Chapter 8 : Appraising and Managing Performance

Multiple Choice Questions

1. Rapid change, tighter budgets, downsizing and restructuring, and pressures for
b
greater accountability are placing greater emphasis on:
Fac

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(a) employee selection
(b) performance management
(c) participative management
(d) employee empowerment

2. The evaluation of organisational and employee performance permits managers to:

c

Und
(a) monitor the skills of employees
H
(b) determine the need for organisational restructuring and process re-engineering
(c) check that strategic business objectives are valid, are being successfully
communicated throughout the organisation and are being achieved
(d) ensure that rewards and benefits provided for employees are appropriate and
equitable

3. Companies that manage performance:

d

Fac
(a) find that the financial commitment involved is not reflected in increased
M
performance and profit
(b) experience internal conflict resulting from perceived favouritism associated
with performance ratings
(c) have higher levels of job satisfaction and increased staff morale
(d) tend to outperform companies that do not

5. Performance appraisal is a vital tool for strategy execution because it does all of the
b
following except:
Und

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(a) signals to managers and employees what is really important
(b) monitors employee skill development
 (c) it fixes accountability for behaviour and results
(d) it provides ways to measure what is important

6. The first step in the linking of organisational performance objectives and individual
a
performance objectives is:
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(a) setting mutual objectives that are aligned with the strategic business objectives
(b) setting clear, fixed objectives for each employee
(c) evaluating and rewarding performance
(d) determining how performance standards will be monitored and measured

7. Many unions are opposed to any form of performance evaluation as they believe it:
c

Und
(a) leads to job insecurity
M
(b) fosters distrust between employer and employee
(c) creates a competitive culture
(d) is often difficult to determine a reliable and valid measure to use

8. Which of the following is not a key element of performance measurement:

d

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(a) the creation of a shared vision of the organisation’s strategic objectives
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(b) the linking of performance evaluation and employee development and rewards
to motivate and reinforce desired behaviours
(c) the use of a formal review process to evaluate individual progress towards goal
achievement
(d) an analysis of job design characteristics and review of production processes
related to performance capability

9. Performance appraisal is concerned with:

b

Fac
(a) aligning performance with rewards
M
(b) determining how well employees are doing their jobs, communicating that
information to employees, and establishing a plan for performance
improvement
(c) establishing benchmarks against which performance is measured
 (d) identifying employees with potential for further development and enhanced
career progression

11. The effectiveness of pay as a motivator depends on:

a

Und
(a) the ability to measure and identify individual performance
M
(b) the amount of pay given in return for performance
(c) the employees perception of the value of monetary rewards
(d) the equity of pay and performance

12. All of the following except __________ are primary objectives of performance
b
appraisal:
Fac

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(a) development
(b) judgement
(c) feedback
(d) reward

13. Building on strengths and overcoming weaknesses is central to:

d

Fac
(a) performance appraisal
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(b) rewarding effort
(c) achieving strategic objectives
(d) performance improvement

14. The extent to which an employee is able to obtain clear and direct knowledge about
a
how well he or she is doing is known as:
Fac

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(a) feedback
(b) performance evaluation
(c) job satisfaction
(d) employee motivation

15. The evaluation of employee performance is most commonly done by:

c
 Fac
(a) peers
L
(b) customers
(c) immediate supervisors
(d) human resource managers

17. Peer evaluation is being used increasingly by organisations employing:

b

Fac
(a) a diverse workforce
M
(b) total quality management concepts
(c) participative management practices
(d) both (a) and (c)

18. A benefit of upward appraisal is:

c

Und
(a) information may be limited
M
(b) the authority of some managers might be undermined
(c) enhanced employee job satisfaction
(d) more accurate feedback is provided
19. When using an upward performance appraisal it is important to:
d

Und
(a) ensure that employees are not subject to peer pressure
M
(b) provide constructive feedback
(c) allow employees plenty of time to complete the evaluation
(d) ensure that everyone clearly understands who will see the results and what will
be done with the information
20. Multisource evaluation which involves an individual being evaluated by his/her
c
superiors, peers, subordinates and others is known as:
Fac

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(a) peer appraisal
(b) probationary review
(c) 360o feedback
(d) subordinate evaluation
21. 360o feedback has been found to be a powerful performance diagnostic tool that:
a

Fac
(a) provides specific performance feedback and targets developmental areas
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(b) gives a clearer picture of employee performance
(c) identifies employee strength and weaknesses
(d) increases employee morale
23. A disadvantage of multisource evaluations is:
b

