Chap008
67 Pages

Chap008

Course Number: ECONOMIC 101, Spring 2011

College/University: Academy of Art University

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Chapter 08 - Performance Management Chapter 08 Performance Management True / False Questions 1. The link between performance management and the organization's strategies and goals is often neglected. True False 2. A performance planning and evaluation (PPE) system is any system that seeks to tie the formal performance appraisal process to the company's strategy by specifying at the beginning of the evaluation...

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08 Chapter - Performance Management Chapter 08 Performance Management True / False Questions 1. The link between performance management and the organization's strategies and goals is often neglected. True False 2. A performance planning and evaluation (PPE) system is any system that seeks to tie the formal performance appraisal process to the company's strategy by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy. True False 3. Managers are usually comfortable confronting employees with their performance weaknesses. True False 4. Validity refers to the consistency of a performance measure. True False 5. The extent to which a performance management system seeks performance consistent with the organization's strategy, goals, and culture is known as its acceptability. True False 6. Acceptability is affected by the extent to which employees believe the performance management system is consistent. True False 8-1 Chapter 08 - Performance Management 7. Multifaceted rankings require managers to rank employees within their departments from highest performer to poorest performer. True False 8. Comparative techniques of performance management virtually eliminate the problems of leniency, central tendency, and strictness. True False 9. Attribute-based performance methods are quite easy to develop and are generalizable across a variety of jobs, strategies, and organizations. True False 10. Behavior-based performance methods are the most popular performance evaluation approaches in organizations. True False 11. The critical incident technique is a behavioral approach to performance management. True False 12. An advantage of behaviorally anchored rating scales is increased interrater reliability. True False 13. A major disadvantage of assessment centers is that they do not provide a very objective measure of an individual's performance at managerial tasks. True False 8-2 Chapter 08 - Performance Management 14. Result-based approaches to performance measurement assume that subjectivity can be eliminated from the measurement process. True False 15. Management by objectives (MBO) systems seldom link employee performance to an organization's strategic goals. True False 16. A disadvantage of the result-based approaches to performance measurement is that individuals may focus only on aspects of their performance that are measured, neglecting those that are not. True False 17. The assumption of Pareto analysis is that the majority of problems are the result of a small number of causes. True False 18. The quality approach relies primarily on a combination of the attribute and results approaches to performance measurement. True False 19. The best use of self-ratings is for administrative purposes. True False 20. Subordinates are the most frequently used source of performance information. True False 8-3 Chapter 08 - Performance Management 21. A major advantage of the 360-degree appraisal is that it provides a means for minimizing bias in an otherwise subjective evaluation technique. True False 22. Leniency reflects that a manager rates all employees in the middle of the rating scale. True False 23. Appraisal politics refer to evaluators purposefully distorting a rating to achieve personal or company goals. True False 24. Once the expected performance has been defined and employees' performances have been measured, it is necessary to feed that performance information back to the employees so that they can correct any deficiencies. True False 25. Output is a factor to consider in analyzing poor performance. True False Multiple Choice Questions 26. Performance planning and evaluation systems seek to tie the formal performance appraisal process to the company's: A. organizational structure. B. stakeholders' needs. C. strategies. D. size. 8-4 Chapter 08 - Performance Management 27. The process through which an organization gets information on how closely an employee's actual performance met the performance plan is: A. performance appraisal. B. performance management. C. performance feedback. D. ability analysis. 28. Which of the following is NOT a purpose of performance management systems? A. Administrative B. Developmental C. Investigative D. Strategic 29. Which of the following is NOT a recommendation for developing an effective performance management system? A. Mirror the corporate culture and values. B. Differentiate performance subjectively and effectively. C. Adjust the system as required. D. Communicate the total rewards system. 30. _____ emphasizes the need for the performance management system to guide employees in contributing to the organization's success. A. Specificity B. Reliability C. Validity D. Strategic congruence 31. _____ are factors in a company's business strategy that give it a competitive edge. A. MBOs B. OBMs C. KPIs D. CSFs 8-5 Chapter 08 - Performance Management 32. Which performance management evaluation criterion is concerned with maximizing the overlap between actual job performance and the measure of job performance? A. Reliability B. Acceptability C. Specificity D. Validity 33. A(n) _____ measure evaluates irrelevant aspects of performance or aspects that are not job related. A. unreliable B. valid C. contaminated D. inconsistent 34. A university that assesses its faculty members more on research work than teaching, follows which performance management system? A. Contaminated B. Deficient C. Unreliable D. Inconsistent 35. The consistency among the different individuals who evaluate the employee's performance is known as: A. internal consistency reliability. B. interrater reliability. C. intrarater reliability. D. test-retest reliability. 36. A measure that results in dramatically different ratings over time lacks: A. internal consistency reliability. B. interrater reliability. C. intrarater reliability. D. test-retest reliability. 8-6 Chapter 08 - Performance Management 37. Which of the following statements about acceptability is incorrect? A. Acceptability refers to the extent to which the performance measure assesses all of the relevantand only the relevantaspects of performance. B. Acceptability is affected by the extent to which employees believe the performance management system is fair. C. The three categories of perceived fairness include procedural fairness, interpersonal fairness, and outcome fairness. D. Research suggests that performance management systems that are perceived as unfair are likely to be legally challenged, used incorrectly, and decrease employee motivation to improve. 38. The extent to which the performance measure gives guidance to employees about what is expected of them is called: A. reliability. B. validity. C. specificity. D. acceptability. 39. Which of the following is an inappropriate approach to measuring performance? A. Comparative approach B. Attribute approach C. Consequential approach D. Behavior approach 40. _____ ranking consists of a manager looking at a list of employees, deciding who the best employee is, and crossing that person's name off the list. From the remaining names, the manager decides who the worst employee is and crosses that name off the listand so forth. A. Simple B. Alternation C. Reverse D. Forced 8-7 Chapter 08 - Performance Management 41. The technique that ranks employees into predetermined categories or groups according to performance is called: A. forced distribution. B. high/low ranking system. C. paired comparison. D. strictness. 42. Companies that have clear goals and management criteria, train evaluators, use the rankings along with other HR metrics, and reward good performance find the following ranking technique useful. A. Paired comparison B. High/low ranking system C. Forced distribution D. Strictness 43. The _____ method requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he/she is considered the high performer. A. partner measurement B. mixed-standard scales C. forced distribution D. paired comparison 44. Company XYZ is facing problems of and has to make administrative decisions of promotions in order to address its requirement of more mid-level managers. Which performance management approach should it follow? A. Attribute approach B. Comparative approach C. Behavioral approach D. Quality approach 8-8 Chapter 08 - Performance Management 45. The approach to measure and manage performance that focuses on the extent to which individuals possess desirable characteristics is called the: A. attribute approach. B. leadership approach. C. personality approach. D. performance approach. 46. Which attribute approach to performance management is the most frequently used? A. Behaviorally anchored rating scales B. Mixed standard scales C. Behavior observation scales D. Graphic rating scales 47. If a manager considers one employee at a time and circles a number or a word to signify the degree to which that employee demonstrates a particular trait, he/she is using a: A. critical incidents approach. B. mixed standard scale. C. behavior observation scale. D. graphic rating scale. 