Chapter 9: Performance Management

Test Bank

Multiple Choice

1. The process of measuring, communicating, and managing employee performance in the workplace so that performance is aligned with organizational strategy is called ______.

A. performance appraisal

B. performance management

C. employee feedback

D. problem-solving

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: What Is Performance Management?

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

2. Performance management involves obtaining some form of measurement of ______.

A. developmental review

B. employee performance

C. onboarding procedures

D. training outcomes

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: What Is Performance Management?

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

3. ______ are meetings managers have with their direct reports on a regular basis, usually weekly, to discuss performance goals, progress, and related issues.

A. One-on-one meetings

B. Performance appraisals

C. Paired comparisons

D. Fair hearings

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Giving Employees Feedback

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

4. The percentage of times a customer service representative is able to resolve a customer issue in just one phone call is an example of a ______ used for performance appraisal.

A. subjective assessment

B. performance gap

C. quantitative metric

D. training need

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: What Is Performance Management?

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

5. Successful performance management systems help with ______.

A. employee engagement, employee retention, and turnover

B. employee referrals, retention, and turnover

C. employee engagement, retention, and achieving organizational objectives

D. employee referrals, retention, and achieving organizational objectives

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: What Is Performance Management?

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

6. Karen is a nurse in a hospital. Her patients are complaining about her slow response when they call for her. What does Karen’s manager do before she provides coaching and additional training to help Karen improve her performance?

A. reduce Karen’s hours

B. provide feedback about performance

C. transfer Karen to another department

D. incentivize Karen with a potential bonus

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: Development and Problem Solving

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

7. The classical view of performance appraisals is that they are a(n) ______.

A. motivational tool

B. measurement tool

C. self-evaluation tool

D. engagement tool

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Performance Appraisals as a Measurement Tool

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

8. A good human resource manager knows to present performance appraisals in a way that the feedback is acceptable to employees. Acceptability leads to the feedback serving as a ______.

A. solution tool

B. debate tool

C. strategy tool

D. motivational tool

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Comprehension

Answer Location: Performance Appraisals as a Measurement Tool

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

9. Elsie, a manager, likes Heather and wants her to take over as manager when Elsie steps up to a new role next month. Elsie helps to ensure that Heather is promoted by providing an excellent performance appraisal. This is an example of using performance appraisal as a(n) ______ tool.

A. inspirational

B. motivational

C. political

D. buy-in

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: Performance Ratings as Motivated Action

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

10. ______ refers to the idea that employees should be evaluated using criteria and standards that were clearly communicated to the employee in advance.

A. Performance appraisal

B. Adequate notice

C. Performance management

D. Paired comparison

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Perceived Fairness

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

11. At the start of each year, the manager and human resource partner meet with employees to review evaluation criterion and standards for the next year. This is an example of ______.

A. fair hearing

B. adequate notice

C. judgment based on evidence

D. evaluation evidence

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: Perceived Fairness

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

12. The manager and human resource partner meet at the end of each year to review performance with the employees and explain how their performance appraisal rating was assigned. They encourage feedback and participation from the employees to increase the perception of fairness. This is an example of ______.

A. adequate notice

B. one-on-one meeting

C. chair time

D. fair hearing

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: Perceived Fairness

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

13. A formal review meeting explaining to the employee why and how a particular rating was arrived at involves ______.

A. adequate notice

B. performance appraisal

C. fair hearing

D. management by objectives

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Perceived Fairness

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

14. ______ is the principle that performance standards are administered consistently across all employees, and the ratings are, to the degree possible, free from personal biases and prejudice.

A. Judgment based on evidence

B. Management by objectives

C. Frame of reference

D. Calibration

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Perceived Fairness

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

15. Rafael spends a lot of time completing performance appraisals for his team to be certain that standards are administered fairly and the ratings are based on evidence. He works hard to remove personal biases and prejudice from the process. This is an example of ______.

A. adequate notice

B. face time

C. fair hearing

D. judgment based on evidence

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: Perceived Fairness

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

16. ______ refers to the consistency of measurement in performance appraisals.

A. Validity

B. Correlation

C. Linkage

D. Reliability

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Accuracy

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

17. ______ involves using metrics in performance appraisals that truly capture relevant dimensions of performance.

A. Validity

B. Reliability

C. Linkage

D. Correlation

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Accuracy

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

18. To ensure ______ in performance appraisals, managers use case studies to practice rating employees. They want to test that different raters evaluate the same person similarly.

