Human Resource Management Functions Applications and Skill Development 2nd Edition Lussier Test Bank

Lussier and Hendon, Human Resource Management, 2e Instructor Resource
Chapter 8: Performance Management and Appraisal
Multiple Choice
1. What is performance appraisal?

A. The process of identifying, measuring, managing, and developing the performance of the
human resources in an organization
B. The process of analyzing the activities within a job
C. The process of evaluating the difficulty of jobs
D. The annual completion of an evaluation form for each employee
E. The ongoing process of evaluating employee performance
Ans: E
Learning Objective: 8-1
Cognitive Domain: Knowledge
Answer Location: Performance Management vs. Performance Appraisal
Question Type: MC
2. The first step in the performance appraisal process is:

A. Develop standards and measurement methods
B. Job analysis
C. Design the appraisal form
D. Prepare and conduct formal performance appraisals
E. Coach employees
Ans: B
Answer Location: The Performance Appraisal Process
Question Type: MC
3. When a performance appraisal process is valid, what does that mean?

A. It is a factual measure; it measures the process that you want to measure
B. It is consistent with all other measures
C. It has been shown to be reliable in all employment situations
D. It is acceptable to all parties
E. It is feasible to use
Ans: A
Answer Location: Accurate Performance Measures

Question Type: MC
4. What are traits?

A. The physical or psychological characteristics of a person
B. The measure of goals achieved through a work process
C. The actions taken by an individual
D. The measurement of a person’s capabilities through testing
E. The estimate of what the individual is likely to do
Ans: A
Answer Location: Trait Appraisals
Question Type: MC
5. If bad weather in a sales territory were to occasionally cause a significant drop in sales for a
particular salesperson and total sales is a performance criterion on their evaluation, the measure
has not met the test of being:
A. Valid
B. Reliable
C. Acceptable
D. Feasible
E. Specific
Ans: B
Cognitive Domain: Application
Question Type: MC
6. When the ad manager looked at the employee’s proposed advertisement and said “you must do
better than that,” the performance measure did not meet the test of being:
A. Valid
B. Specific
C. Feasible
D. Based on mission
E. Acceptable
Ans: B
Question Type: MC
7. Which performance appraisal method is most associated with file folders of positive and
negative performance of employees?
A. Narrative method
B. BARS
C. Critical incidents
D. MBO
E. Ranking method
Ans: C
Answer Location: Critical Incidents Method
Question Type: MC
8. What is probably the most commonly used form during formal performance appraisal?
A. Checklist
B. Graphic Rating Scale
C. Ranking
D. Narrative
E. MBO
Ans: B
Answer Location: Graphic Rating Scale Forms
Question Type: MC
9. “Coming to Appointments: 30 minutes early, 15 minutes early, 5 minutes early, on time, 5

minutes late, 15 minutes late, never arrive.” This scale would most likely be associated with
what performance appraisal method?
A. BARS
B. Organic behavior Scale
C. Checklist
D. Critical incident scale
E. MBO
Ans: A
Answer Location: Behaviorally Anchored Rating Scale (BARS) Forms
Question Type: MC
10. According to most research, how do employees (especially younger and less experienced
employees) generally view their ability to do their job?
A. Extremely underestimate
B. Slightly underestimate
C. Underestimate in physical jobs and overestimate in mental jobs
D. Accurately estimate
E. Overestimate
Ans: E
Answer Location: Self
Question Type: MC
11. As individuals become more knowledgeable and skilled in their work, how will they view
their ability to do their job?
A. Extremely overestimate
B. Slightly overestimate
C. Accurately estimate or even underestimate
D. Massively underestimate
E. Underestimate in mental jobs and overestimate in physical jobs
Ans: C
Answer Location: Self
Question Type: MC
12. If 360-degree evaluations are the best, why are they not always used?
A. Their graphic rating scales are not always accurate
B. Conflicts between managers
C. Supervisory biases
D. Time and money
E. Balanced scorecards provide higher scores
Ans: D
Answer Location: 360 Degree Evaluations
Question Type: MC
13. “You came early to class and therefore you must be a good overall student.” What type of
performance appraisal error is involved here?
A. Bias
B. Halo
C. Similarity
D. Stereotyping
E. Distributional
Ans: B
Answer Location: Common Problems with the Performance Appraisal Process
Question Type: MC
14. Rating everyone high on this exam would be associated with what error?
A. Leniency
B. Halo
C. Bias
D. Goodness
E. Central tendency
Ans: A
Answer Location: Common Problems with the performance Appraisal Process
Question Type: MC
15. Five people will get a scholarship today. Four good and one average person interviewed in
the morning. Four bad and one average person interviewed in the afternoon. The four good
people in the morning got the scholarship and because the average person in the afternoon
looked so good compared to the bad people in the afternoon, that person got the scholarship in
spite of being identical to the average person in the morning. What performance appraisal error
is demonstrated here?
A. Attribution error
B. Primacy error
C. Proximity error
D. Similarity error
E. Contrast error
Ans: E
Question Type: MC
16. Which of the following concepts is associated with evaluating large sets of capabilities and
knowledge, which can significantly improve organizational productivity to a greater extent than
just doing a job using an existing skill set?
A. Competency-based performance management
B. Knowledge-rated performance management
C. Employment-based performance management
D. Top centered performance management
E. Holder placement performance management
Ans: A
Learning Objective: Comprehension
Answer Location: Competency-based Performance Management
Question Type: MC
17. To avoid problems in the appraisal process, which of the following should generally be
minimized?
A. Evaluation of individual traits
B. Evaluation of effective behaviors demonstrated
C. Evaluation of individual results
D. Evaluation of group results
E. Evaluation of ineffective behaviors demonstrated
Ans: A
Answer Location: Develop Accurate Performance Measures
Question Type: MC
18. To be accurate, objectives should be SMART. What does the M in SMART stand for?
A. Memorable
B. Measurable
C. Mechanistic
D. Methodical
E. Multifaceted
Ans: B
Answer Location: Management by Objectives (MBO) Method
Question Type: MC
19. What would be an example of informal performance appraisal?

