School of Distance Education

UNIVERSITY OF CALICUT
School of Distance Education
IV Semester M.Com
Performance Management

Multiple Choice Questions Bank

1. Which of the following terms refers to the process of evaluating an employee's current
and/or past performance relative to his or her performance standards?
a) Recruitment
b) Employee selection
c) Performance appraisal
d) Employee orientation
2. The primary purpose of providing employees with feedback during a performance
appraisal is to motivate employees to
a) apply for managerial positions
b) remove any performance deficiencies
c) revise their performance standards
d) enroll in work-related training programs
3. In most organizations, which of the following is primarily responsible for appraising
an employee's performance?
a) employee's direct supervisor
b) company appraiser
c) human resources manager
d) EEO representative
4. Which of the following is not one of the recommended guidelines for setting effective
employee goals?
a) assigning specific goals
b) assigning measurable goals
c) assigning challenging but doable goals
d) administering consequences for failure to meet goals

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5. SMART goals are best described as

a) specific, measurable, attainable, relevant, and timely
b) straight forward, meaningful, accessible, real, and tested
c) strategic, moderate, achievable, relevant, and timely
d) specific, measurable, achievable, relevant, and tested
6. All of the following are reasons for appraising an employee's performance except
a) assisting with career planning
b) correcting any work-related deficiencies
c) creating an organizational strategy map
d) determining appropriate salary and bonuses
7. Which of the following is most likely not a role played by the HR department in the
performance appraisal process?
a) conducting appraisals of employees
b) monitoring the effectiveness of the appraisal system
c) providing performance appraisal training to supervisors
d) ensuring the appraisal system's compliance with EEO laws
8. What is the first step in the appraisal process?
a) giving feedback
b) defining the job
c) administering the appraisal tool
d) making plans to provide training
9. Which of the following is the easiest and most popular technique for appraising
employee performance?
a) alternation ranking
b) graphic rating scale
c) Likert
d) MBO
10. Which performance appraisal technique lists traits and a range of performance values
for each trait?
a) behaviourally anchored rating scale
b) graphic rating scale
c) forced distribution

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d) critical incident
11. Which performance appraisal tool requires supervisors to categorize employees from
best to worst on various traits?

a) digital dashboard
b) critical incident method
c) graphic rating scale
d) alternation ranking method
12. Which of the following performance appraisal method consists of ranking employees
as more or less efficient by inter-personal comparison of overall qualities?
a) Forced distribution method
b) Graphic rating scale method
c) Ranking method
d) Unstructured appraisal method
13. Which performance appraisal tool is being used when a supervisor places
predetermined percentages of ratees into various performance categories?
a) behaviorally anchored rating scale
b) graphic ranking scale
c) alternation ranking
d) forced distribution
14. Which of the following measurement methods is similar to grading on a curve?
a) critical incident method
b) forced distribution
c) graphic rating scale
d) constant sums rating
15. Which of the following is one of the primary complaints regarding the use of the
forced distribution method for performance appraisals?
a) difficult to implement
b) harm to employee morale
c) high costs of administration
d) standardization of group sizes
16. Which performance appraisal tools requires a supervisor to maintain a log of positive
and negative examples of a subordinate's work-related behavior?
a) alternation ranking

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b) paired comparison
c) forced distribution
d) critical incident
17. The first step in developing a behaviourally anchored rating scale is to _________
a) develop performance dimensions
b) generate critical incidents
c) compare subordinates
d) reallocate incidents
18. Which of the following is NOT a characteristic of the critical incident method for
performance appraisal?
a) providing examples of excellent work performance
b) comparing and ranking employees within a group
c) connecting specific incidents with performance goals
d) reflecting performance throughout the appraisal period
19. Graphic rating scales are subject to all of the following problems except __ .
a) unclear standards
b) halo effects
c) complexity
d) leniency
20. Which appraisal method combines the benefits of narrative critical incidents and
quantified scales by assigning scale points with specific examples of good or poor
performance?
a) behaviourally anchored rating scale
b) constant sums rating scale
c) graphic rating scale
d) alternation ranking
21. Which of the following best describes a behaviourally anchored rating scale?
a) chart of paired subordinates ranked in order of performance
b) combination of narrative critical incidents and quantified performance scales
c) diary of positive and negative examples of a subordinate's work performance
d) predetermined percentages of subordinates in various performance categories

