Fundamentals of Human Resource Management 4th Edition Noe Test Bank

Fundamentals of Human Resource
Management 4th Edition Noe Test Bank

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Chapter 08 - Managing Employees' Performance
Chapter 08
Managing Employees' Performance
True / False Questions
1. Performance management is the process through which managers ensure that employees'
activities and outputs contribute to the organization's goals.
True False
2. Organizations establish performance management systems to meet three broad purposes:

strategic, administrative, and developmental.
True False
3. In the case of performance appraisal, validity refers to whether the appraisal measures all
aspects of performance, both relevant and irrelevant.
True False
4. Test-retest reliability refers to consistency of results over time.

True False
5. In the forced-distribution method of performance measurement, employees are ranked from

highest to lowest.
True False
6. In terms of measuring performance, a major advantage of ranking systems is that they often
are linked to the organization's goals.
True False
7. Attribute-based performance methods are tightly linked to organizational strategy.

True False
8-1
8. To rate employee behaviors, the organization begins by defining which behaviors are
associated with success on the job.
True False
9. The critical-incident method is a behavioral approach to performance management.

True False
10. An advantage of behaviorally anchored rating scales (BARS) is improved interrater

reliability.
True False
11. Compared to a behavioral observation scale (BOS), managers and employees prefer to use
the BARS method for ease of use, providing feedback, and maintaining objectivity.
True False
12. Organizational behavior modification (OBM) is a plan for managing the behavior of
employees through an informal system of feedback and reinforcement.
True False
13. Behavioral approaches to performance measurement, such as organizational behavior

modification and rating scales, tend to be valid, reliable, and acceptable.
True False
14. Management by objectives (MBO) systems seldom link employee performance to the
organization's strategic goals.
True False
8-2
15. Traditional performance measurement differs from total quality management (TQM) in
that it assesses both individual performance and the system within which the individual
works.
True False
16. Subordinates are the most-used source of performance information.

True False
17. Generally, peers are more favorable toward participating in reviews to be used for
employee development.
True False
18. Self-appraisals are not appropriate as the basis for administrative decisions.
True False
19. If a rater compares an individual, not against an objective standard, but against other
employees, distributional errors occur.
True False
20. Appraisal politics are most likely to occur when senior employees tell newcomers
company "folklore" that includes stories about distorted ratings.
True False
21. In the tell-and-sell approach, managers tell employees their ratings and then let the
employees explain their side of the story.
True False
8-3
22. The content of a feedback session should emphasize behavior, not personalities.
True False
23. The most effective way to improve performance varies according to the manager's ability.
True False
24. Lawsuits related to performance management usually involve charges of discrimination or

unjust dismissal.
True False
25. The Supreme Court has held that the selection guidelines in the federal government's
Uniform Guidelines on Employee Selection Procedures also apply to performance
management systems.
True False
Multiple Choice Questions
26. The process through which managers ensure that employees' activities and outputs
contribute to the organization's goals is known as:
A. quality analysis.
B. HR appraisal.
C. project management.
D. strategic planning.
E. performance management.
27. The relevant aspects of employee performance are based on:

A. the outcomes of a job analysis.
B. the nature of the company's products and services.
C. management's beliefs and values.
D. the employee's psychological contract.
E. aspects of the employee's personality.
8-4
28. Which of the following is a purpose of performance management systems?

A. Systematic
B. Rational
C. Investigative
D. Strategic
E. Analytical
29. _____ means effective performance management helps the organization achieve its
business objectives.
A. Systematic purpose
B. Investigative purpose
C. Developmental purpose
D. Administrative purpose
E. Strategic purpose
30. The administrative purpose of a performance management system refers to:

A. linking employees' behaviors with the organization's goals.
B. developing employees' knowledge and skills.
C. linking to the organization's goals and communicating the goals and feedback about
performance to employees.
D. measuring each employee's performance to identify areas where expectations are not being
met.
E. the ways in which organizations use the system to provide information for day-to-day
decisions about salary, benefits, and recognition programs.
31. Performance management has a(n) _____ purpose, meaning that it serves as a basis for
improving employees' knowledge and skills.
A. systematic
B. tactical
C. strategic
D. administrative
E. developmental
8-5
32. Which performance management evaluation criterion is concerned with maximizing the
overlap between actual job performance and the measure of job performance?
A. Reliability
B. Acceptability
C. Specificity
D. Validity
E. Dependability
33. In the case of performance appraisal, _____ refers to whether the appraisal measures all
the relevant aspects of performance and omits irrelevant aspects of performance.
A. acceptability
B. specificity
C. reliability
D. dependability
E. validity
34. If personnel at the Zion Corporation evaluate salespeople across different regional
territories based on the number of sales calls they make to customers, they are most likely
using a(n) _____ measure.
A. unreliable
B. deficient
C. contaminated
D. valid
E. variable
35. The consistency among the different individuals who evaluate an employee's performance
is known as:
A. internal consistency reliability.
B. interrater reliability.
C. interrater validity.
D. test-retest reliability.
E. test-retest validity.
8-6
36. If a performance measure lacks _____ reliability, determining whether an employee's

performance has truly changed over time will be impossible.
A. external
B. interrater
C. strategic
D. test-retest
E. specific
37. The extent to which a performance measure gives guidance to employees about what is
expected of them is called:
A. reliability.
B. validity.
C. specific feedback.
D. acceptability.
E. strategic fit.
38. Which of the following is a comparative performance appraisal technique?

A. Mixed-standards scale
B. Simple ranking
C. Paired distribution
D. Forced comparison
E. Complex distribution
39. Which of the following performance measurement methods requires managers to rank
employees in their group from the highest performer to the poorest performer?
A. Graphic rating scale
B. Mixed-standard scale
C. Paired comparison
D. Forced distribution
E. Simple ranking
8-7
40. The performance measurement method that assigns a certain percentage of employees to
each category in a set of categories is called:
A. forced distribution.
B. alternation ranking.
C. paired comparison.
D. optional ranking.
E. paired choice analysis.
41. Identify the evaluation approach to performance measurement that meets the following
criteria: very high strategic congruence, usually high validity, high reliability, high
acceptability, and high specificity regarding results but low specificity regarding behaviors
necessary to achieve them.
A. Comparative
B. Attribute
C. Behavioral
D. Results
E. Developmental
42. Identify the approach to performance measurement that meets the following criteria: high
strategic congruence, usually high validity, usually high reliability, moderate acceptability,
and very high specificity.
A. Comparative
B. Attribute
C. Behavioral
D. Results
E. Quality
43. Identify the approach to performance measurement that meets the following criteria:
usually low strategic congruence, usually low validity, usually low reliability, high
acceptability, and very low specificity.
A. Comparative
B. Attribute
C. Behavioral
D. Results
E. Quality
8-8
44. The _____ method of performance measurement compares each employee with each other
employee to establish rankings.
A. paired-comparison
B. graphic rating scale
C. forced-distribution
D. mixed standard
E. BARS
45. Which one of the following is NOT a problem associated with the comparative
approaches to performance management?
A. A simple ranking system leaves the basis for the ranking open to interpretation.
B. Managers can give high ratings to all employees to avoid controversy.
C. The rankings are not helpful for employee development.
D. The rankings may not be linked to the organization's goals.
E. The rankings may hurt morale or result in legal challenges.
46. Which of the following is the most widely used method for rating attributes?
A. Behaviorally anchored rating scales
B. Mixed-standard scales
C. Behavioral observation scales
D. Graphic rating scales
E. Critical-incident methods
47. If a manager considers one employee at a time and circles a number/word to signify the
degree to which that employee demonstrates a particular trait, he/she is using a:
A. mixed-standard scale.
B. critical-incident approach.
C. graphic rating scale.
D. behavioral observation scale.
E. behaviorally anchored rating scale.
8-9
48. In which performance technique are managers given three performance rating scales per
dimension and asked to indicate whether the employee's performance is above (+), at (0), or
below (-) the statements?
A. Behaviorally anchored rating scale
C. Behavioral observation scale
D. Graphic rating scale
E. Forced distribution
49. Which of the following is true of the attribute approaches to performance management?
A. They result in high strategic congruence.
B. They are difficult to develop.
C. They can be applied to a wide variety of jobs and organizations.
D. They provide specific guidance and feedback to employees.
E. They are the least popular way to measure performance in organizations.
50. The performance management approach that requires managers to keep a record of
specific examples of effective and ineffective performance is the:
A. behaviorally anchored rating scale.
B. graphic rating scale.
C. critical-incident method.
D. organizational behavior modification method.
E. mixed-standard scale.
51. Which performance management technique involves the identification of a large number
of critical incidents, the classification of these incidents into performance dimensions, and the
rank ordering of these incidents into levels of performance?
B. Graphic rating scales
C. Critical incidents
D. Organizational behavior modification
E. Management by objectives
8-10
52. The performance management method that requires managers to rate the frequency with
which the employee has exhibited a behavior during a rating period is the:
B. behavioral observation scale.
D. mixed-standard scale.
E. forced choice scale.
53. A major drawback of the behavioral observation scale is:

A. its difficulty of use.
B. its inability to provide specific guidance to employees regarding expected performance.
C. its subjective nature.
D. the amount of information required.
E. it discards many examples in creating the rating scale.
54. What is the difference between a behaviorally anchored rating scale (BARS) and a
behavioral observation scale (BOS)?
A. BARS asks the manager to rate the frequency with which the employee has exhibited the
behavior.
B. BOS consists of a statement at the top describing the highest level of a performance
dimension.
C. BOS uses many examples to define all behaviors necessary for effective performance.
D. Managers and employees prefer BARS compared to BOS for ease of use and maintaining
objectivity.
E. A major drawback of BARS is the amount of information required as compared to BOS.
55. Managing the behavior of employees through a formal system of feedback and
reinforcement refers to:
A. behaviorally anchored rating scales.
B. behavioral observation scales.
C. critical incidents.
D. organizational behavior modification.
E. graphic rating scales.
8-11
56. Which of the following is NOT a component of an organizational behavior modification

system?
A. Define a set of key behaviors that can improve job performance.
B. Use a measurement system to assess whether behaviors are exhibited.
C. Consult employees on how often they should exhibit certain behaviors.
D. Provide feedback to employees.
E. Provide reinforcement based on employees' behavior.
57. Which of the following is true of behavioral approaches to performance measurement?

