Chapter 7 Appraising and Managing Performance

OBJECTIVE QUESTIONS 1. Which of the following is a comprehensive list of the functions in performance assessment? a) Identifying, measuring, and managing human performance in organizations. b) Identifying, determining, and implementing human performance in organizations. c) Performing an employee assessment based either on either relative or absolute judgments. d) Performing an employee assessment based upon both relative and absolute judgments. e) None of the above Answer: a 2. E--Recall Page: 222

A manager is in the process of deciding how effective or ineffective an employee’'s behavior has been. This manager is in the _____ stage of the performance appraisal model. a) identification b) measurement c) management d) design e) performance improvement Answer: b E--Application Page: 223


Emma is thinking through the future evaluation of her employees. Right now she is determining what specific areas of each employee’'s work she should evaluate. Emma is in the process of: a) measuring performance to make a judgment about how good or bad that performance is. b) identifying areas of job performance that should be evaluated. c) managing the work process. d) assessing. e) evaluating performance. Answer: b C--Application Page: 223


Chapter 7 – Appraising and Managing Performance


The most common use of performance appraisals is: a) for compliance with EEO regulations. b) to justify employee terminations. c) to improve organizational performance. d) to make administrative decisions. e) to manage employee performance. Answer: d E--Recall Page: 223


Khalil is assigning numbers to reflect an employee’'s performance in relation to particular dimensions of the employee’'s job. Khalil is in the ______ stage of the appraisal process. a) identification b) measurement c) performance management d) performance improvement e) design Answer: b M--Application Page: 225


When it comes to the performance appraisal process: a) it is most commonly conducted twice a year. b) over 60% of employees surveyed feel they are treated fairly. c) most HR professionals find the process unsuccessful. d) most companies use a team-based process, combining trait and outcome measurements. e) it has become less important in recent years due to the increased use of teams. Answer: c M--—Recall Page: 223


Billy will be appraising employees at H.R.T., Inc. He is compiling a list of aspects by which he will measure the employees. Billy is compiling: a) dimensions of job performance. b) measurement standards. c) relative judgments. d) absolute judgments. e) none of the above. Answer: a M--Application Page: 224


Part IV Employee Development


Job performance dimensions are: a) behavioral standards that employees should display. b) aspects of performance that determine effective job performance. c) a way to eliminate rater bias in the performance appraisal. d) the relative judgments that a rater makes about an employee’s job performance. e) job appraisals conducted in businesses that are greatly influenced by organizational politics. Answer: b M--Integration Page: 224


One of your managers returns from a management seminar all excited about using a relative judgment system for performance appraisals. He asks you for your opinion about the value of such systems. You tell him that: a) it forces supervisors to differentiate between employees. b) it helps managers to make judgments based on performance criteria. c) it permits a qualitative evaluation of employee performance. d) it will help managers to measure things like decisiveness, reliability, etc., all keys to success. e) such a system will allow managers to assess the results or outcomes of performance. Answer: a M--Application Page: 225


A pitfall of using relative judgments for performance appraisal is that: a) they cannot clearly show how great or small the performance differences between the employees are. b) employees may receive the same ratings if they are all perform their jobs equally. c) they force appraisers to make judgments based solely on performance standards. d) relative judgments are focused on the individual, not on the individual’s performance. e) relative judgments are less defensible in court than other appraisal instruments. Answer: a C--Integration Page: 225


Chapter 7 – Appraising and Managing Performance


Your CEO is considering using a relative judgment system for your company’'s performance appraisal program. She asks you about the disadvantages to such a system, and you tell her that: a) that it is not uncommon for all employees to receive the same or very similar evaluations from their manager. b) that this system is based on subjective, relative judgments that do not differentiate how good or how bbad each employee’'s performance is. c) that it is not uncommon for evaluation criteria or standards to differ among managers. d) that this system does not measure job-relevant behavior. e) that it is a very time- consuming process. Answer: b E--Application Page: 225


A firm implementing a relative judgment performance appraisal system would most likely experience which of the following? a) The ability to compare employees across the business. b) Increased cooperation among employees. c) The ability to determine the relative degree of difference in performance between employees. d) Managers tending to group employees into two categories when evaluating performance. e) Increased employee satisfaction with the performance appraisal process. Answer: d Page: 225 M--Recalloderate


You are discussing changing your performance appraisal system with your executive management team. The VP of Operations would really like to be able to compare employees working for different managers in different areas of the plant. The best appraisal system for this would be a(n): a) a ranking system. b) a relative system. c) an absolute system. d) a behavior-based system. e) an outcome-based system. Answer: c C--Integration Page: 225


Part IV Employee Development


A benefit of using an absolute judgment performance appraisal system over a relative judgment appraisal system is that: a) relative judgments do not force raters to make distinctions between employees where none may exist, as absolute judgments do. b) when using absolute judgments, raters can give employees equal ratings when their performances are equally good. When relative judgments are used, raters must make performance distinctions between employees. c) absolute judgments tend to create conflict between employees, relative judgments do not. d) relative systems are easier to defend legally than are absolute systems. e) people naturally make absolute judgments. It is less typical for them to make relative judgments among other people and things. Answer: b C--Integration Page: 225-226


A disadvantage of an absolute judgment performance appraisal system is that: a) it forces managers to make distinctions among employees when there aren’'t any. b) it creates conflict among employees as they compete for the best rating. c) employees tend to be grouped into two categories by managers. d) it is hard to defend legally. e) it is difficult to maintain equity across managers. Answer: e C--Integration Page: 226


Unlike relative judgment-based systems, absolute judgment systems: a) do not create conflicts among employees. b) are simpler to use. c) help managers make clearer distinctions between employees. d) focus attention on the person rather than just on performance. e) help managers identify behavior that directly contributes to organizational success. Answer: a M--Recall Page: 226


An appraisal system that focuses on individuals, rather rather than any other factor is a(n): a) an absolute system. b) a behavioral system. c) a relative system. d) a trait-based system. e) an outcome-based system. Answer: d M--Recall Page: 228