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22. Which of the following terms refers to setting specific measurable goals with each
employee and then periodically reviewing the progress made?
a) behaviourally anchored rating scale
b) management by objective
c) narrative form technique
d) forced distribution
23. It is most important that supervisors who choose management by objectives as a
performance appraisal tool use __________
a) SMART goals
b) EPM systems
c) computerized notes
d) graphic rating scales
24. Which of the following is a performance appraisal problem that occurs when a
supervisor's rating of a subordinate on one trait biases the rating of that person on other
traits?
a) recency effect
b) halo effect
c) central tendency
d) discrimination
25. Which of the following terms refers to an appraisal that is too open to interpretation?
a) unclear standards
b) halo effects
c) strictness
d) biased
26. Which of the following is the best way for a supervisor to correct a performance
appraisal problem caused by unclear standards?
a) focusing on performance instead of personality traits
b) using graphic rating scales to rank employees
c) avoiding the use of extremely low ratings
d) using descriptive phrases to illustrate traits
27. A supervisor who frequently rates all employees as average on performance appraisals
most likely has a problem known as__________

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a) halo effect
b) stereotyping
c) central tendency
d) strictness
28. The best way to reduce the problem of central tendency in performance appraisals is to
___
a) rank employees
b) establish SMART goals
c) use graphic rating scales
d) limit the number of appraisals
29. Which performance appraisal problem is associated with supervisors giving all of their
subordinates consistently high ratings?
a) central tendency
b) leniency
c) strictness
d) recency effect
30. The _____________ problem occurs when supervisors tend to rate all their
subordinates consistently low.
a) central tendency
b) leniency
c) strictness
d) unclear standards
31. Which of the following has most likely occurred when a supervisor conducting a
performance appraisal is influenced by a subordinate's individual differences such as
age, sex, and race?
a) bias
b) unclear standards
c) central tendency
d) broad banding
32. Who is in the best position to observe and evaluate an employee's performance for the
purposes of a performance appraisal?
a) peers
b) customers

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c) top management
d) immediate supervisor
33. Employee performance appraisals are conducted by all of the following except
a) peers
b) supervisors
c) competitors
d) subordinates
34. Upward feedback primarily helps top-level managers to
a) protect the firm against biased appraisals
b) implement organizational strategies
c) compare appraisal techniques
d) diagnose management styles
35. Which of the following terms refers to a performance appraisal based on surveys from
peers, supervisors, subordinates, and customers?
a) 360-degree feedback
b) team appraisals
c) upward feedback
d) rating committee
36. Which of the following best describes the purpose of an appraisal interview?
a) training supervisors in the rating process
b) identifying potential interpersonal problems
c) providing constructive feedback to supervisors
d) making plans to correct employee weaknesses
37. When conducting an appraisal interview, supervisors should do all of the following
except
a) ask open-ended questions
b) talk in terms of objective work data
c) give specific examples of poor performance
d) compare the person's performance to that of other employees
38. When a supervisor must criticize a subordinate in an appraisal interview, it is most
important for the supervisor to
a) limit negative feedback to once every year

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b) provide specific examples of critical incidents

c) acknowledge the supervisor's personal biases in the situation
d) hold the meeting with other people who can document the situation
39. When an employee's performance is so poor that a written warning is required, the
warning should
a) identify the standards by which the employee is judged
b) provide examples of employees who met the standards
c) be mailed to the employee and to an EEOC representative
d) provide examples of times when the employee met the standards
40. Alternative work arrangements include all of the following except;
a) Part-time work
b) Flexible hours
c) On-site child care
d) Job sharing
41. Organizations put maximum effort in measuring performance of organizational people
because;
a) It makes procedures cost effective
b) It helps in detecting the problems
c) It leads to product innovation
d) It assists in implementing new technology
42. Willingness, capacity & opportunity to perform are said to be;
a) Performance outcomes
b) Determinants of performance
c) Performance appraisals
d) Types of performance standards
43. One of the major barriers to career advancement experiencing by working ladies is;
a) Difficulty in balancing work and family life
b) Top management is usually male oriented
c) Lack of educational opportunities
d) Common perception that woman cannot be better boss
44. What is another term for 360-degree feedback?
a) Feedback loop

