Human Resource Management, 15e (Dessler) Chapter 9 .

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Human Resource Management, 15e (Dessler)Chapter 9 Performance Management and Appraisal1) Which of the following terms refers to the process of evaluating an employee's current and/orpast performance relative to his or her performance standards?A) employee selectionB) performance appraisalC) employee orientationD) organizational developmentAnswer: BExplanation: B) Performance appraisal means evaluating an employee's current and/or pastperformance relative to his or her performance standards. Performance appraisal always involvessetting work standards, assessing the employee's actual performance relative to those standards,and providing feedback to the employee.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.2) The primary purpose of providing employees with feedback during a performance appraisal isto motivate employees to .A) apply for managerial positionsB) remove any performance deficienciesC) revise their performance standardsD) enroll in work-related training programsAnswer: BExplanation: B) The purpose of providing feedback to the employee is to motivate him or her toeliminate performance deficiencies or to continue to perform above par.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.1Copyright 2017 Pearson Education, Inc.

3) Which of the following is NOT one of the recommended guidelines for setting effectiveemployee goals?A) creating specific goalsB) assigning measurable goalsC) administering consequences for failure to meet goalsD) encouraging employees to participate in setting goalsAnswer: CExplanation: C) Effective goals should be specific, measurable, attainable, relevant, and timely.Goals should be challenging but doable, and employee participation should be encouraged.Giving consequences for failing to meet goals is not recommended and unlikely to motivateemployees.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.4) SMART goals are best described as .A) specific, measurable, attainable, relevant, and timelyB) straightforward, meaningful, accessible, real, and testedC) strategic, moderate, achievable, relevant, and timelyD) supportive, meaningful, attainable, real, and timelyAnswer: AExplanation: A) The acronym SMART stands for specific, measurable, attainable, relevant, andtimely.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.5) All of the following are reasons for appraising an employee's performance EXCEPT.A) correcting any work-related deficienciesB) creating an organizational strategy mapC) determining appropriate salary and bonusesD) making decisions about promotionsAnswer: BExplanation: B) Most employers still base pay and promotional decisions on the employee'sappraisal. Appraisals also let the boss and subordinate develop a plan for correcting anydeficiencies, and serve a useful career planning purpose. Creating a strategy map is not a likelypurpose for conducting a performance appraisal.Difficulty: HardChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.2Copyright 2017 Pearson Education, Inc.

6) In most organizations, who is primarily responsible for appraising an employee'sperformance?A) employee's direct supervisorB) company appraiserC) human resources managerD) employee's subordinatesAnswer: AExplanation: A) The supervisor—not HR—usually does the actual appraising, and a supervisorwho rates his or her employees too high or too low (or all average) is doing a disservice to themand to the company. Subordinates rate supervisors in some organizations, but the upwardfeedback is not the primary appraisal of the supervisor.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.7) Which of the following is most likely NOT a role played by the HR department in theperformance appraisal process?A) conducting appraisals of employeesB) monitoring the appraisal system's effectivenessC) providing performance appraisal training to supervisorsD) ensuring the appraisal system's compliance with EEO lawsAnswer: AExplanation: A) Supervisors, rather than HR managers, conduct the actual appraisals. However,the HR department monitors the system's effectiveness and compliance with EEO laws. HRmanagers also provide supervisors with tools, advice, and training in regards to performanceappraisals.Difficulty: HardChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.3Copyright 2017 Pearson Education, Inc.

8) What is the first step of any performance appraisal?A) giving feedbackB) setting work standardsC) making plans to provide trainingD) assessing the employee's performanceAnswer: BExplanation: B) Performance appraisal always involves the three-step performance appraisalprocess: (1) setting work standards, (2) assessing the employee's actual performance relative tothose standards, and (3) providing feedback to the employee with the aim of helping him or herto eliminate performance deficiencies or to continue to perform above par.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.9) means making sure that the manager and the subordinate agree on the subordinate'sjob standards and the appraisal method to be used.A) SMART goalsB) Organizational developmentC) Defining the jobD) Forced distributionAnswer: CExplanation: C) Defining the job means making sure that you and your subordinate agree on hisor her duties and job standards and on the appraisal method you will use.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.10) Who is in the best position to observe and evaluate an employee's performance for thepurposes of a performance appraisal?A) customersB) rating committeesC) top managementD) immediate supervisorAnswer: DExplanation: D) Supervisors' ratings are the heart of most appraisals. The supervisor usually isin the best position to evaluate the subordinate's performance and is responsible for that person'sperformance.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.4Copyright 2017 Pearson Education, Inc.