A. validity

B. fair hearing

C. developmental purpose

D. interrater reliability

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Comprehension

Answer Location: Accuracy

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

19. Ranbir has a problematic employee on his team who likes to complain to human resources. To avoid conflict, Ranbir rates this employee higher than deserved on a performance review. What is this an example of?

A. unconscious bias

B. interrater reliability

C. intentional error

D. practical validity

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Application

Answer Location: Accuracy

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

20. Eric is frustrated by the performance appraisal at his company. He feels that it takes far too long to complete a single appraisal. The performance appraisal system is lacking which characteristic of an effective system?

A. strategic alignment

B. perceived fairness

C. accuracy

D. practicality

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Comprehension

Answer Location: Practicality

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

21. When performance appraisals are used for ______ purposes, it means employers are primarily interested in providing employees periodical, formal feedback on their performances.

A. management by objectives

B. administrative

C. developmental

D. critical incident

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Determining the Purposes and Desired Outcomes of Performance Appraisals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

22. When performance appraisals are used for ______ purposes, it means that they are used to make decisions in the organization, such as assigning merit pay and bonuses, or determining which employees will be sent to remedial training and which will be promoted.

A. administrative

B. management by objectives

C. developmental

D. instrumental

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Determining the Purposes and Desired Outcomes of Performance Appraisals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

23. Amanda looks forward to annual performance appraisals because this is when she finds out about her merit pay and bonus amount. This is an example of conducting a performance appraisal for ______ purposes.

A. compliance

B. developmental

C. administrative

D. transformational

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Application

Answer Location: Determining the Purposes and Desired Outcomes of Performance Appraisals

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

24. What are three ways that performance can be measured?

A. knowledge, skills, and abilities

B. traits, behaviors, and results

C. traits, skills, and abilities

D. skills, abilities, and results

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Defining Performance

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

25. Jorge evaluates the medical technicians in the emergency department on whether or not they washed their hands prior to touching a different patient. This is an example of a ______.

A. trait appraisal

B. behavioral appraisal

C. results-based appraisal

D. 360-degree appraisal

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Application

Answer Location: Behavioral Appraisals

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

26. The most objective approach to performance appraisal is ______.

A. trait

B. compliance

C. behavioral

D. results based

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Results-Based Appraisals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

27. Aaron, a new insurance agent learning the ropes and developing his style, sells insurance in a congested city with a highly saturated market for insurance sales. He did not make his sales goal this year and it was reflected negatively on his performance appraisal. Why does Aaron think this is unfair?

A. The conditions of the market are beyond his control.

B. It takes a long time to travel around the busy city to establish contacts.

C. The goal target was set too high given Aaron’s limited experience.

D. Aaron’s style is not yet as confident as some of his counterparts on the job.

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Analysis

Answer Location: Results-Based Appraisals

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

28. ______ is a management strategy where organizational goals are translated into department goals, which are converted into individual-level goals to ensure that individual and company goals and objectives are fully aligned.

A. 360-Degree feedback

B. Management by objectives

C. Diary keeping

D. Performance management

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

29. A measurable business metric that is aligned with a company’s strategy is called a ______.

A. SMART goal

B. paired comparison

C. management proposal

D. key performance indicator

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

30. ______ are defined at the company level and are measurable business metrics that are aligned with a company’s strategy.

A. Performance appraisals

B. Key performance indicators

C. Straight rankings

D. SMART goals

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

31. Goals that have the greatest motivational value are SMART goals. The S in SMART stands for ______.

A. special

B. super

C. specific

D. smart

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

32. Goals that have the greatest motivational value are SMART goals. The M in SMART stands for ______.

A. moving

B. measurable

C. motivational

D. maximizing

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

33. Goals that have the greatest motivational value are SMART goals. The A in SMART stands for ______.

A. artful

B. attainable

C. actualized

D. arrived

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

34. Goals that have the greatest motivational value are SMART goals. The R in SMART stands for ______.

A. rigorous

B. rolling

C. righteous

D. relevant

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

35. Goals that have the greatest motivational value are SMART goals. The T in SMART stands for ______.

A. tenacious

B. total

C. time-bound

D. tested

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Goal Setting

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

36. In performance appraisals, ______ involves having the rater rank order all employees from best to worst.

A. straight rankings

B. paired comparisons

C. forced distribution

D. critical incident method

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Relative Rankings

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

37. The performance appraisal approach that involves creating rankings by comparing two employees at a time, until every unique pair of employees have been compared is called ______.