48. In which performance technique are managers given three statements of performance per dimension and asked to indicate whether the employee's performance is above (+), at (0), or below (-) the statements? A. Behaviorally anchored rating scale B. Mixed-standard scale C. Behavior observation scale D. Graphic rating scale 49. Which of the following is TRUE of the attribute approach to performance management? A. They result in high strategic congruence. B. They are difficult to use. C. They are generalizable across organizations and strategies. D. They provide specific guidance and feedback to employees. 8-9 Chapter 08 - Performance Management 50. This approach to performance management fails to provide any definite guidance on how an employee can support the company's goals or correct performance deficiencies and also elicits defensiveness from employees. A. Quality approach B. Comparative approach C. Behavioral approach D. Attribute approach 51. The performance management approach that requires managers to keep a record of specific examples of effective and ineffective performance is called: A. behaviorally anchored rating scales. B. behavior observation scales. C. critical incidents. D. organizational behavior modification. 52. Which performance management technique involves the identification of a large number of critical incidents, the classification of these incidents into performance dimensions, and the rank ordering of these incidents into levels of performance? A. Behaviorally anchored rating scales B. Graphic rating scales C. Comparative rating scales D. Organizational behavior modification 53. The performance management method that requires managers to rate the frequency with which the employee has exhibited a behavior during a rating period is the: A. behaviorally anchored rating scale. B. behavioral observation scale. C. graphic rating scale. D. organizational behavior modification. 8-10 Chapter 08 - Performance Management 54. Managing the behavior of employees through a formal system of behavioral feedback and reinforcement refers to: A. behaviorally anchored rating scales. B. behavior observation scales. C. critical incidents. D. . 55. Which of the following is a process where appraisers observe the individuals' behavior and evaluate their skill or potential as managers for promotion decisions? A. Productivity measurement and evaluation system B. Management by objectives C. Assessment centers D. Organizational behavior modification 56. Which of the following is NOT true regarding behavioral approaches to performance measurement? A. They link strategy to specific behavior needed to implement strategy. B. They provide specific guidance to employees regarding expected performance. C. They result in techniques that have a high degree of validity. D. The behavioral approach might be best suited to complex jobs. 57. In what type of system are annual goals established and passed down through the organization? A. Productivity measurement and evaluation system B. Management by objectives C. Assessment centers D. Organizational behavior modification 58. Which of the following is generally NOT true of management by objectives? A. Goals are usually established unilaterally by management. B. Goals are specific, difficult, and objective in nature. C. Individual goals are linked to the company's strategic goals. D. Objective managerial feedback is provided to employees throughout the rating period. 8-11 Chapter 08 - Performance Management 59. Which of the following is a means of measuring and feeding back productivity information to personnel with the main goal of motivating employees to higher levels of productivity? A. Management by objectives B. ProMES C. Assessment centers D. Critical incidents 60. Which of the following is NOT a step in the ProMES system? A. People in the organization identify the set of activities or objectives the organization expects to accomplish. B. The staff defines indicators of the products. C. Feedback is determined using rate of return. D. The staff establishes the contingencies between the amount of the indicators and the level of evaluation associated with that amount. 61. The _____ approach minimizes subjectivity, relying on objective, quantifiable indicators of performance. A. quality B. comparative C. results D. attribute 62. A performance management system designed with a strong quality orientation can be expected to do all of the following EXCEPT: A. emphasize an assessment of both person and system factors in the measurement system. B. emphasize that managers and employees work alone to solve performance problems. C. involve both internal and external customers in setting standards and measuring performance. D. use multiple sources to evaluate person and system factors. 8-12 Chapter 08 - Performance Management 63. Advocates of the quality approach believe that most U.S. companies' performance management systems are incompatible with the quality philosophy for a number of reasons. Which one of the following is NOT among these reasons? A. Most existing systems measure performance in terms of quantity, not quality. B. They involve both internal and external customers in setting standards and measuring performance. C. Companies do not share financial rewards of successes with employees. D. Employees are held accountable for good or bad results to which they contribute but do not completely control. 64. Quality advocates suggest that performance evaluations should do all but one of the following. Name the exception. A. Performance evaluations should include a discussion of the employee's career plans. B. Two types of feedback should be provided: subjective and objective. C. Employee performance evaluations should be linked to compensation. D. The performance appraisal system should avoid providing an overall evaluation (rating) of the employee. 65. Which of the following statistical process quality control techniques helps identify redundancies in jobs that increase manufacturing or service time? A. Cause-and-effect diagrams B. Control charts C. Pareto charts D. Process-flow analysis 66. The quality control technique that lists causes of a problem in decreasing order of importance is a: A. cause-and-effect diagram. B. control chart. C. Pareto chart. D. process-flow analysis. 8-13 Chapter 08 - Performance Management 67. Which quality control technique is useful for understanding the amount of variance between an outcome and the expected value or average outcome? A. Control chart B. Histogram C. Cause-and-effect diagram D. Process-flow analysis 68. Which quality control technique shows the relationship between two variables, events, or different pieces of data? A. Scattergram B. Control chart C. Pareto chart D. Process-flow analysis 69. Identify the evaluation approach to performance measurement that meets the following criteria: very high strategic congruence, usually high validity, high reliability, high acceptability, and high specificity. A. Comparative B. Attribute C. Behavioral D. Results 70. Identify the approach to performance measurement that meets the following criteria: poor strategic congruence, modest to possibly high validity, little to modest reliability, moderate acceptability, and very low specificity. A. Comparative B. Attribute C. Behavioral D. Results 8-14 Chapter 08 - Performance Management 71. Identify the approach to performance measurement that meets the following criteria: high strategic congruence, usually high validity, usually high reliability, moderate acceptability, and very high specificity. A. Comparative B. Attribute C. Behavioral D. Results 72. Identify the approach to performance measurement that meets the following criteria: usually low strategic congruence, usually low attribute, usually low reliability, high acceptability, and very low specificity. A. Comparative B. Attribute C. Behavioral D. Results 73. Which of the following is NOT true of managers as the source of performance measures? A. Managers are the most frequently used source of performance information. B. Managers are generally motivated to make accurate ratings. C. Manager-based performance evaluations eliminate the concern of favoritism. D. Managers are viewed by employees as legitimate sources of performance information. 74. Which of the following is NOT true of peers as the source of performance measures? A. Peers have expert knowledge of job requirements. B. Peer ratings are particularly useful for administrative and strategic decision making. C. Peer ratings are particularly useful when supervisors do not have the opportunity to observe employees. D. Peers have been found to provide extremely valid assessments of performance in several different settings. 8-15 Chapter 08 - Performance Management 75. These sources of performance information are especially valuable when managers are being evaluated and often have the best opportunity to evaluate how well a manager treats employees. A. Supervisors B. Subordinates C. Top-level management D. Customers 76. Subordinates, as a source of performance information, are generally most appropriate when the performance results are to be used for: A. training purposes. B. investigative purposes. C. strategic purposes. D. developmental purposes. 77. Managerial performance appraisal that involves subordinates' evaluations of the manager's behavior or skills is: A. upward feedback. B. 360-degree feedback. C. a traditional performance appraisal. D. multi-rater feedback. 