Chapter 7 – Appraising and Managing Performance


Which of the following is an example of a trait that may be discussed by a trait appraisal instrument? a) Decisiveness. b) Quality of work. c) Reliability. d) Quantity of work. e) a and c Answer: e E--Recall Page: 228


The traits that are most often assessed by trait appraisal instruments are: a) unrecognizable to people who are not trained raters. b) highly defined so that raters can avoid conscious or unconscious bias. c) focused on worker characteristics that are only displayed in stressful job situations. d) enduring and consistent worker characteristics. e) often the cause of racial bias in the workplace. Answer: d M--Recall Page: 228


Bob wants to focus this year’s employee assessment interviews on discussing the traits each employee displays. You tell him that: a) though providing feedback to employees on trait-based judgments is often very encouraging to employees, it should be avoided since it is more expensive than providing feedback in other performance areas. b) providing feedback on trait-based judgments is highly personal, and since it is an evaluation of the employee rather than the employee’s performance, he should avoid doing so. c) trait-based judgments should never be a part of performance appraisal, so there would be no feedback with which to provide employees with. d) providing feedback on employees’ performance outcomes would do essentially the same thing. e) providing feedback on trait-based judgments is very important for boosting the morale of the employees. Answer: b C--Application Page: 228


Part IV Employee Development


Shawn is reviewing a performance appraisal instrument with a scale of 1-10. Each number has a descriptive statement next to it, from 1 --(rarely explains expectations or gives direction when assigning work) to 10 —(makes expectations clear, asks questions when giving direction, listens to employee's’ questions). This is an example of a(n): a) trait-based appraisal instrument. b) an MBO appraisal instrument. c) an outcome-based appraisal instrument. d) a behavior-based appraisal instrument. e) a relative judgment appraisal instrument. Answer: d C--Application Page: 229


Trait-based performance appraisal systems are most similar to: a) outcome-based performance appraisal systems. b) behavioral-based performance appraisal systems. c) MBO-based performance appraisal systems. d) relative judgment performance appraisal systems. e) absolute judgment performance appraisal systems. Answer: b C--Integration Page: 229


The most common form of behavior appraisal instrument is: a) Management by Objective. b) a behaviorally anchored rating scale. c) a behavioral observation scale. d) a situational interviewing form. e) trait scales. Answer: b M--Recall Page: 229


The critical incident technique can be used to create _______ rating scales. a) relative-judgment based b) trait-judgment based c) outcome- based d) behavior-based e) all of the above Answer: d E--Recall Page: 229


Chapter 7 – Appraising and Managing Performance


A company designs a performance evaluation process that evaluates the value of specific employee behaviors. The company is using a(/an): a) outcome-based system. b) relative judgment system. c) trait-based system. d) behavioral-based system. e) mikoshi-type performance system. Answer: d M--Application Page: 229


A drawback of a behavior-based performance appraisal system is: a) the difficulty of choosing what behaviors to evaluate from the hundreds available. b) distorting worker performance levels. c) developing a "“results at any cost”" mentality. d) being too ambiguous, and open to bias. e) managerial resistance to this approach as an unnatural way to evaluate performance. Answer: e M--Recall Page: 230


A significant drawback of outcome-based performance appraisal systems is: a) they can lead to a “"results at any cost”" mentality. b) it is very time consuming to set the criteria up. c) managers resist this approach as an unnatural way to evaluate performance. d) they are open to bias. e) the standards are too ambiguous. Answer: a E--Recall Page: 231


MBO, management by objective, performance appraisal systems are: a) trait-based performance systems. b) absolute performance appraisal systems. c) an outcome-based approach to performance appraisals. d) behavioral-based appraisal systems. e) none of the above. Answer: c E--Recall Page: 230


Part IV Employee Development


A pitfall of using an outcome appraisal instrument is that: a) the system uses ambiguous criteria that may be viewed differently by different raters. b) it forces raters to make distinctions between employees where none may truly exist. c) it is likely to encourage employee conflicts. d) it may give a distorted view of worker performance levels. e) outcomes are difficult to rate since they are relative judgments. Answer: d M--Recall Page: 230


The best overall performance appraisal in any circumstance: a) is a behavioral-based system. b) doesn’'t exist. There is no one best system. c) is a combination of a ranking system and a behavioral system. d) is a relative system because it generally provides better results than an absolute system. e) is a trait system because it focuses on the individual. Answer: b M--Recall Page: 231


Studies of performance appraisal systems show that the most influential element on the effectiveness of the system is the: a) the number of employees for whom the rater is responsible. b) the intelligence and experience of the rater. c) the type of tool or system used. d) the gender and age of the employee being evaluated. e) the job category for which the performance is being evaluated. Answer: b E--Recall Page: 231-232


Performance appraisals are subject to any number of errors. ______ is an error introduced by some type of consistent bias on the part of the rater. a) Rater error b) Influence of liking c) Organizational politics d) Instrument invalidity e) Team bias Answer: a E--Recall Page: 232


Chapter 7 – Appraising and Managing Performance


Which of the following does a manager need to minimize in order to ensure an accurate measure of worker performance? a) Organizational politics. b) Legal issues. c) The influence of liking. d) Rater errors and bias. e) All of the above Answer: e E--Recall Page: 232


You are reviewing the performance appraisal conducted by your middle managers. You notice that Carrie tends to give each employee the same score across all dimensions of the evaluation. For example, Brian’s scores all are in the average range while Karl’s all tend to be in the excellent range, even though you know that each man has done very well on some and very poorly on some of the dimensions. Brian and Karl’s evaluations exhibit: a) the impact of liking. b) a halo error. c) their awareness of organizational politics. d) the use of a group evaluation for rating individual performance. e) restriction of range error. Answer: e M--Application Page: 232


You are training first- line supervisors on how to give performance appraisals. In your explanation of the halo error, you tell these managers that they can avoid this mistake if they: a) are sensitive to organizational considerations when they evaluate employees. b) remain current on HRM and EEO laws. c) they use the proper tool in the correct format for each evaluation. d) consider each dimension individually, and don’'t make an overall assessment of performance and then tailor the evaluation to that assessment. e) guard against developing personal relationships with their employees. Answer: d C--Application Page: 232


