Chapter 8 : Appraising and Managing Performance
Multiple Choice Questions
1.
Rapid change, tighter budgets, downsizing and restructuring, and pressures for
greater accountability are placing greater emphasis on:
(a)
(b)
(c)
(d)
2.
employee selection
performance management
participative management
employee empowerment
The evaluation of organisational and employee performance permits managers to:
(a) monitor the skills of employees
(b) determine the need for organisational restructuring and process re-engineering
(c) check that strategic business objectives are valid, are being successfully
communicated throughout the organisation and are being achieved
(d) ensure that rewards and benefits provided for employees are appropriate and
equitable
3.
Companies that manage performance:
(a) find that the financial commitment involved is not reflected in increased
performance and profit
(b) experience internal conflict resulting from perceived favouritism associated
with performance ratings
(c) have higher levels of job satisfaction and increased staff morale
(d) tend to outperform companies that do not
5.
Performance appraisal is a vital tool for strategy execution because it does all of the
following except:
(a)
(b)
(c)
(d)
6.
c
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d
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b
Und
M
signals to managers and employees what is really important
monitors employee skill development
it fixes accountability for behaviour and results
it provides ways to measure what is important
The first step in the linking of organisational performance objectives and individual
performance objectives is:
(a)
(b)
(c)
(d)
b
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setting mutual objectives that are aligned with the strategic business objectives
setting clear, fixed objectives for each employee
evaluating and rewarding performance
determining how performance standards will be monitored and measured
a
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M
7.
Many unions are opposed to any form of performance evaluation as they believe it:
(a)
(b)
(c)
(d)
8.
leads to job insecurity
fosters distrust between employer and employee
creates a competitive culture
is often difficult to determine a reliable and valid measure to use
Which of the following is not a key element of performance measurement:
(a) the creation of a shared vision of the organisation’s strategic objectives
(b) the linking of performance evaluation and employee development and rewards
to motivate and reinforce desired behaviours
(c) the use of a formal review process to evaluate individual progress towards goal
achievement
(d) an analysis of job design characteristics and review of production processes
related to performance capability
9.
Performance appraisal is concerned with:
(a) aligning performance with rewards
(b) determining how well employees are doing their jobs, communicating that
information to employees, and establishing a plan for performance
improvement
(c) establishing benchmarks against which performance is measured
(d) identifying employees with potential for further development and enhanced
career progression
11. The effectiveness of pay as a motivator depends on:
(a)
(b)
(c)
(d)
the ability to measure and identify individual performance
the amount of pay given in return for performance
the employees perception of the value of monetary rewards
the equity of pay and performance
12. All of the following except __________ are primary objectives of performance
appraisal:
(a)
(b)
(c)
(d)
c
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M
d
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M
b
Fac
M
a
Und
M
b
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development
judgement
feedback
reward
13. Building on strengths and overcoming weaknesses is central to:
(a) performance appraisal
(b) rewarding effort
(c) achieving strategic objectives
d
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(d) performance improvement
14. The extent to which an employee is able to obtain clear and direct knowledge about
how well he or she is doing is known as:
(a)
(b)
(c)
(d)
feedback
performance evaluation
job satisfaction
employee motivation
15. The evaluation of employee performance is most commonly done by:
(a)
(b)
(c)
(d)
peers
customers
immediate supervisors
human resource managers
17. Peer evaluation is being used increasingly by organisations employing:
(a)
(b)
(c)
(d)
a diverse workforce
total quality management concepts
participative management practices
both (a) and (c)
18. A benefit of upward appraisal is:
(a)
(b)
(c)
(d)
information may be limited
the authority of some managers might be undermined
enhanced employee job satisfaction
more accurate feedback is provided
19. When using an upward performance appraisal it is important to:
(a)
(b)
(c)
(d)
ensure that employees are not subject to peer pressure
provide constructive feedback
allow employees plenty of time to complete the evaluation
ensure that everyone clearly understands who will see the results and what will
be done with the information
20. Multisource evaluation which involves an individual being evaluated by his/her
superiors, peers, subordinates and others is known as:
(a)
(b)
(c)
(d)
a
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L
c
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L
b
Fac
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c
Und
M
d
Und
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c
Fac
L
peer appraisal
probationary review
360o feedback
subordinate evaluation
21. 360o feedback has been found to be a powerful performance diagnostic tool that:
(a) provides specific performance feedback and targets developmental areas
a
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(b) gives a clearer picture of employee performance
(c) identifies employee strength and weaknesses
(d) increases employee morale
23. A disadvantage of multisource evaluations is:
(a)
(b)
(c)
(d)
it enhances employee self-development
it does not ensure follow-up on development plans
it encourages and supports team initiatives
it allows for the collection of diverse perspectives
24. When performance appraisal is seen by managers as something imposed on them by
the HR department, this is probably an example of which source of error in
performance appraisal?