A. Graphic rating scale
B. Job analysis
C. Job evaluation
D. MBO
E. Coaching
Ans: E
Cognitive Domain: Comprehension
Answer Location: The Performance Appraisal Process
Question Type: MC
20. If it is predetermined that 5 percent of students will pass this exam and 95 percent will flunk,
what kind of performance appraisal system is being used?
A. MBO
B. BARS
C. Graphic rating
D. Narrative
E. Forced distribution
Ans: E
Answer Location: Ranking Method
Question Type: MC
21. Grading everyone as average is involved with the performance appraisal error known as
____________.
A. estimation
B. central tendency
C. means tests
D. median testing
E. mid-point analysis
Ans: B
Question Type: MC
22. When you measure something that is explicitly identified or well defined enough so that all
involved understand the issue completely, the measure is quite _______________ .
A. valid
B. feasible
C. reliable
D. specific
E. accurate
Ans: D
Question Type: MC
23. I have a scale with above average, average, and below average. This scale is called a(n)
_____________.
A. BARS
B. MBO
C. Narrative Scale
D. Rank Order Scale
E. Graphic Rating Scale
Ans: E
Question Type: MC
24. Essays are most associated with the _______________ type of performance appraisals.
A. MBO
B. narrative methods
C. BARS
D. Biodata forms
E. Graphic Rating Scale forms
Ans: B
Answer Location: Narrative Method or Form
Question Type: MC
25. ______________ analyze individual performance on all sides.

A. Bi-level evaluations
B. Blanchard tests
C. 360-degree evaluations
D. Omega tests
E. Full-view evaluations
Ans: C
Question Type: MC
26. _________ is mentally classifying a person into an affinity group and then identifying the
person as having the same assumed characteristics as the group.
A. Stereotyping
B. Proximity
C. Contrast
D. Attribution
E. Recency
Ans: A
Answer Location: Common Problems with the performance Appraisal Process
Question Type: MC
27. ___________ error occurs when the rater evaluates subordinates that he or she considers
similar to himself or herself as a better employee.
A. Contrast
B. Similarity
C. Distributional
D. Proximity
E. Attribution
Ans: B
Answer Location: Common Problems with the performance appraisal process
Question Type: MC
28. Which of the following performance characteristics deals with a factual measure of the
process that we meant to measure and that works the same way each time it is used?
A. Valid and Reliable
B. Acceptable
C. Feasible
D. Specific
E. Based on mission and goals
Ans: A
Question Type: MC
29. In the ______ method, the manager compares an employee to other employees rather than to
a standard measure of performance.
A. Ranking
B. forced application
C. alternation ranking
D. narrative
E. MBO
Ans: A
Question Type: MC
30. If a manager considers one employee at a time and circles a number/word on a continuum to
signify the degree to which that employee meets a criterion, he/she is likely to be using a:
A. mixed standard scale.
B. MBO scale.
C. critical incidents scale.
D. graphic rating scale.
E. behavioral initialization scale.
Ans: D
Question Type: MC
31. The performance management approach that requires managers to keep a record of specific
examples of good/bad performance is the:
A. behaviorally anchored rating scale.
B. graphic rating scale.
C. critical incidents method.
D. ranking method.
E. MBO method.
Ans: C
Question Type: MC
32. Which performance management technique involves the description of a large number
actions on the part of the employee, and then classifies these incidents into performance
dimensions along a continuum?
A. Behaviorally anchored rating scales
B. Operational rating scales
C. Ranking
D. Critical incidents
E. MBO
Ans: A
Question Type: MC
33. In what type of method are annual performance goals established jointly between the
manager and employee?
A. Productivity measurement and evaluation systems
B. MBO
C. Assessment centers
D. Critical incidents
E. OB modification
Ans: B
Question Type: MC
34. The type of performance management system where a company analyzes the performance of
an individual "from all sides" is known as:
A. the critical incidents method.
B. behaviorally anchored rating scale.
C. MBO.
D. narrative method.
E. 360-degree performance appraisals.
Ans: E
Question Type: MC
35. Which one of the following is NOT true of peers as a source of performance information?
A. Peers may know the job requirements better than a supervisor in some cases.
B. Peers can evaluate the ability of others to interact within the group or team better than
supervisors in many cases.
C. Research regarding validity of peer evaluations is overwhelmingly clear on their lack of bias.
D. Peer ratings are particularly useful when supervisors do not have the opportunity to observe
employees.
E. All of the above are true.
Ans: C
Answer Location: Peers
Question Type: MC
36. According to the text, when supervisors are being evaluated, _____ may provide information
about their managerial practices that we would be unable to find out using other means.
A. other managers
B. subordinates
C. the individual
D. customers
E. their bosses
Ans: B
Answer Location: Subordinates
Question Type: MC
37. Which rater error is made when people give higher evaluation to individuals who they
consider like themselves?
A. Proximity
B. Distributional
C. Halo
D. Attribution
E. Similarity
Ans: E
Answer Location: Common problems with the performance appraisal process
Question Type: MC
38. Which rater error may cause difficulty in distinguishing among employees?
A. Contrast
B. Distribution
C. Halo
D. Stereotyping
E. Similar to me
Ans: B
Question Type: MC
39. If a student evaluates her professor low on all evaluation criteria due to dissatisfaction with
the professor's grading, the student has likely committed which rater error?
A. Stereotyping
B. Recency
C. Central tendency
D. Halo
E. Proximity
Ans: D
Question Type: MC
40. To avoid performance appraisal problems, managers should do all of the following EXCEPT:
A. use multiple raters.
B. let employees determine their initial evaluation grade.
C. give the measure the OUCH and Blanchard tests.
D. train all evaluators.
E. minimize trait-based evaluations whenever possible.
Ans: B