Part IV Employee Development


Two line managers, Cameron and Ty, are performing appraisals on their subordinates. As they discuss their findings, they realize that they have very similar views on how they rate performance. The work that Cameron rates as excellent, Ty rates as excellent. The work that Ty rates as average, Cameron rates as average. This similarity indicates: a) a high rate of comparability between the two raters. b) a restriction of range error. c) a low rate of comparability between the two raters. d) central tendency errors between the two raters. e) the influence of liking. Answer: a 37. M--Application Page: 233

Raters who commit severity errors generally: a) rate employees on the basis of liking. b) restrict ratings to the high portion of the appraisal scale. c) restrict ratings to the low portion of the appraisal scale. d) rate employees performance similarly in all appraisal areas. e) become victims of organizational politics. Answer: c E--Recall Page: 232


Many organizations train managers to enhance the quality of the performance appraisal process. Frame-of-reference training has been found to be particularly effective in eliminating: a) the effect of organizational politics. b) the problems of the mismatch of the evaluation tool and the purpose of the evaluation. c) the problem of liking the employee. d) all legal issues in the performance review process. e) most errors and the impact of personal bias. Answer: e E--Recallasy Page: 233


Frame-of-reference training for managers who appraise employee performance uses ______ to help managers improve the accuracy and consistency of the performance evaluations they conduct. a) role playing b) fictitious examples of performance and group discussion of the rating given c) lecture and discussion d) examples of incorrect evaluations e) performance appraisals that managers have actually conducted and small group discussion Answer: b C--Integration Page: 233


Chapter 7 – Appraising and Managing Performance


Which of the following is true of rater bias? a) Training raters to eliminate errors often lowers rater bias. b) Rater bias is always conscious. c) Liking is a type of rater bias. d) Rater bias is always subconscious. e) Rater bias has little effect upon employee evaluations. Answer: c M--Integration Page: 233


As proven by the Segar v. Civiletti case, negative bias: a) occurs primarily in evaluations of women. b) occurs primarily in evaluations of African--Americans. c) is no longer a legal concern. d) can occur even in the federal government. e) is always unconscious bias. Answer: d M--Integration Page: 233


Which of the following is true about the impact of the influence of liking on the performance appraisal process? a) It is a gender and ethnic origin problem that occurs mostly in older, white male supervisors and less in younger female Latinao supervisors. b) A supervisor’'s feelings toward an employee have a greater impact on the performance rating than does actual performance. c) It has little actual impact on an individual’'s performance evaluation. d) The impact is greatest in absolute performance appraisal systems. e) All of the above are true. Answer: b C--Integration Page: 233


_____ is one way managers can counter or minimize the influence of liking on the performance evaluations they conduct. a) Frame-of-reference training b) Experience, simply having conducted many performance evaluations, c) Keeping a performance diary on each employee they evaluate d) Developing a sensitivity to the organizational politics involved in the process e) Conducting group, rather than individual, performance evaluations Answer: c E--Recall Page: 234


Part IV Employee Development


The first step in managing personal bias due to an emotional reaction to an employee is to: a) keep a monthly performance log. b) go through diversity or sensitivity training. c) be aware of your personal emotional reaction so you can guard against its effect. d) form a general impression of the employee'’s performance and write the evaluation from that perspective. e) get to know employees on a personal level so you understand why they behave the way they do. Answer: c E--Recall Page: 234


One way to guard against the impact of liking on a performance appraisal is to keep a performance diary for each employee. For managers, keeping performance diaries is often: a) tedious and time -consuming. b) a way to vent their frustrations about individual employees. c) a guarantee against bias due to liking. d) a relatively speedy process which provides legal justification for the appraising process. e) a good alternative to intervening directly when poor employee performance becomes a concern. Answer: d M--Recall Page: 234


When managers use performance appraisals to communicate a message to an employee rather than to measure actual performance, the performance appraisal is being influenced by: a) rater bias. b) the rater’'s frame-of-reference. c) personal bias. d) organizational politics. e) the influence of liking. Answer: d M--Recall Page: 235


Sheila believes the value of her employees’' performance depends on her agenda or goals, and not on any objective standard. Sheila’s perspective is a(/an): a) rational perspective. b) absolute perspective. c) political perspective. d) relative perspective. e) trait-based perspective. Answer: c E--Application Page: 235


Chapter 7 – Appraising and Managing Performance


Which of the following is a true comparison between the rational perspective of appraisal and the political perspective of appraisal? a) A rater’s bias is less likely to be a deciding factor in the political perspective than in the rational perspective. b) In both cases, workers are expected to actively influence their evaluations. c) Supervisors’ roles in the rational approach are much more active than supervisors’ roles in the political approach. d) The goal of appraisal from the political perspective is accuracy. The goal of appraisal from the rational perspective is accuracy. e) The goal of appraisal from the political perspective is utility. The goal of appraisal from the rational perspective is accuracy. Answer: e C--Integration Page: 235


Managers using a rational perspective to appraise performance believe that: a) the goal of an appraisal is accuracy. b) appraisals are utilitarian in purpose. c) the employee is an active participant in the process. d) the focus of the process is management of performance. e) the assessment of specifics follows the overall assessment of the worker. Answer: b E--Recall Page: 236


One could draw which of the following conclusions from your text’'s explanation of the political perspective in performance appraisal? a) Performance appraisals always reward specific behavior. b) Performance appraisals communicate approval and disapproval, and manage an employee’'s behavior. c) Performance appraisals provide a way to compare different employees working at the same or similar jobs. d) Performance appraisals accurately measure performance against clear standards in order to improve functioning in the organization. e) Performance appraisals give the employee as much power and discretion as possible. Answer: b C--Integration Page: 235-236


