Chapter 6 Appraising and Managing Performance. True/False Questions

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1 Chapter 6 Appraising and Managing Performance True/False Questions 8-1. Performance management is the method managers use to manage workflow. Ans: F Page 276 LO Through performance management, managers can determine whether or not employees are working to meet organizational goals. Page 276 LO Performance feedback is a means for employees to adjust their performance to meet organizational goals. Page 276 LO The link between performance management and the organization s strategies and goals is often neglected. 1 26

2 Page 277 LO Performance planning and evaluation systems specify a desired level of performance at the beginning of the evaluation period. Page 278 LO Formal performance appraisal systems do not focus on organizational strategy. Ans: F Page 278 LO Organizational culture can inhibit the employee from performing effectively. Page 278 LO The extent to which a performance management system seeks performance consistent with organizational goals is referred to as strategic congruence. Page

3 8-9. Validity is concerned with maximizing the overlap between actual job performance and the measure of job performance. Page XYZ Corporation uses actual sales figures for evaluating salespeople across different regional territories. This is an example of a contaminated value. Page Validity refers to the consistency of the performance measure. Ans: F Page A reliable performance measure yields consistent results over time. Page Subjective measures of job performance tend to exhibit low interrater reliability. Page

4 8-14. Specificity refers to the extent which a performance measure instructs employees about what is expected of them. Page In the forced distribution technique, employees are ranked from highest to lowest. Ans: F Page In Brito v. Zia, the Supreme Court criticized the subjective nature of graphic rating scales. Page Attribute-based performance methods are the least popular performance evaluation approaches. Ans: F Page The critical incident technique is a behavioral approach to performance management. 4 26

5 Page The critical incident approach relies on behaviorally anchored rating scales. Ans: F Page An advantage of behaviorally anchored rating scales is increased interrater reliability. Page The results approach to performance measurement assumes that subjectivity can be eliminated from the measurement process. Page Management by Objectives (MBO) systems seldom link employee performance to an organization s strategic goals. Ans: F Page

6 8-23. A disadvantage of the results approach to performance measurement is that individuals may focus only on aspects of their performance that are measured. Page Supervisors are the most frequently used source of performance information. Page 300 LO The best use of self-ratings is for administrative purposes. Ans: F Page 302 LO6 Multiple Choice Questions The system that seeks to tie the performance appraisal process to the firm s strategies through specifying at the beginning of the evaluation period what types and levels of performance must be accomplished is called the a. performance appraisal and evaluation system. b. performance feedback system. c. performance management system. d. performance planning and evaluation system. 6 26

7 Page 278 LO Which of the following is not a purpose of performance management systems? a. The administrative purpose b. The developmental purpose c. The feedback purpose d. The strategic purpose Ans: c Page 279 LO A survey of HR practitioners found that most performance appraisal systems focused on a. administrative and strategic purposes. b. strategic and developmental purposes. c. administrative and feedback purposes. d. developmental and administrative purposes. Page 279 LO In performance appraisals, there is a tendency for supervisors to a. rate all employees low. b. rate half the employees low and half the employees high. c. rate all employees high. d. rate few employees high. Ans: c Page 279 LO2 7 26

8 8-30. What 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 Page A performance management system that evaluates irrelevant aspects of performance is a. unreliable. b. invalid. c. contaminated. d. inconsistent. Ans: c Page Which of the following is not a criterion that should be used to evaluate performance management systems? a. Acceptability b. Specificity c. Complexity d. Reliability Ans: c Page

9 8-33. The extent to which the performance measure assesses all the relevant aspects of performance is called a. reliability. b. validity. c. specificity. d. acceptability. Page 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. Page The extent to which all of the items rated are consistent with respect to content refers to a. internal consistency reliability. b. interrater reliability. c. intrarater reliability. d. test-retest reliability. Ans: a Page A measure that results in dramatically different ratings over time lacks 9 26

10 a. internal consistency reliability. b. interrater reliability. c. intrarater reliability. d. test-retest reliability. Page If a performance appraisal method is not reliable, it a. can still be valid. b. can still be acceptable. c. cannot be valid. d. cannot be acceptable. Ans: c Page Performance can be managed by focusing on all of the following except a. behaviors. b. weaknesses. c. results. d. employee attributes. Page 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

