Performance Management

H602
Quiz 1 Study Pack

Nadia Afroze Disha | RQ-74 | MBA 62D | IBA, DU

March 26, 2021
 Slide 1 | Performance Appraisal

1. Who developed the first recorded a) The early 1800s

performance appraisal system? b) The mid 1800s
a) Peter Drucker c) The late 1800s
b) Robert Owen d) The mid to late 1800s
c) Frederick Taylor
d) None of the above 8. Whose work laid the groundwork for
performance appraisal in business shortly
2. Which country was the first recorded before World War I?
performance appraisal system a) Peter Drucker
developed in? b) Robert Owen
a) England c) Frederick Taylor
b) Scotland d) None of the above
c) Canada
d) None of the above 9. In which year did the development of the
man-to-man rating chart start?
3. When was the first recorded a) 1914
performance appraisal system b) 1915
developed in? c) 1916
a) In 1800 d) 1917
b) Around 1800
c) In 1900 10. After laying the groundwork for
d) None of the above performance appraisal in business,
Frederick Taylor began the development
4. Frederick Taylor used color blocks to of the man-to-man rating chart.
evaluate job performance of employees. (True/False)
(True/False) False. It was Walter Dill Scott who began
False. Robert Owen used color blocks to the development of the man-to-man
evaluate job performance of employees. rating chart.

5. Formal appraisal systems were first utilized 11. The man-to-man rating chart was used to
in Scotland. (True/False) identify and evaluate _____ during World
False. Formal appraisal systems were first War I.
utilized in the United States. military leaders

6. Who first utilized the formal appraisal 12. Walter Dill Scott began the development
systems in the US? of the man-to-man rating chart for the
a) The military army shortly before World War II.
b) The federal government False. Walter Dill Scott began the
c) City administrators development of the man-to-man rating
d) b and c chart for the army during World War I.

7. During which period did the US first utilize 13. The graphic rating scale was developed
formal appraisal systems? in the _____.

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 a) 1910s d) b and c
b) 1920s
c) 1930s 20. In the 1930s and 1940s, appraisal systems
d) 1940s focused on rating employees' _____ and
_____ traits.
14. During _____, the concept of MBO began personality, behavior
to emerge.
a) 1940s 21. Which of the following statements is not
b) 1950s correct?
c) 1960s a) Performance appraisal is a formal
d) 1970s employee evaluation system.
b) Performance appraisal is a
15. The early appraisal systems were related constructive process.
to various numerical efficiency factors. c) Performance appraisal is a
(True/False) systematic and periodic process.
True d) None of the above

16. Which of the following studies were the 22. Which of the following statements is
numerical efficiency factors related to correct?
the early appraisal systems developed a) Performance appraisal primarily
from? focuses on an employee’s
a) Work simplification study achievements.
b) Work management programs b) Performance appraisal primarily
c) Time and motion study focuses on an employee’s work
d) a and c behavior.
c) Performance appraisal focuses on an
17. The work simplification and time and employee’s achievements as well as
motion studies were popularized by the his/her work behavior.
work of industrial engineers. (True/False) d) None of the above
True
23. In relation to what does performance
18. The early ranking method required the appraisal assess an individual
evaluator to evaluate a worker’s employee’s job performance and
performance on a continuum of 'poor' to productivity?
'excellent'. (True/False) a) Organizational objectives
False. The early graphic rating scale b) Individual employee goals
method required the evaluator to c) Certain pre-established criteria
evaluate a worker’s performance on a d) a and c
continuum of 'poor' to 'excellent'.
24. Performance appraisals are also known
19. During which period were human as annual reviews. (True/False)
relations strongly emphasized by the True
management?
a) 1920s 25. Performance appraisals help managers
b) 1930s and employees create plans for
c) 1940s employee development. (True/False)

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 True a) Providing feedback and
encouraging performance
26. How do performance appraisals help improvement
managers and employees create plans b) Improving the overall organizational
for employee development? performance
a) By identifying the weak areas of c) Identifying employee potentials for
employee performance development
b) Through additional training d) Determining compensation changes
c) Through increased responsibilities
d) All of the above 33. Employees are motivated when they are
clear about what they are required to do
27. Performance appraisal deals only with in a given period. (True/False)
past performance of employees. True
(True/False)
False. Performance appraisal also tries to 34. Which of the following sequences is
figure out employees' potentials for future complete and correct?
development. a) Performance appraisal → Clarity of
goals → Greater focus on job →
28. Performance appraisal is a continuous Better performance → Greater
process. (True/False) efficiency and commitment →
True Improved organizational
performance → Increased
29. What are the main objectives of productivity
performance appraisal? b) Performance appraisal → Greater
a) To measure employee performance focus on job → Better performance →
b) To improve employee performance Greater efficiency and commitment
c) To increase the future potentials and → Increased productivity →
values of the employees to the Improved organizational
company performance → Clarity of goals
d) All of the above c) Performance appraisal → Clarity of
goals → Greater focus on job →
30. Providing feedback is the most common Better performance → Greater
justification for an organization to have a efficiency and commitment →
performance appraisal system. Increased productivity → Improved
(True/False) organizational performance
True d) None of the above

31. Motivating superior performance is 35. In absence of a performance appraisal

another classic reason for an system in the organization, it is likely that
organization to have a performance the supervisor’s expectations will not be
appraisal system. (True/False) clearly communicated to the
True employees. (True/False)
True
32. What is the most important reason for an
organization to have a performance 36. How does a company make promotion
appraisal system? or salary increment decisions?

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 Through performance appraisal.
43. Determining changes in employee
37. Any and every performance appraisal compensations is another classic use of
system points out areas where an performance appraisal. (True/False)
individual employee needs to improve. True
(True/False)
False. Only a sound and effective 44. What kind of pay program does almost
performance appraisal system points out every organization believe in?
areas where an individual employee Pay for performance
needs to improve.
45. The pay for performance compensation
38. Performance appraisal encourages program has no direct association with
employees to avoid being treated as performance appraisal. (True/False)
inferior performers. (True/False) False. The pay for performance
True compensation program is directly
associated with performance appraisal.
39. _____ has consistently been
demonstrated as a management 46. Performance appraisal encourages
process that generates superior managers to take on an active coaching
performance. role. (True/False)
a) Goal setting True
b) Performance appraisal
c) MBO 47. Performance appraisal helps employees
d) None of the above understand and learn the skills and
competencies required to make greater
40. Performance appraisal is commonly used contributions to the company.
to make sure that every member of the (True/False)
organization _____ and _____ effective True
goals.
sets, achieves 48. Determining individual _____ and _____
needs is one important objective of
41. Which of the following is not an objective performance appraisal.
of performance appraisal? training, development
a) Setting goals
b) Counseling poor performers 49. Performance appraisal helps an
c) Retaining the top talents of the organization improve its overall
company performance by _____
d) None of the above a) allowing it to communicate
performance expectations to every
42. Which of the following is not an objective member of the company
of performance appraisal? b) assessing exactly how well an
a) Increasing employee commitment employee is doing
b) Developing employees c) encouraging superior performance
c) Encouraging coaching and and retaining the top talents
mentoring d) Both a and b
d) None of the above