(a)
(b)
(c)
(d)
managers do not undertake sufficient preparation
managers give objective feedback
managers listen to the needs of the employee
managers don’t give feedback in a mechanical way
27. The over-emphasis by a manager on an employee’s most recent behaviour is:
(a)
(b)
(c)
(d)
halo effect
prejudice
leniency/strictness bias
recency effect
28. Traditional performance appraisal systems place emphasis on subjective criteria
such as:
(a)
(b)
(c)
(d)
a
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halo effect
rater errors
leniency/strictness bias
relationship effect
26. Performance review discussions can be stressful and unpleasant because:
(a)
(b)
(c)
(d)
c
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rater errors
prejudice
poor management attitude
leniency/strictness bias
25. A problem that occurs during performance appraisal, when a supervisor’s rating of a
subordinate on one factor biases the rating of that person on other factors is known
as:
(a)
(b)
(c)
(d)
b
Und
M
a
Und
M
d
Fac
L
a
Und
H
personality, loyalty and initiative
relationships, personality, work attitude
attendance record, performance quality and quantity
personal opinion, relationship with supervisor, work attitude
29. The performance criteria against which performance is measured is determined by:
b
(a)
(b)
(c)
(d)
market and competitor performance
the nature of the job and the purposes of the assessment
the work processes and importance of the job
the type of performance appraisal to be used
30. The major types of performance appraisal include all of the following except:
(a)
(b)
(c)
(d)
ranking
grading
critical incidents
sliding scales
32. When a manager records occurrences or incidents of employee job behaviour which
highlight good or bad job performance they are using which method of performance
appraisal:
(a)
(b)
(c)
(d)
determine employee attitude towards work and the organisation
evaluate behaviour demonstrated in performing a job
evaluate and compare the performance of employees with that of their peers
determine the appropriateness of employee performance and behaviour
34. A performance appraisal system which uses critical incidents to develop a list of
desired behaviours needed to successfully perform a specific job is:
(a)
(b)
(c)
(d)
a
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M
b
Und
M
a
Und
H
behaviour observation scale (BOS)
behaviourally anchored rating scale (BARS)
management by objectives
critical incidents
35. When managers are asked to describe in their own words the employees’
performance, covering the quantity and quality of work performed, job know-how,
human relations skills, etc., they are engaging in a type of appraisal system known
as:
(a)
(b)
(c)
(d)
d
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critical incidents
behaviourally anchored rating scales
assessment centres
essay descriptions
33. Behaviourally anchored rating scales (BARS) are designed to:
(a)
(b)
(c)
(d)
Und
H
b
App
M
grading
essay description
critical incidents
assessment centres
36. When a manager and subordinate mutually identify common goals, define the
subordinate’s major areas of responsibility in terms of expected results, and use
these measures in assessing the subordinate’s performance, they are most likely
d
App
H
engaging in:
(a)
(b)
(c)
(d)
behavioural anchored rating scale
an assessment centre
critical incident
management by objectives
37. The purpose of an assessment centre is to:
(a)
(b)
(c)
(d)
evaluate employee performance
identify positive and negative aspects of employee behaviour
identify promotable or high-potential employees
evaluate an employee’s social and communication skills
38. The main characteristic of a static appraisal program is:
(a)
(b)
(c)
(d)
they focus on the past
they are concerned with maintaining the status quo
a focus on developmental issues
the use of traditional forms of performance review
39. Dynamic performance appraisal programs are characterised by all of the following
qualities except:
(a)
(b)
(c)
(d)
employee involvement
effective performance measurement
a future focus
effective feedback
41. Which of the following statements about the role of goal-setting in performance
appraisal is least likely to be correct:
(a) the setting of specific goals is more likely to lead to higher performance than
simply telling an employee to ‘do your best’
(b) goals that are perceived to be easy to achieve tend to result in better
performance than goals that are perceived as difficult
(c) employee participation in goal-setting tends to lead to higher goals being set
than when the manager unilaterally sets the goals
(d) frequent performance feedback results in higher performance
42. A properly designed performance appraisal record is a valuable tool for:
(a)
(b)
(c)
(d)
a
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c
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M
goal established
performance improvement
career development
performance feedback
40. A quality goal-setting program depends upon:
(a)
(b)
(c)
(d)
c
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defining performance levels
facilitating job performance review discussion
identifying training and development needs
all of the above
d
Fac
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b
Und
M
d
Und
M
43. Effective performance appraisal interviews require all of the following except:
(a)
(b)
(c)
(d)
manager’s support of the employee
manager’s knowledge of the employee’s job and performance
manager’s understanding of the performance appraisal method
manager’s involvement of the employee in the discussion