Answer Location: Avoiding performance appraisal process problems
Question Type: MC
41. In performance appraisal, communication is about:

A. providing standards to employees so that they know how they are graded
B. providing feedback concerning past performance
C. creating a path for two-way communication between the supervisor and subordinate
D. allowing employee feedback concerning factors that inhibit their performance
E. All of the above are correct.
Ans: E
Answer Location: Communication (Informing)
Question Type: MC
42. Which OUCH Test standard(s) is it generally pretty easy for trait appraisal measures to meet?
A. Objective
B. Uniform in application
C. Consistent in effect
D. Has job relatedness
E. Trait measures usually meet all of the OUCH Test standards
Ans: B
Question Type: MC
43. One of the biggest problems that limit the evaluating and motivating potential of the
appraisal process is:
A. bombarding the employee with a lot of negative information that they have not heard during
coaching.
B. allowing the employee to bring up issues with equipment or material that keep them from
performing .
C. giving feedback on how to improve in the next appraisal period.
D. providing hard facts on results achieved during the evaluation period.
E. Providing appraisal information from many different sources (360 degree feedback)
Ans: A

Answer Location: Evaluating and Motivating = Development
Question Type: MC
44. Which OUCH Test standard is generally the toughest for behavioral appraisal measures to
meet?
A. Objective
B. Uniform in application
C. Consistent in effect
D. Has job relatedness
E. Behavioral measures easily meet all of the OUCH Test standards
Ans: D
Question Type: MC
45. Which performance measure generally meets the requirements of the OUCH Test better and
is more acceptable to both employees and employers?
A. Physical measures
B. Trait measures
C. Psychological measures
D. Behavioral measures
E. Results measures
Ans: D
Learning Objective:
Answer Location: Behavioral Appraisals
Question Type: MC
46. Training evaluators:

A. allows them to understand, and avoid the common problems associated with appraisal.
B. generally makes them more critical of others because they see more mistakes.
C. is extremely difficult since there are so many forms and methods for appraisal.
D. usually only has to be done one time, because the word gets passed down to others.
E. doesn’t help very much with most of the common errors in performance appraisal.
Ans: A
Answer Location: Train Evaluators
Question Type: MC
47. Electronic Performance Management:

A. doesn’t appear to be very helpful in lowering organizational costs.
B. allows management to monitor employee actions on company computer systems.
C. doesn’t do much to increase productivity in firms.
D. has been shown to have little or no effect on stress levels in companies where it is used.
E. appears to not provide much concrete results-based information for performance management.
Ans: B
Answer Location: Technology: Electronic Performance Monitoring
Question Type: MC
48. _______________ is the process of identifying, measuring, managing, and developing the
performance of the human resources in an organization.
A. Performance Appraisal
B. Performance Management
C. Production Management
D. Work Documentation
Ans: B
Answer Location: Performance Management v. Performance Appraisal
Question Type: MC
49. The performance appraisal process always begins with the __________ in step one.
A. assessment
B. job analysis
C. measurement standards
D. work process
Ans: B
Answer Location: Performance Appraisal Process
Question Type: MC
50. In step two of the performance appraisal process, “develop standards” refers to
___________________.
A. standards of acceptable behavior
B. federal standards of equal opportunity
C. production standards
D. process improvement
Ans: A
Question Type: MC
51. In step three of the performance appraisal process, “informal performance appraisal” refers to
__________________.
A. an informal application process
B. an informal selection process
C. regular feedback on performance
D. regular meetings with a mentor
Ans: C
Question Type: MC
52. In step four of the performance appraisal process, the common practice is to have a ______
performance review once or twice a year.
A. formal
B. stressful
C. weekday
D. secretive
Ans: A
Question Type: MC
53. In performance appraisals, ________ means that the forms provide enough information for
everyone to understand what level of performance has been achieved by a particular employee
within a well-identified job.
A. specific
B. feasible
C. valid
D. acceptable
Ans: A
Question Type: MC
54. Jenna creates a very generic evaluation form which she can use for most employees,
regardless of the types of jobs the employees perform. This evaluation form is too generic, and
will not be useful for modifying employee behavior. Jenna’s form is not _________.
A. acceptable
B. feasible
C. valid
D. specific
Ans: D
Question Type: MC
55. Communication with our __________ can help identify issues within the work environment
which can be fixed.
A. top managers
B. employees
C. union
D. recruits
Ans: B
Answer Location: Communicating Informing
Question Type: MC
56. From a business perspective, __________ is the willingness to achieve organizational