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50. Which of the following people-related b) Improve organizational
decisions does performance appraisal performance
help organizations with? c) Set and measure organizational
a) Career planning goals and objectives
b) Career development d) Both a and b
c) Succession planning
d) All of the above 57. An appraisal plan that is effective for
determining pay increases and other
51. Which of the following people-related changes in compensation policies can
decisions does performance appraisal invariably be the best tool for making
help organizations with? decisions about employee
a) Promotions development. (True/False)
b) Training and development False. An appraisal plan that is effective
opportunities for determining pay increases and other
c) Succession planning changes in compensation policies may
d) All of the above not be the best tool for making decisions
about employee development.
52. With the help of performance appraisal,
organizations can retain their top talents 58. Performance appraisal data are
by satisfying their _____ and _____ needs. potentially valuable for virtually every
growth, development functional area of HR. (True/False)
True
53. How does employees’ involvement in
setting goals, planning work and 59. Which of the following is a potential
identifying skills increase their problem with performance appraisal?
commitment toward the objectives of a) Making employees feel insecure
performance appraisal? about their job
By bringing greater self-awareness. b) Expecting too much from one
appraisal plan
54. Performance appraisal provides c) Time consuming and costly
organizations with opportunities to review d) All of the above
their job descriptions. (True/false)
True 60. A properly designed performance
appraisal system can help achieve _____
55. How does performance appraisal and enhance _____.
facilitate employee development? organizational objectives, employee
a) By identifying gaps in skills and performance
competencies
b) By establishing training and 61. In which of the following functional areas
development programs of HR is performance appraisal not used?
c) Both a and b a) HR planning
d) None of the above b) Recruitment and selection
c) Training and development
56. What is the primary goal of performance d) None of the above
appraisal for many organizations?
a) Improve individual performance

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62. In which of the following functional areas a) Employee ratings
of HR is performance appraisal used? b) Employee attitude
a) Career planning and development c) Level of job satisfaction
b) Internal employee relations d) a and c
c) Assessment of employee potential
d) All of the above 69. If employee ratings are used as a
variable against selection test scores,
63. Succession planning is a key concern determining the validity of the tests would
only for a few firms. (True/False) depend on _____.
False. Succession planning is a key the accuracy of appraisal results
concern for all firms.
70. Most managers believe that employees
64. How does a well-designed appraisal with outstanding job performance should
system support the succession planning be rewarded tangibly with pay increases.
efforts of an organization? (True/False)
a) By identifying human resource True
strengths and weaknesses
b) By identifying training needs 71. Rewarding behaviors necessary to
c) By enhancing employee accomplish organizational objectives is
performance at the heart of a firm's strategic plans.
d) All of the above (True/False)
True
65. Through _____ organizations may
discover that the number of employees 72. An appraisal system can guarantee any
prepared to enter management is organization properly trained and
insufficient. developed employees. (True/False)
performance appraisal False. An appraisal system does not
guarantee organizations properly trained
66. Performance appraisal may help and developed employees.
companies predict the performance of
job applicants. (True/False) 73. Appraisal data can make the
True determination of training and
development needs more precise.
67. Through what kind of interview may data (True/False)
obtained from performance appraisal True
provide benchmark for the evaluation of
applicant responses? 74. Performance appraisal has close
a) Group interview associations with career planning and
b) Stress interview development. (True/False)
c) Behavioral interview True
d) None of the above
75. In which of the following areas of internal
68. In testing validity of selection tests, which employee relations are performance
of the following can be used as a appraisal data used?
variable against which test scores are a) Promotion
compared? b) Termination

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 c) Transfer 81. Which of the following factors is essential
d) All of the above for a performance appraisal system to be
effective?
76. In which of the following areas of internal a) Training
employee relations are performance b) Feedback and participation
appraisal data not used? c) Recognition of individual differences
a) Demotion d) All of the above
b) Job rotation
c) Both a and b 82. Which of the following factors is not
d) Neither a nor b essential for a performance appraisal
system to be effective?
77. Past behaviors of employees are always a) Post appraisal interview
a good predictor of future behavior in all b) Review and appeal
kinds of jobs. (True/False) c) Training
False. Past behaviors of employees are d) None of the above
not always a good predictor of future
behavior in some jobs. 83. What kind of atmosphere should be
created in the organization before
78. Which of the following is a common error introducing the performance appraisal
in promoting employees to system?
management jobs? An atmosphere of mutual trust and
a) Overemphasizing technical skills confidence
b) Ignoring some equally important skills
required of a manager 84. Why is an atmosphere of mutual trust and
c) Both a and b confidence necessary for an appraisal
d) Neither a nor b system to be effective?
a) Such an atmosphere facilitates frank
79. What has led some firms to separate discussions of appraisal.
performance appraisal from the b) It helps gain the trust of employees.
assessment of employee potentials? c) Both a and b
Recognizing the problem of d) Neither a nor b
overemphasizing technical skills and
ignoring other equally important skills 85. Performance appraisal is an emotional
required of a manager while promoting process. (True/False)
employees to management jobs True

80. Which of the following factors is essential 86. Performance appraisal is an emotional
for a performance appraisal system to be process that involves feelings of _____
effective? and _____.
a) Mutual trust and confidence fairness, equal treatment
b) Documentation
c) Clear objectives 87. In case of serving both individual and
d) All of the above organizational purposes, consideration of
the human element in performance
appraisal is not always important.
(True/False)

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 False. In case of serving both individual a) Well-defined performance factors
and organizational purposes, and criteria should be developed for
consideration of the human element in an effective performance appraisal
performance appraisal is a must. system.
b) Appraisal techniques must always
88. The objectives of performance appraisal measure what they are supposed to
should be _____. measure.
a) Relevant c) Performance appraisal techniques
b) Timely should be easy to administer and
c) Open economical to use.
d) All of the above d) All of the above

89. The objectives and uses of performance 94. Which of the following statements is not
appraisal should be made clear and correct?
specific to everyone in an organization. a) Performance factors and criteria as
(True/False) well as appraisal forms and
True procedures should be standardized
to ensure uniformity in comparisons of
90. Performance appraisal system can work ratings.
independently without being b) Employee involvement is not
adequately or appropriately linked with necessarily essential in setting
the other subsystems of human resource performance standards.
management. (True/False) c) Performance appraisal methods can
False. Performance appraisal system be complex as long as they are cost
should be adequately and appropriately effective.
linked with the other subsystems of d) b and c
human resource management.
95. Which of the following areas should
91. In absence of fairness, a performance appraisers be provided with training on?
appraisal system may not be beneficial a) Performance appraisal philosophy,
to individual employees or the techniques and errors
organization. (True/False) b) Appraisal documentation techniques
True c) Conducting post appraisal interviews
d) All of the above
92. Which of the following statements is
correct? 96. Performance appraisal should be
a) Employees should be made fully conducted periodically instead of
aware of performance standards. annually. (True/False)
b) Employees should be involved in True
setting performance standards.
c) Both a and b 97. Appraisers should focus attention on
d) Neither a nor b _____ of employees.
a) the job-related behavior and
93. Which of the following statements is performance
correct? b) the overall attitudes and behaviors
c) Both a and b

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 d) None of the above d) Both a and c