Part IV Employee Development


Managers who follow a rational perspective when conducting performance appraisals: a) value the employee’'s performance relative to the manager’'s goals. b) seek to clearly define a worker’'s performance and the criteria to evaluate that performance. c) disdain training on the process. d) first decide who should get the highest rating in a group setting, and then complete the evaluation. e) uses relatively ambiguous criteria or definitions in the appraisal process. Answer: b M--Recall Page: 236


Your text argues that the performance appraisal process in most organizations is: a) an absolute process. b) a rational exercise. c) a political exercise. d) generally a group, rather than individual, process. e) a trait-based process. Answer: c E--Recall Page: 236


Automotive, Inc. (A.I.) is an automotive manufacturing company that uses selfmanaged teams to produce large automotive parts. When performing evaluations, A.I. needs to remember to: a) appraise both individual and team performance. b) value individual performance over team performance. c) value team performance over individual performance. d) use outcome measures when evaluating the performance of individual team members. e) use behavioral measures to assess overall team performance. Answer: a M--Application Page: 236


Most experts agree that in a team environment: a) individual assessment should stop. b) behavioral-based assessments are the best in most cases. c) outcome-based assessments are the only type of appraisal that should be used. d) only internal customers should make judgments regarding employee performance. e) both individual and team performance should be evaluated. Answer: e E--Recall Page: 236


Chapter 7 – Appraising and Managing Performance


When creating criteria for evaluating individuals’ performance in a team effort, it is important that: a) the appraisal measures are outcome-related. b) only designers of the evaluation know the areas of assessment before the appraisal is performed. c) criteria measures should be developed with the input of team members. d) quantity and quality measures be the focus of individual performance appraisal. e) performance criteria should be ambiguous so that they do not become confused with team performance criteria. Answer: c M--Recall Page: 237


The legal requirements that any performance appraisal system must meet are set forth in: a) Executive Order 110267. b) the Civil Rights Act of 1991. c) an addendum to the Americans with Disabilities Act. d) Title VII of the Civil Rights Act of 1964. e) no single document or federal law. Answer: d M--Recall Page: 239


The most significant court test of discrimination in performance appraisal was: a) Griggs versus Duke Power. b) Brito versus Zia. c) Denny’'s versus the U.S. government. d) the University of Massachusetts Medical Center case. e) Dominos versus the U.S. government. Answer: b C--Integration Page: 239


A review of court decisions regarding performance appraisal legal issues, shows that the courts: a) tend to be favorably influenced by the use of job analysis. b) tend to rule in favor of the employee. c) prefer clear-cut, non-discrimination cases. d) tend to refer the issue back to the EEOC or OFCCP. e) have used the 1973 Supreme Court case to widely expand the definition of discrimination in performance appraisal. Answer: a E--Recall Page: 239


Part IV Employee Development


Judges’ decisions on appraisal systems have been favorably influenced by which of the following factors? a) The age of the rater. b) The job experience of the ratee. c) The use of verbal assessment instruction. d) The presence of rater training. e) The strength of organizational politics within the business. Answer: d E--Recall Page: 239


Catina is designing an assessment and performance managing program for her company’s HR department. To manage employee performance most effectively, Catina should: a) simply initiate formal reporting and annual rating. This is sufficient. b) mandate that performance appraisals and assessment interviews be performed once every three3 years. c) prohibit managers from combining performance and salary discussion. d) stress that day-to-day interactions need to occur between manager and employee in addition to face-to-face interviews. e) create a program that measures employee performance in terms of productivity per year. Answer: d M--Application Page: 240


In most U.S. organizations, an employee’'s performance appraisal interview and salary review are conducted in the same meeting. Research shows that tying these two events together: a) results in employees receiving lower raises than if the two events are separated. b) causes managers not to take the performance appraisal as seriously. c) results in the managers focusing on the salary issue and overlooking the performance appraisal. d) leads employees to ignore the performance feedback and focus only on the salary review. e) causes managers to take the appraisal more seriously while energizing the performance discussion. Answer: e M--Recall Page: 240


Chapter 7 – Appraising and Managing Performance


Your text argues for which of the following as the best model of performance management? a) Separating the performance appraisal and salary review. b) Incorporating judgment and coaching in the performance review. c) Separating goal setting and action planning from the formal review. d) Replacing the formal review with informal day-to-day feedback and performance management. e) None of the above. Answer: b M--Recall Page: 240


Which of the following is a benefit of incorporating salary discussion intotogether with the appraisal interview? a) Tying salary to assessment generally decreases an employee’s anxiety over the appraisal process. b) Feedback and assessment may become simply a meaningless exercise if salary implications are ignored. c) Managers will be more conscientious when assessing employees ifwhen money is at stake. d) There is no benefit. in incorporating the two e) b and c Answer: e E--Recall Page: 240


Which of the following is a “microskill” that managers should use in employee appraisal interviews? a) Using open questions only. b) Paraphrasing employees’ responses back to them. This often sounds like a challenge of the employees’ statements. c) Not referring to feelings or the emotional aspects the employee may have about the job. d) Nonverbal attending. e) Maintaining a distinct manager/subordinate atmosphere. Answer: d E--Recall Page: 241


Those who manage employee performance effectively share some common management characteristics, such as: a) the ability to motivate. b) a thorough knowledge of HRM law. c) a minimal use of progressive discipline. d) the exploration of causes of performance problems. e) a behavioral-based approach to managing people. Answer: d E-- Recall Page: 241


Part IV Employee Development


Employee performance on the job is primarily a function of the employee’'s: a) ability, motivation, and situational factors. b) external situational factors largely beyond his/her control. c) ability and his/her working conditions. d) supervision and motivation. e) manager’'s effectiveness in directing and listening. Answer: a M--Recall Page: 242


More and more companies are adopting an upward performance appraisal process of: a) peer reviews. b) self reviews. c) team reviews. d) outcome-based reviews. e) subordinate reviews. Answer: e E--Recall Page: 243


An inclusive list of factors that affect performance includes: ability, motivation, and situational factors. Which of the following would be a situational factor? a) An employee arrives at work late every day. b) An employee exhibits job knowledge. c) The employee receives poor supervision. d) The employee is suffering from burnout. e) All of the above Answer: c C--Integration Page: 242


