Chapter 8: Evaluating Employee Performance

Question 1

The nine (9) steps of the performance appraisal process.

Answer 1

1. Determine purpose of appraisal.
2. Identify environmental and cultural limitations.
3. Determine who will evaluate performance.
4. Select the best appraisal methods to accomplish goals.
5. Train raters.
6. Observe and document performance.
7. Evaluate performance.
8. Communicate appraisal results to employees.
9. Make personal decisions.

Question 2

The first and most crucial step in the performance appraisal process.

Answer 2

Short: Determine purpose of appraisal.

Long: Determine the objective of evaluating employee performance.

Question 3

Five (5) common objectives for performance appraisal.

Answer 3

1. Providing employee feedback and training.
2. Determining salary raises.
3. Making promotion decisions.
4. Making termination decisions.
5. Conducting personnel research.

Question 4

The most important use of performance evaluation.

Answer 4

To improve employee performance by providing feedback about what employees are doing right and wrong.

Question 5

The most common type of performance appraisal.

Answer 5

Supervisor rating.

Question 6

Also called “upward feedback”, this is an important component of a holistic feedback.

Answer 6

Subordinate feedback.

Question 7

These are current customers who have been enlisted by a company to periodically evaluate the service they receive. In exchange for their ratings, they get money and maybe a free meal.

Answer 7

Secret shoppers.

Question 8

This is allowing an employee to rate their own behavior and performance.

Answer 8

Self-appraisal.

Question 9

This trait-focused system concentrates on employee attributes such as dependability, honesty, and courtesy.

Answer 9

Trait-focused performance dimensions.

Question 10

These focus on the employee’s knowledge, skills, and abilities.

With these, it is easy to provide feedback and suggest the steps necessary to correct deficiencies.

Answer 10

Competency-focused performance dimensions.

Question 11

These are organized by the similarity of tasks that are performed.

Answer 11

Task-focused performance dimensions.

Question 12

This means to organize the appraisal on the basis of goals to be accomplished by the employee.

Answer 12

Goal-focused performance dimensions.

Question 13

Also known as “objective criteria”, this is another way to evaluate performance criteria.

Answer 13

Objective measures.

Question 14

Four (4) common types of objective measures.

Answer 14

1. Quantity of Work
2. Quality of Work
3. Attendance
4. Safety

Question 15

This objective measure is obtained by simply counting the number of relevant job behaviors that take place.

Answer 15

Quantity of Work.

Question 16

This objective measure is often measured in terms of the number of errors made.

Answer 16

Quality of Work.

Question 17

A common method for objectively measuring one aspect of an employee’s performance.

Has three (3) distinct criteria: absenteeism, tardiness, and tenure.

Answer 17

Attendance.

Question 18

This objective measure is used because employees who adhere to this do not cost the organization as much money as those who break rules, equipment, and even their own bodies.

Answer 18

Safety.

Question 19

Two (2) common variations of performance rating scale.

Answer 19

1. Graphic rating scale.
2. Behavioral checklist.

Question 20

A common method for objectively measuring one aspect of an employee’s performance, this consists of a list of behaviors, expectations, or results for each dimension.

Answer 20

Behavioral checklist.

Question 21

This is where documentation is typically recorded, which details formal accounts of the observed performance.

Answer 21

Critical incident log.

Question 22

Documentation is important for four (4) reasons.

Answer 22

1. Documentation forces a supervisor to focus on employee behaviors rather than traits.
2. Documentation helps supervisors recall behaviors when they are evaluating performance.
3. Documentation provides examples to use when reviewing performance ratings with employees.
4. Documentation helps an organization defend against legal actions taken against it by an employee who was terminated or denied a raise or promotion.

Question 23

This is where supervisors keep a record of observed critical employee behaviors (both positive and negative).

Answer 23

Supervisor’s log.

Question 24

These documented incidents inform performance appraisals and rating decisions.

Answer 24

Performance review use.

Question 25

The Formal Method of Employee Performance Record was developed by who?

Answer 25

Flanagan & Burns.

Question 26

Advantages of Formal Method.

Answer 26

1. Records only job-relevant behaviors.
2. Organized record for easy reference.

Question 27

Contamination; five (5) factors that might influence data.

Answer 27

1. Shift differences
2. Equipment variations
3. Training level
4. Coworker impact
5. Geographic location

Question 28

Data + Critical Incidents = ?

Answer 28

Strong appraisal basis.

Question 29

This occurs when supervisors misuse a rating scale, skewing employee evaluations.

Answer 29

Distribution errors.

Question 30

This error involves rating everyone high, regardless of performance.

Answer 30

Leniency error.

Question 31

This error involves rating everyone average, overlooking individual differences.

Answer 31

Central tendency error.

Question 32

This error involves rating everyone low, even high performers.

Answer 32

Strictness error.

Question 33

This is a cognitive bias that can distort employee evaluations, it occurs when a supervisor’s overall impression of an employee (positive or negative) influences their ratings on specific job dimensions.

Answer 33

Halo effect.

Question 34

This is when ratings are spaced out for different job dimensions to minimize the influence of a single impression.

Answer 34

Structured rating process.

Question 35

These arise during performance appraisals when a rating on one dimension unduly influences the rating on the immediately following dimension on the rating scale.

Answer 35

Proximity errors.

Question 36

This describes a situation where an employee’s performance rating is influenced by the previous evaluation of another employee or their own past performance.

Answer 36

Assimilation error / contrast errors.

Question 37

Another cognitive bias that impacts performance appraisals, this describes the tendency to give more weight to recent employee behaviors when evaluating their overall performance for a specific period (usually 6 months to 1 year).

Answer 37

Recency effect.

Question 38

This doctrine allows for termination without cause in most private sector jobs.

Answer 38

Employment-at-will doctrine.

Question 39

Difference in firing employees between the private sector and the public sector.

Answer 39

Private sector: Employers generally have freedom to fire employees at will, without needing a reason.

Public sector: Employees can typically only be fired for cause (misconduct, poor performance, etc.).

Question 40

This is a justification for at-will termination of private sector employees, which states that employees can also quit at any time.

Answer 40

Reciprocity.

Question 41

Disclaimers in job applications or handbooks that clarify at-will status and is usually recognized at court.

Answer 41

At-will statements.

Question 42

Four (4) legal reasons for terminating employees.

Answer 42

1. Probationary period
2. Violation of company rules
3. Inability to perform
4. Reduction in force (layoff)