Managing Human Resources Gomez Mejia 7th Edition Test Bank

Managing Human Resources Gomez-Mejia 7th Edition Test Bank
Managing Human Resources Gomez-Mejia 7th

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Managing Human Resources, 7e (Gómez-Mejía / Balkin / Cardy)
Chapter 7 Appraising and Managing Performance
1) Which of the following is a comprehensive list of the functions in a performance appraisal?

A) Identifying, measuring, and managing
B) Identifying, determining, and implementing
C) Recruiting, selecting, and assessing
D) Managing, selecting, and assessing
Answer: A
Diff: 2 Page Ref: 223
Chapter: 7
Skill: Concept
LO: 1
2) 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
Answer: B
Chapter: 7
Skill: Application
LO: 1
3) Emma is thinking through the future evaluation of her employees. Right now she is
determining what specific areas of each employee's work to examine. Emma is in the process of:
A) measuring performance to make a judgment about employee effectiveness.
B) identifying areas of job performance that should be evaluated.
C) managing the work process within an organization.
D) determining employee training needs.
Answer: B
Chapter: 7
Skill: Application
LO: 1
1
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
4) The most common use of performance appraisals is to:
A) comply with EEO rules.
B) justify employee recruitment.
C) improve organizational performance.
D) make personnel administrative decisions.
Answer: D
Chapter: 7
Skill: Concept
LO: 1
5) Keith owns a small marketing firm and has 15 employees. Keith needs to implement a
performance appraisal system. Which of the following is most important for Keith?
A) Developing broad job descriptions
B) Using quanititative measurement tools
C) Assessing employees on a monthly basis
D) Ranking performance levels within work teams
Answer: A
Chapter: 7
Skill: Application
LO: 1
6) When it comes to the performance appraisal process:

A) it is most commonly conducted twice a year.
B) most firms fail to maximize its potential.
C) most firms use a team-based appraisal.
D) it is rarely used by most businesses.
Answer: B
Chapter: 7
Skill: Concept
LO: 1
7) 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.
Answer: A
Chapter: 7
Skill: Application
LO: 1
2
8) Job performance dimensions are:
A) a way to eliminate rater bias in the performance appraisal.
B) aspects of performance that determine effective job performance.
C) the relative judgments that a rater makes about an employee's job performance.
D) job appraisals conducted in businesses that are greatly influenced by organizational politics.
Answer: B
Chapter: 7
Skill: Concept
LO: 1
9) Which term refers to observable characteristics that are associated with successful job
performance?
A) Ethics
B) Traits
C) Dimensions
D) Competencies
Answer: D
Chapter: 7
Skill: Concept
LO: 1
10) One of your managers returns from a management seminar eager to use a relative judgment
system for performance appraisals. He asks you for your opinion about the value of such
systems. It would be most accurate for you to state that relative judgment systems:
A) require supervisors to differentiate between employees.
B) minimize employee conflict regarding performance assessment.
C) clarify performance differences between similarly ranked employees.
D) force managerial judgments based exclusively on performance standards.
Answer: A
Chapter: 7
Skill: Application
LO: 2
11) A pitfall of using relative judgments for performance appraisal is that they:
A) fail to clarify how great or small the performance differences are between employees.
B) force appraisers to make judgments based solely on performance standards.
C) focus too much on the individual rather than the individual's performance.
D) provide inadequate information when making termination decisions.
Answer: A
Chapter: 7
Skill: Concept
LO: 2
3
12) Your CEO is considering the use of a relative judgment system for your company's
performance appraisal program. She asks you about the disadvantages to such a system, and it
would be most appropriate for you to state that such systems:
A) provide unclear performance feedback to employees.
B) rely too much on employee competencies.
C) fail to measure job-relevant behavior.
D) are costly and time consuming.
Answer: A
Chapter: 7
Skill: Application
LO: 2
13) A firm implementing a relative judgment performance appraisal system would most likely
experience which of the following?
A) Employees comparing themselves to other employees
B) Managers making judgments based completely on performance standards
C) Managers grouping employees into two categories when evaluating performance
D) Employees receiving clear and useful information about improving their performance
Answer: C
Chapter: 7
Skill: Concept
LO: 2
14) You are discussing changing your performance appraisal system with your executive
management team. The VP of Operations wants the ability to compare employees working for
different managers in different areas of the plant. The best appraisal system for this would be
a(n):
A) ranking system.
B) relative system.
C) absolute system.
D) behavior-based system.
Answer: C
Chapter: 7
Skill: Application
LO: 2
4
15) Which of the following is most likely a true statement about relative and absolute judgment
appraisal systems?
A) Relative judgments do not force raters to make distinctions between employees where none
exist, but absolute judgments do.
B) Absolute judgments allow for equal ratings among employees, but relative judgments do not.
C) Absolute judgments tend to create conflict between employees, but relative judgments do not.
D) Relative judgments are easy to defend in court, but absolute judgments are not.
Answer: B
Chapter: 7
Skill: Concept
LO: 2
16) Which of the following is a disadvantage of an absolute judgment performance appraisal

