Chapter 8: Performance Management and Appraisal

Question 1

What is performance management?

Answer 1

The process of identifying, measuring, managing, and developing the performance of the human resources in an organization.

Question 2

What is performance appraisal?

Answer 2

The ongoing process of evaluating employee performance.

Question 3

What are the steps to the performance appraisal process?

Answer 3

Step 1: Job analysis
Step 2: Develop standards and measurement methods
Step 3: Informal performance appraisal—Coaching and disciplining
Step 4: Prepare for and conduct the formal performance appraisal

Question 4

What are behavioral appraisals?

Answer 4

The actions taken by an individual. What individuals do at work, not their personal characteristics.

Question 5

What are trait appraisals?

Answer 5

The physical or psychological characteristics of a person.

Question 6

What are result appraisals?

Answer 6

Results: the measure of the goals achieved through a work process.

Question 7

What is the critical-incidents method?

Answer 7

A performance appraisal method in which a manager keeps a written record of the positive and negative performance of employees throughout the performance period.

Question 8

What is the management by objectives (MBO) method?

Answer 8

A process in which managers and employees jointly set objectives for the employees, periodically evaluate performance, and reward employees according to the results.

Question 9

What is the narrative method or form?

Answer 9

Method in which the manager is required to write a statement about the employee’s performance.

Question 10

What is the graphic rating scale form?

Answer 10

A performance appraisal checklist form on which a manager simply rates performance on a continuum, such as excellent, good, average, fair, and poor.

Question 11

What is the behaviorally anchored rating scale (BARS) form?

Answer 11

A performance appraisal that provides a description of each assessment along a continuum.

Question 12

What is the ranking method?

Answer 12

A performance appraisal method is used to evaluate employee performance from best to worst.

Question 13

What is a 360-degree evaluation?

Answer 13

An evaluation that analyzes individuals’ performance from all sides—from their supervisor’s viewpoint, from their subordinates’ viewpoint, from their customers (if applicable), from their peers, and from their own self-evaluation.

Question 14

What is a bias?

Answer 14

A personality-based tendency, either toward or against something.

Question 15

What is stereotyping?

Answer 15

Mentally classifying a person into an affinity group and then identifying the person as having the same assumed characteristics as the group.

Question 16

When does a halo error occur?

Answer 16

When the evaluator forms a generally positive impression of an individual and then artificially extends that general impression to many of that individual’s categories of performance that may be lower to create an overall evaluation of the individual that is positive.

Question 17

When does a severity or strictness error occur?

Answer 17

When the rater evaluates everyone or nearly everyone as below average.

Question 18

When does a Central tendency error occur?

Answer 18

When the rater evaluates everyone under their control as average.

Question 19

When does a leniency error occur?

Answer 19

When the rater evaluates everyone as above average.

Question 20

When does a similarity error occur?

Answer 20

When the rater gives better evaluations to subordinates who they consider more similar to themselves and poorer evaluations to subordinates who they consider to be different from themselves.

Question 21

When does a proximity error occur?

Answer 21

When similar marks may be given to items that are near (in other words, proximate to) each other on the performance appraisal form, regardless of differences in performance on those measures.

Question 22

When does a receny error occur?

Answer 22

When the rater uses only the last few weeks of a rating period as evidence when putting together performance ratings.

Question 23

When does a contrast error occur?

Answer 23

When the rater compares and contrasts performance between two employees, rather than using absolute measures of performance to assess each employee.

Question 24

When does an attribution error occur?

Answer 24

When the rater observes an employee action—such as an argumentative answer to a question—and assumes the individual has a negative attitude toward their job and is a poor performer.

Question 25

What does acceptability mean in performance appraisal?

Answer 25

It means that the use of the measure is satisfactory or appropriate to the people who must use it.

Question 26

On its own, the narrative method is commonly used when evaluating ______ instead of operative employees.

Answer 26

Professionals or executives

Question 27

The ultimate goal of performance management is to increase employee ______.

Answer 27

Engagement