44. When conducting successful performance review discussions, the manager should
do everything EXCEPT:
(a)
(b)
(c)
(d)
encourage the employee to talk
set specific performance improvement objectives
use positional authority throughout the discussion
discuss only those things that can be changed
45. Before conducting a performance review discussion the manager should:
(a)
(b)
(c)
(d)
review the employee’s attendance record
list all key points to be discussed in the interview
discuss the employee’s performance with their peers
consider the employee’s potential future contribution to the organisation
46. Research into the performance review discussion suggests that:
(a)
(b)
(c)
(d)
employees find them extremely stressful
they are usually so badly conducted that they do more harm than good
managers often ‘forget’ to hold them
employees should be encouraged to talk
47. Lansbury and Prideaux claim that “an appraisal system can be markedly improved
by…”
c
Und
H
c
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b
App
H
d
Fac
H
c
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(a) choosing the most appropriate appraisal method
(b) conducting performance reviews more frequently
(c) a well planned and executed training program aimed at developing interviewing
and feedback skills
(d) utilising more than one type of performance review
48. To satisfy EEO requirements, performance appraisals must be:
(a)
(b)
(c)
(d)
job-related and non-discriminatory
designed to take into account diversity issues
used to promote and encourage employees from minority groups
conducted at least twice a year
49. To successfully defend its appraisal system against a charge of discrimination an
organisation should ensure all of the following except:
(a)
(b)
(c)
(d)
use job analysis to develop the system
that the appraisal scheme is behaviour-oriented
results of appraisals are communicated to employees
the right of employees to refuse to complete a performance evaluation form
a
Und
M
d
Und
M
50. Performance appraisal is:
(a)
(b)
(c)
(d)
a management program
the responsibility of the HR department
a pointless activity
a system designed to identify poor performers
a
Und
H
True/False Questions
1.
The validity of strategic business objectives can be checked by an evaluation of
organisational and employee performance.
T
Und
M
2.
It is necessary to establish mutually agreed upon indicators of performance for
performance management to be effective.
T
Und
M
4.
Deming argued that any variation in employee performance is predominantly a
result of factors outside the individual’s control.
T
Fac
H
5.
Discrimination is not a problem associated with performance appraisal processes.
F
Und
M
7.
Feedback is useful, but not an essential part of the performance review process.
F
Und
L
9.
Research indicates that self-evaluation is not an effective way to encourage selfdevelopment, as employees demonstrate lower levels of commitment to the
organisation and its goals when performance is measured in this way.
F
App
H
10. Upward evaluation is increasingly being used to measure management performance
as subordinates are in an excellent position to appraise a manager’s leadership skills
and ongoing performance.
T
Und
M
11. Subordinate evaluation is the only appraisal considered to be free from bias.
F
Und
L
12. Information quality, specific performance feedback, and targeting developmental
areas is enhanced by the use of 360o feedback.
T
Und
H
14. Managers value performance appraisal when it is seen as facilitating the
accomplishment of the organisation’s strategic business objectives by motivating
employees to improve their performance and reach their potential.
T
App
H
15. The tendency for supervisors to give an employee a rating by generalising from one
specific factor or event is known as the central tendency.
F
Fac
L
16. Executives indicate that they were very hesitant to consciously deflate a
subordinate’s ratings because of the potential problems associated with such a tactic.
T
Und
M
17. Research shows that ratings on subjective criteria, such as dependability and
trustworthiness, were more heavily influenced by the quality and duration of the
relationship between supervisor and subordinate than actual job performance.
T
App
H
18. The employee appraisal record does not seek evaluation of an individual’s initiative.
F
Fac
M
19. When selecting a performance appraisal system it should be compatible with the
organisation’s culture.
T
Und
M
20. The critical incident approach to appraisal bases the evaluation/assessment of an
employee’s performance entirely on the most recent significant event or occurrence.
F
Und
M
21. A major drawback of the BARS method of performance appraisal is that it takes a
great deal of management time and effort to develop.
T
Und
M
22. A manager’s writing skills can influence the impression of an employee’s
performance when the essay description approach is used.
T
Fac
M
23. The effectiveness of a management-by-objectives approach to performance may
depend on national culture.
T
Und
H
25. The performance review discussion allows the manager to sit down with his or her
subordinate and explore the employee’s short-term and long-term goals.
T
App
H
Essay Questions
1.
Critically discuss the role that job analysis has in the design of an effective
performance appraisal process.
2.
Identify the characteristics of performance management and examine how this
approach differs from performance appraisal.
Critically discuss the role of constructive feedback in the performance review
discussion.
3.
4.
Discuss the importance of goal setting in employee motivation and performance
improvement.