objectives.
A. motivation
B. strong-headedness
C. stubbornness
D. decisiveness
Ans: A
Answer Location: Motivation Engaging
Question Type: MC
57. ________ assesses past performance and _______ develops future performance.
A. decisions; motivation
B. evaluation; assessment
C. motivation; evaluation
D. evaluation; motivation
Ans: D
Answer Location: Evaluating and Motivating
Question Type: MC
58. Managers need to provide motivational opportunities for the employees to improve _______
over time.
A. attendance
B. performance
C. attitude
D. development
Ans: B
Question Type: MC
59. Ongoing _________ can help employees perform at an above-average level.

A. coaching
B. discipline
C. evaluations
D. mentoring
Ans: A
Question Type: MC
60. Evaluation of a salesperson’s “tenacity” and “enthusiasm” is known as a ________ appraisal.

A. behavior
B. trait
C. results
D. process
Ans: B
Question Type: MC
61. Some evaluation items like attitude, initiative, and promotability are difficult to measure
_______.
A. objectively
B. honestly
C. decisively
D. independently
Ans: A
Question Type: MC
62. When evaluating employees based on behaviors, we are assessing them based on ________.
A. their attitudes
B. their opinions
C. the things they think
D. the things they say and do
Ans: D
Question Type: MC
63. ________ are a measure of the goals achieved through a work process.
A. Results
B. Behaviors
C. Products
D. Incentives
Ans: A
Answer Location: Results Appraisals
Question Type: MC
64. Max is evaluating Murray’s performance by using data about accounts that Murray manages.
Murray maintained 100% of his existing accounts, and added additional services to 35% of his
existing accounts. Max is evaluating Murray using a __________ appraisal.
A. trait
B. behavior
C. statistical
D. results
Ans: D
Question Type: MC
65. Samuel’s supervisor is reviewing his attendance and punctuality record as part of an annual
evaluation. This type of evaluation is known as a _________ appraisal.
A. trait
B. behavior
C. results
D. statistical
Ans: B
Question Type: MC
66. Charlie beat his deadline three times this month. Kara, his supervisor, puts a note in his file,
so she will remember his efforts during his performance evaluation later this year. Kara’s note
represents a ________________.
A. critical incident
B. complaint
C. formal charge
D. promotion
Ans: A

Answer Location: Critical Incident Method
Question Type: MC
67. When a manager makes an evaluative decision, such as who should be recognized as
‘Employee of the Month’ or who gets a promotion, they are __________________ their
employees.
A. judging
B. ranking
C. separating
D. combining
Ans: B
Question Type: MC
68. When using subordinates to evaluate employees’ performance, ________ must be

maintained.
A. transparency
B. safety
C. integrity
D. confidentiality
Ans: D
Answer Location: Subordinates
Question Type: MC
69. Tammy is evaluating employees on the 2nd shift. Sara, whose son attends Tammy’s alma
mater, receives a higher ranking than her peers. Tammy is exhibiting _________ toward Sara,
which affects the outcome of the evaluation.
A. bias
B. discrimination
C. consistency
D. hostility
Ans: A

Question Type: MC
70. Adam evaluates everyone in his department as “average” – no one is a great employee, but
no one is a bad employee, either. Adam is exhibiting a distributional error known as
________________ in his evaluations.
A. leniency
B. severity
C. central tendency
D. inflation
Ans: C
Question Type: MC
71. Allison found several job duties that were listed on her subordinate’s job description which
are no longer part of the job. Also, the company recently updated its strategic plan. Based on the
new plan, Allison will add some related job duties to her subordinate’s job and communicate
with her subordinate about the changes. Allison is engaged in ________.
a. performance appraisal
b. performance management
c. performance monitoring
d. performance planning
Ans: B
Learning Objective number: 8-1
Question Type: MC
72. Alyssa’s manager has asked her to complete a review of Alyssa’s past six months on the job.
Next week, Alyssa will sit down with her manager to go over the review and receive her
manager’s feedback on her work for the past six months. Alyssa and her manager are engaged in
________.
a. performance appraisal
b. performance management
c. performance monitoring
d. performance planning
Ans: A

