordinate appraisals and other 360-degree feedback contribute toward increasing instances of appraisal biases.

FALSE

Feedback: Subordinate appraisals and other 360-degree feedback can correct some of the appraisal biases. They also can provide information that is more useful for problem solving and employee development than the typical results of a traditional top-down appraisal.

AACSB: Analytic


Bloom's: Remember




95. The proximity bias is the tendency of a supervisor to judge others more positively when they are like him orher.

FALSE

Feedback: Proximity means nearness. The proximity bias refers to the tendency to assign similar scores to items that are near each other on a questionnaire.

AACSB: Analytic






96. Even after the appraisal interview is over, a supervisor continues appraising performance.

TRUE

Feedback: Even after the appraisal interview is over, a supervisor continues appraising performance. He or she needs to follow up on any actions planned during the interview.

AACSB: Analytic


Bloom's: Remember




97. Define performance appraisal and list the benefits of conducting a performance appraisal.

Feedback: A performance appraisal is a formal feedback on how well an employee is performing his or her job. The benefits of a performance appraisal are that it provides information to improve performance; it motivates employees; it keeps employees informed; it

provides important records for an organization; and it is used for decisions involving promotions, raises, and discipline.

AACSB: Analytic





98. What are the steps in the performance appraisal process?

Feedback: The appraisal process takes place in four steps. A supervisor establishes and communicates expectations for performance and standards for measuring performance. A supervisor also observes individual performance and measures it against the standards. On the basis of this information, the supervisor reinforces performance or provides remedies.

AACSB: Analytic





99. List the various types of performance appraisal methods. Briefly discuss one of the methods.

Feedback: The various performance appraisal methods are graphic rating scales, pairedcomparison approach, forced-choice approach, essay appraisal, behaviorally anchored rating scales, checklist appraisal, critical-incident appraisal, work-standards approach, management by objectives, 360-degree feedback, and peer reviews. The most commonly used type of appraisal is the graphic rating scale, which rates the degree to which an employee has achieved various characteristics, such as job knowledge or punctuality. The rating is often scored from 1 to 5, for example, with 5 representing excellent performance and 1 representing poor performance. Some appraisal forms include space for comments, so that a supervisor can provide support for his or her ratings. The main advantage of a graphic rating scale is that it is relatively easy to use. In addition, the scores provide a basis for deciding whether an employee has improved in various areas. However, the ratings themselves are subjective; what one supervisor considers “excellent” may be only “average” to another.

AACSB: Analytic





100. What are the major sources of bias related to performance appraisals?

Feedback: Major sources of bias related to performance appraisals are harshness bias, leniency bias, central tendency, proximity bias, random choices, similarity bias, recency syndrome, halo effect, and prejudices.

AACSB: Analytic





Chapter 17 Test Bank Summary

AACSB: Analytic

Category # of Questions

98

AACSB: Reflective Thinking

Accessibility: Keyboard Navigation

Bloom's: Apply

Bloom's: Remember

Bloom's: Understand

Difficulty: 1 Easy

Difficulty: 2 Medium

Difficulty: 3 Hard

Learning Objective: 17-01: Summarize the benefits of conducting performance appraisals.

Learning Objective: 17-02: Identify the steps in appraising performance systematically.

Learning Objective: 17-03: Discuss guidelines for avoiding discrimination in performance appraisals.

Learning Objective: 17-04: Compare types of appraisals.

Learning Objective: 17-05: Describe sources of bias in appraising performance.

Learning Objective: 17-06: Explain the purpose of conducting performance appraisal interviews.

Learning Objective: 17-07: Tell how supervisors should prepare for a performance appraisal interview.

Learning Objective: 17-08: Describe guidelines for conducting the interview.

Topic: A Systematic Approach to Appraising Performance

Topic: Purposes of Performance Appraisal

Topic: Sources of Bias

Topic: The Performance Appraisal Interview

Topic: Types of Appraisals

2

96

2

54

44

53

43

2

4

23

4

33

22

10

1

3

26

4

22

14

33

cap 17 test bank

Chapter 17 Test Bank KEY

Chapter 17 Test Bank Summary

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cap 17 test bank

Chapter 17 Test Bank KEY

Chapter 17 Test Bank Summary

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