98. Why is documentation important in 103. The overall purpose of performance

performance appraisal? appraisal should be both developmental
a) It helps appraisers justify their and judgmental. (True/False)
assessments. False. The overall purpose of
b) It encourages appraisers to minimize performance appraisal should be
their personal biases. developmental, not judgmental.
c) It increases the accountability of the
appraisers. 104. The feedback message must contain
d) All of the above suggestions for future improvements.
(True/False)
99. Because different organizations have True
different sizes, natures, jobs, needs and
environments, the performance 105. What kind of approach should the
appraisal system should be tailor-made appraiser take in post appraisal
for each organization. (True/false) interviews?
True a) Problem-solving approach
b) Judgmental approach
100. While designing a performance c) Critical approach
appraisal system, organizations should d) All of the above
recognize _____ differences.
a) Individual 106. Which of the following are post
b) Departmental appraisal interviews concerned with?
c) Local a) Providing feedback and counseling
d) National b) Discussing the difficulties faced by
employees at work
101. Employees should actively c) Identifying training needs
participate in the management of their d) All of the above
performance and in the ongoing process
of evaluation. (True/false) 107. The appraisal review committee
True checks whether the appraisers are
unusually _____ or _____.
102. Which of the following statements is strict, lenient
correct?
a) Feedback on the appraisal should be 108. Who can be the members of an
provided to both the employees and appraisal review committee?
the raters. a) Line executives
b) Employee’s active participation in b) Personnel experts
the management of their c) Immediate supervisors
performance and in the ongoing d) Both a and b
process of evaluation is not always
necessary. 109. Often the _____ department is
c) While appraising performance, the responsible for coordinating the design
superior should play the role of a and implementation of the performance
coach and counselor. appraisal programs.

10
 Human Resource b) immediate supervisor
c) client
110. The human resource department can d) All of the above
independently coordinate the design
and implementation of the performance 116. The immediate supervisor's authority
appraisal programs without any may be undermined if someone else
participation of the line managers. performs the task of evaluating
(True/False) employees. (True/False)
False. Line managers must play a key role True
in designing and implementing the
performance appraisal programs. 117. Appraisal programs and employee
development are usually closely related.
111. In which of the following ways do line (True/False)
managers usually participate in True
performance appraisal?
a) By designing the appraisal 118. Which of the following is an important
b) By conducting the appraisal element of a manager's job?
c) By reviewing the appraisal a) Identifying training needs of the
d) All of the above subordinates and arranging training
programs for them
112. Line managers must directly b) Arranging development programs of
participate in performance appraisal the subordinates
programs to make it effective and c) Ensuring a sound work-life balance of
successful. (True/False) the subordinates
True d) a and b

113. Which of the following parties does 119. Who is in an excellent position to
not carry the responsibility of appraising observe the performances of the
employee performance? employees in an organization?
a) Peers a) Immediate supervisor
b) Team members b) Top management
c) Customers c) Departmental head
d) None of the above d) Subordinates

114. Which of the following parties carries 120. Historically, what kind of evaluation
the responsibility of appraising employee has been viewed negatively in our
performance? culture?
a) Subordinates a) Evaluation by subordinates
b) Team members b) Peer evaluation
c) Employees themselves c) Evaluation by customers
d) All of the above d) None of the above

115. An employee's _____ has traditionally 121. Some companies believe that
been the most logical choice for performance evaluations of managers
evaluating their performance. by their subordinates are both feasible
a) team member and needed. (True/False)

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 True c) Team members who recognize that
their performance will be evaluated
122. Who are in an excellent position to by their peers show increased
view the superiors' managerial commitment and productivity.
effectiveness? d) All of the above
a) Top management
b) Departmental heads 127. Because team members know each
c) Subordinates other’s performance better than anyone
d) Team members else, they are likely to evaluate
performance more accurately.
123. How do evaluations by subordinates (True/False)
help the supervisors? True
a) By making them more conscious of
the work group's needs 128. Which of the following is a powerful
b) By ensuring they do a better job of motivator for team members?
managing a) Negative reviews by supervisors
c) By criticizing their decisions and b) Peer pressure
actions c) Coworkers’ success
d) Both a and b d) Both a and c

124. Organizations are increasingly using 129. Team members who recognize that
teams, excluding those that are self- their performance will be evaluated by
directed, to evaluate the team members' their peers show increased _____ and
performances. (True/False) _____.
False. Organizations are increasingly commitment, productivity
using teams, including those that are self-
directed, to evaluate the team members' 130. When are employees in a good
performances. position to appraise their own
performance?
125. Which of the following parties has an When they understand their objectives
undistorted perspective on typical and the criteria used for evaluation.
employee performance?
a) Immediate supervisors 131. _____ determines the degree of a
b) Peers and team members firm’s success.
c) Both a and b a) Employee commitment
d) Neither a nor b b) Customer behavior
c) Brand loyalty
126. Which of the following is a rationale d) All of the above
for evaluations by team members?
a) Team members know each other’s 132. Why do some organizations use
performance better than anyone customer appraisal?
else and therefore, are likely to a) It demonstrates an increased level of
evaluate performance more commitment to the customers.
accurately. b) It holds employees accountable.
b) Peer pressure is a powerful motivator c) It fosters change.
for team members. d) All of the above

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 d) All of the above
133. Performance appraisal links
employee performance with _____ and 138. In which of the following ways do
_____ objectives. organizations not benefit from
departmental, organizational performance appraisal?
a) Facilitation of communications
134. In which of the following ways do b) Improved productivity and
organizations benefit from performance organizational performance
appraisal? c) Promotion of employee retention
a) Communication of organizational and loyalty
plans and objectives d) None of the above
b) Promotion of employee retention
and loyalty 139. According to survey, what
c) Increased accountability percentage of performance appraisal
d) All of the above processes are inadequate?
a) 30%
135. Why do we need performance b) 50%
appraisal? c) 70%
a) Because it communicates d) 90%
performance expectations to
employees for shared understanding. 140. In which of the following ways do
b) Because it recognizes and employees benefit from performance
acknowledges good performance. appraisal?
c) Because it recognizes areas where a) Acknowledgment of employee
performance must be improved. accomplishments
d) All of the above b) Opportunities for career
development
136. In which of the following ways do c) Increased responsibilities for
employees benefit from performance individual performance and progress
appraisal? d) All of the above
a) Clear understanding of job
expectations and duties set by the 141. Which of the following is not a
supervisors performance appraisal error?
b) Open line of communication a) Lack of objectivity
between the employees and their b) Lack of subjectivity
supervisors c) Central tendency error
c) Improved employee performance d) Leniency
d) All of the above
142. A performance appraisal that
137. In which of the following ways do focuses too much on the ‘person’ rather
organizations benefit from performance than on their ‘performance’ cannot
appraisal? adequately measure the actual output.
a) Improved organizational (True/False)
performance True
b) Improved productivity
c) Increased accountability