Question Type: MC
73. Jungmin’s job as a biomedical engineer involves conducting research on the engineering
aspects of the biological systems. Most important are his written reports on his findings.
Jungmin’s supervisor based Jungmin’s performance appraisal on the reports. It is likely that
Jungmin’s performance appraisal is _________.
a. valid
b. reliable
c. based on mission and objectives
d. feasible
Ans: A
Answer Location: Accurate Performance Measures; Applying the Concept Box
Question Type: MC
74. Sean has two supervisors who both provide appraisals on Sean’s performance. On a scale of
1-5, both supervisors gave Sean a 4.2. It is likely that Sean’s performance appraisal is
__________.
a. valid
b. reliable
c. specific
d. feasible
Ans: B
Answer Location: Accurate Performance Measures; Applying the Concept Box 8-1
Question Type: MC
75. Ryan’s manager provided him with a performance appraisal that covered the past six months.
Ryan asked his manager on what the appraisal was based. Ryan contends that his manager only
came to Ryan’s work area once or twice in the past six months and could not possible know
enough about Ryan’s work to write an appraisal. What aspect of good performance appraisals
does Ryan’s appraisal appear to be missing?
a. based on mission and objectives
b. reliable
c. accepted
d. feasible
Ans: C
Question Type: MC
76. Brittney recently read that once-a-year performance appraisals are ineffective. In response,
she is asking all her managers to begin providing monthly performance appraisals to all their
employees. Each manager has 30 employees and balk at the idea of providing that many
performance appraisals each month. What aspect of good performance appraisals does Brittney’s
plan appear to be missing?
a. valid
b. specific
c. accepted
d. feasible
Ans: D
Question Type: MC
77. Casey’s performance appraisal indicated that she was good at managing client relationships.
Casey asked her supervisor for more details and was simply told, “you just do a good job in that
area.” What aspect of good performance appraisals does Casey’s appraisal appear to be missing?
a. reliable
b. specific
c. accepted
d. feasible
Ans: B
Question Type: MC
78. At Acme Global, customer service is an important priority. However, Michael’s latest
performance appraisal focused on his lack of critical thinking and his lack of knowledge of the
company’s technology. What aspect of good performance appraisals does Michael’s appraisal
appear to be missing?
a. valid
b. based on mission and objectives
c. accepted
d. feasible
Ans: B
Question Type: MC
79. Richard received a low score on his performance appraisal because he did not create project-
specific data management plans as part of his job as a clinical data manager. However, Richard
has not received training on creating such plans and will likely get a low score on this part of his
appraisal again next year. This suggests Richard’s appraisal falls short of which reason for
conducting performance appraisals?
a. communication
b. decision making
c. motivation
d. ranking
Ans: A
Question Type: MC
80. During his performance appraisal, Julian mentioned that he was having difficulty keeping
client records up-to-date because the computer system was antiquated. As a result, the
department decided to replace both the software and hardware in Julian’s department. As a
result, Julian’s department’s performance increased. This is an example of the _______ reason
for conducting performance appraisals.
a. communication
b. decision making
c. motivation
d. ranking
Ans: A
Question Type: MC
81. As a result of his last performance appraisal, Deron finally got the promotion he has been
seeking for three years. His supervisor agreed with Deron that his performance had improved
and that Deron was ready to take on more responsibility. This is an example of the _______
reason for conducting performance appraisals.
a. communication
b. decision making
c. motivation
d. ranking
Ans: B
Answer Location: Decision Making (Evaluating)
Question Type: MC
82. Bree went into her performance appraisal interview expecting to hear what a great performer
she was and that she was getting a promotion. Instead, her manager pointed out some important
areas in which Bree needed to improve if she wanted to continue to advance in the organization.
As a result, Bree plans to focus on those areas of improvement in hopes of getting the promotion
next year. This is an example of the _______ reason for conducting performance appraisals.
a. communication
b. decision making
c. motivation
d. development
Ans: C
Answer Location: Motivation (Engaging)
Question Type: MC
83. Nicole is rating her employees on _______ when she assigns them scores on items such as
“conscientiousness” and “critical thinking ability.”
a. traits
b. behaviors
c. results
d. incidents
Ans: A
Answer Location: Trait Appraisals; Applying the Concept Box 8-2
Question Type: MC
84. In considering two employees for a promotion, Keith decided to nominate the more attractive
and extroverted candidate. It appears Keith based his promotion appraisal on ________.
a. traits
b. behaviors
c. results
d. incidents
Ans: A
Answer Location: Trait Appraisals; Applying the Concept Box 8-2
Question Type: MC
85. When appraising a paramedic, Derrick based his appraisal on the individual’s performance
on emergency diagnostic and treatment procedures. It appears that Derrick is basing his appraisal
on ________.
a. traits
b. behaviors
c. results
d. incidents
Ans: B
Answer Location: Behavioral Appraisals; Applying the Concept Box 8-2
Question Type: MC
86. When appraising an automobile mechanic, Mac based his appraisal on the individual’s
performance doing routine maintenance and repairs on cars. It appears that Mac is basing his
appraisal on ________.
a. traits
b. behaviors
c. results
d. incidents
Ans: B
Answer Location: Behavioral Appraisals; Applying the Concept Box 8-2
Question Type: MC
87. Alexander supervises three workers who repair watches in the jewelry department. He bases
his performance appraisal of the workers on the number of watches each employee repairs each
week. It appears that Alexander is basing his appraisal on ________.
a. traits
b. behaviors
c. results
d. incidents
Ans: C
Answer Location: Results Appraisals; Applying the Concept Box 8-2
Question Type: MC
88. To provide accurate performance appraisals, Samantha keeps a box of index cards on each of
her employee. When an employee does something particularly well or particularly poorly,
Samantha writes the event down on a card and puts it in that employee’s box. It appears
Samantha is using the ______ method of performance appraisal.
a. critical incidents
b. management by objectives
c. narrative method
d. behavioral anchored rating
Ans: A
Answer Location: Critical Incidents Method; Applying the Concept Box 8-3
Question Type: MC
89. Whenever an employee has a major achievement, Anna asks that employee to send her an
email describing the achievement. Likewise, if an employee makes a mistake, Anna asks the
employee to send her an email describing the mistake and what happened. When it’s time to do
performance appraisals, Anna brings all the emails she received from each employee together to
create an appraisal. It appears Anna is using the ________ method of performance appraisal.
c. graphic rating
Ans: A
Answer Location: Critical Incidents Method; Applying the Concept Box 8-3
Question Type: MC
90. As part of her job as a stock clerk, Breanna is required to take inventory to identify items to
be restocked. At the beginning of each quarter, Breanna and her manager set a goal for reducing
the amount of time it takes to get items restocked. This quarter, her goal is to reduce the time by
10 percent. At the end of the period, Breanna will review her numbers with her manager. If she
has reduced the restock times by 10 percent, she will receive a raise. Breanna’s performance
appraisal is done using the ______ method.
c. ranking
Ans: B
Answer Location: Management by Objectives; Applying the Concept Box 8-3
Question Type: MC
91. Megan is considering who to promote into a new position. She asks each of her supervisors
to write an appraisal of their employees describing each employee’s strengths and weaknesses.
Megan is requesting supervisors use the ________ method of performance appraisal.
a. ranking
c. narrative method
Ans: C
Answer Location: Narrative Method; Applying the Concept Box 8-3
Question Type: MC
92. Craig is starting a new business and looking for an easy-to-use performance appraisal method
that he can apply to every job in the organization from the top manager to the cleaning staff.
Craig should probably adopt the ______ method of performance appraisal.
a. ranking
c. graphic rating
Ans: C
Answer Location: Graphic Rating Scale; Applying the Concept Box 8-3
Question Type: MC
93. Cole’s performance appraisal describes his actions along a continuum. For example, when it
comes to customer service, he receives a 1 if he regularly ignores customers, a 3 if he regularly
greets customers, and a 5 is he regularly greets customers and asks how he can help. It appears
Cole is using the ______ method of performance appraisal.
a. ranking
c. graphic rating
Ans: D
Answer Location: Behaviorally Anchored Rating Scale; Applying the Concept Box 8-3
Question Type: MC
94. Jeffrey was just named employee of the month. To decide who would receive this honor,
management must have used the ________ method of performance appraisal.
a. ranking
c. graphic rating
Ans: A
Answer Location: Ranking Method; Applying the Concept Box 8-3
Question Type: MC
95. Trevor is well-liked by his manager and all his co-workers. He is fun to be around and makes
people laugh. His work performance is average, but his manager gave him an excellent rating on
his performance appraisal. It is likely his manager made an error due to _______.
a. bias
b. stereotyping
c. contrast
d. distribution
Ans: A
Answer Location: Common Problems Within the Performance Appraisal Process; Applying the
Concept Box 8-4
Question Type: MC
96. Brisa recently had a baby. When she returned from maternity leave, her manager assumed
that she would want to work fewer hours and would be distracted by things at home. Although
Brisa’s performance remained as high as it had been before the baby, her boss gave her lower
marks on her performance appraisal. It is likely his manager made an error due to _______.
a. similarity
b. stereotyping
c. proximity
d. contrast
Ans: B
Concept Box 8-4
Question Type: MC
97. On the first week of his new sales job, Bryan closed a huge sale. Although his work since has
been average, he still receives excellent performance appraisal reviews. It is likely his manager is
making a _________ error.
a. similarity
b. proximity
c. halo
d. distributional
Ans: C
Concept Box 8-4
Question Type: MC
98. Han believes that all his employees do a good job. When he gives performance appraisals, he
rates everyone as “average” because he thinks that doing a good job is an average rating. In
reality, several of Han’s employees are excellent and several are below average. It appears Han
is making a _________ error in his performance appraisals.
a. recency
b. contrast
c. attributional
d. distributional
Ans: D