11 d. acceptability. Ans: c Page The approach to measuring and managing performance that consists of techniques requiring the rater to rank order individuals within a given work group is called the a. attribute approach. b. behavioral approach. c. comparative approach. d. results approach. Ans: c Page The technique that ranks employees into groups according to performance is called a. forced distribution. b. alternation ranking. c. paired comparison. d. ranking. Ans: a Page Which of the following is not a problem with comparative approaches to performance management? a. They may not be legally defensible. b. Managers can still give high ratings to all employees. c. They are time consuming. d. The systems may fail to be linked with the strategic goals of the organization

12 Page 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. behavioral approach. c. comparative approach. d. results approach. Ans: a Page The performance management scales on which managers assign points to a list of traits are called a. behaviorally anchored rating scales. b. mixed standard scales. c. behavior observation scales. d. graphic rating scales. Page What approach to performance management tries to define desired actions to be effective in the job? a. The attribute approach b. The behavioral approach c. The comparative approach d. The results approach 12 26

13 Page What is a problem with attribute approaches to performance management? a. There is usually strategic congruence between the techniques and the firm s strategy. b. These methods are difficult to use. c. These methods are not generalizable across organizations. d. Different raters often provide very different ratings and rankings. Page 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. Ans: c Page 288, What performance management approach is designed to specifically define performance dimensions by identifying different levels of performance? a. Behaviorally anchored rating scales b. Graphic rating scales c. Critical incidents d. Organizational behavior modification Ans: a Page 288,

14 8-49. The performance management method that requires managers to rate the frequency with which the employee has exhibited a behavior during a rating period is called a. behaviorally anchored rating scales. b. behavior observation scales. c. critical incidents. d. organizational behavior modification. Page 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. Page Which of the following is not a part of an organizational behavior modification system? a. Define a range of behaviors that can improve job performance. b. Use a measurement system to assess whether behaviors are exhibited. c. Consult employees on how often they should exhibit certain behaviors. d. Provide feedback and reinforcement to employees. Ans: a Page

15 8-52. The performance management approach that focuses on managing the product of a job or work group is called the a. attribute approach. b. behavioral approach. c. comparative approach. d. results approach. Page Which of the following is/are true regarding behavioral approaches to performance measurement? a. Link strategy to specific behavior needed to implement strategy b. Provide specific guidance to employees regarding expected performance c. Result in techniques that have a high degree of validity d. All of the above Page 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 Page 292 LO What performance management system has a specific goal to motivate employees to higher 15 26

16 levels of productivity? a. Productivity measurement and evaluation system b. Management by objectives c. Assessment centers d. Organizational behavior modification Ans: a Page 294 LO Which is not a component of management by objectives? a. Specific goals b. Subordinate participation c. Managerial feedback d. Modification of goals Page Which of the following is not a reason why TQM advocates believe U.S. companies performance management systems are incompatible with the quality philosophy? a. Most existing systems measure performance in terms of quantity, not quality. b. Employees are not held accountable for bad results. c. Companies do not share financial rewards of successes with employees. d. Rewards are not connected to business results. Page According to performance evaluation in TQM, a. performance appraisals should avoid discussion of the employee s career plans. b. employees should not be categorized in rating scales or rating groups

17 c. compensation rates should not be based according to seniority. d. performance appraisal should avoid providing overall evaluation of employees. Page 297 LO Which statistical process quality control technique is useful to identify redundancy in jobs that increase manufacturing or service time? a. Cause and effect diagrams b. Control charts c. Pareto charts d. Process flow analysis Page Which of the following is the most objective performance measure? a. Attitude b. Degree of cooperation c. Initiative d. Number of errors made Page 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

18 Ans: c Page What quality control technique requires employees to identify the different factors that contribute to an outcome and when they are to occur? a. Cause and effect diagrams b. Control charts c. Pareto charts d. Process flow analysis Page 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 Page 300; Table 8.8, Identify the approach to performance measurement that meets the following criteria: poor strategic congruence, high validity, no reliability, high acceptability, and very low specificity. a. Comparative b. Attribute c. Behavioral d. Results 18 26