11) Employee performance appraisals are conducted by all of the following EXCEPT .A) peersB) competitorsC) subordinatesD) rating committeesAnswer: BExplanation: B) Performance appraisals are primarily performed by supervisors. However, firmsare increasingly using peers, rating committees, and subordinates to conduct appraisals.Competitors are not used for performance appraisals.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.12) Peer appraisals have been shown to result in a .A) reduction of social loafingB) reduction of group cohesionC) decrease in task motivationD) decrease in group satisfactionAnswer: AExplanation: A) Peer appraisals have been shown to improve social loafing, group viability,cohesion, task motivation, and satisfaction. Employees are often motivated to meet theexpectations of their colleagues.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.13) In most firms, a rating committee used for performance appraisals consists ofmembers.A) 2-3B) 4-5C) 6-8D) 9-10Answer: BExplanation: B) A rating committee usually consists of the employee's immediate supervisorand three or four other supervisors.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.5Copyright 2017 Pearson Education, Inc.

14) What usually occurs when employees rate themselves for performance appraisals?A) Ratings are reliable but invalid.B) Ratings are subject to halo effects.C) Ratings are higher than when provided by supervisors.D) Ratings are about the same as when determined by peers.Answer: CExplanation: C) Employees usually rate themselves higher than they are rated by supervisors orpeers. Self-ratings are neither reliable nor valid in most cases.Difficulty: HardChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.15) Which of the following terms refers to the process of allowing subordinates to rate theirsupervisor's performance anonymously?A) supplemental evaluationB) upward feedbackC) paired evaluationD) peer evaluationAnswer: BExplanation: B) Many employers let subordinates anonymously rate their supervisor'sperformance, a process some call upward feedback. The process helps top managers diagnosemanagement styles, identify potential "people" problems, and take corrective action withindividual managers as required.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.16) According to research, what is the typical result of upward feedback?A) Firms are protected against biased appraisals.B) Managers get defensive.C) Managers improve their performance.D) Managers seek to find out who gave them bad ratings.Answer: CExplanation: C) The evidence suggests that upward feedback improves managers' performance.One study focused on 252 managers during five annual administrations of an upward feedbackprogram. Managers who were initially rated poor or moderate "showed significant improvementsin [their] upward feedback ratings over the five-year period."Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.6Copyright 2017 Pearson Education, Inc.

17) Which of the following terms refers to a performance appraisal based on surveys from peers,supervisors, subordinates, and customers?A) 360-degree feedbackB) team appraisalsC) upward feedbackD) rating committeeAnswer: AExplanation: A) Many firms expand the idea of upward and peer feedback into "360-degreefeedback." Here ratings are collected "all around" an employee, from supervisors, subordinates,peers, and internal or external customers.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.18) Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. Thefirm has nearly 80,000 employees in 22 countries. Employees receive annual performanceappraisals from their supervisors that combine critical incidents with a graphic rating scale.However, the firm's CEO advocates shifting from performance appraisals to performancemanagement in an attempt to make Oshman more competitive and performance driven.Which of the following, if true, best supports the argument to replace Oshman's traditionalappraisal methods with the performance management approach?A) Oshman's competitors in the small appliance industry monitor the performance of theiremployees through electronic performance monitoring systems.B) Oshman executives want to align the firm's strategic plan with individual employee goals anddevelopment needs.C) Oshman has experienced problems associated with central tendency and bias, and the firmwants to ensure that appraisals are legally sound.D) Oshman uses management by objectives as a primary appraisal method and requiressupervisors to develop SMART goals.Answer: BExplanation: B) Performance management refers to the continuous process of aligning theperformance of individuals and teams with an organization's goals. Performance managementdoes not necessarily eliminate problems like central tendency and bias. Instead, the approachfocuses on monitoring an employee's performance and making sure it matches the needs of thefirm.Difficulty: HardChapter: 9Objective: 2AACSB: Application of KnowledgeLearning Outcome: 9.1 Describe the performance appraisal process.7Copyright 2017 Pearson Education, Inc.

19) A performance appraisal is based on the assumption that an employee understood what his orher performance standards were prior to the appraisal.Answer: TRUEExplanation: The term "appraisal" assumes that the employees knew what their performancestandards were and that they received feedback required to remove performance deficiencies.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.20) Supervisors should provide employees with feedback, development, and incentives necessaryto help employees eliminate performance deficiencies or to continue to perform well.Answer: TRUEExplanation: Performance appraisal always involves setting work standards, assessing theemployee's actual performance relative to those standards, and providing feedback to theemployee with the aim of motivating him or her to eliminate performance deficiencies or tocontinue to perform above par.Difficulty: EasyChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.21) The third step of the performance appraisal process is to assess the employee's actualperformance relative to work standards.Answer: FALSEExplanation: The third step of the performance appraisal process is providing feedback to theemployee with the aim of helping him or her to eliminate performance deficiencies or tocontinue to perform above par.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.8Copyright 2017 Pearson Education, Inc.