If supervisors want to help employees gain insight into their performance problems and have input into the performance appraisal, they should consider using: a) peer reviews. b) self reviews. c) team reviews. d) outcome-based reviews. e) subordinate reviews. Answer: b E--Recall Page: 243


Chapter 7 – Appraising and Managing Performance


Ahmad has been a line manager at a large jewelry factory for nearly 10 years. This year, the factory is letting the employees directly under him contribute to Ahmad’s performance appraisal. This is an example of: a) subordinate review. b) superior review. c) self-review. d) management revision. e) 360º feedback. Answer: a E--Application Page: 243


360º feedback: a) is inherently less time consuming than any performance appraisal process. b) takes less planning than traditional processes. c) is rapidly becoming commonplace. d) is being used less and less and will probably be gone within five5 years. e) is less expensive than other appraisal processes. Answer: c E--Recall Page: 244


In recent years, customer appraisals have: a) become increasingly ineffective. b) become more important than traditional performance assessment measures. c) been prohibited by most large employers. d) influenced stock prices of three major companies. e) become a valuable source of assessment. Answer: e E--Recall Page: 244


An effective performance appraisal process must include which of the following steps? a) The manager giving the employee an action plan to resolve problems. b) Customer feedback. c) An absolute outcome-based instrument and performance coaching. d) The manager coaching the employee to reach a solution. e) Communication of feelings as well as content in the appraisal feedback session. Answer: d M--Recall Page: 246


Part IV Employee Development


A case can be made that the most important element in a manager’'s coaching of an employee’s's work performance is: a) identifying the cause of the performance problem. b) directing attention to the problem. c) empowering the worker to reach a solution. d) the communication between the manager and the worker about the issue. e) the accuracy of the performance appraisal. Answer: c M--Integration Page: 247


The best way to encourage effective performance is to: a) be specific about desired outcomes. b) be very detailed about how employees should work to reach goals. c) design outcome goals without employee input. d) encourage employees to work harder in areas areas in whichthat they cannot improve in. e) all of the above Answer: a C--Integration Page: 247


The implementation of a 360º performance appraisal process requires: a) employee training in giving feedback. b) top management establishing the need for the process. c) employee/management cooperation in developing appraisal criteria. d) informing employees of the nature of the process. e) all of the above. Answer: e E--Recall Page: 246


Performance-related communication is most effective when directed at: a) employee traits. b) employee performance. c) the employee directly. d) the employee/manager relationship. e) fixing responsibility for performance failures. Answer: b M--Recall Page: 248


Chapter 7 – Appraising and Managing Performance

CASE QUESTIONS Table Case 7.1 Shannon is the CEO of a service firm that provides high- tech service support to other small businesses. He wants to revise the performance appraisal system to align it more closely with company goals. Frank has no preconceived ideas, but he wants a tailored program that is fair, ethical, and that will produce consistent results. He wants service employees to work together to assist each other while providing maximum service quality. The sales force for Shannon’s company has not been particularly aggressive and sales are lagging. He wants sales people to both sell and assist in providing service to customers. Happy customers lead to better profits. In the past, his sales managers have been getting the same raises, regardless of their effectiveness. He wants to know whom his best-performing managers and executives are, and he wants to reward them accordingly. He wants to compare managers across functions so he can identify people ready for greater and different responsibilities. 78. Refer to Case Table 7.1. Shannon’s first step in developing the new performance appraisal system is to: a) identify the performance dimensions to measure. b) identify the performance appraisal tool(s) he wants to use. c) provide training for himself and other managers to avoid rater error. d) develop the performance management process he will use. e) communicate the changes in the program to the employees. Answer: a 79. Moderate Page: 223

Refer to CaseTable 7.1. The best appraisal system to enhance cooperation among service personnel would be: a) a trait-based appraisal system. b) a performance appraisal system that focused on the person rather than performance. c) the relative judgment process. d) rank ordering. e) a behavioral appraisal system. Answer: e Challenging Page: 229


Part IV Employee Development


Refer to CaseTable 7.1. The best appraisal system for Shannon’s sales management team would be: a) rank order. b) trait -based. c) outcome s-based. d) relative judgment. e) Bbehavioral -based. Answer: c Moderate Page: 230


Refer to Case Table 7.1. What perspective do you believe Shannon has when it comes to the performance appraisal process? a) A political perspective. b) An absolute perspective. c) A relative perspective. d) A legal perspective. e) A trait perspective. Answer: b Challenging Page: 236


Refer to CaseTable 7.1. If Shannon wanted a system that would help him make clear distinctions among his managers by job, i.e., all MIS managers would be rated together, all executives would be rated together, etc., you could recommend that he use a(/an) ____ appraisal tool. a) behavioral b) trait c) relative judgment d) outcome e) absolute judgment Answer: c Moderate Page: 225


Chapter 7 – Appraising and Managing Performance

CaseTable 7.2 You are reviewing performance appraisals from across the company for a report to the president regarding manager performance. She wants to know not only how employees are doing, but also how well managers are evaluating their employees. Reading through Matt’s evaluations of his MIS team, you note that he tends to rate all of his people in the middle of the scale. You recall a conversation last week when he told you that overall his people were okay, but nothing to cheer about. He would like to get them more training and institute an incentive program to get them motivated. Madeline’s employee evaluations look pretty good:. They range from very good to some weak performers. You are startled to see that Madeline has rated Juan rather low. Pulling his file, you note that he has always had very high ratings until this time. You remember a meeting two months ago when Juan vehemently disagreed with Madeline in front of the president, who sided with Juan (to Madeline’s embarrassment). Edward’s employee evaluations seem to have no reason to them. Gary, a noted average performer has a very high rating. Jenny, another average performer whothat Anuar has been trying to convince to quit, has a very low rating. You remember hearing Edward say that Gary was the president's son-in-law and that he thought Jenny needed to be motivated to do more than just get by. 83. Refer to CaseTable 7.2. Based on what you know, you could draw the conclusion that Matt’s evaluations exemplify: a) a normal manager’'s evaluations. There is no problem. b) a halo effect error, where Matt has already made an overall assessment of his employees and rated them accordingly. c) the influence of liking. d) a problem with organizational politics. e) a frame-of-reference error. Answer: b 84. Challenging Page: 232