19 Ans: a Page 300; Table 8.8, Identify the approach to performance measurement that meets the following criteria: high strategic congruence, usually high validity, usually high reliability, moderate acceptability, very high specificity. a. Comparative b. Attribute c. Behavioral d. Results Ans: c Page 300; Table 8.8, Identify the approach to performance measurement that meets the following criteria: usually low strategic congruence, usually low attribute, usually low reliability, high acceptability, very low specificity. a. Comparative b. Attribute c. Behavioral d. Results Page 300; Table 8.8, When managers are being evaluated, who are especially valuable sources of information? a. Other managers b. Subordinates c. Customers d. Their bosses 19 26

20 Page 302 LO Which rater error is made when one judges individuals in the immediate work group higher than those who are not? a. Contrast b. Distributional error c. Halo/horns d. Similar to me Page 303 LO What rater error is a result of a rater s tendency to use only one part of the rating scale? a. Contrast b. Distributional error c. Halo/horns d. Similar to me Page 304 LO When a rater fails to distinguish among different aspects of performance, what kind of error is present? a. Contrast b. Distributional error c. Halo/horns d. Similar to me Ans: c 20 26

21 Page 304 LO What rater error leads employees to believe that no aspects of their performance need improvement? a. Contrast b. Halo c. Horns d. Similar to me Page 304 LO Which of the following is not an approach to reduce rating errors? a. Frame of reference training b. Error reduction training c. Rater error training d. Rater accuracy training Page 304 LO To improve the performance feedback process, employers should not a. give employees feedback every day. b. let employees rate their performance before the feedback session. c. discuss every criticism of the employee. d. focus on behavior or results. Ans: c Page 307 LO

22 8-74. 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 Page 309 LO In what legal suit does the plaintiff claim termination was for reasons other than those the employer claims? a. Harassment suit b. Reverse discrimination suit c. Unjust dismissal suit d. Discrimination suit Ans: c Page 309 LO9 Essay Questions Discuss the major components of the performance management system. Ans: Individual attributes are the raw materials that are transformed into objective results through a person s behavior. This performance relationship is linked to and affected by an organization s strategy and situational constraints. Page ; Figure

23 LO Compare and contrast two comparative approaches of performance measurement ranking and forced distribution. Ans: 1. Ranking arrives at an overall assessment of an individual s performance; managers rank employees within their departments from highest to lowest employee. Forced distribution uses a ranking format, but employees are ranked in groups; managers put a certain percentage of employees into predetermined categories. Page Discuss the process of developing the Behaviorally Anchored Rating Scales. Ans: 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 a behavioral examples. Identify anchors to guide the rater. Page How do Behavioral Observation Scales (BOS) differ from Behaviorally Anchored Rating Scales? Ans: 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. Page

24 8-80. What is an assessment center? What are the pros and cons of an assessment center? Ans: Individuals perform a number of simulated tasks while assessors observe the individual s behavior and make evaluations about their skill or potential as a manager. Assessment centers tend to be reliable, valid, and highly accepted, and they provide very specific information regarding an individual s strengths and weaknesses. Assessment centers do not assess how managers actually perform their jobs on a daily basis, and they are very expensive to conduct. Page , What are the three common components in management by objectives systems? Ans: 1. MBO systems require specific, difficult, objective goals. Goals are not usually set unilaterally by management but with the managers and employees participation in deciding on performance objectives. 2. Goals are not usually set unilaterally by management but with the managers and employees participation in deciding on performance objectives. 3. The manager gives objective feedback throughout the rating period to monitor progress toward the goals. Page What is the main goal of Productivity Measurement and Evaluation Systems (ProMES)? What are the four steps of ProMES? he main goal of ProMES is to motivate employees to higher levels of productivity and to measure and provide feedback productivity information to employees 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. A feedback system is developed that provides employees and work groups with information regarding their specific level of performance on each of the indicators. Page

25 8-83. Why are most U.S. companies performance management systems incompatible with the quality philosophy? Ans: Most existing systems measure performance in terms of quantity, not quality. Employees are held accountable for good or bad results to which they contribute but do not completely control. Companies do not share the financial rewards of successes with employees according to how much they have contributed to them. Page 296, 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. Ans: (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. Page 300; Table Discuss at least three ways to improve the performance feedback process. Ans: 1. Feedback should be given every day, not once a year. 2. Ask the employee to rate his or her performance before session. 3. Encourage the subordinate to participate in the session. 4. Recognize effective performance through praise. 5. Focus on solving problems. 6. Focus feedback on behavior or results, not on the person. 7. Minimize criticism. 8. Agree to specific goals and set a date to Page LO

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