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b) Multi-source assessment
c) Upward feedback
d) Circle feedback
45. The relationship between critical incident method & BARS (Behaviorally Anchored
Rating Scale) is;
a) No relationship exists
b) Different methods to evaluate performance
c) Both are similar PA methods
d) Comparison method is used for PA, while BARS is related to training evaluation
46. Standards are established to;
a) Achieve desired outcomes
b) Meet legal compliance
c) Achieve competitive advantage
d) Promote goodwill in market
47. Job evaluation is based on the;
a) Physical skills required by the job
b) Relative job worth for an organization
c) Complexity of the job to perform
d) Conceptual skill required by the job
48. Managers following a traditional performance appraisal system will typically meet
with employees on _____basis
a) Weekly
b) Monthly
c) Bi-monthly
d) Yearly
49. Groups are called _________if jobs are similar.
a) Classes
b) Grades
c) Scales
d) Roles
50. Train the raters prior to conduct the performance appraisal is an important
responsibility of;

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a) Top management
b) HR department
c) Line managers
d) Production department
51. The aim of performance management is to:
a) Ensure employee has the tools needed to perform the job.
b) Consolidate goal setting.
c) Evaluate employee's performance against standards.
d) Ensure employee's performance is supporting the company's strategic aims,
52. The increasing use of performance management reflects:
a) Traditional performance appraisals are often counter-productive.
b) The popularity of TOM concepts.
c) Every employee's effort must focus on helping the company achieve its strategic
goals.
d) All of the above.
53. Reasons for appraising a subordinate's performance includes
a) Appraisals play an integral role in performance management.
b) Appraisals play a part in the employer's salary raise decisions.
c) The supervisor and the employee together develop a plan for correcting the
employee's deficiencies.
d) All of the above.
54. Managers following a performance management approach to appraisals will usually
meet with employees on a __ basis.
a) weekly
b) monthly
c) bi-annual
d) yearly
55. When designing an actual appraisal method, the two basic considerations are
a) who should measure and when to measure
b) when to measure and what to measure
c) what to measure and who should measure
d) what to measure and how to measure

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56. What do performance appraisals measure?

a) generic dimensions of performance

b) performance of actual duties

c) employee competency

d) all of the above

57 . With the __ method, the supervisor keeps a log of positive and negative examples of a
subordinate's work-related behaviour.

a) alternation ranking

b) forced distribution
c) narrative forms

d) critical incident

58. Which of the following is a problem with using MBO?

a) a tendency to set unclear objectives

b) it is time consuming

c) tug of war between subordinate and manager regarding goals

d) all of the above

59. When different supervisors define levels of performance (good, fair, poor) differently,
unfair appraisals could result due to a problem with __

a) unclear standards

b) halo effects

c) complexity

d) central tendency

60. Peer appraisals have been shown to result in a __

a) reduction of social loafing in the team

b) reduction of group cohesion

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c) decrease in satisfaction with the group

d) lower task motivation

Answer Key
1( c ) 11( d ) 21(b ) 31( a ) 41( b ) 51( d )
2(b ) 12(c ) 22(b ) 32( d) 42( b) 52( d)

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3( a ) 13( d ) 23(a ) 33( c ) 43( a ) 53( d)

4( d ) 14(b ) 24( b ) 34( d ) 44( b ) 54( a )
5(a ) 15(b ) 25( a ) 35( a) 45( c ) 55(d )
6(c) 16( d ) 26(d ) 36( d) 46( a) 56( d)
7( a ) 17( b) 27( c ) 37( d ) 47( b ) 57(d )
8( b ) 18( b ) 28( a ) 38( b ) 48( d ) 58(d )
9(b ) 19(c ) 29( b ) 39( a) 49( a ) 59( a )
10( b ) 20( a ) 30( c ) 40( c ) 50( b ) 60( a )

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