78. Using customer evaluations of employee performance is appropriate in all but one of the following situations. Name the exception. A. When the company wants an inexpensive means of evaluation. B. When an employee's job requires direct service to the customer or linking the customer to other services within the company. C. When the company's strategic goal is to integrate marketing strategies with human resource activities and policies. D. When the company is interested in gathering information to determine what products or services the customer wants. 8-16 Chapter 08 - Performance Management 79. Which rater error is made when one judges those who are comparable to him/her in the immediate work group higher than those who are not? A. Contrast B. Distributional error C. Halo/horns D. Similar to me 80. In a workgroup, a completely competent performer is working with a number of peers who are outstanding. If the competent employee receives lower-than-deserved ratings because of the outstanding colleagues, then which rater error has occurred? A. Contrast B. Distributional error C. Halo/horns D. Similar to me 81. Which rater error makes it difficult to distinguish among employees rated by the same rater and creates problems in comparing the performance of individuals rated by different raters? A. Contrast B. Distributional error C. Halo/horns D. Similar to me 82. If a student evaluating his/her professor at the end of term rates the professor low on all performance criteria due to dissatisfaction with the professor's grading scale, the student has likely committed which rater error? A. Contrast B. Halo C. Central tendency D. Horns 8-17 Chapter 08 - Performance Management 83. Which rater error leads employees to believe that no aspects of their performance need improvement? A. Contrast B. Halo C. Horns D. Similar to me 84. A situation in which evaluators purposefully distort a rating to achieve personal or company goals is referred to as: A. upward feedback. B. downward feedback. C. appraisal politics. D. calibration politics. 85. What type of training attempts to emphasize the multidimensional nature of performance and thoroughly familiarize raters with the actual content of various performance dimensions? A. Performance training B. Error reduction training C. Multidimensional training D. Rater accuracy training 86. _____ attended by managers provide a way to help ensure that performance is evaluated consistently across managers and to reduce the influence of rating errors and politics on appraisals. A. Calibration meetings B. Employee-review meetings C. Multidimensional training D. Rater accuracy training 8-18 Chapter 08 - Performance Management 87. To improve the performance feedback process, managers should do all but one of the following. Name the exception. A. Give employees feedback frequently, not just during the feedback session. B. Let employees rate their performance before the feedback session. C. Conduct the feedback session in his/her office. D. Focus on behavior or results, not on the person. 88. An employee that is performing at a barely acceptable level because of lack of ability and/or motivation to perform well, not poor work conditions, is called a(n): A. marginal employee. B. inconsistent employee. C. social loafer. D. mediocre performer. 89. In what legal suit would the plaintiff allege that the performance measurement system varies according to individuals? A. Harassment suit B. Reverse discrimination suit C. Unjust dismissal suit D. Discrimination suit 90. In what legal suit does the plaintiff claim that the termination was for reasons other than those the employer claims? A. Harassment suit B. Reverse discrimination suit C. Unjust dismissal suit D. Discrimination suit Essay Questions 8-19 Chapter 08 - Performance Management 91. Discuss the three purposes of performance management systems and the degree to which each purpose is being achieved. 92. What does the comparative approach do in terms of measuring performance? Discuss the three techniques that fall under the comparative approach. 93. Discuss the process of developing behaviorally anchored rating scales. How do behavioral observation scales (BOS) differ from behaviorally anchored rating scales? 94. What is an assessment center? What are the advantages of an assessment center? 8-20 Chapter 08 - Performance Management 95. What are the three common components of a management by objectives (MBO) system? 96. What is the main goal of the Productivity Measurement and Evaluation System (ProMES)? What are the four steps of ProMES? 97. What results can be expected from a performance management system designed with a strong quality orientation? 98. Discuss the differences between the attribute and behavioral approaches to performance measurement related to the criteria of (a) strategic congruence, (b) validity and (c) reliability. 8-21 Chapter 08 - Performance Management 99. Discuss the various rater errors in performance management. 100. Discuss at least four ways to improve the performance feedback process. 8-22 Chapter 08 - Performance Management Chapter 08 Performance Management Answer Key True / False Questions 1. (p. 353) The link between performance management and the organization's strategies and goals is often neglected. TRUE AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Easy Learning Objective: 8-1 Topic: An Organizational Model of Performance Management 2. (p. 354) A performance planning and evaluation (PPE) system is any system that seeks to tie the formal performance appraisal process to the company's strategy by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-1 Topic: An Organizational Model of Performance Management 3. (p. 356) Managers are usually comfortable confronting employees with their performance weaknesses. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-2 Topic: Developmental Purpose 8-23 Chapter 08 - Performance Management 4. (p. 361) Validity refers to the consistency of a performance measure. FALSE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-3 Topic: Validity 5. (p. 359) The extent to which a performance management system seeks performance consistent with the organization's strategy, goals, and culture is known as its acceptability. FALSE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-3 Topic: Strategic Congruence 6. (p. 362) Acceptability is affected by the extent to which employees believe the performance management system is consistent. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-3 Topic: Acceptability 7. (p. 363) Multifaceted rankings require managers to rank employees within their departments from highest performer to poorest performer. FALSE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Comparative Approach 8-24 Chapter 08 - Performance Management 8. (p. 367) Comparative techniques of performance management virtually eliminate the problems of leniency, central tendency, and strictness. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-4 Topic: The Comparative Approach 9. (p. 370) Attribute-based performance methods are quite easy to develop and are generalizable across a variety of jobs, strategies, and organizations. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Attribute Approach 10. (p. 370) Behavior-based performance methods are the most popular performance evaluation approaches in organizations. FALSE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 11. (p. 370) The critical incident technique is a behavioral approach to performance management. TRUE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-4 Topic: The Behavioral Approach 8-25 Chapter 08 - Performance Management 12. (p. 371) An advantage of behaviorally anchored rating scales is increased interrater reliability. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 13. (p. 374) A major disadvantage of assessment centers is that they do not provide a very objective measure of an individual's performance at managerial tasks. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 14. (p. 375) Result-based approaches to performance measurement assume that subjectivity can be eliminated from the measurement process. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 15. (p. 376) Management by objectives (MBO) systems seldom link employee performance to an organization's strategic goals. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 8-26 Chapter 08 - Performance Management 16. (p. 378) A disadvantage of the result-based approaches to performance measurement is that individuals may focus only on aspects of their performance that are measured, neglecting those that are not. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 17. (p. 380) The assumption of Pareto analysis is that the majority of problems are the result of a small number of causes. TRUE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-4 Topic: The Quality Approach 18. (p. 382) The quality approach relies primarily on a combination of the attribute and results approaches to performance measurement. TRUE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-5 Topic: The Quality Approach 19. (p. 387) The best use of self-ratings is for administrative purposes. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-7 Topic: Self 8-27 Chapter 08 - Performance Management 20. (p. 387) Subordinates are the most frequently used source of performance information. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-7 Topic: Managers 21. (p. 388) A major advantage of the 360-degree appraisal is that it provides a means for minimizing bias in an otherwise subjective evaluation technique. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-7 Topic: Customers 22. (p. 390) Leniency reflects that a manager rates all employees in the middle of the rating scale. FALSE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Distributional Errors 23. (p. 390) Appraisal politics refer to evaluators purposefully distorting a rating to achieve personal or company goals. TRUE AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-8 Topic: Appraisal Politics 8-28 Chapter 08 - Performance Management 24. (p. 392) Once the expected performance has been defined and employees' performances have been measured, it is necessary to feed that performance information back to the employees so that they can correct any deficiencies. TRUE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-9 Topic: Performance Feedback 25. (p. 395) Output is a factor to consider in analyzing poor performance. FALSE AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-10 Topic: What Managers can do to Diagnose Performance Problems and Manage Employees' Performance Multiple Choice Questions 26. (p. 354) Performance planning and evaluation systems seek to tie the formal performance appraisal process to the company's: A. organizational structure. B. stakeholders' needs. C. strategies. D. size. Performance planning and evaluation (PPE) system refers to any system that seeks to tie the formal performance appraisal process to the company's strategies by specifying at the beginning of the evaluation period the types and level of performance that must be accomplished in order to achieve the strategy. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-1 Topic: An Organizational Model of Performance Management 8-29 Chapter 08 - Performance Management 27. (p. 354) The process through which an organization gets information on how closely an employee's actual performance met the performance plan is: A. performance appraisal. B. performance management. C. performance feedback. D. ability analysis. Performance appraisal requires managers to at least annually communicate to employees their performance strengths and deficiencies. A good appraisal process ensures that all employees doing similar jobs are evaluated according to the same standards. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-1 Topic: An Organizational Model of Performance Management 28. (p. 355) Which of the following is NOT a purpose of performance management systems? A. Administrative B. Developmental C. Investigative D. Strategic The purposes of performance management systems are of three kinds: strategic, administrative, and developmental. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-2 Topic: Purposes of Performance Management 8-30 Chapter 08 - Performance Management 29. (p. 358) Which of the following is NOT a recommendation for developing an effective performance management system? A. Mirror the corporate culture and values. B. Differentiate performance subjectively and effectively. C. Adjust the system as required. D. Communicate the total rewards system. A recommendation for developing an effective performance management system is differentiate performance fairly and effectively. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-2 Topic: Administrative Purpose 30. (p. 359) _____ emphasizes the need for the performance management system to guide employees in contributing to the organization's success. A. Specificity B. Reliability C. Validity D. Strategic congruence Strategic congruence is the extent to which a performance management system elicits job performance that is congruent with the organization's strategy, goals, and culture. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-3 Topic: Strategic Congruence 8-31 Chapter 08 - Performance Management 31. (p. 360) _____ are factors in a company's business strategy that give it a competitive edge. A. MBOs B. OBMs C. KPIs D. CSFs Companies measure employee behavior that relates to attainment of CSFs, which increases the importance of these behaviors for employees. Employees can be held accountable and rewarded for behaviors that directly relate to the company attaining the CSFs. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-3 Topic: Strategic Congruence 32. (p. 361) Which performance management evaluation criterion is concerned with maximizing the overlap between actual job performance and the measure of job performance? A. Reliability B. Acceptability C. Specificity D. Validity Validity is the extent to which a performance measure assesses all the relevantand only the relevantaspects of performance. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-3 Topic: Validity 8-32 Chapter 08 - Performance Management 33. (p. 361) A(n) _____ measure evaluates irrelevant aspects of performance or aspects that are not job related. A. unreliable B. valid C. contaminated D. inconsistent The performance measure should seek to minimize contamination, but its complete elimination is seldom possible. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-3 Topic: Validity 34. (p. 361) A university that assesses its faculty members more on research work than teaching, follows which performance management system? A. Contaminated B. Deficient C. Unreliable D. Inconsistent A contaminated measure evaluates irrelevant aspects of performance or aspects that are not job related. AACSB: Reflective Thinking Skills BT: Application Difficulty: Medium Learning Objective: 8-3 Topic: Validity 8-33 Chapter 08 - Performance Management 35. (p. 361) The consistency among the different individuals who evaluate the employee's performance is known as: A. internal consistency reliability. B. interrater reliability. C. intrarater reliability. D. test-retest reliability. A performance measure has interrater reliability if two individuals give the same (or close to the same) evaluations of a person's job performance. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-3 Topic: Reliability 36. (p. 362) A measure that results in dramatically different ratings over time lacks: A. internal consistency reliability. B. interrater reliability. C. intrarater reliability. D. test-retest reliability. Testretest reliability is the measure which is reliable over time. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-3 Topic: Reliability 8-34 Chapter 08 - Performance Management 37. (p. 362-363) Which of the following statements about acceptability is incorrect? A. Acceptability refers to the extent to which the performance measure assesses all of the relevantand only the relevantaspects of performance. B. Acceptability is affected by the extent to which employees believe the performance management system is fair. C. The three categories of perceived fairness include procedural fairness, interpersonal fairness, and outcome fairness. D. Research suggests that performance management systems that are perceived as unfair are likely to be legally challenged, used incorrectly, and decrease employee motivation to improve. Validity is the extent to which a performance measure assesses all the relevantand only the relevantaspects of performance. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-3 Topic: Acceptability 38. (p. 363) The extent to which the performance measure gives guidance to employees about what is expected of them is called: A. reliability. B. validity. C. specificity. D. acceptability. Specificity is relevant to both the strategic and developmental purposes of performance management. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-3 Topic: Specificity 8-35 Chapter 08 - Performance Management 39. (p. 363) Which of the following is an inappropriate approach to measuring performance? A. Comparative approach B. Attribute approach C. Consequential approach D. Behavior approach The comparative approach to performance measurement requires the rater to compare an individual's performance with that of others. The attribute approach to performance management focuses on the extent to which individuals have certain attributes (characteristics or traits) believed desirable for the company's success. The behavioral approach to performance management attempts to define the behaviors an employee must exhibit to be effective in the job. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: Approaches to Measuring Performance 40. (p. 363) _____ ranking consists of a manager looking at a list of employees, deciding who the best employee is, and crossing that person's name off the list. From the remaining names, the manager decides who the worst employee is and crosses that name off the listand so forth. A. Simple B. Alternation C. Reverse D. Forced Alternation ranking is a type of ranking, which is a comparative approach technique. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Comparative Approach 8-36 Chapter 08 - Performance Management 41. (p. 365) The technique that ranks employees into predetermined categories or groups according to performance is called: A. forced distribution. B. high/low ranking system. C. paired comparison. D. strictness. The forced distribution method uses a ranking format. In forced distribution employees are grouped into three, four, or five categories usually of unequal size indicating the best workers, the worst workers, and one or more categories in between. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Comparative Approach 42. (p. 366) Companies that have clear goals and management criteria, train evaluators, use the rankings along with other HR metrics, and reward good performance find the following ranking technique useful. A. Paired comparison B. High/low ranking system C. Forced distribution D. Strictness The forced distribution method also uses a ranking format, but employees are ranked in groups. This technique requires the manager to put certain of percentages employees into predetermined categories. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Comparative Approach 8-37 Chapter 08 - Performance Management 43. (p. 367) The _____ method requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he/she is considered the high performer. A. partner measurement B. mixed-standard scales C. forced distribution D. paired comparison The paired comparison method tends to be time-consuming for managers and will become more so as organizations become flatter with an increased span of control. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Comparative Approach 44. (p. 367) Company XYZ is facing problems of and has to make administrative decisions of promotions in order to address its requirement of more mid-level managers. Which performance management approach should it follow? A. Attribute approach B. Comparative approach C. Behavioral approach D. Quality approach The comparative approach to performance measurement requires the rater to compare an individual's performance with that of others. It is easy to develop, easy to use; thus, often accepted by users. AACSB: Reflective Thinking Skills BT: Application Difficulty: Hard Learning Objective: 8-4 Topic: The Comparative Approach 8-38 Chapter 08 - Performance Management 45. (p. 367) The approach to measure and manage performance that focuses on the extent to which individuals possess desirable characteristics is called the: A. attribute approach. B. leadership approach. C. personality approach. D. performance approach. The techniques that use attribute approach define a set of traitssuch as initiative, leadership, and competitivenessand evaluate individuals on them. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-4 Topic: The Attribute Approach 46. (p. 368) Which attribute approach to performance management is the most frequently used? A. Behaviorally anchored rating scales B. Mixed standard scales C. Behavior observation scales D. Graphic rating scales Graphic rating scales can provide a number of different points (a discrete scale) or a continuum along which the rater simply places a check mark (a continuous scale). AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-4 Topic: The Attribute Approach 8-39 Chapter 08 - Performance Management 47. (p. 368) If a manager considers one employee at a time and circles a number or a word to signify the degree to which that employee demonstrates a particular trait, he/she is using a: A. critical incidents approach. B. mixed standard scale. C. behavior observation scale. D. graphic rating scale. The most common form that the attribute approach to performance management takes is the graphic rating scale. It can provide a number of different points (a discrete scale) or a continuum along which the rater simply places a check mark (a continuous scale). AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Attribute Approach 48. (p. 368) In which performance technique are managers given three statements of performance per dimension and asked to indicate whether the employee's performance is above (+), at (0), or below (-) the statements? A. Behaviorally anchored rating scale B. Mixed-standard scale C. Behavior observation scale D. Graphic rating scale Mixed-standard scales were developed to get around some of the problems with graphic rating scales. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Attribute Approach 8-40 Chapter 08 - Performance Management 49. (p. 370) Which of the following is TRUE of the attribute approach to performance management? A. They result in high strategic congruence. B. They are difficult to use. C. They are generalizable across organizations and strategies. D. They provide specific guidance and feedback to employees. Attribute-based performance methods are the most popular methods in organizations. If much attention is devoted to identifying those attributes relevant to job performance and carefully defining them on the rating instrument, they can be as reliable and valid as more elaborate measurement techniques. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Hard Learning Objective: 8-4 Topic: The Attribute Approach 50. (p. 370) This approach to performance management fails to provide any definite guidance on how an employee can support the company's goals or correct performance deficiencies and also elicits defensiveness from employees. A. Quality approach B. Comparative approach C. Behavioral approach D. Attribute approach Attribute approach techniques fall short on several of the criteria for effective performance management. There is usually little congruence between the techniques and the company's strategy. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Hard Learning Objective: 8-4 Topic: The Attribute Approach 8-41 Chapter 08 - Performance Management 51. (p. 370) The performance management approach that requires managers to keep a record of specific examples of effective and ineffective performance is called: A. behaviorally anchored rating scales. B. behavior observation scales. C. critical incidents. D. organizational behavior modification. Critical incidents give specific feedback to employees about what they do well and what they do poorly, and they can be tied to the company's strategy by focusing on incidents that best support that strategy. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 52. (p. 371) Which performance management technique involves the identification of a large number of critical incidents, the classification of these incidents into performance dimensions, and the rank ordering of these incidents into levels of performance? A. Behaviorally anchored rating scales B. Graphic rating scales C. Comparative rating scales D. Organizational behavior modification Behaviorally anchored rating scales can increase interrater reliability by providing a precise and complete definition of the performance dimension. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 8-42 Chapter 08 - Performance Management 53. (p. 371) The performance management method that requires managers to rate the frequency with which the employee has exhibited a behavior during a rating period is the: A. behaviorally anchored rating scale. B. behavioral observation scale. C. graphic rating scale. D. organizational behavior modification. A behavioral observation scale (BOS) is a variation of a BARS. Rather than discarding a large number of the behaviors that exemplify effective or ineffective performance, a BOS uses many of them to more specifically define all the behaviors that are necessary for effective performance. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 54. (p. 373) Managing the behavior of employees through a formal system of behavioral feedback and reinforcement refers to: A. behaviorally anchored rating scales. B. behavior observation scales. C. critical incidents. D. . Organizational behavior modification builds on the behaviorist view of motivation, which holds that individuals' future behavior is determined by past behaviors that have been positively reinforced. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 8-43 Chapter 08 - Performance Management 55. (p. 374) Which of the following is a process where appraisers observe the individuals' behavior and evaluate their skill or potential as managers for promotion decisions? A. Productivity measurement and evaluation system B. Management by objectives C. Assessment centers D. Organizational behavior modification Assessment centers allow specific performance feedback, and individualized developmental plans can be designed. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 56. (p. 375) Which of the following is NOT true regarding behavioral approaches to performance measurement? A. They link strategy to specific behavior needed to implement strategy. B. They provide specific guidance to employees regarding expected performance. C. They result in techniques that have a high degree of validity. D. The behavioral approach might be best suited to complex jobs. The behavioral approach might be best suited to less complex jobs (where the best way to achieve results is somewhat clear) and least suited to complex jobs (where there are multiple ways, or behaviors, to achieve success). AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 8-44 Chapter 08 - Performance Management 57. (p. 375) In what type of system are annual goals established and passed down through the organization? A. Productivity measurement and evaluation system B. Management by objectives C. Assessment centers D. Organizational behavior modification Management by objectives systems have three common components. They require specific, difficult, objective goals. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 58. (p. 375-376) Which of the following is generally NOT true of management by objectives? A. Goals are usually established unilaterally by management. B. Goals are specific, difficult, and objective in nature. C. Individual goals are linked to the company's strategic goals. D. Objective managerial feedback is provided to employees throughout the rating period. The goals are not usually set unilaterally by management but with the managers' and subordinates' participation. And the manager gives objective feedback throughout the rating period to monitor progress toward the goals. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 8-45 Chapter 08 - Performance Management 59. (p. 376) Which of the following is a means of measuring and feeding back productivity information to personnel with the main goal of motivating employees to higher levels of productivity? A. Management by objectives B. ProMES C. Assessment centers D. Critical incidents The main goal of ProMES is to motivate employees to higher levels of productivity. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 60. (p. 376-377) Which of the following is NOT a step in the ProMES system? A. People in the organization identify the set of activities or objectives the organization expects to accomplish. B. The staff defines indicators of the products. C. Feedback is determined using rate of return. D. The staff establishes the contingencies between the amount of the indicators and the level of evaluation associated with that amount. The fourth step in ProMES system is, a feedback system is developed that provides employees and work groups with information about their specific level of performance on each of the indicators. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 8-46 Chapter 08 - Performance Management 61. (p. 377) The _____ approach minimizes subjectivity, relying on objective, quantifiable indicators of performance. A. quality B. comparative C. results D. attribute Results approach is highly acceptable to both managers and employees. It links an individual's results with the organization's strategies and goals. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 62. (p. 379) A performance management system designed with a strong quality orientation can be expected to do all of the following EXCEPT: A. emphasize an assessment of both person and system factors in the measurement system. B. emphasize that managers and employees work alone to solve performance problems. C. involve both internal and external customers in setting standards and measuring performance. D. use multiple sources to evaluate person and system factors. A performance management system designed with a strong quality orientation can be expected to emphasize that managers and employees work together to solve performance problems. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-4 Topic: The Quality Approach 8-47 Chapter 08 - Performance Management 63. (p. 379) Advocates of the quality approach believe that most U.S. companies' performance management systems are incompatible with the quality philosophy for a number of reasons. Which one of the following is NOT among these reasons? A. Most existing systems measure performance in terms of quantity, not quality. B. They involve both internal and external customers in setting standards and measuring performance. C. Companies do not share financial rewards of successes with employees. D. Employees are held accountable for good or bad results to which they contribute but do not completely control. A performance management system designed with a strong quality orientation can be expected to involve both internal and external customers in setting standards and measuring performance. Also, rewards not being connected to business results is one of the reason advocates of the quality approach believe that most U.S. companies' performance management systems are incompatible with the quality philosophy. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Hard Learning Objective: 8-4 Topic: The Quality Approach 64. (p. 379-380) Quality advocates suggest that performance evaluations should do all but one of the following. Name the exception. A. Performance evaluations should include a discussion of the employee's career plans. B. Two types of feedback should be provided: subjective and objective. C. Employee performance evaluations should be linked to compensation. D. The performance appraisal system should avoid providing an overall evaluation (rating) of the employee. Linking compensation to the performance management system is one of the recommendations for developing an effective performance management system. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Hard Learning Objective: 8-4 Topic: The Quality Approach 8-48 Chapter 08 - Performance Management 65. (p. 380) Which of the following statistical process quality control techniques helps identify redundancies in jobs that increase manufacturing or service time? A. Cause-and-effect diagrams B. Control charts C. Pareto charts D. Process-flow analysis Process-flow analysis identifies each action and decision necessary to complete work, such as waiting on a customer or assembling a television set. AACSB: Reflective Thinking Skills, Statistical Data Analysis & Management Science BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Quality Approach 66. (p. 380) The quality control technique that lists causes of a problem in decreasing order of importance is a: A. cause-and-effect diagram. B. control chart. C. Pareto chart. D. process-flow analysis. A Pareto chart highlights the most important cause of a problem. The assumption of Pareto analysis is that the majority of problems are the result of a small number of causes. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Quality Approach 8-49 Chapter 08 - Performance Management 67. (p. 380) Which quality control technique is useful for understanding the amount of variance between an outcome and the expected value or average outcome? A. Control chart B. Histogram C. Cause-and-effect diagram D. Process-flow analysis Histograms display distributions of large sets of data. Data are grouped into a smaller number of categories or classes. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Quality Approach 68. (p. 382) Which quality control technique shows the relationship between two variables, events, or different pieces of data? A. Scattergram B. Control chart C. Pareto chart D. Process-flow analysis Scattergrams help employees determine whether the relationship between two variables or events is positive, negative, or zero. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Quality Approach 8-50 Chapter 08 - Performance Management 69. (p. 383) Identify the evaluation approach to performance measurement that meets the following criteria: very high strategic congruence, usually high validity, high reliability, high acceptability, and high specificity. A. Comparative B. Attribute C. Behavioral D. Results The results approach has a very high strategic congruence, high validity, high reliability, high acceptability, and high specificity compared to comparative, attribute, behavioral, and quality approaches. AACSB: Reflective Thinking Skills BT: Application Difficulty: Hard Learning Objective: 8-5 Topic: Approaches to Measuring Performance 70. (p. 383) Identify the approach to performance measurement that meets the following criteria: poor strategic congruence, modest to possibly high validity, little to modest reliability, moderate acceptability, and very low specificity. A. Comparative B. Attribute C. Behavioral D. Results Comparative approach has poor strategic congruence, modest to possibly high validity, little to modest reliability, moderate acceptability, and very low specificity compared to results, attribute, behavioral, and quality approaches. AACSB: Reflective Thinking Skills BT: Application Difficulty: Hard Learning Objective: 8-5 Topic: Approaches to Measuring Performance 8-51 Chapter 08 - Performance Management 71. (p. 383) Identify the approach to performance measurement that meets the following criteria: high strategic congruence, usually high validity, usually high reliability, moderate acceptability, and very high specificity. A. Comparative B. Attribute C. Behavioral D. Results Behavioral approach has high strategic congruence, high validity, high reliability, moderate acceptability, and very high specificity compared to results, attribute, comparative, and quality approaches. AACSB: Reflective Thinking Skills BT: Application Difficulty: Hard Learning Objective: 8-5 Topic: Approaches to Measuring Performance 72. (p. 383) Identify the approach to performance measurement that meets the following criteria: usually low strategic congruence, usually low attribute, usually low reliability, high acceptability, and very low specificity. A. Comparative B. Attribute C. Behavioral D. Results Attribute approach has low strategic congruence, low attribute, low reliability, high acceptability, and very low specificity compared to results, behavioral, comparative, and quality approaches. AACSB: Reflective Thinking Skills BT: Application Difficulty: Hard Learning Objective: 8-5 Topic: Approaches to Measuring Performance 8-52 Chapter 08 - Performance Management 73. (p. 383, 385) Which of the following is NOT true of managers as the source of performance measures? A. Managers are the most frequently used source of performance information. B. Managers are generally motivated to make accurate ratings. C. Manager-based performance evaluations eliminate the concern of favoritism. D. Managers are viewed by employees as legitimate sources of performance information. Some supervisors may be so biased against a particular employee that to use the supervisor as the sole source of information would result in less-than-accurate measures for that individual. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-7 Topic: Managers 74. (p. 385) Which of the following is NOT true of peers as the source of performance measures? A. Peers have expert knowledge of job requirements. B. Peer ratings are particularly useful for administrative and strategic decision making. C. Peer ratings are particularly useful when supervisors do not have the opportunity to observe employees. D. Peers have been found to provide extremely valid assessments of performance in several different settings. Disadvantage of peer rating is that when the evaluations are made for administrative decisions, peers often find the situation of being both rater and ratee uncomfortable. When these ratings are used only for developmental purposes, however, peers react favorably. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-7 Topic: Peers 8-53 Chapter 08 - Performance Management 75. (p. 386) These sources of performance information are especially valuable when managers are being evaluated and often have the best opportunity to evaluate how well a manager treats employees. A. Supervisors B. Subordinates C. Top-level management D. Customers One problem with subordinate evaluations is that they give subordinates power over their managers, thus putting the manager in a difficult situation. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-7 Topic: Subordinates 76. (p. 386) Subordinates, as a source of performance information, are generally most appropriate when the performance results are to be used for: A. training purposes. B. investigative purposes. C. strategic purposes. D. developmental purposes. Subordinates are an especially valuable source of performance information when managers are evaluated. Subordinates often have the best opportunity to evaluate how well a manager treats employees. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-7 Topic: Subordinates 8-54 Chapter 08 - Performance Management 77. (p. 386) Managerial performance appraisal that involves subordinates' evaluations of the manager's behavior or skills is: A. upward feedback. B. 360-degree feedback. C. a traditional performance appraisal. D. multi-rater feedback. Upward feedback refers to appraisals that involve collecting subordinates' evaluations of manager's behavior or skills. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy Learning Objective: 8-7 Topic: Subordinates 78. (p. 387) Using customer evaluations of employee performance is appropriate in all but one of the following situations. Name the exception. A. When the company wants an inexpensive means of evaluation. B. When an employee's job requires direct service to the customer or linking the customer to other services within the company. C. When the company's strategic goal is to integrate marketing strategies with human resource activities and policies. D. When the company is interested in gathering information to determine what products or services the customer wants. The weakness of customer surveys is their expense. Printing, postage, telephone, and labor can add up to hundreds of dollars for the evaluation of one individual. Thus many companies conduct such evaluations only once a year for a short time. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Hard Learning Objective: 8-7 Topic: Customers 8-55 Chapter 08 - Performance Management 79. (p. 388) Which rater error is made when one judges those who are comparable to him/her in the immediate work group higher than those who are not? A. Contrast B. Distributional error C. Halo/horns D. Similar to me Most of us tend to think of ourselves as effective, and so if others are like usin race, gender, background, attitudes, or beliefswe assume that they too are effective. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Similar to Me 80. (p. 388) In a workgroup, a completely competent performer is working with a number of peers who are outstanding. If the competent employee receives lower-than-deserved ratings because of the outstanding colleagues, then which rater error has occurred? A. Contrast B. Distributional error C. Halo/horns D. Similar to me Contrast error occurs when we compare individuals with one another instead of against an objective standard. AACSB: Business Knowledge and Analytic Skills BT: Application Difficulty: Medium Learning Objective: 8-8 Topic: Contrast 8-56 Chapter 08 - Performance Management 81. (p. 390) Which rater error makes it difficult to distinguish among employees rated by the same rater and creates problems in comparing the performance of individuals rated by different raters? A. Contrast B. Distributional error C. Halo/horns D. Similar to me Distributional errors are the result of a rater's tendency to use only one part of the rating scale. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Distributional Errors 82. (p. 390) If a student evaluating his/her professor at the end of term rates the professor low on all performance criteria due to dissatisfaction with the professor's grading scale, the student has likely committed which rater error? A. Contrast B. Halo C. Central tendency D. Horns Horns error works in the opposite direction: one negative aspect results in the rater assigning low ratings to all the other aspects. AACSB: Reflective Thinking Skills BT: Application Difficulty: Medium Learning Objective: 8-8 Topic: Halo and Horns 8-57 Chapter 08 - Performance Management 83. (p. 390) Which rater error leads employees to believe that no aspects of their performance need improvement? A. Contrast B. Halo C. Horns D. Similar to me Halo error occurs when one positive performance aspect causes the rater to rate all other aspects of performance positively. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Halo and Horns 84. (p. 390) A situation in which evaluators purposefully distort a rating to achieve personal or company goals is referred to as: A. upward feedback. B. downward feedback. C. appraisal politics. D. calibration politics. Appraisal politics refer to evaluators purposefully distorting a rating to achieve personal or company goals. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Appraisal Politics 8-58 Chapter 08 - Performance Management 85. (p. 391) What type of training attempts to emphasize the multidimensional nature of performance and thoroughly familiarize raters with the actual content of various performance dimensions? A. Performance training B. Error reduction training C. Multidimensional training D. Rater accuracy training Appraisal politics are most likely to occur when raters are accountable to the employee being rated, there are competing rating goals, and a direct link exists between performance appraisal and highly desirable rewards. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Reducing Rater Errors, Politics, and Increasing Reliability and Validity of Ratings 86. (p. 391) _____ attended by managers provide a way to help ensure that performance is evaluated consistently across managers and to reduce the influence of rating errors and politics on appraisals. A. Calibration meetings B. Employee-review meetings C. Multidimensional training D. Rater accuracy training Calibration meetings include managers responsible for conducting performance appraisals and their managers and are facilitated by an internal HR representative or an external consultant. In the meetings, each employee's performance rating and the manager's reasons for the ratings are discussed. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-8 Topic: Reducing Rater Errors, Politics, and Increasing Reliability and Validity of Ratings 8-59 Chapter 08 - Performance Management 87. (p. 392-394) To improve the performance feedback process, managers should do all but one of the following. Name the exception. A. Give employees feedback frequently, not just during the feedback session. B. Let employees rate their performance before the feedback session. C. Conduct the feedback session in his/her office. D. Focus on behavior or results, not on the person. To improve the performance feedback process, managers should give employees feedback frequently, not just during the feedback session, create the right context for the discussion, ask the employee to rate his or her performance before the session, encourage the subordinate to participate in the session, recognize effective performance through praise, focus on solving problems, focus feedback on behavior or results, not on the person, minimize criticism and agree to specific goals and set a date to review progress. AACSB: Reflective Thinking Skills BT: Comprehension Difficulty: Medium Learning Objective: 8-9 Topic: The Manager's Role in an Effective Performance Feedback Process 88. (p. 396) An employee that is performing at a barely acceptable level because of lack of ability and/or motivation to perform well, not poor work conditions, is called a(n): A. marginal employee. B. inconsistent employee. C. social loafer. D. mediocre performer. Chronic poor performance by employees with low ability and motivation (deadwood) indicates that outplacement or firing may be the best solution. Poor performance resulting from lack of ability but not motivation (misdirected effort) may be improved by skill development activities. Managers with employees who have the ability but lack motivation (underutilizers) need to consider actions that focus on interpersonal problems or incentives. AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-10 Topic: Actions for Managing Employees' Performance 8-60 Chapter 08 - Performance Management 89. (p. 397) In what legal suit would the plaintiff allege that the performance measurement system