system?
A) Managers make irrelevant and unfair distinctions among employees
B) Conflict develops among employees competing for the best rating
C) Legal defense of evaluations is difficult
D) Standards vary among managers
Answer: D
Chapter: 7
Skill: Concept
LO: 2
17) An appraisal system that focuses on individuals rather than on any other factor is a(n):
A) absolute system.
B) behavioral system.
C) relative system.
D) trait-based system.
Answer: D
Chapter: 7
Skill: Concept
LO: 2
18) Which of the following is NOT a trait typically used on trait-based rating scales?
A) Decisiveness
B) Punctuality
C) Reliability
D) Energy
Answer: B
Chapter: 7
Skill: Concept
LO: 2
5
19) Which of the following is NOT a common criticism of trait appraisal instruments?
A) Lack of legal defensibility
B) Too much rater bias
C) Costly and time consuming
D) Ambiguous ratings
Answer: C
Chapter: 7
Skill: Concept
LO: 2
20) Bob wants to focus this year's employee assessment interviews on discussing the traits each
employee displays. You should most likely tell him that trait-based appraisal tools:
A) can be beneficial but are more expensive than other methods.
B) have a tendency to make employees defensive.
C) are illegal according to EEOC guidelines.
D) are helpful in boosting employee morale.
Answer: B
Chapter: 7
Skill: Application
LO: 2, 3
21) 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 gives direction when assigning work) to 10
(makes expectations clear). This is an example of a(n):
A) trait-based appraisal instrument.
B) outcome-based appraisal instrument.
C) behavior-based appraisal instrument.
D) relative judgment appraisal instrument.
Answer: C
Chapter: 7
Skill: Application
LO: 2
22) Trait-based performance appraisal systems are most similar to:

A) outcome-based performance appraisal systems.
B) behavioral-based performance appraisal systems.
C) relative judgment performance appraisal systems.
D) absolute judgment performance appraisal systems.
Answer: B
Chapter: 7
Skill: Concept
LO: 2
6
23) The most common form of behavior appraisal instrument is a:
A) management by objectives format.
B) behaviorally anchored rating scale.
C) situational interviewing form.
D) personality trait scale.
Answer: B
Chapter: 7
Skill: Concept
LO: 2
24) 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
Answer: D
Chapter: 7
Skill: Concept
LO: 2
25) A company designs a performance evaluation process that evaluates the value of specific
employee behaviors. The company is most likely using a(n):
A) outcome-based system.
B) relative judgment system.
C) trait-based system.
D) behavioral-based system.
Answer: D
Chapter: 7
Skill: Application
LO: 2
26) Which of the following is a drawback of a behavior-based performance appraisal system?

A) Time-consuming to develop
B) Distorted worker performance levels
C) Ambiguous ratings which leads to bias
D) Managerial resistance due to required training
Answer: A
Chapter: 7
Skill: Concept
LO: 2
7
27) Outcome-based performance appraisal systems are more likely to:
A) lead to a "results at any cost" mentality.
B) require significant time to establish criteria.
C) face managerial and employee resistance.
D) cause legal difficulties because of unclear standards.
Answer: A
Chapter: 7
Skill: Concept
LO: 2
28) MBO performance appraisal systems focus primarily on employee:

A) competencies.
B) behaviors.
C) results.
D) traits.
Answer: C
Chapter: 7
Skill: Concept
LO: 2
29) Outcome-based appraisal tools have a tendency to:

A) use ambiguous criteria.
B) encourage employee conflicts.
C) provide a distorted view of worker performance levels.
D) force raters to make unnecessary distinctions between employees.
Answer: C
Chapter: 7
Skill: Concept
LO: 2
30) Studies of performance appraisal systems show that the most influential element on the
effectiveness of the system is the:
A) number of employees for whom the rater is responsible.
B) intelligence and experience of the rater.
C) type of tool or system being used.
D) job category being evaluated.
Answer: B
Chapter: 7
Skill: Concept
LO: 2
8
31) Which appraisal format has the greatest legal defensibility?
A) Relative
B) Absolute
C) Behavior
D) Outcome
Answer: C
Chapter: 7
Skill: Concept
LO: 2
32) If supervisors want to help employees gain insight into their performance problems and have
input into the performance appraisal, they should most likely use:
A) peer reviews.
B) self reviews.
C) team reviews.
D) subordinate reviews.
Answer: B
Chapter: 7
Skill: Concept
LO: 2
33) Which of the following is an upward performance appraisal process?

A) Peer reviews
B) Self reviews
C) Team reviews
D) Subordinate reviews
Answer: D
Chapter: 7
Skill: Concept
LO: 2
34) 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) 360° feedback.
Answer: A
Chapter: 7
Skill: Application
LO: 2
9
35) The implementation of a ________ process offers a well rounded picture of an employee's
performance.
A) self-review
B) peer review
C) subordinate review
D) 360° feedback
Answer: D
Chapter: 7
Skill: Concept
LO: 2
36) Which of the following is LEAST likely a challenge of effective performance measurement?
A) Employee contributions
B) Organizational politics
C) Instrument invalidity
D) Rater errors
Answer: A
Chapter: 7
Skill: Concept
LO: 3
37) The tendency to rate similarly across dimensions is best known as ________ error.
A) liking
B) severity
C) halo
D) leniency
Answer: C
Chapter: 7
Skill: Concept
LO: 3
10
38) 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:
A) severity error.
B) halo error.
C) leniency error.
D) central tendency error.
Answer: B
Chapter: 7
Skill: Application
LO: 3
39) 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) consider organizational goals.
B) remain current on EEO laws.
C) consider each dimension individually.
D) avoid personal relationships with workers.
Answer: C
Chapter: 7
Skill: Application
LO: 3
40) 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 employee performance similarly in all appraisal areas.
Answer: C
Chapter: 7
Skill: Concept
LO: 3
11
41) 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. These findings most likely indicate:
A) a high rate of comparability.
B) a restriction of range error.
C) a central tendency error.
D) the influence of liking.
Answer: A
Chapter: 7
Skill: Application
LO: 3
42) Frame-of-reference training has been found to be particularly effective in eliminating:

A) persuasive effects of organizational politics.
B) problems of choosing the wrong evaluation tool.
C) most legal issues in the performance review process.
D) the impact of personal bias in performance evaluations.
Answer: D
Chapter: 7
Skill: Concept
LO: 3
43) Which of the following is used in frame-of-reference training?

A) Role playing of employee behaviors
B) Fictitious examples of worker performance
C) Actual examples of incorrect performance ratings
D) Previous performance appraisals conducted by managers
Answer: B
Chapter: 7
Skill: Concept
LO: 3
44) Which of the following is true about the influence of "liking" on performance appraisals?
A) Correlations exist between rater liking and performance ratings.
B) Most employees doubt that rater liking affects performance appraisals.
C) Correlations exist between employee liking and performance criteria.
D) The impact of liking is greatest in absolute performance appraisal systems.
Answer: A
Chapter: 7
Skill: Concept
LO: 3
12
45) Managers who maintain employee performance diaries most likely benefit from:
A) venting frustrations about individual employees.
B) guaranteed protection against the halo effect.
C) legal justification for the appraising process.
D) documenting organizational politics.
Answer: C
Chapter: 7
Skill: Concept
LO: 3
46) How can managers minimize the influence of "liking" on performance evaluations?
A) Participating in frame-of-reference training
B) Keeping a performance diary on each employee
C) Developing a sensitivity to organizational politics
D) Conducting group, rather than individual, performance evaluations
Answer: B
Chapter: 7
Skill: Concept
LO: 3
47) When managers use performance appraisals to communicate a message to an employee

rather than to measure actual performance, the performance appraisal is most likely being
influenced by:
A) rater bias.
B) personal bias.
C) organizational politics.
D) employee personalities.
Answer: C
Chapter: 7
Skill: Concept
LO: 4
48) 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(n):
A) rational perspective.
B) absolute perspective.
C) political perspective.
D) relative perspective.
Answer: C
Chapter: 7
Skill: Application
LO: 4
13
49) 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) Supervisors' roles in the rational approach are much more active than supervisors' roles in the
political approach.
C) The goal of appraisal from the political perspective is accuracy. The goal of appraisal from
the rational perspective is utility.
D) The goal of appraisal from the political perspective is utility. The goal of appraisal from the
rational perspective is accuracy.
Answer: D
Chapter: 7
Skill: Concept
LO: 4
50) Managers using a rational perspective to appraise performance believe that:

A) the goal of an appraisal is accuracy.
B) the employee is an active participant in the process.
C) the focus of the process is management of performance.
D) the assessment of specifics follows the overall assessment of the worker.
Answer: A
Chapter: 7
Skill: Concept
LO: 4
51) Which of the following best summarizes the text's explanation of the political perspective in
performance appraisal?
A) Performance appraisals communicate approval and disapproval and manage an employee's
behavior.
B) Performance appraisals provide a way to compare different employees working at the same or
similar jobs.
C) Performance appraisals accurately measure performance against clear standards in order to
improve functioning in the organization.
D) Performance appraisals give the employee as much power and discretion as possible.
Answer: A
Diff: 3 Page Ref: 237-238
Chapter: 7
Skill: Concept
LO: 4
14
52) 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) decide who should get the highest rating in a group setting before completing the evaluation.
D) use relatively ambiguous criteria or definitions in the appraisal process.
Answer: B
Chapter: 7
Skill: Concept
LO: 4
53) Your text argues that the performance appraisal process in most organizations is a(n):
A) absolute process.
B) rational exercise.
C) political exercise.
D) trait-based process.
Answer: C
Chapter: 7
Skill: Concept
LO: 4
54) Automotive, Inc. (A.I.) is an automotive manufacturing company that uses self-managed
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 behavioral measures to assess overall team performance.
Answer: A
Chapter: 7
Skill: Application
LO: 4
55) Most experts agree that in a team environment:

A) individual assessment is unnecessary and ineffective.
B) behavioral-based assessments are the best in most cases.
C) outcome-based tools are the most effective appraisal methods.
D) both individual and team performance should be evaluated.
Answer: D
Chapter: 7
Skill: Concept
LO: 4
15
56) 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.
Answer: D
Chapter: 7
Skill: Concept
LO: 5
57) The most significant court test of discrimination in performance appraisal was:
A) Griggs v. Duke Power.
B) Brito v. Zia.
C) Segar v. Civiletti.
D) Hawthorne v. United Airlines.
Answer: B
Chapter: 7
Skill: Concept
LO: 5
58) A review of court decisions regarding performance appraisal legal issues, shows that the
courts tend to:
A) be favorably influenced by the use of job analysis.
B) be positively influenced by the MBO method.
C) refer the issue back to the EEOC or OFCCP.
D) rule in favor of the employee.
Answer: A
Chapter: 7
Skill: Concept
LO: 5
59) 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
Answer: D
Chapter: 7
Skill: Concept
LO: 5
16
60) Catina is designing an assessment and performance managing program for her company's
HR department. To manage employee performance most effectively, Catina should:
A) mandate that performance appraisals and assessment interviews be performed once every
three years.
B) prohibit managers from discussing performance evaluations and compensation during the
same meeting.
C) stress that day-to-day interactions need to occur between manager and employee in addition
to face-to-face interviews.
D) create a program that measures employee performance in terms of annual productivity.
Answer: C
Chapter: 7
Skill: Application
LO: 6
61) 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 results
in:
A) employees receiving lower raises than if the two events were separated.
B) managers focusing on the salary issue and overlooking the performance appraisal.
C) employees ignoring performance feedback and focusing only on the salary increase.
D) managers taking the appraisal more seriously and providing more detailed feedback.
Answer: D
Chapter: 7
Skill: Concept
LO: 6
62) 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
Answer: B
Chapter: 7
Skill: Concept
LO: 6
17
63) All of the following are characteristics of supervisors who manage performance effectively
EXCEPT:
A) solving problems for employees.
B) focusing attention on the causes of problems.
C) directing communication at performance.
D) developing an action plan with employees.
Answer: A
Chapter: 7
Skill: Concept
LO: 6
64) The tendency of managers to blame workers for poor performance and for workers to blame
external factors is known as:
A) halo effect.
B) 360 degree feedback.
C) actor/observer bias.
D) central tendency error.
Answer: C
Chapter: 7
Skill: Concept
LO: 3
65) Which of the following is a "microskill" that managers should use in employee appraisal
interviews?
A) Using only open questions
B) Paraphrasing employees' responses
C) Discussing personal matters with employees
D) Maintaining a distinct manager/subordinate atmosphere
Answer: B
Chapter: 7
Skill: Concept
LO: 6
66) Those who manage employee performance effectively share some common management
characteristics, such as:
A) the ability to motivate.
B) a minimal use of progressive discipline.
C) the exploration of causes of performance problems.
D) a behavioral-based approach to managing employees.
Answer: C
Chapter: 7
Skill: Concept
LO: 6
18
67) Employee performance on the job is primarily a function of the employee's:
A) ability, motivation, and situational factors.
B) working conditions and training.
C) supervision and motivation.
D) traits and behaviors.
Answer: A
Chapter: 7
Skill: Concept
LO: 6
68) Which of the following is NOT a situational factor in employee performance problems?
A) Lack of necessary equipment
B) Inadequate supervision
C) Lack of motivation
D) Inadequate training
Answer: C
Chapter: 7
Skill: Concept
LO: 6
69) Which of the following is an example of a situational factor affecting employee