A. They link the company's goals to the specific behavior required to achieve those goals.
B. They work well for complex jobs.
C. They provide little feedback on areas of improvement.
D. They have a low degree of validity and reliability.
E. They have a low degree of acceptability.
58. In which type of system are goals established and passed down through the organization,
so employees at all levels are contributing to the organization's overall goals?
A. Productivity measurement and evaluation systems
B. Management by objectives
C. Assessment centers
E. BARS
59. Which of the following is true about management by objectives (MBO)?

A. Goals are generally nonspecific.
B. Goals are typically subjective.
C. Goals are easy to measure.
D. Feedback is given only during the appraisal period.
E. Managers and their employees work together to set the goals.
8-12
60. Which of the following is an advantage of result-based measures?

A. They are very effective in providing guidance on how to improve.
B. They are relatively easy to link to the organization's goals.
C. They are generally less objective than other kinds of performance systems.
D. They are highly acceptable to employees, but not to managers.
E. They tend to be highly valid.
61. Total quality management differs from traditional performance measurement in that it:
A. has an external, rather than an internal, focus.
B. is a top-down review process.
C. assesses both individual performance and the system within which the individual works.
D. focuses on support decisions about work assignments, training, and compensation.
E. provides only subjective feedback based on the work process.
62. How does total quality management (TQM) obtain objective feedback?
A. From the methods that use charts to detail causes of problems, measures of performance,
or relationships between work-related variables.
B. From the methods that rate behaviors in terms of a scale showing specific statements of
behavior that describe different levels of performance.
C. From the methods that use several statements describing each trait to produce a final score
for that trait.
D. From the method that lists traits and provides a rating scale for each trait.
E. From managers, peers, and customers about the employee's personal qualities.
63. The type of performance management system where a company assembles performance
data on an individual from most or all of his/her contacts within and outside the company is
known as:
A. the critical incidents technique.
C. management by objectives.
D. a 360-degree performance appraisal.
E. upward feedback.
8-13
64. Which one of the following is true of peers as a source of performance information?
A. Peers are poor sources of information about performance in a job.
B. Peer ratings, according to research, are not influenced by friendships.
C. Peers evaluations generally lack validity.
D. Peers are less willing participants in reviews used for employees.
E. Peers are comfortable with rating employees for decisions that may affect themselves.
65. According to the text, when managers are being evaluated, _____ are especially valuable
sources of information.
A. other managers
B. subordinates
C. customers
D. their bosses
E. the managers themselves
66. Subordinates, as a source of performance information, are generally most appropriate

when the performance results are to be used for:
A. administrative purposes.
B. investigative purposes.
C. strategic purposes.
D. developmental purposes.
E. executive purposes.
67. Which of the following steps should be taken to protect employees when they provide
evaluations of their manager's performance?
A. The process should be anonymous.
B. The process should use at least two employees to rate each manager.
C. The process should encourage employees to highlight the negative aspects of the manager's
performance.
D. The evaluations should be used primarily for administrative decisions.
E. The process should require that subordinates identify themselves.
8-14
68. When should an organization use customer evaluation of employee performance?

A. When there is too much internal politics and getting a fair appraisal review is difficult to
obtain.
B. When the company's profitability depends on internal customers being satisfied.
C. When the customer is often the only person who observes the service performance.
D. When "excellent customer service" is one of the criteria of the performance review.
E. When there is no other means of properly evaluating employee performance.
69. Using customer evaluations of employee performance is appropriate in all of the

following situations EXCEPT:
A. when the company wants an inexpensive means of evaluation.
B. when an employee's job requires direct service to the customer.
C. when customer evaluations contribute to the organization's goals by enabling HRM to
support the organization's marketing activities.
D. when the company is interested in gathering information to determine what products and
services the customer wants.
E. when an employee's job requires linking the customer to other services within the
organization.
70. Which of the following occurs when a rater compares an individual, not against an
objective standard, but against other employees?
A. Contrast errors
B. Distributional errors
C. Halo error
D. Similar to me error
E. Horns error
71. Which rater error makes it difficult to distinguish among employees rated by the same
rater?
A. Contrast error
C. Halo error
D. Similar to me
E. Horns error
8-15
72. This distributional error occurs when the reviewer rates everyone near the top of a rating
scale.
A. Contrast error
B. Strictness
C. Halo error
D. Horns error
E. Leniency
73. If a student evaluating his/her professor at the end of term rates the professor low on all
performance criteria due to dissatisfaction with the professor's grading scale, the student has
likely committed which rater error?
A. Similar to me
B. Halo error
C. Central tendency
D. Horns error
E. Contrast error
74. Which rater error leads employees to believe that no aspects of their performance need
improvement?
A. Contrast error
B. Halo error
C. Horn error
D. Similar to me
E. Central tendency
75. Appraisal politics are likely to occur when:

A. top executives forbid distorted ratings.
B. the goals of rating are compatible with one another.
C. performance appraisal results are directly linked to developmental programs.
D. senior employees tell newcomers stories about distorted ratings.
E. performance appraisal is not directly linked to highly desirable rewards.
8-16
76. A(n) _____ is a gathering at which managers discuss employee performance ratings and
provide evidence supporting their ratings with the goal of eliminating the influence of rating
errors.
A. LMS
B. 360-degree performance appraisal
C. reliability meeting
D. performance leadership council
E. calibration meeting
77. How does an organization promote fairness and reduce political behavior in the appraisal
system?
A. Use different performance standards to evaluate different employees.
B. Train managers to use the appraisal process.
C. Have employees develop a performance appraisal system.
D. Require that managers give feedback once a year during annual appraisal.
E. Encourage managers to recognize accomplishments that only employees have identified.
78. To improve the performance feedback process, managers should:

A. provide frequent feedback and not wait for the annual performance review.
B. let employees rate their performance after the feedback session.
C. conduct the feedback session in his/her office.
D. focus on the person, not on behavior or results.
E. strictly adhere to the "listen-and-sell" approach.
79. Which approach to performance feedback is generally most effective?

A. Problem-solving
B. Tell-and-sell
C. Tell-and-listen
D. Tell-and-train
E. Listen-and-sell
8-17
80. Most managers rely on which one of the following approaches to performance feedback?
A. Problem-solving
B. Tell-and-sell
C. Tell-and-listen
D. Tell-and-train
E. Listen-and-sell
81. Managers can improve employee satisfaction with the feedback process by:
A. keeping the feedback session short and concentrating on only the positive.
B. using the tell-and-sell approach during the feedback session.
C. holding the feedback session in the employee's office.
D. letting the employee voice his/her opinion and discuss performance goals.
E. focusing on the employee's personality.
82. Which of the following is effective feedback?

A. "You have become careless; you came in late three times last week."
B. "You did not meet the deadline."
C. "I don't see any progress from the last review; you are lazy."
D. "You're work has been substandard; you are not motivated."
E. "You should stay back after office hours because you are very slow with your work."
83. How does a manager motivate an employee who lacks the ability to perform?
A. Demonstrate that the employee is being paid fairly and adequately.
B. Restructure the job so that the employee can handle it.
C. Refer the employee to a counselor for stress management.
D. Direct the employee's attention to the problem by withholding rewards.
E. Link rewards to performance outcomes.
8-18
84. Coaching, frequent performance feedback, goal setting, and restructured job assignments
may be effective ways to improve performance for which category of employees?
A. Solid performers
B. Underutilizers
C. Misdirected effort
D. Deadwood
E. Nonessential
85. To improve the performance of underutilizers, managers should:

A. withhold pay increases.
B. demote them from their current position.
C. offer temporary assignments for skill development.
D. link rewards to performance outcomes.
E. identify development opportunities.
86. Lawsuits related to performance management usually involve charges of discrimination

or:
A. unjust dismissal.
B. reverse discrimination.
C. affirmative action.
D. reasonable accommodation.
E. minimum wage.
87. In what legal suit would the plaintiff allege that the performance measurement system
varies according to individual raters?
A. Harassment suit
B. Reverse discrimination suit
C. Unjust dismissal suit
D. Discrimination suit
E. ERISA suit
8-19
88. If an employee is dismissed on the grounds of poor performance immediately after he/she
complained to higher authorities about the bad work ethics of his/her manager, the employee
could file a(n):
A. affirmative action lawsuit.
B. unjust dismissal lawsuit.
C. reasonable accommodation lawsuit.
D. discrimination lawsuit.
E. tort-based lawsuit.
89. What can an organization do to protect itself against discrimination and unjust dismissal
lawsuits?
A. The organization should provide for a review of all top performance ratings by upper-level
managers.
B. Performance measures should evaluate personal traits.
C. Requirements for job success should be clearly communicated to all the employees.
D. The organization should use a single rater to rate all the employees.
E. The organization should dismiss poor performers.
90. Identify a criticism against the electronic monitoring system.