varies according to individuals? A. Harassment suit B. Reverse discrimination suit C. Unjust dismissal suit D. Discrimination suit There is an evidence that the discriminatory biases in performance rating are worse when one group makes up a small percentage of the work group. AACSB: Reflective Thinking Skills, Ethical/Legal Responsibilities in Organizations & Society BT: Knowledge Difficulty: Medium Learning Objective: 8-10 Topic: Developing and Implementing a System That Follows Legal Guidelines 90. (p. 397) In what legal suit does the plaintiff claim that the termination was for reasons other than those the employer claims? A. Harassment suit B. Reverse discrimination suit C. Unjust dismissal suit D. Discrimination suit Unjust dismissal can result from terminating for poor performance an employee who has a history of favorable reviews and raises. AACSB: Reflective Thinking Skills, Ethical/Legal Responsibilities in Organizations & Society BT: Knowledge Difficulty: Medium Learning Objective: 8-10 Topic: Developing and Implementing a System That Follows Legal Guidelines Essay Questions 8-61 Chapter 08 - Performance Management 91. (p. 355-359) Discuss the three purposes of performance management systems and the degree to which each purpose is being achieved. Strategic purpose. First and foremost, a performance management system should link employee activities with the organization's goals. To achieve this goal, the system must be flexible, because when goals and strategies change, the results, behaviors, and employee characteristics usually need to change correspondingly. However, performance management systems do not commonly achieve this purpose. Administrative purpose. Performance management systems are often used to assist managers in making administrative decisions. These decisions include salary administration (pay raises), promotions, retention-termination, layoffs, and recognition of individual performance. A survey of HR practitioners suggests that most systems focus on administrative and developmental purposes. Developmental purpose. A third purpose of performance management is to develop employees who are effective at their jobs. Ideally, performance management systems identify not only any deficient aspects of employee performance, but also the causes of these deficiencies. However, managers are often uncomfortable confronting employees with their performance weaknesses. Therefore, they often give high ratings to all employees, causing the developmental purposes of performance management systems not to be fully achieved. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-2 Topic: Purposes of Performance Management 8-62 Chapter 08 - Performance Management 92. (p. 363-367) What does the comparative approach do in terms of measuring performance? Discuss the three techniques that fall under the comparative approach. The comparative approach to performance measurement requires the rater to compare an individual's performance from that of others. Three techniques that fall under this approach are ranking, forced distribution, and paired comparison. Ranking includes simple and alternation ranking. Simple ranking requires managers to rank employees within their departments from highest performer to poorest performer. Alternation ranking consists of a manager crossing off top performers and poor performers from a list of employees in sequential order. The forced distribution method also uses a ranking format, but employees are ranked in groups. The paired comparison method requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he/she is considered the higher performer. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-4 Topic: The Comparative Approach 93. (p. 371-373) Discuss the process of developing behaviorally anchored rating scales. How do behavioral observation scales (BOS) differ from behaviorally anchored rating scales? The BARS process involves three steps: (1) Gather a large number of critical incidents that represent effective and ineffective performance on the job. (2) Classify the incidents into performance dimensions. (3) Agree on which incidents represent a particular level of performance to be used as behavioral examples. Identify anchors to guide the rater. Rather than discarding a large number of the behaviors that exemplify effective or ineffective performance, BOS uses many of them to specifically define all the behaviors that are necessary for effective performance. Rather than assessing which behavior best reflects an individual's performance, BOS requires managers to rate the frequency with which the employee has exhibited each behavior during the rating period. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 8-63 Chapter 08 - Performance Management 94. (p. 374) What is an assessment center? What are the advantages of an assessment center? Individuals perform a number of simulated tasks while assessors observe the individuals' behaviors and make evaluations about their skill or potential as managers. The advantage of assessment centers is that they provide a somewhat objective measure of an individual's performance at managerial tasks. In addition, they allow specific performance feedback, and individualized developmental plans can be designed. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-4 Topic: The Behavioral Approach 95. (p. 375) What are the three common components of a management by objectives (MBO) system? The common components include (1) MBO systems require specific, difficult, objective goals. (2) Goals are not usually set unilaterally by management but with the managers' and subordinates' participation. (3) The manager gives objective feedback throughout the rating period to monitor progress toward the goals. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 8-64 Chapter 08 - Performance Management 96. (p. 376-377) What is the main goal of the Productivity Measurement and Evaluation System (ProMES)? What are the four steps of ProMES? The main goal of ProMES is to motivate employees to higher levels of productivity and to measure and provide feedback productivity information to employees. The four steps include: 1. People identify the products and objectives the organization expects to accomplish. 2. The staff defines indicators of the products. 3. The staff establishes the contingencies between the amount of the indicators and the level of evaluation associated with that amount. 4. A feedback system is developed that provides employees and work groups with information regarding their specific level of performance on each of the indicators. AACSB: Reflective Thinking Skills BT: Knowledge Difficulty: Medium Learning Objective: 8-4 Topic: The Results Approach 97. (p. 379) What results can be expected from a performance management system designed with a strong quality orientation? Emphasize an assessment of both person and system factors in the measurement system. Emphasize that managers and employees work together to solve performance problems. Involve both internal and external customers in setting standards and measuring performance. Use multiple sources to evaluate person and system factors. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-4 Topic: The Quality Approach 8-65 Chapter 08 - Performance Management 98. (p. 383) Discuss the differences between the attribute and behavioral approaches to performance measurement related to the criteria of (a) strategic congruence, (b) validity and (c) reliability. a) Attribute approaches are usually low on strategic link, while behavioral approaches are quite high. b) Attribute approaches usually possess low validity, while behavioral approaches are high. c) Finally, attribute approaches have low reliability, while behavioral approaches have high reliability. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-5 Topic: Approaches to Measuring Performance 99. (p. 388-390) Discuss the various rater errors in performance management. There are five main rater errors that can occur in performance evaluations. The first is "similar to me". This occurs when we judge those who are similar to us more highly than those who are not. Contrast errors occur when we compare individuals with one another instead of against an objective standard. Distributional errors are the result of a rater's tendency to use only one part of the rating scale. Leniency, strictness, and central tendency are examples. A halo error occurs when one positive performance aspect causes the rater to rate all other aspects of performance positively. A horn error results in the rater assigning low ratings to all aspects for one negative aspect. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-8 Topic: Rater Errors in Performance Measurement 8-66 Chapter 08 - Performance Management 100. (p. 392-394) Discuss at least four ways to improve the performance feedback process. 1. Feedback should be given frequently, not once a year. 2. Create the right context for the discussion. 3. Ask the employee to rate his/her performance before session. 4. Encourage the subordinate to participate in the session. 5. Recognize effective performance through praise. 6. Focus on solving problems. 7. Focus feedback on behavior or results, not on the person. 8. Minimize criticism. 9. Agree to specific goals and set a date to review progress. AACSB: Reflective Thinking Skills BT: Analysis Difficulty: Medium Learning Objective: 8-9 Topic: The Manager's Role in an Effective Performance Feedback Process 8-67
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