Concept Box 8-4
Question Type: MC
99. Duran went to the same college as his manager. The two often speak of the college’s sports
and traditions together. Although Duran is a below average performer, his manager gives him an
average rating on his performance appraisals. It is likely his manager made an error due to
_______.
a. contrast
b. attribution
c. similarity
d. recency
Ans: C
Concept Box 8-4
Question Type: MC
100. When Myra was completing a performance appraisal on one of her employees, she rated the
employee high on reliability and conscientiousness. The next item on the form was accuracy.
Even though the employee was only average on accuracy, Myra gave her a high rating. It is
likely Myra made an error due to _______.
a. bias
b. stereotyping
c. distribution
d. proximity
Ans: D
Concept Box 8-4
Question Type: MC
101. Daniel knew his performance appraisal was coming up in one month. He spent that month
coming to work early and staying late. As a result, he got an excellent rating on his performance
appraisal when his performance for the entire year had only been average. It is likely his
manager made an error due to _______.
a. bias
b. contrast
c. proximity
d. recency
Ans: D
Answer Location: Common Problems within the Performance Appraisal Process; Applying the
Concept Box 8-4
Question Type: MC
102. Brenda dislikes having to fill out performance appraisals on her employees. She vows to sit
down and finish them all in one afternoon. She decides to start with her lowest performing
employee to get the worst out of the way. Next, she appraises an average performer, but gives
excellent ratings. After appraising that first employee, the average performer looks excellent to
her. It is likely Brenda made an error due to _______.
a. contrast
b. attribution
c. recency
d. proximity
Ans: A
Concept Box 8-4
Question Type: MC
103. Marc’s manager saw him come back late from lunch one day. Marc was late because he had
been working out a problem with a client. However, Marc’s manager assumed Marc just took a
long lunch because Marc is a slacker. It is likely his manager made a(n) _______ error.
a. stereotyping
b. bias
c. attribution
d. proximity
Ans: C
Concept Box 8-4
Question Type: MC
True/False
104. True or False. Acceptability means that the use of the measure is appropriate to the people
that must use it.
Ans: True
Question Type: TF
105. True or False. If something is valid it is a consistent measure.