A. It can store records of employee performance, work-rule violations, and disciplinary
actions.
B. The system prevents employees from exaggerating the number of hours they worked.
C. Managers use it to gather information on employee performance for coaching and
developmental purposes.
D. It threatens to make the workplace an electronic sweatshop, robbing employees of their
dignity.
E. The systems should be a substitute for careful management.
Essay Questions
8-20
91. Discuss the stages of the performance management process.
92. Name and discuss the three purposes of performance management systems.
93. Define the five criteria for measuring the effectiveness of a performance management
system.
94. How do behavioral observation scales (BOS) differ from behaviorally anchored rating
scales (BARS)?
8-21
95. Discuss the advantages and disadvantages of using managers, peers, subordinates, self,
and customers as sources of performance information.
96. Define types of rating errors, and explain how to minimize them.
97. Discuss a calibration meeting.
98. Name and discuss at least five ways to improve the performance feedback session.
8-22
99. Summarize the different ways to produce improvement in unsatisfactory performance.
100. Name at least five actions a company could take to ensure it has a legally defensible
performance management system.
8-23
Chapter 08 Managing Employees' Performance Answer Key
True / False Questions
1. (p. 225) Performance management is the process through which managers ensure that
employees' activities and outputs contribute to the organization's goals.
TRUE
Performance management is the process through which managers ensure that employees'
activities and outputs contribute to the organization's goals. Effective performance
management can tell top performers that they are valued, encourage communication between
managers and their employees, establish uniform standards for evaluating employees, and
help the organization identify its strongest and weakest performers.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-01 Identify the activities involved in performance management.
Topic: The Process of Performance Management
2. (p. 226) Organizations establish performance management systems to meet three broad
purposes: strategic, administrative, and developmental.
TRUE
Organizations establish performance management systems to meet three broad purposes:

AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-02 Discuss the purposes of performance management systems.
Topic: Purposes of Performance Management
8-24
3. (p. 227) In the case of performance appraisal, validity refers to whether the appraisal measures
all aspects of performance, both relevant and irrelevant.
FALSE
In the case of a performance appraisal, validity refers to whether the appraisal measures all
the relevant aspects of performance and omits irrelevant aspects of performance.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-03 Define five criteria for measuring the effectiveness of a performance management system.
Topic: Criteria for Effective Performance Management
4. (p. 229) Test-retest reliability refers to consistency of results over time.

TRUE
Test-retest reliability refers to consistency of results over time. If a performance measure

lacks test-retest reliability, determining whether an employee's performance has truly changed
over time will be impossible.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
5. (p. 229) In the forced-distribution method of performance measurement, employees are ranked
from highest to lowest.
FALSE
The forced-distribution method of performance management assigns a certain percentage of

employees to each category in a set of categories. The simple ranking method requires
managers to rank employees in their group from the highest performer to the poorest
performer.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Learning Objective: 08-04 Compare the major methods for measuring performance.
Topic: Making Comparisons
8-25
6. (p. 231) In terms of measuring performance, a major advantage of ranking systems is that they
often are linked to the organization's goals.
FALSE
A major drawback of rankings is that they often are not linked to the organization's goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
7. (p. 232) Attribute-based performance methods are tightly linked to organizational strategy.
FALSE
Measurement of attributes is rarely linked to the organization's strategy.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Topic: Rating Individuals
8. (p. 233) To rate employee behaviors, the organization begins by defining which behaviors are
associated with success on the job.
TRUE
To rate behaviors, the organization begins by defining which behaviors are associated with
success on the job. The appraisal form asks the manager to rate an employee in terms of each
of the identified behaviors that help the organization to achieve its goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-26
9. (p. 234) The critical-incident method is a behavioral approach to performance management.

TRUE
One way to rate behaviors is with the critical-incident method. This approach requires
managers to keep a record of specific examples of the employee acting in ways that are either
effective or ineffective.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
10. (p. 234) An advantage of behaviorally anchored rating scales (BARS) is improved interrater
reliability.
TRUE
Although BARS can improve interrater reliability, this method can bias the manager's
memory.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
11. (p. 234) Compared to a behavioral observation scale (BOS), managers and employees prefer
to use the BARS method for ease of use, providing feedback, and maintaining objectivity.
FALSE
Compared to BARS and graphic rating scales, managers and employees have said they prefer
BOS for ease of use, providing feedback, maintaining objectivity, and suggesting training
needs.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
8-27
12. (p. 235) Organizational behavior modification (OBM) is a plan for managing the behavior of
employees through an informal system of feedback and reinforcement.
FALSE
Applied to behavior in organizations, organizational behavior modification (OBM) is a plan

for managing the behavior of employees through a formal system of feedback and
reinforcement.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
13. (p. 236) Behavioral approaches to performance measurement, such as organizational

behavior modification and rating scales, tend to be valid, reliable, and acceptable.
TRUE
Behavioral approaches such as organizational behavior modification and rating scales can link
the company's goals to the specific behavior required to achieve those goals. Behavioral
methods can generate specific feedback, along with guidance in areas requiring
improvements. As a result, these methods tend to be valid. The people to be measured often
help in developing the measures, so acceptance tends to be high as well. When raters are well
trained, reliability also tends to be high.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-28
14. (p. 237) Management by objectives (MBO) systems seldom link employee performance to
the organization's strategic goals.
FALSE
Because staff members are involved in setting goals, it is likely that MBO systems effectively
link individual employees' performance with the organization's overall goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Topic: Measuring Results
15. (p. 238) Traditional performance measurement differs from total quality management (TQM)
in that it assesses both individual performance and the system within which the individual
works.
FALSE
Total quality management (TQM) differs from traditional performance measurement in that it
assesses both individual performance and the system within which the individual works.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Topic: Total Quality Management
16. (p. 239) Subordinates are the most-used source of performance information.
FALSE
The most-used source of performance information is the employee's manager.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-05 Describe major sources of performance information in terms of their advantages and disadvantages.
Topic: Managers
8-29
17. (p. 240) Generally, peers are more favorable toward participating in reviews to be used for
employee development.
TRUE
Peers are an excellent source of information about performance in a job where the supervisor
does not often observe the employee. Generally, peers are more favorable toward
participating in reviews to be used for employee development.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Topic: Peers
18. (p. 241) Self-appraisals are not appropriate as the basis for administrative decisions.
TRUE
Social psychologists have found that, in general, people tend to blame outside circumstances
for their failures while taking a large part of the credit for their successes. Supervisors can
soften this tendency by providing frequent feedback, but because people tend to perceive
situations this way, self-appraisals are not appropriate as the basis for administrative
decisions.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Topic: Self
19. (p. 243) If a rater compares an individual, not against an objective standard, but against other
employees, distributional errors occur.
FALSE
Raters make distributional errors when they tend to use only one part of a rating scale.
Distributional errors make it difficult to compare employees rated by the same person.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-06 Define types of rating errors; and explain how to minimize them.
Topic: Types of Rating Errors
8-30
20. (p. 244) Appraisal politics are most likely to occur when senior employees tell newcomers
company "folklore" that includes stories about distorted ratings.
TRUE
Appraisal politics are most likely to occur when raters are accountable to the employee being
rated, the goals of rating are not compatible with one another, performance appraisal is
directly linked to highly desirable rewards, top executives tolerate or ignore distorted ratings,
and senior employees tell newcomers company "folklore" that includes stories about distorted
ratings.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Topic: Political Behavior in Performance Appraisals
21. (p. 245) In the tell-and-sell approach, managers tell employees their ratings and then let the
employees explain their side of the story.
FALSE
In the "tell-and-sell" approach, managers tell the employees their ratings and then justify
those ratings.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-07 Explain how to provide performance feedback effectively.
Topic: Conducting the Feedback Session
22. (p. 246) The content of a feedback session should emphasize behavior, not personalities.
TRUE
The content of the feedback should emphasize behavior, not personalities. For example, "You
did not meet the deadline" can open a conversation about what needs to change, but "You're
not motivated" may make the employee feel defensive and angry.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-31
23. (p. 247) The most effective way to improve performance varies according to the manager's
ability.
FALSE
The most effective way to improve performance varies according to the employee's ability
and motivation. In general, when employees have high levels of ability and motivation, they
perform at or above standards. But when they lack ability, motivation, or both, corrective
action is needed.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-08 Summarize ways to produce improvement in unsatisfactory performance.
Topic: Finding Solutions to Performance Problems
24. (p. 248) Lawsuits related to performance management usually involve charges of
discrimination or unjust dismissal.
TRUE
Because performance measures play a central role in decisions about pay, promotions, and
discipline, employment-related lawsuits often challenge an organization's performance
management system. Lawsuits related to performance management usually involve charges of
discrimination or unjust dismissal.
AACSB: Ethics
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-09 Discuss legal and ethical issues that affect performance management.
Topic: Legal Requirements for Performance Management
8-32
25. (p. 249) The Supreme Court has held that the selection guidelines in the federal government's
Uniform Guidelines on Employee Selection Procedures also apply to performance
management systems.
TRUE
The Supreme Court has held that the selection guidelines in the federal government's Uniform
Guidelines on Employee Selection Procedures apply to performance measurement. In general,
these guidelines require that organizations avoid using criteria such as race and age as a basis
for employment decisions.
AACSB: Ethics
Bloom's: Remember
Difficulty: Easy
Multiple Choice Questions
26. (p. 225) The process through which managers ensure that employees' activities and outputs
contribute to the organization's goals is known as:
A. quality analysis.
B. HR appraisal.
C. project management.
D. strategic planning.
E. performance management.
The process through which managers ensure that employees' activities and outputs contribute
to the organization's goals is known as performance management. Effective performance
management can tell top performers that they are valued, encourage communication between
managers and their employees, establish uniform standards for evaluating employees, and
help the organization identify its strongest and weakest performers.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-33
27. (p. 225) The relevant aspects of employee performance are based on:
A. the outcomes of a job analysis.
B. the nature of the company's products and services.
C. management's beliefs and values.
D. the employee's psychological contract.
E. aspects of the employee's personality.
The organization specifies which aspects of performance are relevant to the organization.
These decisions are based on the job analysis.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
28. (p. 226) Which of the following is a purpose of performance management systems?
A. Systematic
B. Rational
C. Investigative
D. Strategic
E. Analytical

AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-34
29. (p. 226) _____ means effective performance management helps the organization achieve its
business objectives.
A. Systematic purpose
B. Investigative purpose
C. Developmental purpose
D. Administrative purpose
E. Strategic purpose
Strategic purpose means effective performance management helps the organization achieve its
business objectives. It does this by helping to link employees' behavior with the organization's
goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
30. (p. 226) The administrative purpose of a performance management system refers to:
A. linking employees' behaviors with the organization's goals.
B. developing employees' knowledge and skills.
C. linking to the organization's goals and communicating the goals and feedback about
performance to employees.
D. measuring each employee's performance to identify areas where expectations are not being
met.
E. the ways in which organizations use the system to provide information for day-to-day
decisions about salary, benefits, and recognition programs.
The administrative purpose of a performance management system refers to the ways in which
organizations use the system to provide information for day-to-day decisions about salary,
benefits, and recognition programs. Because performance management supports these
administrative decisions, the information in a performance appraisal can have a great impact
on the future of individual employees.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-35
31. (p. 227) Performance management has a(n) _____ purpose, meaning that it serves as a basis
for improving employees' knowledge and skills.
A. systematic
B. tactical
C. strategic
D. administrative
E. developmental
Performance management has a developmental purpose, meaning that it serves as a basis for
developing employees' knowledge and skills. Effective performance feedback makes
employees aware of their strengths and of the areas in which they can improve.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
32. (p. 227) Which performance management evaluation criterion is concerned with maximizing
the overlap between actual job performance and the measure of job performance?
A. Reliability
B. Acceptability
C. Specificity
D. Validity
E. Dependability
Validity is the extent to which a measurement tool actually measures what it is intended to
measure. In the case of performance appraisal, validity refers to whether the appraisal
measures all the relevant aspects of performance and omits irrelevant aspects of performance.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-36
33. (p. 227) In the case of performance appraisal, _____ refers to whether the appraisal measures
all the relevant aspects of performance and omits irrelevant aspects of performance.
A. acceptability
B. specificity
C. reliability
D. dependability
E. validity
Validity is the extent to which a measurement tool actually measures what it is intended to
measure. In the case of performance appraisal, validity refers to whether the appraisal
measures all the relevant aspects of performance and omits irrelevant aspects of performance.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
34. (p. 228) If personnel at the Zion Corporation evaluate salespeople across different regional
territories based on the number of sales calls they make to customers, they are most likely
using a(n) _____ measure.
A. unreliable
B. deficient
C. contaminated
D. valid
E. variable
Comparing salespeople based on how many calls they make to customers could be a
contaminated measure. Making a lot of calls does not necessarily improve sales or customer
satisfaction, unless every salesperson makes only well-planned calls.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-37
35. (p. 228) The consistency among the different individuals who evaluate an employee's
performance is known as:
A. internal consistency reliability.
B. interrater reliability.
C. interrater validity.
D. test-retest reliability.
E. test-retest validity.
Interrater reliability is consistency of results when more than one person measures
performance.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
36. (p. 229) If a performance measure lacks _____ reliability, determining whether an
employee's performance has truly changed over time will be impossible.
A. external
B. interrater
C. strategic
D. test-retest
E. specific
Test-retest reliability refers to consistency of results over time. If a performance measure

lacks test-retest reliability, determining whether an employee's performance has truly changed
over time will be impossible.
AACSB: Analytic
Bloom's: Understand
Difficulty: Easy
8-38
37. (p. 229) The extent to which a performance measure gives guidance to employees about what
is expected of them is called:
A. reliability.
B. validity.
C. specific feedback.
D. acceptability.
E. strategic fit.
A performance measure should specifically tell employees what is expected of them and how
they can meet those expectations. Being specific helps performance management meet the
goals of supporting strategy and developing employees.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
38. (p. 229) Which of the following is a comparative performance appraisal technique?
A. Mixed-standards scale
B. Simple ranking
C. Paired distribution
D. Forced comparison
E. Complex distribution
Techniques for comparing one individual's performance with that of others include simple
ranking, forced distribution, and paired comparison.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-39
39. (p. 229) Which of the following performance measurement methods requires managers to
rank employees in their group from the highest performer to the poorest performer?
A. Graphic rating scale
C. Paired comparison
D. Forced distribution
E. Simple ranking
Simple ranking requires managers to rank employees in their group from the highest
performer to the poorest performer.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
40. (p. 229) The performance measurement method that assigns a certain percentage of
employees to each category in a set of categories is called:
A. forced distribution.
B. alternation ranking.
C. paired comparison.
D. optional ranking.
E. paired choice analysis.
The forced-distribution method of performance measurement assigns a certain percentage of