A. straight rankings

B. paired comparisons

C. forced distribution

D. critical incident method

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Relative Rankings

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

38. ______, commonly known as “stack rankings,” involve the rater placing a specific percentage of employees under the exceptional, adequate, and poor performer categories.

A. Straight rankings

B. Paired comparisons

C. Forced distribution

D. Critical incident method

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Relative Rankings

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

39. Mateo is completing performance appraisals for his staff. He considers his team as a whole and then lists his most valuable employee at the top and his least valuable at the bottom. He then identifies the most valuable and least valuable employees of the remaining staff. He continues this process until all employees have been evaluated. Mateo is using which appraisal method?

A. 360-degree feedback

B. absolute ratings

C. relative ranking

D. qualitative assessment

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Application

Answer Location: Choosing the Rating Method

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

40. A ______ appraisal describes strength and limitations in narrative form as a way to provide feedback.

A. forced

B. stacked

C. paired

D. qualitative

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Qualitative Assessment

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

41. The ______ method is used to identify examples of exceptionally high and low incidents of performance and to document them in narrative form.

A. straight rankings

B. paired comparisons

C. forced distribution

D. critical incident

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Qualitative Assessment

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

42. Sophia works on the learning and development team for her company. She successfully designed the new employee onboarding program and received a lot of praise and positive feedback when it rolled out in the company. Sophia’s manager highlighted this achievement on her evaluation with a narrative about it. This is an example of the ______ method.

A. quantitative

B. traits

C. critical incident

D. behavior

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Application

Answer Location: Qualitative Assessment

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

43. Which is a risk when direct reports are asked to provide performance feedback about a manager they like?

A. leniency

B. specificity

C. development

D. feedback culture

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Direct Reports

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

44. A benefit of self-assessment in a performance review is that ______.

A. it is highly correlated to manager ratings

B. it ensures employee participation

C. it offers a 360-degree perspective

D. it contributes to a hierarchical culture

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Self-Assessment

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

45. ______ approach is a method where performance is evaluated from multiple perspectives all around the focal person, typically including manager, coworkers, and subordinates in the process.

A. Team feedback

B. Paired comparisons

C. 360-Degree feedback

D. Critical incident method

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Choosing the Source of Performance Information

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

46. To avoid the limitations of individual metrics in performance appraisals, some companies have turned to ______.

A. the net promoter score

B. team appraisals

C. 360-degree appraisals

D. organizational accountability scores

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Choosing the Ratee

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

47. In ______ systems, goals and performance metrics may be at the group level.

A. straight rankings

B. team appraisal

C. 360-degree feedback

D. forced distribution

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Choosing the Ratee

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

48. ______ occur(s) when performance review takes place on the same date for all employees.

A. 360-Degree feedback

B. Paired comparisons

C. Annual reviews

D. Forced distributions

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Knowledge

Answer Location: Deciding How Closely to Link Performance Ratings to Compensation

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

49. Companies that use performance management systems for administrative purposes find it easier to allocate their bonus budget when they conduct ______ for all employees at the same time of year.

A. annual reviews

B. budget meetings

C. calibration meetings

D. chair time

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Deciding How Closely to Link Performance Ratings to Compensation

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

50. Simone completes performance evaluations every year when an employee completes another year of employment with the company. This helps to spread evaluations out over the year so that evaluations for the whole team do not need to be completed within the same timeframe. This is an example of ______ reviews.

A. merit

B. annual

C. compensation

D. anniversary

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Application

Answer Location: Deciding How Closely to Link Performance Ratings to Compensation

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

51. The ______ error occurs when a performance appraiser tends to rate most employee highly.

A. leniency

B. severity

C. central tendency

D. calibration

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

52. The ______ error occurs when a performance appraiser tends to rate most employees close to the lower end of the scale.

A. leniency

B. severity

C. central tendency

D. calibration

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

53. Francisco, a human resource manager, is reviewing performance reviews completed by Abe for his direct reports. Francisco notices that most of Abe’s reviews are rated toward the lower end of the scale. This is an example of ______.

A. leniency

B. severity

C. central tendency

D. recency error

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Application

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

54. The ______ error occurs when a performance appraiser tends to rate almost all employees in the middle category.

A. leniency

B. severity

C. central tendency

D. calibration

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

55. The ______ occurs when a performance appraisal is based on one or two performance dimensions, with one prominent dimension positively affecting how the employee is perceived on other dimensions.