performance?
A) Al arrives late to work every day.
B) Beth lacks adequate job knowledge.
C) Carter receives poor supervision.
D) Dana shows symptoms of burnout.
Answer: C
Chapter: 7
Skill: Application
LO: 6
70) The best way for managers to encourage effective performance is to:
A) be specific about desired outcomes.
B) show employees how to accomplish goals.
C) design outcome goals without employee input.
D) develop small work teams within each department.
Answer: A
Chapter: 7
Skill: Concept
LO: 5
AACSB: Communication abilities
19
71) According to the text, what is the best way to encourage managers to coach employees?
A) Integrating coaching into a strategic plan
B) Showing the effectiveness of coaching
C) Setting specific times for coaching
D) Paying overtime for coaching
Answer: B
Chapter: 7
Skill: Concept
LO: 6
AACSB: Communication abilities
72) Sam, a data anaylst, has not been completing tasks as quickly as his manager, Elizabeth,
would like. Elizabeth has scheduled a meeting with Sam to discuss the issue. What should
Elizabeth do first at the meeting?
A) Ask Sam if he has been having personal problems at home
B) Enroll Sam in a training and development program
C) Tell Sam that he could lose his position soon
D) Define the performance problem for Sam
Answer: D
Chapter: 7
Skill: Application
LO: 6
20
Case 7.1
Shannon is the CEO of a firm that provides high-tech service support to other small businesses.
He plans to revise the performance appraisal system to align it more closely with company goals.
The tailored program should be fair and ethical and should produce consistent results.
Shannon wants service employees to work together to maximize service quality. Since the sales
force has not been particularly aggressive, sales are lagging. Shannon believes that profits and
customer satisfaction will increase if sales people start providing after-sale service to customers.
In the past, Shannon's sales managers have been receiving the same raises, regardless of their
effectiveness. Now, Shannon wants to identify and reward the best-performing managers. By
comparing managers across functions, Shannon believes he will be able to identify workers who
are ready for more challenging responsibilities.
73) Refer to Case 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) develop the performance management process he will use.
D) communicate the changes in the program to the employees.
Answer: A
Chapter: 7
Skill: Application
LO: 1
74) Refer to Case 7.1. The best appraisal system to enhance cooperation among service
personnel would most likely be a:
A) trait-based appraisal system.
B) behavioral appraisal system.
C) relative judgment process.
D) self-review tool.
Answer: B
Chapter: 7
Skill: Critical Thinking
LO: 2
AACSB: Reflective thinking skills
21
75) Refer to Case 7.1. The best appraisal system for Shannon's sales management team would
most likely be:
A) rank order.
B) trait based.
C) outcome based.
D) behavioral based.
Answer: C
Chapter: 7
LO: 2
76) Refer to Case 7.1. What perspective of the performance appraisal process does Shannon most
likely have?
A) A political perspective
B) A rational perspective
C) A relative perspective
D) A legal perspective
Answer: B
Chapter: 7
Skill: Application
LO: 2
77) Refer to Case 7.1. Shannon is considering an appraisal system based on relative judgment.
Which statement best supports the use of such a system?
A) The firm would benefit from specifying the differences between employees.
B) Managers need to know which employees are the best at the firm.
C) The firm frequently needs to make decisions about pay raises.
D) Employees require specific details about their performance.
Answer: C
Chapter: 7
LO: 2
22
Case 7.2
As an HR manager at a publishing firm, you are reviewing performance appraisals for a report to
the CEO regarding manager performance. The CEO wants to know not only how employees are
doing, but also how well managers are evaluating their employees. Matt, Madeline, and Edward
are the firm's key managers.
Reading through Matt's evaluations, you note that he tends to rate all of his subordinates in the
middle of the scale. You recall a conversation during which Matt commented that his
subordinates were overall satisfactory but not excellent. Matt would like to get them more
training and institute an incentive program for motivational purposes.
Madeline's employee evaluations of her team range from excellent to poor. You are startled to
see that Madeline has rated Juan rather low. Pulling Juan's 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 CEO, who agreed with Juan's opinion to
Madeline's embarrassment.
Edward's employee evaluations have very little justification. Gary, the CEO's son-in-law, is
typically an average performer, but Edward gave him a very high rating. Jenny, another average
performer, has a very low rating. You recall a comment from Edward that Jenny needed
motivation to work harder.
78) Refer to Case 7.2. You could most likely draw the conclusion that Matt's evaluations
exemplify:
A) a halo effect error.
B) the influence of liking.