employees to each category in a set of categories. A forced distribution approach works best if
the members of a group vary significantly in terms of their performance.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-40
41. (p. 230) Identify the evaluation approach to performance measurement that meets the
following criteria: very high strategic congruence, usually high validity, high reliability, high
acceptability, and high specificity regarding results but low specificity regarding behaviors
necessary to achieve them.
A. Comparative
B. Attribute
C. Behavioral
D. Results
E. Developmental
Performance measures that focus on results usually have high strategic congruence, high
validity, high reliability, high acceptability, and high specificity regarding results but low
specificity regarding behaviors necessary to achieve them.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Topic: Methods for Measuring Performance
42. (p. 230) Identify the approach to performance measurement that meets the following criteria:
high strategic congruence, usually high validity, usually high reliability, moderate
acceptability, and very high specificity.
A. Comparative
B. Attribute
C. Behavioral
D. Results
E. Quality
Performance measures that focus on employee behavior have high strategic congruence,
usually high validity, usually high reliability, moderate acceptability, and very high
specificity.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
8-41
43. (p. 230) Identify the approach to performance measurement that meets the following criteria:
usually low strategic congruence, usually low validity, usually low reliability, high
acceptability, and very low specificity.
A. Comparative
B. Attribute
C. Behavioral
D. Results
E. Quality
Performance measures that focus on employee attributes usually have low strategic
congruence, low validity, low reliability, high acceptability, and very low specificity.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
44. (p. 230) The _____ method of performance measurement compares each employee with each
other employee to establish rankings.
A. paired-comparison
B. graphic rating scale
C. forced-distribution
D. mixed standard
E. BARS
The paired-comparison method approach involves comparing each employee with each other
employee to establish rankings.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
8-42
45. (p. 231) Which one of the following is NOT a problem associated with the comparative
approaches to performance management?
A. A simple ranking system leaves the basis for the ranking open to interpretation.
B. Managers can give high ratings to all employees to avoid controversy.
C. The rankings are not helpful for employee development.
D. The rankings may not be linked to the organization's goals.
E. The rankings may hurt morale or result in legal challenges.
Ranking counteracts the tendency to avoid controversy by rating everyone favorably or near
the center of the scale.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
46. (p. 231) Which of the following is the most widely used method for rating attributes?
B. Mixed-standard scales
C. Behavioral observation scales
D. Graphic rating scales
E. Critical-incident methods
The most widely used method for rating attributes is the graphic rating scale. This method
lists traits and provides a rating scale for each trait.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-43
47. (p. 231) If a manager considers one employee at a time and circles a number/word to signify
the degree to which that employee demonstrates a particular trait, he/she is using a:
A. mixed-standard scale.
B. critical-incident approach.
D. behavioral observation scale.
E. behaviorally anchored rating scale.
The graphic rating scale method lists traits and provides a rating scale for each trait. The
employer uses the scale to indicate the extent to which the employee being rated displays the
traits. The rating scale may provide points to circle (as on a scale going from 1 for poor to 5
for excellent), or it may provide a line representing a range of scores, with the manager
marking a place along the line.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
48. (p. 231-232) In which performance technique are managers given three performance rating
scales per dimension and asked to indicate whether the employee's performance is above (+),
at (0), or below (-) the statements?
A. Behaviorally anchored rating scale
C. Behavioral observation scale
D. Graphic rating scale
E. Forced distribution
The manager who uses the mixed-standard scale reads each statement and then indicates
whether the employee performs above (+), at (0), or below (-) the level described.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-44
49. (p. 232) Which of the following is true of the attribute approaches to performance
management?
A. They result in high strategic congruence.
B. They are difficult to develop.
C. They can be applied to a wide variety of jobs and organizations.
D. They provide specific guidance and feedback to employees.
E. They are the least popular way to measure performance in organizations.
Rating attributes is the most popular way to measure performance in organizations. In general,
attribute-based performance methods are easy to develop and can be applied to a wide variety
of jobs and organizations. This method is rarely linked to an organization's strategy and
provides little indication on how to improve performance.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
50. (p. 234) The performance management approach that requires managers to keep a record of
specific examples of effective and ineffective performance is the:
B. graphic rating scale.
C. critical-incident method.
D. organizational behavior modification method.
E. mixed-standard scale.
One way to rate behaviors is with the critical-incident method. This approach requires
managers to keep a record of specific examples of the employee acting in ways that are either
effective or ineffective.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-45
51. (p. 234) Which performance management technique involves the identification of a large
number of critical incidents, the classification of these incidents into performance dimensions,
and the rank ordering of these incidents into levels of performance?
B. Graphic rating scales
C. Critical incidents
E. Management by objectives
A behaviorally anchored rating scale (BARS) builds on the critical-incidents approach. The
organization gathers many critical incidents representing effective and ineffective
performance, then classifies them from most to least effective.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
52. (p. 234) The performance management method that requires managers to rate the frequency
with which the employee has exhibited a behavior during a rating period is the:
B. behavioral observation scale.
D. mixed-standard scale.
E. forced choice scale.
A behavioral observation scale (BOS) asks the manager to rate the frequency with which the
employee has exhibited the behavior during the rating period. These ratings are averaged to
compute an overall performance rating.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
8-46
53. (p. 234) A major drawback of the behavioral observation scale is:
A. its difficulty of use.
B. its inability to provide specific guidance to employees regarding expected performance.
C. its subjective nature.
D. the amount of information required.
E. it discards many examples in creating the rating scale.
A major drawback of this method is the amount of information required. Even so, compared
to BARS and graphic rating scales, managers and employees have said they prefer BOS for
ease of use, providing feedback, maintaining objectivity, and suggesting training needs. A
BARS discards many examples in creating the rating scale, while a BOS uses many of them
to define all behaviors necessary for effective performance.
AACSB: Reflective Thinking

Bloom's: Understand
Difficulty: Medium
54. (p. 234) What is the difference between a behaviorally anchored rating scale (BARS) and a
behavioral observation scale (BOS)?
A. BARS asks the manager to rate the frequency with which the employee has exhibited the
behavior.
B. BOS consists of a statement at the top describing the highest level of a performance
dimension.
C. BOS uses many examples to define all behaviors necessary for effective performance.
D. Managers and employees prefer BARS compared to BOS for ease of use and maintaining
objectivity.
E. A major drawback of BARS is the amount of information required as compared to BOS.
While BARS discards many examples in creating the rating scale, a BOS uses many of them
to define all behaviors necessary for effective performance. A BOS asks the manager to rate
the frequency with which the employee has exhibited the behavior during the rating period. A
major drawback of BOS is the amount of information required. Compared to BARS and
graphic rating scales, managers and employees have said they prefer BOS for ease of use,
providing feedback, maintaining objectivity, and suggesting training needs.

Bloom's: Understand
Difficulty: Medium
8-47
55. (p. 235) Managing the behavior of employees through a formal system of feedback and
reinforcement refers to:
A. behaviorally anchored rating scales.
C. critical incidents.
D. organizational behavior modification.
E. graphic rating scales.
Applied to behavior in organizations, organizational behavior modification (OBM) is a plan

for managing the behavior of employees through a formal system of feedback and
reinforcement.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
56. (p. 235-236) Which of the following is NOT a component of an organizational behavior
modification system?
A. Define a set of key behaviors that can improve job performance.
B. Use a measurement system to assess whether behaviors are exhibited.
C. Consult employees on how often they should exhibit certain behaviors.
D. Provide feedback to employees.
E. Provide reinforcement based on employees' behavior.
Specific OBM techniques vary, but most have four components: define a set of key behaviors
necessary for job performance; use a measurement system to assess whether the employee
exhibits the key behaviors; inform employees of the key behaviors, perhaps in terms of goals
for how often to exhibit the behaviors; provide feedback and reinforcement based on
employees' behavior.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
8-48
57. (p. 236) Which of the following is true of behavioral approaches to performance
measurement?
A. They link the company's goals to the specific behavior required to achieve those goals.
B. They work well for complex jobs.
C. They provide little feedback on areas of improvement.
D. They have a low degree of validity and reliability.
E. They have a low degree of acceptability.
Behavioral approaches such as organizational behavior modification and rating scales can link
the company's goals to the specific behavior required to achieve those goals. Behavioral
methods can generate specific feedback, along with guidance in areas requiring
improvements. As a result, these methods tend to be valid. The people to be measured often
help in developing the measures, so acceptance tends to be high as well. When raters are well
trained, reliability also tends to be high. However, behavioral methods do not work as well for
complex jobs in which it is difficult to see a link between behavior and results or there is more
than one good way to achieve success.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
58. (p. 237) In which type of system are goals established and passed down through the
organization, so employees at all levels are contributing to the organization's overall goals?
A. Productivity measurement and evaluation systems
B. Management by objectives
C. Assessment centers
E. BARS
Management by objectives (MBO) is a system in which people at each level of the

organization set goals in a process that flows from top to bottom, so employees at all levels
are contributing to the organization's overall goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-49
59. (p. 237) Which of the following is true about management by objectives (MBO)?
A. Goals are generally nonspecific.
B. Goals are typically subjective.
C. Goals are easy to measure.
D. Feedback is given only during the appraisal period.
E. Managers and their employees work together to set the goals.
An MBO system has three components: goals are specific, difficult, and objective; managers
and their employees work together to set the goals; the manager gives objective feedback
through the rating period to monitor progress toward the goals.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Learning Objective: 08-04 Compare the major methods for measu ring performance.
60. (p. 238) Which of the following is an advantage of result-based measures?

A. They are very effective in providing guidance on how to improve.
B. They are relatively easy to link to the organization's goals.
C. They are generally less objective than other kinds of performance systems.
D. They are highly acceptable to employees, but not to managers.
E. They tend to be highly valid.
In general, evaluation of results can be less subjective than other kinds of performance
measurement. This makes measuring results highly acceptable to employees and managers
alike. Results-oriented performance measurement is also relatively easy to link to the
organization's goals. However, measuring results has problems with validity, because results
may be affected by circumstances beyond each employee's performance.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-50
61. (p. 238) Total quality management differs from traditional performance measurement in that
it:
A. has an external, rather than an internal, focus.
B. is a top-down review process.
C. assesses both individual performance and the system within which the individual works.
D. focuses on support decisions about work assignments, training, and compensation.
E. provides only subjective feedback based on the work process.
Total quality management (TQM) differs from traditional performance measurement in that it
assesses both individual performance and the system within which the individual works. This
assessment is a process through which employees and their customers work together to set
standards and measure performance, with the overall goal being to improve customer
satisfaction.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
62. (p. 239) How does total quality management (TQM) obtain objective feedback?
A. From the methods that use charts to detail causes of problems, measures of performance,
or relationships between work-related variables.
B. From the methods that rate behaviors in terms of a scale showing specific statements of
behavior that describe different levels of performance.
C. From the methods that use several statements describing each trait to produce a final score
for that trait.
D. From the method that lists traits and provides a rating scale for each trait.
E. From managers, peers, and customers about the employee's personal qualities.
The feedback in TQM is of two kinds: (1) subjective feedback from managers, peers, and
customers about the employee's personal qualities such as cooperation and initiative; and (2)
objective feedback based on the work process. The second kind of feedback comes from a
variety of methods called statistical quality control. These methods use charts to detail causes
of problems, measures of performance, or relationships between work-related variables.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-51
63. (p. 239) The type of performance management system where a company assembles
performance data on an individual from most or all of his/her contacts within and outside the
company is known as:
A. the critical incidents technique.
C. management by objectives.
D. a 360-degree performance appraisal.
E. upward feedback.
To get as complete an assessment of performance information as possible, some organizations

combine information from most or all of the possible sources, in what is called a 360-degree
performance appraisal. This method combines information from the employee's managers,
peers, subordinates, self, and customers.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Topic: Sources of Performance Information
64. (p. 240) Which one of the following is true of peers as a source of performance information?
A. Peers are poor sources of information about performance in a job.
B. Peer ratings, according to research, are not influenced by friendships.
C. Peers evaluations generally lack validity.
D. Peers are less willing participants in reviews used for employees.
E. Peers are comfortable with rating employees for decisions that may affect themselves.
Peers are an excellent source of information about performance in a job where the supervisor
does not often observe the employee. They also bring a different perspective to the evaluation
and can provide extremely valid assessments of performance. Friendships have the potential
to bias ratings. Research, however, has provided little evidence that this is a problem. Another
disadvantage is that when the evaluations are done to support administrative decisions, peers
are uncomfortable with rating employees for decisions that may affect themselves. Generally,
peers are more favorable toward participating in reviews to be used for employee
development.