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143. Focusing too much on which of the
following factors may lead to 149. Conducting performance appraisal is
inadequate assessment of the actual often a frustrating HR task. (True/False)
output of employee performance? True
a) Personal commitment
b) Technical knowledge 150. There are studies that show
c) Behaviors performance appraisal neither motivates
d) All of the above individuals nor effectively guides their
development. (True/False)
144. If organizations want to evaluate the True
employee as a person, it should be
called _____. 151. Performance appraisal invariably
Person appraisal creates conflicts between supervisors
and subordinates and leads to
145. Factors like personal commitment, dysfunctional workplace behavior.
technical knowledge and behaviors may (True/False)
contribute to employee performance False. According to some studies,
and therefore, can measure the actual performance appraisal creates conflicts
output of the performance. (True/False) between supervisors and subordinates
False. Even though factors like personal and leads to dysfunctional workplace
commitment, technical knowledge and behavior.
behaviors may contribute to employee
performance, they are not measures of 152. Which of the following is a
the actual output of the performance. performance appraisal error?
a) Performance appraisals can be time
146. Instead of focusing too much on the consuming.
‘person’, performance appraisal should b) Managers putting in a lot of efforts to
measure which of the following factors? make appraisals effective are not
a) Output quality always rewarded.
b) Volume and value c) The actual performance may not be
c) Responsiveness evaluated.
d) All of the above d) All of the above

147. Which of the following is not a 153. Which of the following is a potential
performance appraisal error? weakness of the traditional appraisal
a) Halo error methods?
b) Horn error a) Lack of objectivity
c) Recency error b) Appraiser’s discomfort
d) None of the above c) Strictness/Leniency
d) All of the above
148. Which of the following is not a
performance appraisal error? 154. In the rating scale method,
a) Non-data-based assessment commonly used factors like attitude,
b) Irregular or infrequent feedback appearance and personality are difficult
c) Mirror assessments to measure. (True/False)
d) None of the above True

14

155. Commonly used factors like attitude,
appearance and personality in
performance appraisal directly influence
an employee’s actual job performance.
(True/False)
False. Commonly used factors like
attitude, appearance and personality in
performance appraisal may have little to
do with an employee’s actual job
performance.
156. Employee appraisal based primarily
on personal characteristics may place
the evaluator and the company in
untenable positions with the employee
and _____ guidelines.
equal employment opportunity
157. Which of the following is
performance appraisal error?
a) Appraiser’s discomfort
b) One way communication
c) Strictness
d) All of the above
158. Which of the following is a
performance appraisal error?
a) Appraisers are not sufficiently trained.
b) Appraisal is disconnected from
actual job descriptions or the reward
system.
c) There may not be a second review.
d) All of the above
159. The evaluation error that occurs
when employees are given undeserved
high rating is known as _____.
a) Halo error
b) Horn error
c) Leniency error
d) Central tendency error
160. In which of the following situations
does the problem of leniency occurs in
performance appraisal?
a) When highly subjective performance
criteria are used
b) When performance criteria that are
difficult to defend are used
c) When the rater is required to discuss
evaluation results with employees
d) All of the above
161. In which of the following situations
does the problem of leniency not usually
occur in performance appraisal?
a) When the rater is required to discuss
evaluation results with employees
b) When employees are evaluated for
administrative purposes
c) When employees are evaluated for
development purposes
d) None of the above
a 162. When managers know they are
evaluating employees for development
purposes they are likely to be more
lenient than when evaluating
performance for administrative purposes,
such as pay increases. (True/False)
False. When managers know they are
evaluating employees for administrative
purposes, such as pay increases, they are
likely to be more lenient than when
evaluating performance for
development purposes.
163. Why do some evaluators appraise
employee performance more rigorously
than the company standards?
Due to a lack of understanding of the
various evaluation factors.
164. The evaluation error that occurs
when one positive performance feature
or incident influences the appraiser to
have positive impressions of all the other
aspects of employee performance is
known as _____.
a) Halo error
b) Horn error
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 c) Recency error True
d) Central tendency error
170. A second review of appraisal, even if
165. The evaluation error that occurs it is cursory, can ensure accuracy and
when one negative performance feature fairness of the appraisal. (True/False)
or incident influences the appraiser to False. If the second review of appraisal is
have negative impressions of all the other cursory, it may not ensure accuracy or
aspects of employee performance is fairness of the appraisal.
known as _____.
a) Halo error 171. In many firms, appraisal is conducted
b) Horn error by a single manager. (True/False)
c) Recency error True
d) Central tendency error
172. Performance factors different from
166. The evaluation error that occurs factors in job descriptions, yearly goals or
when most employees are rated near the from pay increase criteria can confuse
average or in the middle of the rating employees and cause them to lose
scale is known as _____. focus. True/False)
a) Halo error True
b) Horn error
c) Recency error 173. In most organizations, managers are
d) Central tendency error provided with adequate training on how
to assess employee performance,
167. The error made when appraisals are provide honest feedback and help
done on the basis of employee employees with their career
performance during the last few months development. True/False)
instead of performance over the entire False. In most organizations, managers
rating period is known as _____. are provided with little to no training on
a) Halo error how to assess employee performance,
b) Horn error provide honest feedback and help
c) Recency error employees with their career
d) Central tendency error development.

168. Which of the following is not a 174. At the very minimum, formal
performance appraisal error? feedback needs to be provided _____.
a) Appraisal processes relying on the a) semi-annually
memory b) quarterly
b) Assessment criteria being fuzzy and c) monthly
subjective d) daily
c) Use of multiple appraisal methods
d) None of the above 175. In mirror assessments, managers tend
to rate employees like themselves higher
169. Employees and managers may not than others. (True/False)
take appraisal seriously if it is completely True
separated from the compensation
decisions of the organization. (True/False)

16
176. Mirror assessments can lead to serious 182. If an employee knows what is
issues of _____. expected of them both on the job and
a) absenteeism during the review, they will be better
b) discrimination prepared to succeed. (True/False)
c) inefficiency True
d) All of the above
183. Which of the following sources can
177. Managers who put in a lot of efforts to help bring clarity of what is expected of
make appraisals effective by providing an employee?
honest feedback and improving a) Job description
employee performance are always b) Managers and coworkers
rewarded and recognized by c) Both a and b
organizations. (True/False) d) None of the above
False. Managers who put in a lot of efforts
to make appraisals effective by providing 184. Conducting research can help bring
honest feedback and improving clarity of what is expected of an
employee performance are often not employee. (True/False)
rewarded or recognized by True
organizations.
185. Which of the following statements is
178. When managers don’t feel like they correct?
own the process of appraisal, they try to a) Even if you care about your job, it
invest more in it. (True/False) may not always show.
False. When managers don’t feel like b) Active participation of employees in
they own the process of appraisal, they goal setting activities may not
invest little in it and tend to blame HR for necessarily demonstrate their
everything. initiatives.
c) Asking the manager for guidance on
179. Most appraisal forms are incredibly job expectations and performance
long and time consuming. (True/False) review shows an employee’s
True commitment to their job.
d) All of the above
180. What do some managers do to avoid
spending too much time on 186. How does setting goals during a
performance evaluation? review help an employee?
They routinely recycle last year’s a) The employee can use those goals to
evaluations. guide their work year.
b) The employee can better understand
181. Which of the following actions can expectations and track their
improve an employee’s performance progress.
evaluation? c) The employee can make
a) Understanding their role better adjustments to their work to meet
b) Actively engaging in the process those goals.
c) Documenting accomplishments d) All of the above
d) All of the above