C) a problem with organizational politics.
D) a frame-of-reference error.
Answer: A
Chapter: 7
LO: 3
79) Refer to Case 7.2. Madeline's evaluation of Juan most likely suggests that she:
A) faces legal issues.
B) has actor/observer bias.
C) has a political agenda.
D) needs frame-of-reference training.
Answer: C
Chapter: 7
LO: 3
23
80) Refer to Case 7.2. Madeline's evaluation of Juan most likely involves a(n) ________ error.
A) central tendency
B) influence of liking
C) frame-of-reference
D) assessment criteria
Answer: B
Chapter: 7
LO: 3
81) Refer to Case 7.2. Edward's employee evaluations show that Edward:
A) tends to make halo errors.
B) is subject to the influence of liking.
C) is not considering situational factors in his appraisals.
D) believes in a political perspective regarding performance appraisals.
Answer: D
Chapter: 7
LO: 3
82) Refer to Case 7.2. Which manager or managers would most likely leave the company
vulnerable to a lawsuit because of the way they conduct performance appraisals?
A) Matt
B) Edward
C) Matt and Edward
D) Madeline and Edward
Answer: D
Chapter: 7
LO: 3
24
Case 7.3
In a training session for managers, you state that performance improvement is the most important
part of the performance appraisal process. During the session, you explain how the group of
supervisors can manage employee performance more effectively.
During the ensuing discussion, Chris, a middle manager with 20 subordinates, explains that he
has a finely tuned ability to discover the causes of performance problems. According to Chris,
employees either lack motivation for the job or lack the skills and knowledge to perform the job.
Another supervisor, Gena, says that after she determines the cause of a performance problem,
she creates a supportive environment and works in partnership with the employee to solve the
problem. While Gena strives to show acceptance, she also finds it effective to point out to
subordinates how their negative personality traits affect their work performance. Gena states that
by giving employees all the time needed and offering suggestions, performance improvements
typically occur.
83) Refer to Case 7.3. In this training session you should most likely state that to improve
performance, managers need to begin by:
A) exploring the causes of the performance problem with the employee.
B) directing communication towards performance and situational issues.
C) empowering workers to solve their own performance problems.
D) directing attention to solutions for the problem.
Answer: A
Chapter: 7
LO: 6
84) Refer to Case 7.3. Chris's analysis most likely suggests which of the following plays a role in
performance management?
A) Organizational politics
B) Nonverbal attending
C) Cultural insensitivity
D) Observer bias
Answer: D
Chapter: 7
Skill: Synthesis
LO: 3, 6
AACSB: Analytic skills
25
85) Refer to Case 7.3. Which of the following would most likely improve Gena's strategy for
solving performance problems?
A) Exploring the causes of poor performance
B) Focusing communication on performance
C) Empowering employees to reach a solution
D) Motivating employees to solve their own problems
Answer: B
Chapter: 7
LO: 6
86) Refer to Case 7.3. Which of the following questions would be LEAST relevant for Chris and
Gena to ask when faced with employee performance problems?
A) Is the employee's performance erratic?
B) Is the employee's performance lower on all tasks?
C) Have all workers received 360-degree feedback?
D) Are performance problems occurring with all workers?
Answer: C
Chapter: 7
LO: 6
87) To be the most effective, all managers in a firm should maintain comparable rating
standards.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 1
88) The performance appraisal system should praise and criticize past behavior and focus on the
future in terms of how workers will achieve their potential.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 1
26
89) The absolute judgment format permits comparison ratings of individual workers in different
work groups by various managers.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
90) Relative ranking systems require managers to make performance distinctions among workers
even if none actually exist.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
91) The "big picture" quality of the absolute rating system makes performance feedback too
ambiguous to be beneficial.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 2
92) 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
Chapter: 7
Skill: Application
LO: 2
93) Trait ratings evaluate worker characteristics that tend to be consistent and enduring.
Consequently, like absolute systems, they eliminate all ambiguity from appraisals.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 2
27
94) The most common form of behavioral appraisal instrument tends to measure the value rather
than the frequency of rated behaviors.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
95) 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
Chapter: 7
Skill: Concept
LO: 2
96) The critical-incident technique is useful for developing BARS.

Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
97) Behavioral rating systems are well accepted by managers because they can be developed
quickly.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 2
98) The advantage of outcome-based appraisal systems is that they eliminate subjectivity and the
potential for rater error.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
99) The choice of which appraisal tool to use should be based on the purpose of the appraisal.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
28
100) 360° performance appraisal systems require careful planning and consume far more time
than other appraisal systems, but putting the system online can reduce the time and costs of the
process.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 2
101) 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 Carol low. The HR director agrees in areas of judgment and tact but knows that 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
Chapter: 7
Skill: Application
LO: 3
102) 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
Chapter: 7
Skill: Application
LO: 3
103) Frame-of-reference training helps managers avoid errors and bias in performance
evaluations.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 3
104) Liking is an emotional and conscious response on the part of employers and is established
over a long period of time.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 3
29
105) Performance diaries typically improve the accuracy of performance appraisals but cannot be
used in court to justify the appraisal process.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 3
106) Maximizing benefits over costs is the primary goal of rational performance appraisal.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 3
107) 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
Chapter: 7
Skill: Concept
LO: 3
108) In team environments, experts recommend eliminating individual performance evaluation

to avoid creating rivalries within teams.
Answer: FALSE
Chapter: 7
Skill: Concept
LO: 3
109) Brito v. Zia established that performance appraisals must meet all the legal requirements
regarding tests in organizations.
Answer: TRUE
Chapter: 7
Skill: Concept
LO: 5
30
110) 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
Chapter: 7
Skill: Concept
LO: 3
111) The identification, measurement, and management of human performance in organizations

is referred to as ________.
Answer: performance appraisal
Chapter: 7
Skill: Concept
LO: 1
112) ________ is an aspect of performance that determines effective job performance.

Answer: Dimension
Chapter: 7
Skill: Concept
LO: 1
113) More firms are basing performance assessments on ________, which are observable
characteristics that are associated with successful job performance.
Answer: competencies
Chapter: 7
Skill: Concept
LO: 2
114) An appraisal format that asks supervisors to compare an employee's performance to the
performance of other employees doing the same job is referred to as ________.
Answer: relative judgment
Chapter: 7
Skill: Concept
LO: 2
115) ________ is an appraisal format that asks supervisors to make judgments about an
employee's performance based solely on performance standards.
Answer: Absolute judgment
Chapter: 7
Skill: Concept
LO: 2
31
116) 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
Chapter: 7
Skill: Concept
LO: 2
117) A(n) ________ is an appraisal tool that asks managers to assess a worker's behavior.
Answer: behavioral appraisal instrument
Chapter: 7
Skill: Concept
LO: 2
118) A(n) ________ is an appraisal tool that asks managers to assess the results achieved by
workers.
Answer: outcome appraisal instrument
Chapter: 7
Skill: Concept
LO: 2
119) ________ 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)
Chapter: 7
Skill: Concept
LO: 2
120) A(n) ________ is a performance appraisal system in which workers rate themselves.
Answer: self-review
Chapter: 7
Skill: Concept
LO: 2
121) A(n) ________ is a performance appraisal system in which workers at the same level in the
organization rate one another.
Answer: peer review
Chapter: 7
Skill: Concept
LO: 2
32
122) A performance appraisal system in which workers review their supervisors is called a(n)
________.
Answer: subordinate review
Chapter: 7
Skill: Concept
LO: 2
123) The combination of peer, subordinate, and self-review is referred to as ________.