Bloom's: Understand
Difficulty: Medium
Topic: Peers
8-52
65. (p. 240) According to the text, when managers are being evaluated, _____ are especially
valuable sources of information.
A. other managers
B. subordinates
C. customers
D. their bosses
E. the managers themselves
For evaluating the performance of managers, subordinates are an especially valuable source of
information. Subordinates—the people reporting to the manager—often have the best chance
to see how well a manager treats employees.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Topic: Subordinates
66. (p. 241) Subordinates, as a source of performance information, are generally most
appropriate when the performance results are to be used for:
A. administrative purposes.
B. investigative purposes.
C. strategic purposes.
D. developmental purposes.
E. executive purposes.
Subordinate evaluations are most appropriate for developmental purposes.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
Topic: Subordinates
8-53
67. (p. 241) Which of the following steps should be taken to protect employees when they
provide evaluations of their manager's performance?
A. The process should be anonymous.
B. The process should use at least two employees to rate each manager.
C. The process should encourage employees to highlight the negative aspects of the manager's
performance.
D. The evaluations should be used primarily for administrative decisions.
E. The process should require that subordinates identify themselves.
In the case of subordinate evaluations, the process should be anonymous and use at least three
employees to rate each manager.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
Topic: Subordinates
68. (p. 241) When should an organization use customer evaluation of employee performance?
A. When there is too much internal politics and getting a fair appraisal review is difficult to
obtain.
B. When the company's profitability depends on internal customers being satisfied.
C. When the customer is often the only person who observes the service performance.
D. When "excellent customer service" is one of the criteria of the performance review.
E. When there is no other means of properly evaluating employee performance.
Services are often produced and consumed on the spot, so the customer is often the only
person who directly observes the service performance and may be the best source of
performance information.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Topic: Customers
8-54
69. (p. 241-242) Using customer evaluations of employee performance is appropriate in all of the
following situations EXCEPT:
A. when the company wants an inexpensive means of evaluation.
B. when an employee's job requires direct service to the customer.
C. when customer evaluations contribute to the organization's goals by enabling HRM to
support the organization's marketing activities.
D. when the company is interested in gathering information to determine what products and
services the customer wants.
E. when an employee's job requires linking the customer to other services within the
organization.
Using customer evaluations of employee performance is appropriate when an employee's job

requires direct service to the customer or linking the customer to other services within the
organization. Customer evaluations are appropriate when the organization is interested in
gathering information to determine what products and services the customer wants. That is,
customer evaluations contribute to the organization's goals by enabling HRM to support the
organization's marketing activities. The weakness of customer surveys for performance
measurement is their expense. The expenses of a traditional survey can add up to hundreds of
dollars to evaluate one individual.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Topic: Customers
70. (p. 243) Which of the following occurs when a rater compares an individual, not against an
objective standard, but against other employees?
A. Contrast errors
C. Halo error
D. Similar to me error
E. Horns error
If the rater compares an individual, not against an objective standard, but against other
employees, contrast errors occur. A competent performer who works with exceptional people
may be rated lower than competent, simply because of the contrast.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-55
71. (p. 243) Which rater error makes it difficult to distinguish among employees rated by the
same rater?
A. Contrast error
C. Halo error
D. Similar to me
E. Horns error
Raters make distributional errors when they tend to use only one part of a rating scale.
Distributional errors make it difficult to compare employees rated by the same person.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
72. (p. 243) This distributional error occurs when the reviewer rates everyone near the top of a
rating scale.
A. Contrast error
B. Strictness
C. Halo error
D. Horns error
E. Leniency
Raters make distributional errors when they tend to use only one part of a rating scale. The
error is called leniency when the reviewer rates everyone near the top, strictness when the
rater favors lower rankings, and central tendency when the rater puts everyone near the
middle of the scale.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-56
73. (p. 243) If a student evaluating his/her professor at the end of term rates the professor low on
all performance criteria due to dissatisfaction with the professor's grading scale, the student
has likely committed which rater error?
A. Similar to me
B. Halo error
C. Central tendency
D. Horns error
E. Contrast error
Raters often let their opinion of one quality color their opinion of others. When the bias
involves negative ratings, it is called the horns error.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
74. (p. 243) Which rater error leads employees to believe that no aspects of their performance
need improvement?
A. Contrast error
B. Halo error
C. Horn error
D. Similar to me
E. Central tendency
Raters often let their opinion of one quality color their opinion of others. When the bias is in a
favorable direction, this is called the halo error. Halo error can mistakenly tell employees they
don't need to improve in any area.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-57
75. (p. 244) Appraisal politics are likely to occur when:

A. top executives forbid distorted ratings.
B. the goals of rating are compatible with one another.
C. performance appraisal results are directly linked to developmental programs.
D. senior employees tell newcomers stories about distorted ratings.
E. performance appraisal is not directly linked to highly desirable rewards.
Appraisal politics are most likely to occur when raters are accountable to the employee being
rated, the goals of rating are not compatible with one another, performance appraisal is
directly linked to highly desirable rewards, top executives tolerate or ignore distorted ratings,
and senior employees tell newcomers company "folklore" that includes stories about distorted
ratings.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
76. (p. 244) A(n) _____ is a gathering at which managers discuss employee performance ratings
and provide evidence supporting their ratings with the goal of eliminating the influence of
rating errors.
A. LMS
B. 360-degree performance appraisal
C. reliability meeting
D. performance leadership council
E. calibration meeting
Organizations can minimize appraisal politics by establishing an appraisal system that is fair.
One technique is to hold a calibration meeting, a gathering at which managers discuss
employee performance ratings and provide evidence supporting their ratings with the goal of
eliminating the influence of rating errors.
AACSB: Analytic
Bloom's: Remember
Difficulty: Medium
8-58
77. (p. 244) How does an organization promote fairness and reduce political behavior in the
appraisal system?
A. Use different performance standards to evaluate different employees.
B. Train managers to use the appraisal process.
C. Have employees develop a performance appraisal system.
D. Require that managers give feedback once a year during annual appraisal.
E. Encourage managers to recognize accomplishments that only employees have identified.
Organizations can minimize appraisal politics by establishing an appraisal system that is fair.
One technique is to hold a calibration meeting. The organization can also help managers give
accurate and fair appraisals by training them to use the appraisal process, encouraging them to
recognize accomplishments that the employees themselves have not identified, and fostering a
climate of openness in which employees feel they can be honest about their weaknesses.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
78. (p. 244-246) To improve the performance feedback process, managers should:
A. provide frequent feedback and not wait for the annual performance review.
B. let employees rate their performance after the feedback session.
C. conduct the feedback session in his/her office.
D. focus on the person, not on behavior or results.
E. strictly adhere to the "listen-and-sell" approach.
Performance feedback should be a regular, expected management activity. Annual feedback is

not enough. The manager should create the right context for the meeting. The location should
be neutral. If the manager's office is the site of unpleasant conversations, a conference room
may be more appropriate. Managers should also enable the employee to be well prepared. The
manager should ask the employee to complete a self-assessment ahead of time. The content of
the feedback should emphasize behavior, not personalities. During the feedback session,
managers can take any of three approaches: the "tell-and-sell" approach, the "tell-and-listen"
approach, and the "problem-solving" approach.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Topic: Giving Performance Feedback
8-59
79. (p. 245) Which approach to performance feedback is generally most effective?
A. Problem-solving
B. Tell-and-sell
C. Tell-and-listen
D. Tell-and-train
E. Listen-and-sell
In the "problem-solving" approach, managers and employees work together to solve

performance problems in an atmosphere of respect and encouragement. Not surprisingly,
research demonstrates that the problem-solving approach is superior.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
80. (p. 245) Most managers rely on which one of the following approaches to performance
feedback?
A. Problem-solving
B. Tell-and-sell
C. Tell-and-listen
D. Tell-and-train
E. Listen-and-sell
Most managers rely on the tell-and-sell approach. In the "tell-and-sell" approach, managers
tell the employees their ratings and then justify those ratings.
AACSB: Analytic
Bloom's: Remember
Difficulty: Easy
8-60
81. (p. 245) Managers can improve employee satisfaction with the feedback process by:
A. keeping the feedback session short and concentrating on only the positive.
B. using the tell-and-sell approach during the feedback session.
C. holding the feedback session in the employee's office.
D. letting the employee voice his/her opinion and discuss performance goals.
E. focusing on the employee's personality.
Managers can improve employee satisfaction with the feedback process by letting employees
voice their opinions and discuss performance goals.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
82. (p. 246) Which of the following is effective feedback?