A. horns error

B. halo error

C. recency error

D. leniency error

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

56. Asher, a social worker, consistently takes the most challenging cases and manages them well. His supervisor appreciates Asher’s willingness to step up when others do not want to take on more complex and difficult cases. As result, she does not address issues with Asher’s attendance and time management. She focuses only on the positive dimension of his performance when it is time for a performance evaluation. This is an example of (a) ______ error.

A. halo

B. central tendency

C. horns

D. leniency

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Application

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

57. The ______ occurs when ratings on one dimension of performance negatively influence how the employee is perceived on other dimensions.

A. horns error

B. halo error

C. recency error

D. leniency error

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

58. Aimi missed an important client meeting and lost an account. Her manager focuses only on this dimension of her performance on her annual review without paying equal attention to the many deals Aimi closed, contributing to the company’s overall success during the year. This is an example of a(n) ______ error.

A. halo

B. horns

C. severity

D. central tendency

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Application

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

59. ______ occurs when a performance appraiser focuses on the most recent employee behaviors, rather than focusing on the entire rating period.

A. Horns error

B. Halo error

C. Recency error

D. Leniency error

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

60. The tendency to rate all employees as average is the ______ error.

A. leniency

B. severity

C. central tendency

D. halo

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Comprehension

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

61. Mia, a human resource manager, is concerned that some of the managers in the company do not have the necessary skills to build actionable development plans. What action should she take next to help address this problem?

A. provide training to managers

B. recommend that the less skilled managers be terminated

C. develop a more reliable rating system for managers

D. use a more qualitative approach for reviews

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Analysis

Answer Location: Training Managers and Employees

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

62. ______ training involves having raters observe examples of performance through videotapes and then telling them the “true score” and why raters should rate in a particular way so that different raters pay attention to similar aspects of performance.

A. Central tendency

B. Feedback

C. Frame of reference

D. Performance improvement plan

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Knowledge

Answer Location: Training Managers and Employees

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

63. ______ for managers has been shown to increase accuracy in ratings.

A. Leniency training

B. Developmental training

C. Frame of reference training

D. Interrater validity training

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Knowledge

Answer Location: Training Managers and Employees

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

64. Training managers on how to confront performance problems is likely to increase rater ______.

A. leniency

B. central tendency

C. confidence

D. speed

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Knowledge

Answer Location: Training Managers and Employees

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

65. When raters know they will need to explain their ratings to employees they tend to be ______.

A. more severe

B. more confrontational

C. more lenient

D. more confident

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Comprehension

Answer Location: Increasing Rater Accountability

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

66. Many companies believe that holding raters accountable may decrease ______.

A. halo error

B. horns error

C. leniency error

D. favoritism

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Comprehension

Answer Location: Increasing Rater Accountability

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

67. In what kind of meeting do groups of managers come together and discuss the ratings they will give their employees before ratings are finalized?

A. diary keeping

B. calibration

C. behavior tracking

D. rater motivation

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Knowledge

Answer Location: Increasing Rater Accountability

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

68. Keeping regular records of employee performance for the purpose of accurate performance appraisals is called ______.

A. auditing

B. feedback

C. diary keeping

D. critical performance

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Comprehension

Answer Location: Having Raters Keep Records of Employee Performance

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

69. A significant benefit to diary keeping is it ______.

A. enables managers to provide more detailed feedback

B. is a rapid process that can be completed with minimal training

C. ensures managers use ethical decision-making

D. can be given directly to employees in lieu of a performance appraisal

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Comprehension

Answer Location: Having Raters Keep Records of Employee Performance

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

70. A director signing off on a manager’s review of a direct report is an example of ______.

A. calibration

B. halo effect

C. rater accountability

D. ledger keeping

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Application

Answer Location: Increasing Rater Accountability

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

71. Examining whether managers use the same language to describe male and female subordinates is an example of ______.

A. favoritism

B. record keeping

C. auditing

D. discrimination

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Application

Answer Location: Auditing the System

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

72. Performance review criteria that become outdated as a result of jobs evolving is one reason that ______ is/are a best practice.

A. calibration meetings

B. diary keeping

C. audits

D. coaching

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Application

Answer Location: Auditing the System

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

73. Meena is approached by Paul, an employee who reports to her. Paul is frustrated because he is working on a report but the data he received from another department have a number of errors in it. Meena wants to help coach Paul through this situation. She should ______.