Und
(a) it enhances employee self-development
M
(b) it does not ensure follow-up on development plans
(c) it encourages and supports team initiatives
(d) it allows for the collection of diverse perspectives
24. When performance appraisal is seen by managers as something imposed on them by
c
the HR department, this is probably an example of which source of error in
App
performance appraisal?
H

(a) rater errors

(b) prejudice
(c) poor management attitude
(d) leniency/strictness bias

25. A problem that occurs during performance appraisal, when a supervisor’s rating of a
a
subordinate on one factor biases the rating of that person on other factors is known
Fac
as:
M

(a) halo effect

(b) rater errors
(c) leniency/strictness bias
(d) relationship effect
26. Performance review discussions can be stressful and unpleasant because:
a

Und
(a) managers do not undertake sufficient preparation
M
(b) managers give objective feedback
 (c) managers listen to the needs of the employee
(d) managers don’t give feedback in a mechanical way
27. The over-emphasis by a manager on an employee’s most recent behaviour is:
d

Fac
(a) halo effect
L
(b) prejudice
(c) leniency/strictness bias
(d) recency effect
28. Traditional performance appraisal systems place emphasis on subjective criteria
a
such as:
Und

H
(a) personality, loyalty and initiative
(b) relationships, personality, work attitude
(c) attendance record, performance quality and quantity
(d) personal opinion, relationship with supervisor, work attitude
29. The performance criteria against which performance is measured is determined by:
b

Und
(a) market and competitor performance
H
(b) the nature of the job and the purposes of the assessment
(c) the work processes and importance of the job
(d) the type of performance appraisal to be used
30. The major types of performance appraisal include all of the following except:
d

Fac
(a) ranking
L
(b) grading
(c) critical incidents
(d) sliding scales

32. When a manager records occurrences or incidents of employee job behaviour which
a
highlight good or bad job performance they are using which method of performance
Und
appraisal:
M
 (a) critical incidents
(b) behaviourally anchored rating scales
(c) assessment centres
(d) essay descriptions

33. Behaviourally anchored rating scales (BARS) are designed to:

b

Und
(a) determine employee attitude towards work and the organisation
M
(b) evaluate behaviour demonstrated in performing a job
(c) evaluate and compare the performance of employees with that of their peers
(d) determine the appropriateness of employee performance and behaviour

34. A performance appraisal system which uses critical incidents to develop a list of
a
desired behaviours needed to successfully perform a specific job is:
Und

H
(a) behaviour observation scale (BOS)
(b) behaviourally anchored rating scale (BARS)
(c) management by objectives
(d) critical incidents

35. When managers are asked to describe in their own words the employees’
b
performance, covering the quantity and quality of work performed, job know-how,
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human relations skills, etc., they are engaging in a type of appraisal system known
M
as:

(a) grading
(b) essay description
(c) critical incidents
(d) assessment centres

36. When a manager and subordinate mutually identify common goals, define the
d
subordinate’s major areas of responsibility in terms of expected results, and use
App
these measures in assessing the subordinate’s performance, they are most likely
H
engaging in:

(a) behavioural anchored rating scale

(b) an assessment centre
(c) critical incident
 (d) management by objectives

37. The purpose of an assessment centre is to:

c

Und
(a) evaluate employee performance
M
(b) identify positive and negative aspects of employee behaviour
(c) identify promotable or high-potential employees
(d) evaluate an employee’s social and communication skills

38. The main characteristic of a static appraisal program is:

a

Und
(a) they focus on the past
H
(b) they are concerned with maintaining the status quo
(c) a focus on developmental issues
(d) the use of traditional forms of performance review
39. Dynamic performance appraisal programs are characterised by all of the following
c
qualities except:
Und

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(a) goal established
(b) performance improvement
(c) career development
(d) performance feedback
40. A quality goal-setting program depends upon:
d

Fac
(a) employee involvement
L
(b) effective performance measurement
(c) a future focus
(d) effective feedback
41. Which of the following statements about the role of goal-setting in performance
appraisal is least likely to be correct:
b

Und
(a) the setting of specific goals is more likely to lead to higher performance than
M
simply telling an employee to ‘do your best’
(b) goals that are perceived to be easy to achieve tend to result in better
performance than goals that are perceived as difficult
 (c) employee participation in goal-setting tends to lead to higher goals being set
than when the manager unilaterally sets the goals
(d) frequent performance feedback results in higher performance
42. A properly designed performance appraisal record is a valuable tool for:
d

Und
(a) defining performance levels
M
(b) facilitating job performance review discussion
(c) identifying training and development needs
(d) all of the above
43. Effective performance appraisal interviews require all of the following except:
c