A. "You have become careless; you came in late three times last week."
B. "You did not meet the deadline."
C. "I don't see any progress from the last review; you are lazy."
D. "You're work has been substandard; you are not motivated."
E. "You should stay back after office hours because you are very slow with your work."
The content of the feedback should emphasize behavior, not personalities. For example, "You
did not meet the deadline" can open a conversation about what needs to change, but "You're
not motivated" may make the employee feel defensive and angry.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-61
83. (p. 247) How does a manager motivate an employee who lacks the ability to perform?
A. Demonstrate that the employee is being paid fairly and adequately.
B. Restructure the job so that the employee can handle it.
C. Refer the employee to a counselor for stress management.
D. Direct the employee's attention to the problem by withholding rewards.
E. Link rewards to performance outcomes.
When a motivated employee lacks knowledge, skills, or abilities in some area, the manager
may offer coaching, training, and more detailed feedback. Sometimes it is appropriate to
restructure the job so the employee can handle it.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
84. (p. 248) Coaching, frequent performance feedback, goal setting, and restructured job
assignments may be effective ways to improve performance for which category of
employees?
A. Solid performers
B. Underutilizers
C. Misdirected effort
D. Deadwood
E. Nonessential
Employees under the "misdirected effort" category are motivated but lack ability. When a
motivated employee lacks knowledge, skills, or abilities in some area, the manager may offer
coaching, training, and more detailed feedback. Sometimes it is appropriate to restructure the
job so the employee can handle it.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-62
85. (p. 248) To improve the performance of underutilizers, managers should:

A. withhold pay increases.
B. demote them from their current position.
C. offer temporary assignments for skill development.
D. link rewards to performance outcomes.
E. identify development opportunities.
Employees categorized as "underutilizers" have high levels of ability but lack motivation.
Managers with an unmotivated employee can explore ways to demonstrate that the employee
is being treated fairly and rewarded adequately.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
86. (p. 248) Lawsuits related to performance management usually involve charges of
discrimination or:
A. unjust dismissal.
B. reverse discrimination.
C. affirmative action.
D. reasonable accommodation.
E. minimum wage.
Lawsuits related to performance management usually involve charges of discrimination or

unjust dismissal.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
8-63
87. (p. 248-249) In what legal suit would the plaintiff allege that the performance measurement
system varies according to individual raters?
A. Harassment suit
B. Reverse discrimination suit
C. Unjust dismissal suit
D. Discrimination suit
E. ERISA suit
Lawsuits related to performance management usually involve charges of discrimination or

unjust dismissal. Discrimination claims often allege that the performance management system
discriminated against employees on the basis of their race or sex. Many performance
measures are subjective, and measurement errors can easily occur.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
88. (p. 249) If an employee is dismissed on the grounds of poor performance immediately after
he/she complained to higher authorities about the bad work ethics of his/her manager, the
employee could file a(n):
A. affirmative action lawsuit.
B. unjust dismissal lawsuit.
C. reasonable accommodation lawsuit.
D. discrimination lawsuit.
E. tort-based lawsuit.
With regard to lawsuits filed on the grounds of unjust dismissal, the usual claim is that the
person was dismissed for reasons besides the ones that the employer states. In this type of
situation, courts generally focus on the employer's performance management system, looking
to see whether the firing could have been based on poor performance. To defend itself, the
employer would need a performance management system that provides evidence to support its
employment decisions.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
8-64
89. (p. 249) What can an organization do to protect itself against discrimination and unjust
dismissal lawsuits?
A. The organization should provide for a review of all top performance ratings by upper-level
managers.
B. Performance measures should evaluate personal traits.
C. Requirements for job success should be clearly communicated to all the employees.
D. The organization should use a single rater to rate all the employees.
E. The organization should dismiss poor performers.
To protect against discrimination or unjust dismissal lawsuits, it is important to have a legally

defensible performance management system. Such a system would be based on valid job
analyses, with the requirements for job success clearly communicated to employees.
Performance measurement should evaluate behaviors or results, rather than traits. The
organization should use multiple raters and train raters in how to use the system. The
organization should provide for a review of all performance ratings by upper-level managers
and set up a system for employees to appeal when they believe they were evaluated unfairly.
Along with feedback, the system should include a process for coaching or training employees
to help them improve, rather than simply dismissing poor performers.

Bloom's: Understand
Difficulty: Medium
8-65
90. (p. 249-250) Identify a criticism against the electronic monitoring system.
A. It can store records of employee performance, work-rule violations, and disciplinary
actions.
B. The system prevents employees from exaggerating the number of hours they worked.
C. Managers use it to gather information on employee performance for coaching and
developmental purposes.
D. It threatens to make the workplace an electronic sweatshop, robbing employees of their
dignity.
E. The systems should be a substitute for careful management.
Although electronic monitoring can improve productivity, it also generates privacy concerns.
Critics point out that an employer should not monitor employees when it has no reason to
believe anything is wrong. They complain that monitoring systems threaten to make the
workplace an electronic sweatshop in which employees are treated as robots, robbing them of
dignity.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
Topic: Electronic Monitoring and Employee Privacy
Essay Questions
8-66
91. (p. 225) Discuss the stages of the performance management process.
The performance management process includes several activities. The stages of the
performance management process are: defining performance, measuring performance, and
feeding back performance information. First, the organization specifies which aspects of
performance are relevant to the organization. These decisions are based on the job analysis.
Next, the organization measures the relevant aspects of performance by conducting
performance appraisals. Finally, through performance feedback sessions, managers give
employees information about their performance so they can adjust their behavior to meet the
organization's goals. When there are performance problems, the feedback session should
include efforts to identify and resolve the underlying problems. In addition, performance
feedback can come through the organization's rewards. Using this performance management
process helps managers and employees focus on the organization's goals.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-67
92. (p. 226-227) Name and discuss the three purposes of performance management systems.

Strategic purpose: First and foremost, a performance management system should link
employee activities with the organization's goals. Performance management starts with
defining what the organization expects from each employee. It measures each employee's
performance to identify where those expectations are and are not being met. This enables the
organization to take corrective action, such as training, incentives, and discipline.
Administrative purpose: This refers to the ways in which organizations use the system to
provide information for day-to-day decisions about salary, benefits, and recognition programs.
Performance management can also support decision making related to employee retention,
termination for poor behavior, and hiring or layoffs. Because performance management
supports these administrative decisions, the information in a performance appraisal can have a
great impact on the future of individual employees. Managers recognize this, which is the
reason they may feel uncomfortable conducting performance appraisals when the appraisal
information is negative and, therefore, likely to lead to a layoff, disappointing pay increase, or
other negative outcome.
Developmental purpose: A third purpose of performance management is to develop
employees who are effective at their jobs. Ideally, performance management systems identify
both effective and ineffective behaviors. Effective performance feedback makes employees
aware of their strengths and areas in which they can improve. Discussing areas in which
employees fall short can help the employees and their manager uncover the source of
problems and identify steps for improvement. Although discussing weaknesses may feel
uncomfortable, it is necessary when performance management has a developmental purpose.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-68
93. (p. 227-229) Define the five criteria for measuring the effectiveness of a performance
management system.
Performance measures should fit with the organization's strategy by supporting its goals and
culture. Performance measures should be valid, so they measure all the relevant aspects of
performance and do not measure irrelevant aspects of performance. These measures should
also provide interrater and test-retest reliability, so that appraisals are consistent among raters
and over time. Performance measurement systems should be acceptable to the people who use
them or receive feedback from them. Finally, a performance measure should specifically tell
employees what is expected of them and how they can meet those expectations.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
94. (p. 234) How do behavioral observation scales (BOS) differ from behaviorally anchored
rating scales (BARS)?
Rather than discarding a large number of the behaviors that exemplify effective or ineffective
performance, behavioral observation scales (BOS) uses many of them to specifically define
all the behaviors that are necessary for effective performance.
Rather than assessing which behavior best reflects an individual's performance, BOS requires
managers to rate the frequency with which the employee has exhibited each behavior during
the rating period.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-69
95. (p. 239-242) Discuss the advantages and disadvantages of using managers, peers,
subordinates, self, and customers as sources of performance information.
(1) Managers: Advantages: Supervisors have extensive knowledge of the job requirements
and the opportunity to observe their employees; they have an incentive to provide accurate
and helpful feedback since their own success depends so much on their employees'
performance; and when managers try to observe employee behavior or discuss performance
issues in the feedback session, their feedback can improve performance and employees tend
to perceive the appraisal as accurate. Disadvantage: In some jobs, the supervisor may not have
enough opportunity to observe the employee performing job duties.
(2)Peers: Advantages: Peers are an excellent source of information about performance where
the supervisor does not often observe the employee, such as in law enforcement and sales;
peers have expert knowledge of job requirements; and they bring a different perspective to the
evaluation and can provide an extremely valid assessment of performance. Disadvantages:
Friendships have the potential to bias ratings, although research has provided little evidence
that this is a problem; and peers are uncomfortable rating themselves and others for
administrative decision-making purposes.
(3) Subordinates: Advantages: For evaluating the performance of managers, subordinates are
an especially valuable source of information, as they often have the best chance to see how
well a manager treats employees. Disadvantages: Subordinates may be reluctant to say
negative things about the person to whom they report; when required to identify themselves,
subordinates tend to give managers higher ratings; and given the power employees have in
this type of evaluation, managers tend to emphasize employee satisfaction, even at the
expense of productivity.
(4) Self: Advantages: No one has a greater chance to observe the employee's behavior than
the employee himself/herself, and it is useful to get employees thinking about their
performance before the feedback session. Disadvantages: Individuals have a tendency to
inflate assessments of their performance, especially when used for administrative decisions;
people tend to blame outside circumstances for their failures while taking a large part of the
credit for their successes; and self-appraisals are not appropriate for administrative decision-
making.
(5) Customers: Advantages: Customers are an excellent source of information about
performance when the supervisors and peers do not have the opportunity to observe the
employee, when an employee's job requires direct service to the customer or linking the
customer to other services within the organization, and when the organization is interested in
gathering information to determine what products and services the customer wants.
Disadvantages: Customer surveys are expensive, and as a result, many organizations limit the
information gathering to short periods of once a year.
AACSB: Analytic
Bloom's: Understand
Difficulty: Hard
Topic: Sources of Performance Information
8-70
96. (p. 243) Define types of rating errors, and explain how to minimize them.
Several kinds of errors and biases commonly influence performance measurements.