A. point out that he also makes errors sometimes

B. share with him how she has managed similar situations in the past

C. reassign the project to another employee

D. encourage him to tell the other department to make the corrections

KEY: Learning Objective: 9.5: Describe how teaching managers how to be good coaches helps improve performance management.

REF: Cognitive Domain: Application

Answer Location: Teaching Managers How to Be Good Coaches and Build Trust

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

74. To ensure that feedback is viewed as helpful and measurement is viewed as fair, ______ must exist between the manager and employee.

A. mentoring

B. praise

C. trust

D. tolerance

KEY: Learning Objective: 9.5: Describe how teaching managers how to be good coaches helps improve performance management.

REF: Cognitive Domain: Comprehension

Answer Location: Teaching Managers How to Be Good Coaches and Build Trust

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

75. The primary goal of a performance improvement plan is to ______.

A. outline the employee’s career development path

B. give an underperforming employee the chance to improve

C. lay the groundwork to terminate the employee’s employment

D. develop stretch goals for employees

KEY: Learning Objective: 9.5: Describe how teaching managers how to be good coaches helps improve performance management.

REF: Cognitive Domain: Comprehension

Answer Location: Establishing Performance Improvement Plans (PIP)

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

76. Performance improvement plans use ______ to make clear the areas that need improvement.

A. human resource partners

B. SMART goals

C. appraisals

D. threats

KEY: Learning Objective: 9.5: Describe how teaching managers how to be good coaches helps improve performance management.

REF: Cognitive Domain: Comprehension

Answer Location: Establishing Performance Improvement Plans (PIP)

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

True/False

1. Performance management and once-a-year performance appraisals often are considered synonymous terms.

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: What Is Performance Management?

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

2. Providing feedback to employees guarantees performance improvement.

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Giving Employees Feedback

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

3. Companies are interested in predicting and managing performance as an outcome.

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Knowledge

Answer Location: Data Analytics

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

4. Numerical ratings are more valuable to employees for feedback than narrative reviews with open-ended questions.

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Determining the Purposes and Desired Outcomes of Performance Appraisals

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

5. Criteria and metrics used to assess performance should be directly aligned to the employee’s personal goals.

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Comprehension

Answer Location: Defining Performance

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

6. A 360-degree feedback approach is an example of a method used to evaluate an employee from a single perspective.

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Application

Answer Location: 360-Degree Feedback

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

7. Leniency is the tendency of a rater to rate employees too highly.

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Comprehension

Answer Location: Factors Leading to Rating Errors

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

8. Liking is a possible source of rating distortion.

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Knowledge

Answer Location: Liking

Difficulty Level: Easy

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

9. Providing raters with frame of reference training improves rater accuracy.

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Comprehension

Answer Location: Training Managers and Employees

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

10. Trust between managers and employees is one of the least consequential factors in performance management.

KEY: Learning Objective: 9.5: Describe how teaching managers how to be good coaches helps improve performance management.

REF: Cognitive Domain: Comprehension

Answer Location: Teaching Managers How to Be Good Coaches and Build Trust

Difficulty Level: Medium

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

Essay

1. Analyze the characteristics of effective performance appraisal systems.

KEY: Learning Objective: 9.1: Differentiate between performance management and performance appraisals.

REF: Cognitive Domain: Analysis

Answer Location: Characteristics of Effective Performance Appraisal Systems

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

2. Examine the critical decisions that human resource departments need to make when designing a performance management system.

KEY: Learning Objective: 9.2: Compare the design features of different types of appraisals with respect to their benefits and downsides.

REF: Cognitive Domain: Analysis

Answer Location: Design Features of Performance Management Systems

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

3. Examine factors leading to rating errors when conducting performance appraisals.

KEY: Learning Objective: 9.3: Identify best practices for making performance reviews fair and unbiased.

REF: Cognitive Domain: Analysis

Answer Location: Conducting Fair Performance Reviews

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

4. Analyze ways that a company can improve the effectiveness of its performance management systems.

KEY: Learning Objective: 9.4: Explain how to implement performance management for maximum effectiveness.

REF: Cognitive Domain: Analysis

Answer Location: Improving the Effectiveness of Performance Management

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention

5. Examine how and why a performance improvement plan is used for employees who do not meet established performance standards.

KEY: Learning Objective: 9.5: Describe how teaching managers how to be good coaches helps improve performance management.

REF: Cognitive Domain: Analysis

Answer Location: Establishing Performance Improvement Plans (PIP)

Difficulty Level: Hard

TOP: AACSB Standard: Application of knowledge

SHRM: Employee Engagement & Retention