Ans: False
Question Type: TF
106. True or False. Communication is the key factor in determining MBO’s success or failure.
Ans: True
Question Type: TF
107. True or False. There is a standard form used with the MBO process.
Ans: False
Question Type: TF
108. True or False. The narrative method, when used alone, is more commonly used with
professionals and executives, not operative employees.
Ans: True

Answer Location: Narrative Method or Form
Question Type: TF
109. True or False. BARS have to be customized to every different type of job.
Ans: True
Question Type: TF
110. True or False. Attribution error states that similar marks may be given to items that are near
each other on the performance appraisal form, regardless of differences in performance on those
measures.
Ans: False
Question Type: TF
111. True or False. Halo error means everyone gets an A on this exam.
Ans: False
Answer Location: Common Problems with the performance appraisal process
Question Type: TF
112. True or False. With the critical incidents method, managers simply have a file folder for
each employee, which can be hard copy or electronic.
Ans: True
Question Type: TF
113. True or False. Ranking can be used for developmental purposes by letting employees know
where they stand in relation to their peers.
Ans: True
Question Type: MC
114. True or False. Performance appraisal describes the process of identifying, measuring,
managing, and developing people in an organization.
Ans: False
Answer Location: Performance Management v Performance Appraisal
115. True or False. Performance appraisal describes the ongoing process of evaluating employee
performance.
Ans: True
Answer Location: Performance Management v Performance Appraisal
116. True or False. Knowing where to improve should lead to training employees to develop
new skills to improve.
Ans: True
117. True or False. Performance management tools need not be valid and reliable, so long as
they are highly acceptable by management and employees.
Ans: False
118. True or False. Communication during the performance appraisal can include informing
management about lack of training, poorly maintained equipment, lack of tools necessary to
perform the job, and conflict within work groups.
Ans: True
Answer Location: Communicating Informing
119. True or False. Performance appraisals allow management to make decisions about
employees within the organization.
Ans: True
Answer Location: Decision Making
120. True or False. A common problem during appraisals is overpowering the employee with
large amounts of negative information which they have heard over and over again.
Ans: False
Answer Location: Evaluating and Motivating]
121. True or False. Physical actions or behaviors can be directly observed, and are therefore
more likely to be a valid assessment of the individual’s performance.
Ans: True
122. True or False. Evidence shows that most individuals are very comfortable with the
evaluation of their performance being based on “what they do” instead of “who they are.”
Ans: True
123. True or False. Behaviors are a measure of the goals achieved through a work process.
Ans: False
124. True or False. Critical incidences are commonly used for developmental decisions and
evaluative decisions.
Ans: True
125. True or False. The MBO method is one of the best methods of developing employees.
Ans: True
126. True or False. BARS cannot be customized to every different type of job.
Ans: False
Answer Location: BARS forms
127. True or False. Ranking can be used for developmental purposes by letting employees know
where they stand in comparison to their peers.
Ans: True
128. True or False. Supervisors are always the best person to assess employee performance.
Ans: False
Answer Location: Who Should Assess Performance?
129. True or False. Peer evaluations can give us good insight into the inner workings of a group
or team.
Ans: True
Answer Location: Who Should Assess Performance?
130. True or False. 360 evaluation is a cost effective and efficient evaluation tool to use.
Ans: False
Answer Location: 360 evaluations
131. True or False. Managers can overcome problems with the appraisal process by ensuring the
use of multiple criteria to evaluate an individual’s performance.
Ans: True
Answer Location: Develop accurate performance measures
132. True or False. Evaluators should be trained to use the various performance assessment
methods and forms.
Ans: True
Answer Location: Develop accurate performance measures
Short Answer
133. Explain three main reasons for conducting performance appraisals.