Answer: 360-degree feedback
Chapter: 7
Skill: Concept
LO: 2
124) An error in performance appraisals that reflects consistent biases on the part of the rater is
referred to as ________.
Answer: rater error
Chapter: 7
Skill: Concept
LO: 3
125) ________ is the degree to which the performance ratings given by various supervisors in an
organization are similar.
Answer: Comparability
Chapter: 7
Skill: Concept
LO: 3
126) A type of training that presents 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
Chapter: 7
Skill: Concept
LO: 3
33
127) How do firms use performance appraisals? What is the difference between a performance
appraisal system built on a relative or an absolute judgment format? What are the advantages and
disadvantages of each format?
Answer: Summary of suggested answer -
Firms use performance appraisals for administrative and developmental purposes. They are used
for making decisions such as promotions, and terminations. They are also used to provide
employees with feedback and to determine training needs.
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.
Diff: 3 Page Ref: 223, 226-228
Chapter: 7
Skill: Synthesis
LO: 1, 2
34
128) What are the advantages and disadvantages of using trait, behavioral, and outcome data to
measure employee performance? In your answer, discuss the level of legal defense that each
method provides.
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-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.
Although some organizations use trait ratings, trait ratings have been criticized for being too
ambiguous and for leaving the door open for conscious or unconscious bias. In addition, because
of their ambiguous nature trait ratings are less defensible in court than other types of ratings.
Because behaviors are unambiguous and based on observation, BARS and other behavioral
instruments are more legally defensible than trait scales, which often use such hard-to-define
adjectives as "poor" and "excellent." The outcome approach provides clear and unambiguous
criteria by which worker performance can be judged. It also eliminates subjectivity and the
potential for error and bias that goes along with it, which makes it fairly easy to defend in court.
Chapter: 7
Skill: Synthesis
LO: 2, 5
35
129) How do rater errors and personal emotions affect the performance appraisal process? How
can firms manage the impact of both?
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.
Liking can cause errors in performance appraisals when raters allow their like or dislike of an
individual to influence their assessment of that person's performance. Field studies have found
rater liking and performance ratings to be substantially correlated. Given the potentially biasing
impact of liking, it is critical that supervisors manage their emotional reactions to workers. They
should keep a performance diary of observed behavior for each worker to serve as the basis for
evaluation and other managerial actions. An external record of worker behaviors can
dramatically reduce error and bias in ratings.
Chapter: 7
Skill: Synthesis
LO: 3, 4
130) How do factors such as the influence of liking, organizational politics, and employment
laws affect the performance appraisal process? What can firms do to address these issues?
• 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 politics-use of appraisal to communicate a message, not evaluate performance.
Appraisal is tied to manager's goals, not criteria.
• Legal issues-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.
Chapter: 7
Skill: Synthesis
LO: 4, 5
36
Managing Human Resources Gomez-Mejia 7th Edition Test Bank
131) Group performance appraisals are becoming more important in the U.S. business
community, since teams are increasingly common in the workplace. As a manager, how would
you appraise a team and its members in order to improve performance?
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 most easily understood by
team members and those who interact with the team. Going to team members to help develop
criteria encourages their participation in selecting measures that they feel they can directly
influence.
Chapter: 7
Skill: Synthesis
LO: 3, 6
37
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1) Which of the following is a comprehensive list of the functions in a performance appraisal?

2) A manager is in the process of deciding how effective or ineffective an employee's behavior

6) When it comes to the performance appraisal process:

16) Which of the following is a disadvantage of an absolute judgment performance appraisal

22) Trait-based performance appraisal systems are most similar to:

26) Which of the following is a drawback of a behavior-based performance appraisal system?

28) MBO performance appraisal systems focus primarily on employee:

29) Outcome-based appraisal tools have a tendency to:

33) Which of the following is an upward performance appraisal process?

40) Raters who commit severity errors generally:

42) Frame-of-reference training has been found to be particularly effective in eliminating:

43) Which of the following is used in frame-of-reference training?

47) When managers use performance appraisals to communicate a message to an employee

50) Managers using a rational perspective to appraise performance believe that:

55) Most experts agree that in a team environment:

69) Which of the following is an example of a situational factor affecting employee

96) The critical-incident technique is useful for developing BARS.

108) In team environments, experts recommend eliminating individual performance evaluation

111) The identification, measurement, and management of human performance in organizations

112) ________ is an aspect of performance that determines effective job performance.

123) The combination of peer, subordinate, and self-review is referred to as ________.

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