Refer to CaseTable 7.2. Madeline’s overall evaluations tell you that she: a) is doing a good job of evaluating her people. b) is subject to the halo effect. c) tends to make leniency errors. d) is sensitive to organizational politics. e) would have difficulty comparing her employees across the board. Answer: b Challenging Page: 232


Part IV Employee Development


Refer to CaseTable 7.2. Madeline’s evaluation of Juan may have a/(an) ___ error. a) central tendency error b) organizational politics c) influence of liking d) frame-of-reference e) assessment criteria Answer: c Moderate Page: 233


Refer to Case Table 7.2. Edward’s employee evaluations show that Edward: a) tends to have halo errors. b) is subject to the influence of liking. c) takes a rational or absolute perspective on performance appraisals. d) is not considering situational factors in his appraisals. e) believes in a political perspective regarding performance appraisals. Answer: e Moderate Page: 235


Refer to CaseTable 7.2. Which of these managers might leave the company vulnerable to a lawsuit because of the way they conduct their performance appraisals? a) Matt . b) Edward. c) Matt and Edward. d) Madeline and Edward. e) Madeline. Answer: d Challenging Page: 239

CaseTable 7.3 In a training session for managers, you mention the fact that the most important part of the performance appraisal process is performance improvement. Then you move into an explanation of the improvement of performance process. During the ensuing discussion, Chris, a middle -manager with 20 direct reports, tells you that he has a finely tuned ability to discover the causes of performance problems. It is always that the employee either doesn’'t want to do the job or he/she doesn’'t have the skills and knowledge to do it. For example, no matter how often Sam showed Wilson what to do and encouraged him, he just couldn’'t meet production demands. Another supervisor, Gena, says that once she has discovered the cause of the performance problem,. aAll she has to do is create a supportive environment and work in partnership with the employee, and the problem is solved. While she strives to communicate acceptance, she also likes to use trait-type terms--crabby, argumentative, unimaginative,, etc., --to help her employees understand where she is coming from. She finds that if she gives the employee all the time he/she needs and then offers suggestions for


Chapter 7 – Appraising and Managing Performance

improvement, she generally has positive results from the meetings. 88. Refer to CaseTable 7.3. In this training session you point out to the managers that to improve performance, they need to begin by: a) exploring the causes of the performance problem with the employee. b) directing attention to the causes of the problem. c) empowering workers to reach their own solutions to performance problems. d) directing their communication toward performance issues. e) conducting a formal performance appraisal. Answer: a 89. Easy Page: 240

Refer to CaseTable 7.3. Chris’s analysis of the causes of performance problems ignores what possible cause of poor performance? a) Employee ability. b) Employee motivation. c) Situational factors beyond the employee’'s control. d) Legal hindrances. e) Observer bias. Answer: e Moderate Page: 241


Refer to CaseTable 7.3. Gena’s strategy for solving performance problems skips what step that an effective manager uses for solving performance problems? a) Exploring the causes. b) Directing attention to the cause. c) Empowering employees to reach a solution. d) Motivating the employee to solve his/her own problems. e) Management control of the process. Answer: b Moderate Page: 236


Refer to CaseTable 7.3. Gena’s performance improvement process emphasizes which characteristic or strategy of an effective manager? a) Identifying the problem. b) Exploring the problem. c) Directing attention to the problem. d) Empowering the employee to deal with the problem. e) Directing communication to the problem and not the person. Answer: d Moderate Page: 247


Part IV Employee Development


Refer to CaseTable 7.3. How does Gena’s method of giving feedback compare to the suggestions offered in the Manager’s Notebook for giving constructive feedback? a) Gena is effective and follows all the guidelines. b) Gena is probably not giving employees sufficient time to vent their feelings. c) Gena seems to be spending too much time trying to reason the employees into seeing her perspective. d) Gena probably communicates acceptance but shouldn’t use the “trait-type” terms. e) Gena doesn’t seem to offer suggestions for improvement. Answer: d Easy Page: 248

CaseTable. 7.4 Sigerstad, Inc. is preparing for a large-scale performance evaluation of workers in all departments. You are a member of the HR department and have been asked to join a committee that will be developing the criteria. The company is very team-centered and you need to develop appraisal criteria with teams in mind. Management has also asked the team to prepare a training session for line managers on how to provide appraisal feedback to employees, as well as how to perform appraisal interviews. 93. Refer to CaseTable 7.4. The committee begins by discussing how the foci of the appraisals should be directed. Which of the following would you suggest as the best direction for the appraisals? a) Only team performance should be evaluated, since team outcomes are the basis for the firm’s’ success or failure. b) Only individual performance should be evaluated, since each individual’s performance plays a factor in the team’s success. c) Both individual performance and team performance should be evaluated. d) Individual performance should be the sole measure of performance for Sigerstad’s manufacturing teams. e) Team performance should be the sole measure of performance for Sigerstad’s manufacturing teams. Answer: c 94. Moderate Page: 236

Refer to CaseTable 7.4. Mary Anne suggests that team members’ individual performance be based upon outcome measures. You respond that: a) outcome measures should have no place in measuring performance. b) using behavioral measures would be a better choice, since they are easier to observe. c) using outcome measures would certainly be the best choice for measuring individual performance. d) quantity measures should be used when determining individual performance. e) individual performance should not be measured among team members.


Chapter 7 – Appraising and Managing Performance

Answer: b 95.