17
187. Tracking progress toward the goals 192. When you are positive about your job
helps show the progress an employee and your experiences, employers will
has made in achieving them. (True/False) perceive you as easy to work with and
True willing to be flexible when needed.
(True/False)
188. How does documentation help with True
an employee’s performance review?
a) Documentation records and reveals 193. An effective performance
the employee’s accomplishments management system fills employees with
and success. a sense of purpose and direction.
b) Documentation records and reveals (True/False)
the milestones the employee has True
reached during the appraisal period.
c) Both a and b 194. With a performance management
d) Neither a nor b system, managers are able to align _____
with _____.
189. Which of the following actions can employees' objectives, business goals
improve an employee’s performance
evaluation? A. Manager sets goals.
a) Setting a mission B. Manager guides employee
b) Being open to training through the goals.
c) Staying positive C. Employee works towards goals.
d) All of the above D. Employee outcome
E. Manager reviews employee
190. Showing willingness to receive performance.
additional training proves to the 195. Read the above statements carefully
company that the employee is serious and find out which of the following
about improving themselves and their sequences is correct.
work. (True/False) a) A → B → C → E → D
True b) A → B → C → D → E
c) A → C → B → D → E
191. How does enrolling in courses to d) A → C → B → E → D
prepare for a promotion at job help an
employee?
a) By helping them advance to the next
level
b) By showing the company that they
are motivated to learn.
c) By proving your worth as a valuable
member of the organization
d) All of the above

18
 Slide 2 | Methods of Performance Appraisal

1. The rating scale method is a commonly True

used method for assessing job
performance. (True/False) 7. Who will evaluate the performance of
True the employees in an organization
depends on which of the following
2. The rating scale method uses a fixed factors?
scale of 1 to 10 to evaluate employee a) Nature of the company
performance. (True/False) b) Nature of the job
False. The scale is not fixed and can vary c) Both a and b
from company to company (e.g., 1 to 10, d) Neither a nor b
1 to 5, 1 to 7 etc.)
8. All employees who score less than the
3. Which of the following factors is not top performers in the rating scale
assessed in the rating scale method? evaluation are considered non-
a) Employee attitude, performance, performers. (True/False)
regularity False. In the rating scale evaluation,
b) Accountability, performance, employees who score less than the top
sincerity performers but more than the lowest
c) Quality of work, employee attitude, scorers are considered low performers
dedication while the lowest scorers are considered
d) Addiction, family-work balance, job non-performers.
position
9. Essay appraisal method is also known as
4. Which one is a well-known traditional what?
method of performance appraisal? Free form method.
a) MBO
b) Rating scale method 10. What other appraisal method is normally
c) BARS used along with the essay appraisal
d) None of the above method?
a) Graphic rating scale
5. Only the immediate supervisors can use b) Critical incident method
the rating scale method to evaluate their c) BARS
subordinates’ job performance. d) None of the above
(True/False)
False. Not only the immediate supervisors 11. A major drawback of the essay appraisal
but the top management, subordinates, method is the inseparability of the bias of
peers and customers too can use the the appraiser. (True/False)
rating scale method to evaluate True
employees’ job performance.
12. In the essay appraisal method, the
6. Employees can be evaluated even by evaluation of employee performance is
the customers using the rating scale backed by what?
method. (True/False) Examples and evidence.

19

13. In the essay appraisal method, the
evaluator has to mention the _____ and
_____ sides of an employee’s behavior.
Strong, weak
14. Which of the following factors does the
appraiser not consider while preparing
essays on employee performance?
a) Job knowledge, skills and abilities
b) Employee’s relations with superiors
and colleagues
c) General attitudes and perceptions of
the employee
d) None of the above
15. Which of the following factors does the
appraiser consider while preparing
essays on employee performance?
a) Potentials of the employee
b) Employee’s general planning,
organizing and controlling abilities
c) Employee’s understanding of the
company’s mission and vision
d) All of the above
16. Essay evaluation is partly a quantitative
technique. (True/False)
False. Essay evaluation is a non-
quantitative/qualitative technique.
17. Which one is not a limitation of the essay
appraisal method?
a) It is highly subjective
b) It is highly objective
c) It is time consuming
d) None of the above
18. One good thing about essay appraisal is
_____.
it contains a great deal of information on
the employee.
19. Employees with great performance
outcomes may not get the best
evaluation in the essay appraisal method
20
because of the appraiser’s poor writing
skills. (True/False)
True
20. Which one is a limitation of the essay
appraisal method?
a) The evaluation may favor
sycophantic employees.
b) The writing skill of the appraiser may
influence the actual evaluation.
c) The appraiser may not have the time
to write elaborate narratives.
d) All of the above
21. Which of the following companies is
highly unlikely to use the essay appraisal
method?
a) Sakura Transport that has a separate
unit of 20 people dedicated to
evaluating employee performance
on a regular basis
b) Horimiya Trading that is a rapidly
growing company with 50 employees
c) Ayako Shipping whose business
model is based on cost leadership
d) All of the above
22. In the essay appraisal method, a busy
appraiser may write the essay hurriedly
without properly assessing the actual
performance of the worker. (True/False)
True
23. Which of the following is the oldest and
simplest formal appraisal method?
a) Rating scale method
b) Ranking method
c) MBO
d) None of the above
24. Which of the following appraisal methods
is particularly used to make evaluative
decisions?
a) Paired comparison method
b) Critical incident method
c) Ranking method
 d) None of the above
25. Which of the following appraisal methods
is a comparative method?
a) Paired comparison method
b) Rating scale method
c) Ranking method
d) Both a and c
26. The appraisal method that appraisers use
to rank an employee by comparing them
with all the others in a particular
department or organization is referred to
as _____.
a) Rating scale method
b) Ranking method
c) MBO
d) None of the above
27. In the ranking method, first the employee
with the best performance is placed at
the top of the list and the employee with
the worst performance is placed at the
bottom of the list. (True/False)
True
28. Which of the following statements with
respect to the ranking method is not
correct?
a) The top ranked employees usually
get rewards such as raise, bonus and
promotion.
b) The employees ranked in the middle
may receive punishments such as
termination.
c) The bottom ranked employees
sometimes get demoted or fired from
their job.
d) None of the above
29. Which of the following is not an
evaluative decision made by managers?
a) Deciding the employee of the month
b) Deciding whom to reward with pay
raise or promotion
c) Deciding whom to lay off
21
d) None of the above
30. Usually, the ranking method is used by
organizations to make evaluative
decisions and not for the purpose of
employee development. (True/False)
False. The ranking method can also be
used for the purpose of employee
development so that employees know
where they stand in comparison with their
peers.
31. By letting employees know where they
stand in comparison with their peers, the
ranking method can motivate them to
improve their performance. (True/False)
True
32. In which of the following appraisal
method are every employee and their
performance compared with every other
employee within the department or work
group and their performances?
a) Rating scale method
b) Ranking method
c) Paired comparison method
d) None of the above
33. In the paired comparison method, once
the ratings are provided, the scores are
derived by taking the mean and the
standard deviation from all the scores to
come to a standard which would be
used to measure all future comparisons.
(True/False)
True
34. Who developed the critical incident
method?
a) Drucker and Owen
b) Flanagan and Burns
c) Owen and Taylor
d) Flanagan and Taylor
35. Which of the following statements with 39. Which of the following is not assessed in
respect to the critical incident method is the confidential report method?
not correct? a) Employee’s performance
a) The manager keeps a log of positive b) Employee’s behavior in the
and negative examples of a organization
subordinate’s work-related c) Both a and b
behaviors. d) Neither a nor b
b) The manager maintains logs on
selected employees. 40. At the end of the appraisal period,
c) The manager periodically records the confidential reports are shown to
critical incidents of his subordinates’ employees. (True/False)
behaviors. False. Confidential reports are kept
d) None of the above confidential and are not revealed to
anyone except the top management
36. At the end of every working day, the officials.
recorded critical incidents are used in the
evaluation of the employees’ 41. Confidential reports are the main criteria
performance. (True/False) for _____ or _____ of any employee mainly
False. At the end of the appraisal period, in the government sector.
the recorded critical incidents are used in promoting, transferring
the evaluation of the employees’
performance. 42. Which of the following organizations
mostly uses the confidential report
37. Which of the following appraisal method method to know about their employees?
is used mostly by government a) The judiciary
organizations? b) The police
a) Confidential report c) The army
b) The ranking method d) All of the above
c) MBO
d) All of the above 43. Confidential reports shall not be handed
over in loose sheets to the subordinates.
38. Which of the following statements with (True/False)
respect to the confidential report True
method is not correct?
a) Confidential reports are not disclosed 44. Which of the following statements with
to anyone except the top respect to the confidential report
management officials. method is not correct?
b) Subordinates are observed by their a) Confidential report must be kept in a
superiors who then write confidential sealed cover to be sent to the
reports on their performance. decision-making authorities.
c) Top management officials use b) Only the authorized persons are
confidential reports in order to make allowed to open the sealed covers
decisions against the employee on containing the confidential reports.
whom the report has been prepared. c) The superiors who appraise their
d) None of the above subordinates’ performance, behavior