People observe behavior often without a practical way of knowing all the relevant
circumstances and outcomes, so they necessarily interpret what they see. A common tendency
is to give higher evaluations to people we consider similar to ourselves. If the rater compares
an individual, not against an objective standard, but against other employees, contrast errors
occur.
Other errors involve using only part of the rating scale, called distributional errors. Giving all
employees ratings at the high end of the scale is called leniency error. Rating everyone at the
low end of the scale is called strictness error. Rating all employees at or near the middle is
called central tendency.
Raters often let their opinion of one quality color their opinion of others. The halo error refers
to rating employees positively in all areas because of strong performance observed in one
area. The horns error is rating employees negatively in all areas because of weak performance
observed in one area.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
97. (p. 244) Discuss a calibration meeting.
Political behavior occurs in every organization. Organizations can minimize appraisal politics
by establishing an appraisal system that is fair. One technique is to hold a calibration meeting,
a gathering at which managers discuss employee performance ratings and provide evidence
supporting their ratings with the goal of eliminating the influence of rating errors. As they
discuss ratings and the ways they arrive at ratings, managers may identify undervalued
employees, notice whether they are much harsher or more lenient than other managers, and
help each other focus on how well ratings are associated with relevant performance outcomes.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
8-71
98. (p. 244-246) Name and discuss at least five ways to improve the performance feedback
session.
Possible answers include:

(1) Use the problem-solving approach—Managers can take any of three approaches during
the session: tell-and-sell, tell-and-listen, or problem-solving. Unfortunately, most use the tell-
and-sell approach. The most effective is generally the problem-solving approach.
(2) Make feedback a common practice—Feedback should be timely so employees understand
what behaviors and performance outcomes it relates to. This means feedback should not be
limited to formal appraisals.
(3) Let employees voice their opinions and discuss performance goals.
(4) Focus on problem solving, not punishing.
(5) Talk about behavior and results, not about personalities—Especially when feedback is
about negative performance, it is essential for the manager's words to distinguish between the
person and his/her behavior. Do not use words like, "You're not motivated," instead, talk
about results: "You did not meet the deadline that you agreed to."
(6) Keep criticism to a minimum.
(7)Agree to specific goals and a follow-up meeting.

Bloom's: Understand
Difficulty: Hard
Topic: Giving Performance Feedback
8-72
99. (p. 246-248) Summarize the different ways to produce improvement in unsatisfactory
performance.
The most effective way to improve performance varies according to the employee's ability
and motivation. For an employee who is motivated but lacks ability, the manager should
provide coaching and training, give detailed feedback about performance, and consider
restructuring the job. For an employee who has the ability but lacks motivation, the manager
should investigate whether outside problems are a distraction and if so, refer the employee for
counseling. If the problem has to do with the employee's not feeling appreciated or rewarded,
the manager should try to deliver more praise and evaluate whether additional pay and other
rewards are appropriate. For an employee lacking both ability and motivation, the manager
should consider whether the employee is a good fit for the position. Specific feedback or
withholding rewards may spur improvement, or the employee may have to be demoted or
terminated. Solid employees who are high in ability and motivation may be able to contribute
even more if the manager provides appropriate direct feedback, rewards, and opportunities for
development.
AACSB: Analytic
Bloom's: Understand
Difficulty: Medium
100. (p. 249) Name at least five actions a company could take to ensure it has a legally
defensible performance management system.
(1) The system should be based on valid job analyses, with the requirements clearly
communicated to employees.
(2) Performance management should evaluate behaviors or results, not traits.
(3) The organization should use multiple raters and train raters in how to use the system.
(4) The organization should provide for a review of all performance ratings by upper-level
managers and set up a system for employees to appeal when they believe they were evaluated
unfairly.
(5) Along with feedback, the system should include a process for coaching or training
employees to help them improve, rather than simply dismissing poor performers.
AACSB: Ethics
Bloom's: Understand
Difficulty: Medium
8-73

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Fundamentals of Human Resource

Management 4th Edition Noe Test Bank

True / False Questions

2. Organizations establish performance management systems to meet three broad purposes:

4. Test-retest reliability refers to consistency of results over time.

5. In the forced-distribution method of performance measurement, employees are ranked from

7. Attribute-based performance methods are tightly linked to organizational strategy.

9. The critical-incident method is a behavioral approach to performance management.

10. An advantage of behaviorally anchored rating scales (BARS) is improved interrater

13. Behavioral approaches to performance measurement, such as organizational behavior

16. Subordinates are the most-used source of performance information.

24. Lawsuits related to performance management usually involve charges of discrimination or

Multiple Choice Questions

27. The relevant aspects of employee performance are based on:

28. Which of the following is a purpose of performance management systems?

30. The administrative purpose of a performance management system refers to:

36. If a performance measure lacks _____ reliability, determining whether an employee's

38. Which of the following is a comparative performance appraisal technique?

53. A major drawback of the behavioral observation scale is:

56. Which of the following is NOT a component of an organizational behavior modification

57. Which of the following is true of behavioral approaches to performance measurement?

59. Which of the following is true about management by objectives (MBO)?

60. Which of the following is an advantage of result-based measures?

66. Subordinates, as a source of performance information, are generally most appropriate

68. When should an organization use customer evaluation of employee performance?

69. Using customer evaluations of employee performance is appropriate in all of the

75. Appraisal politics are likely to occur when:

78. To improve the performance feedback process, managers should:

79. Which approach to performance feedback is generally most effective?

82. Which of the following is effective feedback?

85. To improve the performance of underutilizers, managers should:

86. Lawsuits related to performance management usually involve charges of discrimination

90. Identify a criticism against the electronic monitoring system.

91. Discuss the stages of the performance management process.

97. Discuss a calibration meeting.

99. Summarize the different ways to produce improvement in unsatisfactory performance.

Chapter 08 Managing Employees' Performance Answer Key

True / False Questions

Organizations establish performance management systems to meet three broad purposes:

4. (p. 229) Test-retest reliability refers to consistency of results over time.

Test-retest reliability refers to consistency of results over time. If a performance measure

The forced-distribution method of performance management assigns a certain percentage of

Measurement of attributes is rarely linked to the organization's strategy.

9. (p. 234) The critical-incident method is a behavioral approach to performance management.

Applied to behavior in organizations, organizational behavior modification (OBM) is a plan

13. (p. 236) Behavioral approaches to performance measurement, such as organizational

The most-used source of performance information is the employee's manager.

Multiple Choice Questions

Organizations establish performance management systems to meet three broad purposes:

Test-retest reliability refers to consistency of results over time. If a performance measure

The forced-distribution method of performance measurement assigns a certain percentage of

AACSB: Reflective Thinking

AACSB: Reflective Thinking

Applied to behavior in organizations, organizational behavior modification (OBM) is a plan

Management by objectives (MBO) is a system in which people at each level of the

60. (p. 238) Which of the following is an advantage of result-based measures?

To get as complete an assessment of performance information as possible, some organizations

AACSB: Reflective Thinking

Subordinate evaluations are most appropriate for developmental purposes.

Using customer evaluations of employee performance is appropriate when an employee's job

75. (p. 244) Appraisal politics are likely to occur when:

Performance feedback should be a regular, expected management activity. Annual feedback is

In the "problem-solving" approach, managers and employees work together to solve

82. (p. 246) Which of the following is effective feedback?