Und
(a) manager’s support of the employee
H
(b) manager’s knowledge of the employee’s job and performance
(c) manager’s understanding of the performance appraisal method
(d) manager’s involvement of the employee in the discussion
44. When conducting successful performance review discussions, the manager should
do everything EXCEPT:
c

Fac
(a) encourage the employee to talk
M
(b) set specific performance improvement objectives
(c) use positional authority throughout the discussion
(d) discuss only those things that can be changed

45. Before conducting a performance review discussion the manager should:

b

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(a) review the employee’s attendance record
H
(b) list all key points to be discussed in the interview
(c) discuss the employee’s performance with their peers
(d) consider the employee’s potential future contribution to the organisation

46. Research into the performance review discussion suggests that:

d

Fac
(a) employees find them extremely stressful
H
(b) they are usually so badly conducted that they do more harm than good
(c) managers often ‘forget’ to hold them
 (d) employees should be encouraged to talk

47. Lansbury and Prideaux claim that “an appraisal system can be markedly improved
c
by…”
Fac

H
(a) choosing the most appropriate appraisal method
(b) conducting performance reviews more frequently
(c) a well planned and executed training program aimed at developing interviewing
and feedback skills
(d) utilising more than one type of performance review

48. To satisfy EEO requirements, performance appraisals must be:

a

Und
(a) job-related and non-discriminatory
M
(b) designed to take into account diversity issues
(c) used to promote and encourage employees from minority groups
(d) conducted at least twice a year

49. To successfully defend its appraisal system against a charge of discrimination an

d
organisation should ensure all of the following except:
Und

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(a) use job analysis to develop the system
(b) that the appraisal scheme is behaviour-oriented
(c) results of appraisals are communicated to employees
(d) the right of employees to refuse to complete a performance evaluation form

50. Performance appraisal is:

a

Und
(a) a management program
H
(b) the responsibility of the HR department
(c) a pointless activity
(d) a system designed to identify poor performers

True/False Questions

1. The validity of strategic business objectives can be checked by an evaluation of

T
organisational and employee performance.
Und
 M

2. It is necessary to establish mutually agreed upon indicators of performance for

T
performance management to be effective.
Und

4. Deming argued that any variation in employee performance is predominantly a

T
result of factors outside the individual’s control.
Fac

5. Discrimination is not a problem associated with performance appraisal processes.

F

Und

7. Feedback is useful, but not an essential part of the performance review process.
F

Und

9. Research indicates that self-evaluation is not an effective way to encourage self-

F
development, as employees demonstrate lower levels of commitment to the
App
organisation and its goals when performance is measured in this way.
H

10. Upward evaluation is increasingly being used to measure management performance

T
as subordinates are in an excellent position to appraise a manager’s leadership skills
Und
and ongoing performance.
M

11. Subordinate evaluation is the only appraisal considered to be free from bias.
F

Und

L
12. Information quality, specific performance feedback, and targeting developmental
T
areas is enhanced by the use of 360o feedback.
Und

14. Managers value performance appraisal when it is seen as facilitating the

T
accomplishment of the organisation’s strategic business objectives by motivating
App
employees to improve their performance and reach their potential.
H

15. The tendency for supervisors to give an employee a rating by generalising from one
F
specific factor or event is known as the central tendency.
Fac

16. Executives indicate that they were very hesitant to consciously deflate a
T
subordinate’s ratings because of the potential problems associated with such a tactic.
Und

17. Research shows that ratings on subjective criteria, such as dependability and
T
trustworthiness, were more heavily influenced by the quality and duration of the
App
relationship between supervisor and subordinate than actual job performance.
H

18. The employee appraisal record does not seek evaluation of an individual’s initiative.
F

Fac

19. When selecting a performance appraisal system it should be compatible with the
T
organisation’s culture.
Und

20. The critical incident approach to appraisal bases the evaluation/assessment of an

F
 employee’s performance entirely on the most recent significant event or occurrence.
Und

21. A major drawback of the BARS method of performance appraisal is that it takes a
T
great deal of management time and effort to develop.
Und

22. A manager’s writing skills can influence the impression of an employee’s

T
performance when the essay description approach is used.
Fac

23. The effectiveness of a management-by-objectives approach to performance may

T
depend on national culture.
Und

25. The performance review discussion allows the manager to sit down with his or her
T
subordinate and explore the employee’s short-term and long-term goals.
App

Essay Questions

1. Critically discuss the role that job analysis has in the design of an effective
performance appraisal process.

2. Identify the characteristics of performance management and examine how this

approach differs from performance appraisal.
3. Critically discuss the role of constructive feedback in the performance review
discussion.

4. Discuss the importance of goal setting in employee motivation and performance

improvement.