22
 and other key issues usually prepare a) BARS
the confidential reports in oral forms. b) The checklist method
d) All of the above c) The human resource accounting
method
45. Which of the following factors is not d) The critical incident method
assessed in confidential report
appraisals? 50. Which of the following appraisal methods
a) Employee’s nature, character and comprises a set of objectives or
conduct, integrity and honesty descriptive statements about an
b) Employee’s character, conduct and employee and his/her behavior?
behavior with the public a) Paired comparison
c) Employee’s supervising and b) The checklist method
controlling abilities, work-life c) Forced distribution
balance, punctuality d) None of the above
d) None of the above
51. A more recent variation of the checklist
46. Which of the following factors is not method is the _____.
assessed in confidential report weighted checklist.
appraisals?
a) Employee’s knowledge and quality 52. In the weighted checklist method, all
of work questions may have the same weight or
b) Unauthorized absenteeism or leave certain questions may carry more weight
without permission than others. (True/False)
c) Employee’s behavior with True
colleagues, superiors and the public
d) None of the above 53. Which of the following employee traits is
not evaluated in the graphic rating scale
47. Which of the following is a key factor method?
assessed in confidential report a) Attitude, honesty, interpersonal
appraisals? relationships, discipline
a) An employee’s nature, character b) Knowledge of work, managerial skills,
and conduct, integrity and honesty team work, creativity
b) An employee’s knowledge, quality of c) Regularity, accountability, honesty,
work, supervising and controlling discipline
abilities d) None of the above
c) Any complaints against an employee
d) All of the above 54. The graphic rating scale method is one of
the most popular traditional method of
48. In the checklist method, the checklist performance appraisal. (True/False)
contains a list of statements on the basis True
of which the rater describes the _____
performance of an employee. 55. In the graphic rating scale method, core
on-the-job traits of employees and their job-related
behaviors have to be clearly defined.
49. Which of the following appraisal methods (True/False)
is a simple individual evaluation method? True

23
 62. Some believe that the forced distribution
56. In the graphic rating scale method, core method is the most viable appraisal
traits of employees and their job-related method, especially for the _____ sectors.
behaviors are allotted with a _____ scale service-driven
and presented in tabular forms.
numerical 63. According to some people, which of the
following performance appraisal
57. Why is the graphic rating scale method methods is the most viable option for the
popular? service-driven sectors?
a) The method is simple and easy to a) The graphic rating scale method
understand and use. b) The ranking method
b) It does not require any writing skills. c) The forced distribution method
c) Comparison among pairs is possible d) None of the above
which necessary for decision on
salary increases, promotion etc. 64. The forced distribution method requires
d) All of the above the appraiser to place each employee
typically into one of three categories -
58. Comparison among pairs is not possible _____, _____ and _____.
in the graphic rating scale method. excellent, good, poor
(True/False)
False. Comparison among pairs is 65. Which of the following company may
possible in the graphic rating scale find the forced distribution method the
method. most viable option for performance
appraisal?
59. The _____ is nothing but a graphical a) Sakura Transport that is a service-
representation of the fact that driven organization with 50,000
everybody's performance is not the employees
same. b) Horimiya Trading that is a small
Bell curve startup with 5 employees only
c) Ayako Shipping that offers delivery
60. When did the forced distribution method service all over the world
gain popularity with most big d) Both a and c
organizations?
a) In the early 1990s 66. The assessment center method was used
b) In the mid 1990s to appraise _____ in Germany way back
c) In the late 1990s in the 1930s.
d) None of the above army officers

61. The bell curve is nothing but a graphical 67. Which appraisal method was used to
representation of the fact that _____. appraise army officers in Germany way
everybody's performance is not the back in the 1930s?
same; some employees will be a) Assessment center
outstanding, some average and others at b) BARS
the bottom. c) Forced distribution
d) None of the above

24
68. During which period was the assessment a) Competency-based interview
center method used to appraise army b) Group discussion
officers in Germany? c) Projective technique
a) In the 1920s d) Tele-interview
b) In the 1930s
c) In the 1940s 75. The in-basket exercise method in the
d) In the 1950s assessment center is also known as _____.
the in-tray exercise method.
69. When was the concept of assessment
center adapted in business from the 76. The in-tray exercise method represents
military? _____ _____ situations that a manager is
a) In the 1940s likely to face in written forms from various
b) In the 1950s sources.
c) In the 1960s day-to-day, decision making
d) In the 1970s
77. Which of the following kinds of contents is
70. The assessment center method is mainly part of the in-basket exercise method?
used to evaluate _____. a) Memos and correspondences
a) Executive potential b) Telephone messages and notes
b) Supervisory potential c) Requests
c) Executive and supervisory potential d) All of the above
d) None of the above
78. The contents of the in-basket exercise are
71. In the assessment center method, designed after thorough job evaluations.
employees are taken to a place away (True/False)
from work and a series of tests and False. The contents of the in-basket
exercises are administered. (True/False) exercise are designed after thorough job
True analysis.