Page: 236-237

Refer to Case Table 7.4. Dwayne suggests that team performance be based on outcome measures. You respond that: a) outcomes measures should have no place in measuring team-related performance. b) using behavioral measures would be a better choice, since they are easier to observe. c) using outcome measures would certainly be the best choice for measuring individual team members’ performance. d) measuring the traits that team members exhibits would be a better choice. e) it would be just as effective to simply measure each individual member’s’ outcome performance. Answer: c Moderate Page: 237


Refer to CaseTable 7.4. If team members reviewed one another, this would be an example of: a) self-review. b) subordinate review. c) peer review. d) bribery. e) hypocrisy. Answer: c Easy Page: 243


Refer to CaseTable 7.4. In order for feedback to produce worker improvement, you suggest emphasizing which of the following to managers who will perform appraisal interviews? a) Directing communication at the worker’s performance rather than at the worker. b) Developing an action plan and empowering employees to reach a solution in improving performance. c) Exploring the causes of performance problems. d) Directing attention to causes of performance problems. e) All of the above Answer: e Easy Page: 240

TRUE/FALSE QUESTIONS 98. To determine which measurement element to use in performance appraisal, a manager needs to examine the areas of work performed by the employee. Answer: False Easy Page: 222


Part IV Employee Development


Chapter 7 – Appraising and Managing Performance


The performance appraisal system should both praise or criticize past behavior, and focus on the future focus in terms of how workers will achieve their potential in the organization. Answer: True Moderate Page: 223

100. An advantage of absolute judgment appraisal formats over relative judgment formats is that the absolute format permits comparison ratings of individual workers in different work groups by various managers. Answer: True Moderate Page: 226

101. Relative ranking systems require managers to make performance distinctions among workers even if none actually exist. Answer: True Moderate Page: 226

102. Absolute rating systems eliminate the common problem of relative systems of all workers receiving similar ratings by forcing the supervisor to make objective distinctions. Answer: False Challenging Page: 226

103. Colleen is appraising workers in the manufacturing department of a woodworking shop. She ranks Horace as the most skilled woodworker, Kayla as the second most skilled woodworker, and Eric as the least skilled of the three. Colleen is performing an absolute judgment appraisal. Answer: False Moderate Page: 225

104. Trait ratings evaluate worker characteristics that tend to be consistent and enduring. Consequently, like absolute systems, they eliminate all ambiguity and arbitrariness in ratings. Answer: False Challenging Page: 228

105. The most common form of behavioral appraisal instrument tends to measure the value rather than the frequency of rated behaviors. Answer: True Challenging Page: 229

106. Like trait systems, behavioral systems are somewhat relative since the effectiveness and frequency of an important behavior is subjectively judged by the rater. Answer: False Challenging Page: 229-230


Part IV Employee Development

107. Behavioral rating systems are generally focused on an employee’s performance, than rather than their personal characteristics. Answer: False Easy Page: 229

108. Behavioral rating systems are well accepted by managers since the method aligns with the way they think about their employees on a day-to-day basis. Answer: False Moderate Page: 230

109. The advantage of outcome-based appraisal systems is that they eliminate subjectivity and potential for rater error. Answer: True Moderate Page: 230

110. The choice of which appraisal tool to use should be based on the purpose of the appraisal. Answer: True Easy Page: 231

111. Sudhir is evaluating Carol’s performance. Sudhir has a poor opinion of Carol because she irritates him by asking questions and questioning his judgment in department meetings. When the HR director reviews Carol’s performance evaluation, he notes that Sudhir has consistently rated Sudhir Carol low. The HR director agrees in areas of judgment and tact but knows that Jane Carol is considered one of the department's most effective people in other areas. What the HR director notes in Sudhir’s evaluation is the rater bias called the halo effect. Answer: True Challenging Page: 232

112. Yolanda tends to appraise all workers in her department at the high end of the measuring scale. This may be due to a severity error. Answer: False Challenging Page: 232

113. It is important to train raters to eliminate rater errors. Answer: False Moderate Page: 233

114. Liking is an emotional and conscious response on the part of employers and is established over a long period of time. Answer: False Moderate Page: 233


Chapter 7 – Appraising and Managing Performance

115. The use of a performance diary is an excellent, almost foolproof way of guarding against the performance evaluation error called “liking.” Answer: False Challenging Page: 234

116. Maximizing benefits over costs is the primary goal of rational performance appraisal. Answer: False Challenging Page: 236

117. Rational and political perspectives on performance appraisal differ in that the rational approach seeks as clear a definition of worker performance as possible, while the political perspective seeks ambiguity. Answer: True Easy Page: 236

118. In team environments, experts recommend eliminating individual performance evaluation to avoid creating rivalries within teams. Answer: False Moderate Page: 236

119. When evaluating individual contributions to team performance, a trait measure should be used because it helps to eliminate rater bias. Answer: False Moderate Page: 236-237

120. When assessing the basis of a performance problem, managers should focus on employee ability and motivation, and largely ignore situational factors, since these are beyond the employee’'s control. Answer: False Moderate Page: 242

121. 360º performance appraisal systems require careful planning and consumes far more time than other appraisal systems, but putting the system on-line can reduce the time needed for the process. Answer: True Easy Page: 246


Part IV Employee Development

SHORT ANSWER QUESTIONS 122. The identification, measurement, and managements of human performance in organizations is referred to as _______. Answer: performance appraisal Easy 123. Page: 222

_______ is an aspect of performance that determines effective job performance. Answer: Dimension Moderate Page: 224

124. An appraisal format that asks supervisor to compare an employee’s performance to the performance of other employees doing the same job is referred to as _______. Answer: relative judgment Moderate Page: 225

125. _______ is an appraisal format that asks supervisors to make judgments about an employee’s performance based solely on performance standards. Answer: Absolute judgment Moderate Page: 226 126. An appraisal tool that asks a supervisor to make judgments about worker characteristics that tend to be consistent and enduring is referred to as a(n) _______. Answer: trait appraisal instrument Moderate Page: 228 127. A(n) _______ is an appraisal tool that asks managers to assess a worker’s behaviors. Answer: behavioral appraisal instrument Moderate Page: 229 128. A(n) _______ is an appraisal tool that asks managers to assess the results achieved by workers. Answer: outcome appraisal instrument Moderate Page: 230


