Chapter 7

Question 1

Goal-oriented process ensuring processes are in place to maximize productivity at the employee, team, and organizational levels.

Answer 1

Performance Management

Question 2

a formal system of review and evaluation of individual or team task performance.

Answer 2

Performance Appraisal

Question 3

Uses of Performance Appraisal

Answer 3

1. Human Resource Planning
2. Training and Development
3. Career Planning and Development
4. Compensation Programs
5. Internal Employee Relation
6. Assessment of Employee Potential

Question 4

In assessing a firm’s HR, data must be available to identify those who have the potential to be promoted or for any area of internal employee relations.

Answer 4

Human Resource Planning

Question 5

an ongoing process whereby an individual sets career goals and identifies the means to achieve them.

Answer 5

Career Planning

Question 6

a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed

Answer 6

Career Development

Question 7

PA results provide a basis for rational decisions regarding pay adjustments. Most managers believe that you should reward outstanding job performance tangibly with pay increases. They believe that the behaviors you reward are the behaviors you get.

Answer 7

Compensation Programs

Question 8

PA data are also used for decisions in several areas of internal employee relations, including:

Answer 8

promotion, demotion, termination, layoff, and transfer

Question 9

Establish Performance Criteria

Answer 9

• Traits
• Behaviors
• Competencies
• Goal Achievement
• Improvement Potential

Question 10

RESPONSIBILITY FOR PERFORMANCE APPRAISAL

Answer 10

• Immediate Supervisor
• Subordinates
• Peers and team members
• Self Appraisal
• Customer Appraisal

Question 11

360 – DEGREE FEEDBACK EVALUATION METHOD

Answer 11

Based on the reliance of multiple sources to provide information about an employee’s performance. Include senior managers, the employee himself or herself, a supervisor, subordinates, peers, team members, and internal or external customers.

Question 12

PERFORMANCE APPRAISAL PERIOD

Answer 12

either annually or semiannually

Question 13

PERFORMANCE APPRAISAL METHOD

Answer 13

1. Trait System
2. Comparison System
3. Behavioral System
4. Result Based System

Question 14

Raters to evaluate each employee’s traits or characteristics

Answer 14

Trait System

Question 15

highly subjective because they are based on the assumption that every supervisor’s perception of a given trait is the same.

Answer 15

Trait System

Question 16

evaluate a given employee’s performance against that of other employees. Employees are ranked from the best performer to the poorest performer.

Answer 16

Comparison Systems

Question 17

Performance appraisal method in which the rater is required to assign individuals in a work group to a limited number of categories, similar to a normal frequency distribution.

Answer 17

Forced distribution method

Question 18

Supervisors compare each employee to every other employee, identifying the better performer in each pair.

Answer 18

Paired Comparisons

Question 19

Two Types of Comparison Systems

Answer 19

a. Forced Distribution Method
b. Paired Comparisons

Question 20

Three Types of Behavioral System

Answer 20

a. Critical Incident Technique
b. Behaviorally anchored rating scale (BARS)
c. Behavioral observation scale (BOS)

Question 21

Performance appraisal method that requires keeping written records of highly favorable and unfavorable employee work actions.

Answer 21

Critical Incident Technique

Question 22

Performance appraisal method that combines elements of the traditional rating scale and critical incident methods; various performance levels are shown along a scale with each described in terms of an employee’s specific job behavior.

Answer 22

Behaviorally anchored rating scale (BARS)

Question 23

A specific kind of behavioral system for evaluating job performance by illustrating positive incidents (or behaviors) of job performance for various job dimensions.

Answer 23

Behavioral observation scale (BOS)

Question 24

Performance appraisal method in which the manager and subordinate jointly agree on objectives for the next appraisal period; in the past a form of management by objectives,

Answer 24

Result Based System

Question 25

performance appraisal method that compares each employee’s performance to a predetermined standard or expected level of output.

Answer 25

Work Standards Method

Question 26

PROBLEMS IN PERFORMANCE APPRAISAL

Answer 26

1. Appraiser’s Discomfort
2. Subjectivity of Performance Evaluations
3. Employee Anxiety

Question 27

Conducting PAs is often a frustrating task for managers. If a PA system has a faulty design, or improper administration, employees will dread receiving appraisals and the managers will despise giving them. Some managers have always loathed the time, paperwork, difficult choices, and discomfort

Answer 27

Appraiser Discomfort

Question 28

performance appraisals, differences between human judgment processes versus objective, accurate assessments uncolored by bias, prejudice, or other subjective, extraneous influences.

Answer 28

Rating Errors

Question 29

Types of Rating Errors

Answer 29

• Bias Errors
• Positive halo effect (or halo effect)
• Negative halo effect (or horn error)
• Illegal discriminatory bias
• Contrast Errors
• Central tendency error
• Leniency Error
• Strictness errors

Question 30

This may take the form of discontent, apathy, and turnover. In a worst-case scenario, a lawsuit is filed based on real or perceived unfairness. Opportunities for promotion, better work assignments, and increased compensation may hinge on the results.

Answer 30

Employee Anxiety

Question 31

evaluation errors that occur when the rater evaluates the employee based on a personal negative or positive opinion of the employee rather than on the employee’s actual performance

Answer 31

Bias Errors

Question 32

evaluation error that occurs when a manager generalizes one positive performance feature or incident to all aspects of employee performance, resulting in a higher rating.

Answer 32

Positive halo effect (or halo effect)

Question 33

evaluation error that occurs when a manager generalizes one negative performance feature or incident to all aspects of employee performance, resulting in a lower rating.

Answer 33

Negative halo effect (or horn error)

Question 34

a bias error for which a supervisor rates members of his or her race, gender, nationality, or religion more favorably than members of other classes.

Answer 34

Illegal discriminatory bias

Question 35

a rating error in which a rater (e.g., a supervisor) compares an employee to other employees rather than to specific explicit performance standards

Answer 35

Contrast Errors

Question 36

evaluation appraisal error that occurs when employees are incorrectly rated near the average or middle of a scale.

Answer 36

Central tendency error

Question 37

giving an undeserved high performance appraisal rating to an employee.

Answer 37

Leniency Error

Question 38

being unduly critical of an employee’s work performance.

Answer 38

Strictness Error