72. _____ are a series of exercises commonly 79. Employees participating in in-basket
used by employers to test skills not readily exercises are given an unlimited amount
assessable from an interview alone. of time to deal with each of the situations
a) Assessment centers included in the basket. (True/False)
b) Role plays False. Employees participating in in-
c) Business games basket exercises are given a limited
d) None of the above amount of time to deal with each of the
situations included in the basket.
73. Which of the following tool falls under the
assessment center method? 80. Based on the participants' reactions,
a) In-basket exercise which of the following factors are
b) Role play and business game assessed in the in-basket exercise
c) Case study method?
d) All of the above a) General activity level, problem
analysis
74. Which of the following tool does not fall b) Planning and organizing, delegation
under the assessment center method?

25
 c) Concern for priorities, time 86. One important case solving skill
management participants need is profound _____
d) All of the above communication skills in order to be able
to discuss the recommendations.
81. In in-basket exercises, participants are a) oral
asked to put their reactions as much as b) written
possible in _____. c) Both a and b
writing d) Neither a nor b

82. Competency-based interviews are also 87. Which of the following is not true about
called _____ or _____ as per certain case study exercises?
structures. a) In case study assessments,
situation interviews, behavioral interviews participants are judged on the basis
of how they solve the case study.
83. The kind of interview that has a collection b) Documents are provided to the
of questions each of which concentrates participants which they have to
on a particular skill or ability of the analyze properly to come up with
participant and where the participant’s decisions based on the information
answers are compared with the pre- given.
established criteria is known as _____. c) The decision-making skills of the
a) competency-based interviews participants are assessed in this kind
b) panel interviews of exercise.
c) structured interviews d) None of the above
d) All of the above
88. In role play exercises, assessors keenly
84. Which of the following elements are key observe how the participants deal with
in competency-based interviews? certain work situations through playing
a) Communication, conflict resolution, the roles assigned to them. (True/False)
decisiveness True
b) Independence, flexibility,
adaptability 89. Which of the following skills are mostly
c) Problem-solving, resilience, observed in role play exercises?
organization, teamwork a) Work under pressure, goal
d) All of the above achievement
b) Work under pressure, goal
85. Which of the following skills does a achievement, assertiveness
participant require to work on a case c) Work under pressure, goal
study exercise? achievement, assertiveness,
a) Ability to statistically and logically customer focus
analyze problems d) Work under pressure, goal
b) Ability to formulate decisions achievement, assertiveness,
c) Profound oral communication skills for customer focus, interpersonal
discussing the recommendations effectiveness
d) All of the above

26
90. Group discussions are conducted solely b) It helps select the right candidate for
to know about the skills and abilities of the the position.
participants. (True/False) c) It enhances the knowledge of the
False. Group discussions are conducted participants, boosts their thinking
to know not only about the skills and procedure and improves their
abilities of the participants but also about efficiency at work.
how they work in a team. d) Al of the above

91. Which of the following factors is assessed 97. The assessment center method helps
in group discussions? enhance the knowledge of the
a) Leadership skills, confidence, participants, boost their thinking
communication skills procedure and improve their efficiency
b) Teamwork, logical arguments, at work. (True/False)
strength of character True
c) Commercial awareness,
consideration for others’ opinions 98. Which of the following is not an
d) All of the above advantage of assessment center?
a) It gives the candidates a better
92. There are various kinds of projective insight into the role they have applied
techniques in assessment centers. for.
(True/False) b) It enables interviewers to assess
True existing performance as well as
predict future job performance.
93. Different organizations choose different c) A successful completion of
types of projective techniques to allow assessment center takes at least
participants to project their issues and three days.
concerns onto other people or even d) It gives opportunities to those who are
objects. (True/False) talented but cannot exhibit their
True talent because their job never
demands it.
94. Which of the following exercise can be
effective for self-assessment? 99. One disadvantage of assessment center
a) Roleplay is that this method can only assess existing
b) Business game performance and thus, fails to predict
c) Case study future job performance. (True/False)
d) None of the above False. The assessment center method
enables interviewers to assess existing
95. In business games, the simulation could performance as well as predict future job
branch through different stimulus performance.
presentation. (True/False)
True 100. Which of the following is a
disadvantage of assessment center?
96. Which of the following is an advantage a) This method is costly and time-
of assessment center? consuming.
a) It is a fair and accurate way of b) It requires highly skilled assessors.
selecting a candidate.

27
 c) Employees receiving poor a) MBO
assessment may lose motivation. b) BARS
d) All of the above c) Graphic rating scale
d) None of the above
101. Which of the following is not a
disadvantage of assessment center? 107. Which of the following pairs of
a) A successful completion of appraisal methods are combined in
assessment center takes at least BARS?
three days. a) The graphic rating scale and critical
b) If the assessors lack necessary training incident method
or skills, they might bring their own b) The rating scale and critical incident
perceptions and biases to the method
assessment. c) The ranking method and critical
c) Only those assessment center incident method
exercises that assess personal d) The paired comparison and critical
characteristics can finish employee incident method
appraisal in less than three days.
d) None of the above. 108. Developing and practicing BARS
requires expert knowledge. (True/False)
102. The assessment center takes each True
assessor at least three days - one day for
_____, at least one day for _____, and one 109. Which of the following statements
more for _____. with respect to BARS is not correct?
training, assessing, making a decision a) In BARS, there are predetermined
critical areas of job performance or
103. Employees receiving poor sets of behavioral statements
assessment might become de-motivated describing important job
and lose confidence in their abilities. performance qualities as good or
(True/False) bad.
True b) In this method, an employee’s actual
job behavior is judged against the
104. Assessment center exercises that desired behavior by recording and
assess the personal characteristics of comparing the behavior with BARS.
employees cannot finish appraisal even c) Developing and practicing BARS
over a period of three or four days hardly requires any expert
(True/False) knowledge.
True d) None of the above

105. What is the full form of BARS? 110. In BARS, the behavioral statements
a) Behavior Appraisal Rating System that describe important job performance
b) Behaviorally Anchored Rating System qualities as good or bad are developed
c) Behavior Appraisal Rating Scales from _____.
d) Behaviorally Anchored Rating Scales critical incidents.

106. Which of the following appraisal 111. Developing and practicing BARS
methods is relatively new? requires _____ knowledge.

28
 expert 119. According to the human resource
accounting method, employee
112. The appraisal method that assigns, performance =?
budgets and reports the costs of human a) Employee cost - Employee
resources incurred by an organization is contribution
called _____. b) Employee contribution - Employee
the human resource accounting method. cost
c) Employee cost + Employee
113. Which of the following is not a human contribution
resource cost? d) None of the above
a) Wages and salaries
b) Training expenses 120. Ideally, the contributions of an
c) Recruitment and selection costs employee should be greater than the
d) None of the above cost incurred on them. (True/False)
True
114. Human resource accounting
measures the effectiveness of _____ and 121. Much of the initial impetus for MBO
the use of people in an organization. was provided by _____ (1954) and by
personnel management activities _____ (1960).
a) Robert Owen, Peter Drucker
115. In human resource accounting b) Peter Drucker, Douglas McGregor
method, the appraisal of employee c) Frederick Taylor, Peter Drucker,
performance is assessed in terms of _____ d) Douglas McGregor, Peter Drucker
and _____ of the employees.
cost, contribution 122. Who first described management by
objectives in 1954 in the Practice of
116. The human resource accounting Management?
method tries to find _____ of human a) Peter Drucker
resources in terms of _____. b) Douglas McGregor
the relative worth, money c) Frederick Taylor
d) None of the above
117. Which of the following is not a cost of
human resources? 123. When did Peter Drucker first describe
a) Compensations management by objectives in the
b) Induction and training expenses Practice of Management?
c) Recruitment and selection costs a) In 1952
d) None of the above b) In 1953
c) In 1954
118. In human resource accounting d) In 1955
method, employee contributions include
_____. 124. Where did Peter Drucker first describe
the total value added by the employee management by objectives?
to the organization in monetary terms. In the Practice of Management.