22) In order to ensure that performance goals are challenging and relevant, Matthew, a marketingmanager, should independently set goals for his subordinates because participatively set goalsusually produce lower job performance.Answer: FALSEExplanation: Goals should be challenging but doable, and it is more effective for supervisorsand employees to work together at setting goals. Participatively set goals usually produce higherperformance.Difficulty: ModerateChapter: 9Objective: 1AACSB: Application of KnowledgeLearning Outcome: 9.1 Describe the performance appraisal process.23) Formal performance appraisals have been eliminated by almost all major firms and replacedby daily assessments by peers in addition to extensive training opportunities.Answer: FALSEExplanation: Conventional appraisals are still the norm, although many progressive employers,such as Toyota, have essentially eliminated formal appraisals. Appraisals at such firms mainlyinvolve having teammates continuously assessing each other, day-to-day. However, not allemployers can or necessarily would benefit from such systems, so formal appraisals remain themost common.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.24) The HR department monitors the performance appraisal system, but it is typically notinvolved in rating employees.Answer: TRUEExplanation: The human resources department serves a policy-making and advisory role butdoes not usually rate the performance of employees. It is the role of the supervisor to conduct aperformance appraisal. The human resource team should also be responsible for trainingsupervisors to improve their appraisal skills, for monitoring the appraisal system's effectiveness,and for ensuring that it complies with EEO laws.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.9Copyright 2017 Pearson Education, Inc.

25) In order to ensure that performance appraisals are effective, Felicia, a line supervisor, shouldmake sure to schedule a feedback session to address each subordinate's performance, progress,and future development plans.Answer: TRUEExplanation: An effective appraisal requires a feedback session. Here, you and the subordinatediscuss his or her performance and progress, and make plans for any development required.Difficulty: ModerateChapter: 9Objective: 1AACSB: Application of KnowledgeLearning Outcome: 9.1 Describe the performance appraisal process.26) Peer appraisals have been shown to have a negative effect on task motivation, cohesion, andjob satisfaction, so most organizations no longer use them.Answer: FALSEExplanation: Peer appraisals have been shown to have an immediate positive impact onimproving the perception of open communication, task motivation, social loafing, groupviability, cohesion, and satisfaction.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.27) Studies suggest that managers who receive upward feedback from identified subordinatesview the upward appraisal process more negatively than do managers who receive anonymousupward feedback.Answer: FALSEExplanation: Managers who receive feedback from subordinates who identify themselves viewthe upward appraisal process more positively than do managers who receive anonymousfeedback. However, subordinates (not surprisingly) are more comfortable giving anonymousresponses; those who have to identify themselves tend to provide inflated ratings.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.10Copyright 2017 Pearson Education, Inc.

28) Three hundred and sixty-degree feedback is generally used for development purposes ratherthan for pay increases.Answer: TRUEExplanation: With 360-degree feedback, ratings are collected "all around" an employee, fromsupervisors, subordinates, peers, and internal or external customers. Employers generally use thefeedback for development rather than for pay increases.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.29) As a manager, how can you set effective performance appraisal standards for youremployees? Explain your answer in a brief essay.Answer: Managers can set effective goals by following certain guidelines. Set SMART goals. These are specific, measurable, attainable, relevant, and timely. Assign specific goals. Employees who have specific goals usually perform better than thosewho do not. Assign measurable goals. Always try to express the goal in terms of numbers, and includetarget dates or deadlines. Assign challenging but doable goals. Make them challenging, but not so difficult that theyappear impossible or unrealistic. Encourage participation. Participatively set goals usually produce higher performance.Difficulty: ModerateChapter: 9Objective: 1AACSB: Application of KnowledgeLearning Outcome: 9.1 Describe the performance appraisal process.30) What are the essential steps of the performance appraisal process?Answer: The performance appraisal process itself contains three steps: 1) setting workstandards, 2) assessing the employee's actual performance relative to those standards, and 3)providing feedback.Difficulty: ModerateChapter: 9Objective: 1AACSB: Analytical ThinkingLearning Outcome: 9.1 Describe the performance appraisal process.11Copyright 2017 Pearson Education, Inc.

31) Which of the following is the easiest and most popular technique for appraising employeeperformance?A) alternation rankingB) graphic rating scaleC) forced distributionD) constant sum rating scaleAnswer: BExplanation: B) The graphic rating scale is the simplest and most popular method for appraisingperformance. A graphic rating scale lists traits and a range of performance values for each trait.The supervisor rates each subordinate by circling or checking t

AACSB: Analytical Thinking Learning Outcome: 9.1 Describe the performance appraisal process. 5) All of the following are reasons for appraising an employee's performance EXCEPT _. A) correcting any work-related deficiencies B) creating an organizational strategy

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