Ans: Communicating how the organization believes each employee is performing. Allowing
management to make decisions about employees within each organization associated with pay
raises, promotions, demotions, training and development, and termination. Provide motivation to
our employees to improve the way they work individually for developmental purposes which
will in turn will improve organizational productivity overall.
Answer Location: Why Do We Conduct Performance Appraisals?
Question Type: SA
134. List and describe three distributional errors.

Ans: Severity has nearly everyone rated below average, central tendency has nearly everyone
rated around average, and leniency has nearly everyone rated above average.
Question Type: SA
135. What is the key difference between BARS and the Graphic Rating Scale?
Ans: BARS anchors behaviors to each level of the scale whereas the graphic rating scale
anchors good, average, and not acceptable to each level.
Answer Location: How do we use appraisal methods and forms?
Question Type: SA
136. Why should managers use the critical incidents method?

Ans: It is hard for managers to remember all the incidents in the past year. By collecting
materials from the past (good and bad incidents), managers can get a clearer picture of what has
happened.
Question Type: SA
137. What are the key problems with 360-degree evaluations?

Ans: It takes a significant amount of time and money for individuals to get the viewpoints of
peers, subordinates, themselves, customers, and all other relevant individuals.

Question Type: SA
Essay
138. What is the major function of performance appraisal? Discuss the steps in the appraisal
process.
Ans: Answers vary.
Question Type: ESS
139. What are the major options for appraisal of employees? Discuss each option, identifying
the one that you think is “best”, and why you chose that option.
Ans: Answers vary.
Answer Location: What do we assess?
Question Type: ESS
140. Briefly discuss each of the major forms and methods for performance appraisal
Ans: Answers vary.
Answer Location: How Do we use appraisal methods and forms?
Question Type: ESS
141. Who should assess performance? Include a discussion of the problems associated with each
option.
Ans: Answers vary.
Answer Location: Who Should Assess Performance??
Question Type: ESS
142. What are some of the common problems with performance evaluations? How would you
avoid at least some of these problems?
Ans: Answers vary.
Cognitive Domain: Analysis
Answer Location: Performance Appraisal Problems
Question Type: ESS
143. Identify the necessary characteristics of accurate performance management tools.

Ans: Answers vary.
Question Type: ESS
144. List and briefly discuss the purposes for performance appraisals.
Ans: Answers vary.
Answer Location: Why Do We Conduct Performance Appraisals?
Question Type: ESS
145. Briefly discuss the value and the drawbacks of a 360° evaluation.
Ans: Answers vary.
Question Type: ESS
146. Identify the major steps we can take to avoid problems with the appraisal process.
Ans: Answers vary.
Answer Location: Avoiding Performance Appraisal Process Problems
Question Type: ESS
147. Briefly discuss the differences between evaluative performance reviews and developmental
performance reviews.
Ans: Answers vary.
Answer Location: Debriefing the Appraisal
Question Type: ESS

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Lussier and Hendon, Human Resource Management, 2e Instructor Resource

Chapter 8: Performance Management and Appraisal

1. What is performance appraisal?

2. The first step in the performance appraisal process is:

3. When a performance appraisal process is valid, what does that mean?

Answer Location: Accurate Performance Measures

4. What are traits?

9. “Coming to Appointments: 30 minutes early, 15 minutes early, 5 minutes early, on time, 5

19. What would be an example of informal performance appraisal?

25. ______________ analyze individual performance on all sides.

Learning Objective: 8-8

41. In performance appraisal, communication is about:

Cognitive Domain: Knowledge

46. Training evaluators:

47. Electronic Performance Management:

56. From a business perspective, __________ is the willingness to achieve organizational

59. Ongoing _________ can help employees perform at an above-average level.

60. Evaluation of a salesperson’s “tenacity” and “enthusiasm” is known as a ________ appraisal.

Learning Objective: 8-5

68. When using subordinates to evaluate employees’ performance, ________ must be

Answer Location: Common problems with the performance appraisal process

Cognitive Domain: Application

Learning Objective: 8-8

105. True or False. If something is valid it is a consistent measure.

Cognitive Domain: Knowledge

Answer Location: Who Should Assess Performance?

133. Explain three main reasons for conducting performance appraisals.

134. List and describe three distributional errors.

136. Why should managers use the critical incidents method?

137. What are the key problems with 360-degree evaluations?

Answer Location: 360 Degree Evaluations

143. Identify the necessary characteristics of accurate performance management tools.

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