29
125. Which of the following modern a) Peter Drucker
approaches of performance appraisal b) Douglas McGregor
offers an objective type of evaluation? c) Frederick Taylor
a) BARS d) None of the above
b) MBO
c) Assessment center 131. Which of the following is the correct
d) All of the above MBO process?
a) Setting organizational objectives →
126. The management by objectives Setting employee objectives →
method helps appraisers define success Evaluating performance →
and failure easily. (True/False) Achieving rewards → MBO for the
True next period
b) Setting employee objectives →
127. Which of the following statements is Setting organizational objectives →
correct? Monitoring progress → Evaluating
a) In MBO, managers and immediate performance → Achieving rewards →
supervisors set specific and MBO for the next period
obtainable goals for their c) Setting organizational objectives →
subordinates. Setting employee objectives →
b) In MBO, employees set their own Monitoring progress → Evaluating
specific and obtainable goals with no performance → Achieving rewards →
interference or support from others in MBO for the next period
the organization. d) Setting organizational objectives →
c) In MBO, manager and employee Setting employee objectives →
agree upon specific and obtainable Monitoring progress → Achieving
goals with a set deadline. rewards → MBO for the next period
d) None of the above

128. Who argued that the problems of 132. Which of the following is not a
performance appraisal are minimized characteristic of MBO?
when employees establish performance a) Setting organizational and individual
goals in agreement with their superiors? goals
a) Peter Drucker b) Organizational commitment
b) Douglas McGregor c) Frequent individual performance
c) Frederick Taylor review
d) None of the above d) None of the above

129. MBO in essence involves the setting of 133. Which of the following is a
clearly defined goals of an employee in characteristic of MBO?
agreement with his superior. (True/False) a) Effective goal-setting and planning
True by top management
b) Mutual goal setting
130. Who pointed the importance of c) Some freedom in developing means
managers having clear objectives that of achieving goals
support the purposes of those in higher d) All of the above
positions in the organization?

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134. In MBO, a periodic review of
performance is essential to determine
whether it relates to the organizational
goals. (True/False)
True
135. In MBO, employees are not allowed
to choose their own means of achieving
goals. (True/False)
False. In MBO, employees have some
amount of freedom in developing means
of achieving goals.
136. In MBO, employees must have goals
in relation to the organizational goals.
(True/False)
True
137. Which of the following statements is
not correct?
a) In MBO, superior and subordinate get
together and jointly agree upon the
principal duties and responsibilities of
the individual’s job.
b) In MBO, superiors and subordinates
agree upon criteria for measuring
and evaluating performance.
c) The superior plays a supportive role
and tries to help the subordinate
achieve the agreed upon goals on a
day-to-day basis.
d) None of the above
b) In MBO, superiors and subordinates
agree upon criteria for measuring
and evaluating performance.
c) In the appraisal process, the superior
plays less of the role of a judge and
more of the role of one who helps the
subordinate attain the organization
goals or targets.
d) All of the above
140. In MBO, the superior and subordinate
get together to evaluate progress
towards the agreed-upon goals at the
end of the appraisal period. (True/False)
False. In MBO, the superior and
subordinate periodically get together to
evaluate progress towards the agreed-
upon goals.
141. When was the 360 degree evaluation
method first used?
a) 1930s
b) 1940s
c) 1950s
d) 1960s
142. Which of the following parties does
not participate in 360 degree appraisal?
a) Top management
b) Customers
c) Self
d) None of the above

138. What kind of role does a superior play 143. In 360 degree appraisal, employees
in MBO? receive feedback from _____.
a) Counselor a) Top management, immediate
b) Coach supervisor, peers and subordinates
c) Supportive b) Top management, immediate
d) All of the above supervisor, peers, self and customers
c) Top management, immediate
139. Which of the following statements is supervisor, peers, subordinates and
correct? customers
a) In MBO, an employee sets their own d) Top management, immediate
short-term performance goals or supervisor, peers, subordinates, self
targets in cooperation with their and customers
superior.

31
144. The assessment tool that incorporates
feedback from all who observe and who 150. Which of the following statements is
are affected by the performance of the correct?
employee is known as _____. a) Outside consultants are sometimes
a) Essay appraisal hired for conducting performance
b) 360 degree appraisal appraisal.
c) Confidential report b) Sometimes Personnel Development
d) All of the above may participate in performance
appraisal.
145. In addition to the six parties, which of c) Appraisal can also be done by an
the following party can participate in 360 appraisal panel.
degree appraisal? d) All of the above
Appraisal panel
151. The top management usually
146. How many different types of evaluates _____ but in small
members does the appraisal panel organizations, they evaluate the
consist of? performance of _____ and _____.
a) 2 to 3 a) the first-line managers, mid-level
b) 3 to 4 managers, senior employees
c) 5 to 6 b) the mid-level managers, lower level
d) 9 to 10 managers, senior employees
c) their peers, lower level managers,
147. Which of the following appraisal senior employees
errors can 360 degree appraisal d) All of the above
eliminate?
a) Bias 152. When is peer evaluation mostly used
b) Halo error in organizations?
c) Both a and b a) When the company cannot hire
d) Neither a nor b outside consultants
b) When teamwork is important
148. In 360 degree appraisal, the c) When immediate supervisors are too
evaluation process may seem unrealistic busy to conduct the appraisal
because of the involvement of so many d) a and b
parties. (True/False)
False. In 360 degree appraisal, the 153. Self-appraisal can lead to self-
evaluation process becomes more development. (True/False)
realistic because there is no bias or halo True
effect.
154. Organizations use customer
149. Which of the following appraisal appraisals to improve the strengths and
methods is becoming more popular remove the weaknesses of their
these days? employees. (True/False)
a) Confidential report True
b) Paired comparison method
c) 360 degree appraisal
d) Critical incident method

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155. Which of the following is truly one of
the modern methods of performance
appraisal?
a) Customer feedback method
b) Paired comparison method
c) Graphic rating scale
d) None of the above

156. Especially for which group/kind of

employees is customer feedback
method used in many organizations?
a) Accounting staff
b) Sales staff
c) Advertising staff
d) All of the above

157. Which of the following appraisal

methods is unbiased and reliable?
a) Essay appraisal method
b) Customer feedback method
c) Confidential report
d) None of the above

158. In customer feedback method,

customer _____ is directly linked with
_____.
feedback, employee performance

159. Because _____ are outsiders, they are

likely to offer correct judgments on
employee performance.
a) Suppliers
b) Distributors
c) Customers
d) Retailers

160. Customer feedback method is

unbiased and reliable. (True/False)
True

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