Chapter 7 – Appraising and Managing Performance

129. _______ is a goal-directed approach to performance appraisal in which workers and their supervisors set goals together for the upcoming evaluation period. Answer: Management by objectives (MBO) Moderate Page: 230 130. An error in performance appraisals that reflects consistent biases on the part of the rater is referred to as _______. Answer: rater error Easy Page: 232

131. _______ is the degree to which the performance ratings given by various supervisors in an organization are similar. Answer: Comparability Moderate Page: 233

132. A type of training that present supervisors with fictitious examples of worker performance, asks the supervisor to evaluate the workers in the examples, and then tells them what their ratings should have been is referred to as _______. Answer: frame-of-reference (FOR) training Moderate Page: 233 133. A(n) _______ is a performance appraisal system in which workers rate themselves. Answer: self-review Easy Page: 243

134. A(n) _______ is a performance appraisal system in which workers at the same level in the organization rate one another. Answer: peer review Easy Page: 243

135. A performance appraisal system in which workers review their supervisors is called a(n) _______. Answer: subordinate review Moderate Page: 243 136. The combination of peer, subordinate, and self-review is referred to as _______. Answer: 360-degree feedback Moderate Page: 244


Part IV Employee Development

ESSAY QUESTIONS 137. Performance appraisal systems may be built on a relative or absolute judgment basis. Discuss what these two bases are and the relative merits and disadvantages of each. Answer: Summary of suggested answer – Relative judgment-based systems evaluate employee performance by comparing employees to one another. Ranking is a common tool. The advantage is that it forces managers to make distinctions. Sometimes supervisors’' unwillingness to do this destroys the effectiveness of the performance appraisal process. Most HR professionals see several disadvantages with this system, such as: ratings are not comparable, employees tend to be grouped, and it leads to conflict among employees. Absolute judgments simply evaluate employee performance on an individual basis against specific criteria. Its advantages are: ratings are comparable, standards are concrete, it avoids creating conflict among employees. But there are some disadvantages: workers tend to receive the same ratings, interpretation of standards varies among managers. Easy Page: 225-226

138. Some performance appraisal tools focus on what is measured rather than how the judgment is made. Describe three measurement-focused appraisal tools, enumerating the advantages and disadvantages of each. Answer: Summary of suggested answer – Trait appraisal instruments focus on worker characteristics, which tend to be consistent and enduring. They have the advantage of providing a shorthand behavioral system but the disadvantages of being too ambiguous and focusing on the person, not the behavior. Behavioral appraisal instruments focus on employee behavior, what type and to what degree it is exhibited. These instruments have the following advantages: standards are concrete, focus is behavior/performance. But they also have disadvantages of: they are time consuming, it is difficult to identify key behaviors. Outcome-s based instruments measure results achieved. The most common measurement is MBO. The advantages are: results oriented, measurable. Disadvantages: -a results-only focus, not all factors are controllable by employee. Moderate Page: 228-231


Chapter 7 – Appraising and Managing Performance

139. Discuss how rater errors and personal bias influence the performance appraisal process and any possible solutions for these influences on the performance appraisal process. Summary of suggested answer – Rater error is the consistent bias on the part of the rater. This may take several forms. • The halo error is the most prominent and occurs, when the supervisor equalizes an employee's ratings or makes ratings fit his/her overall judgment. • Restriction of range error is another form of rater error. The manager restricts his/her ratings to a small portion of the rating scale. This may take the form of leniency, severity, or central tendency error. • Personal bias can be conscious or unconscious and raise legal issues. Solution--Frame- of-reference training, but it only works for behavioral systems. Challenging Page: 232-233

140. Managers face a number of challenges when conducting performance appraisals, such as: the influence of liking, organizational politics, and legal issues. Discuss how these challenges affect the performance appraisal process and any solutions for these challenges. Answer: Summary of suggested answer – • Influence of liking--when the manager likes or dislikes employee, it influences rating by introducing bias. It can be good, if a manager likes good performers and dislikes poor performers. It can be bad if a manager’'s likes/dislikes are idiosyncratic. Solution--use of performance diaries. • Organizational pPolitics--use of appraisal to communicate a message, not evaluate performance. Appraisal is tied to manager’'s goals, not criteria. Individual or group focus--in a team environment, should managers still evaluate individual performance? • Legal iIssues--Most companies keep some form of both team effectiveness and individual performance. Legal issues--Title VII sets criteria, courts tend to rule in favor of organization, employment-at-will is a big factor. More and more employers need to document and defend, but courts are reluctant to get into it. Challenging Page: 233-234, 235-236, 239-240


Part IV Employee Development

141. Group performance appraisals are becoming more important in the U.S. business community, since teams are becoming increasingly common in the workplace. At what two levels should performance be appraised from and how should these be measured? Answer: Team performance should be based upon: 1) the performance of the team as a unit 2) each individual’s contribution to the team. To evaluate team performance, managers must measure the overall performance of the team as a whole. Measuring the quality or quantity of the team’s outcome is the most applicable way to evaluate the performance. Team members are the best sources for identifying and developing team level criteria. In order to evaluate individual contributions, managers must have clear performance criteria relating to traits, behaviors, or outcomes. Behavioral measures are the most appropriate for determining the individual members’ contributions, since they are be most easily understood by team members and those who interact with the team. Challenging Page: 236-238

142. Performance management is a critical final element of the performance appraisal process. Explain how effective managers help employees improve performance. Answer: Summary of suggested answer – There are four steps or characteristics of performance improvement. Exploring the causes, directing attention to the causes, developing an action plan, and directing communication to performance. 1) Exploring causes--looking at ability, motivation, and situational factors with the employee. Considers all relevant factors in order to solve, rather than blame. 2) Directing attention--focus is on fixing performance, not personality. It is an effort to ensure helpful factors are present and barriers are removed. 3) Empowering--giving employees permission and ability to solve the problem themselves. Focus is partnership, support, helping. 4) Directing communication--discussions focus on performance. Open -minded to discover real cause of problem. Non-confrontation, problem-solving focus. Moderate Page: 236-238