Performance Appraisal

Question 1

Performance Management

Answer 1

The process of creating a work environment in which people can perform to the best of their abilities

Question 2

Performance evaluations/appraisals/reviews

Answer 2

The result of an annual or biannual process in which a manager evaluates an employee’s performance relative to the requirements of his or her job and uses the information to show the person where improvements are needed and why

Question 3

Criterion contamination

Answer 3

Elements that affect the appraisal measures that are not part of the actual performance (e.g. comparing salespeople across different geographic territories with different sales potential)

Question 4

Criterion deficiency

Answer 4

When a measure focus on only a single criterion (e.g. sales) to the exclusion of other important by less quantifiable dimensions (e.g customer service)

Question 5

Calibration

Answer 5

In PA, a process whereby managers meet to discuss the performance of individual employees to ensure that their employee evaluations are in line with one another

Question 6

Manager/Supervisor Evaluation

Answer 6

A performance evaluation done by an employee’s manager and often reviewed by a manager one level higher

Question 7

Self-evaluation

Answer 7

A performance evaluation done by an employee being evaluated, generally on an evaluation form completed by the employees prior to the evaluation meeting

Question 8

Subordinate evaluations

Answer 8

A performance evaluation of a superior by an employee, which is more appropriate for developmental rather than for administrative purposes

Question 9

Peer evaluation

Answer 9

A performance evaluation done by one’s fellow employees generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employee’s manager

Question 10

Team evaluation

Answer 10

A performance evaluation that recognizes team accomplishment rather than individual performance

Question 11

Customer evaluations

Answer 11

A performance evaluation that includes evaluation from both a firm’s external and internal customers

Question 12

360 degree-evaluations

Answer 12

A performance evaluation done by different people who interact with the employee, generally on forms compiled into a single profile for use in the evaluation meeting conducted by the employee’s manager

Question 13

Error of Central Tendency

Answer 13

A performance rating error in which all employees are rated about average

Question 14

Leniency/Strictness Error

Answer 14

A performance rating error in which the appraiser tends to give employees either unusually high or unusually low ratings

Question 15

Forced Distribution/Ranking

Answer 15

A performance ranking system whereby raters are required to place a certain percentage of employees into various performance categories

Question 16

Temporal (recency) error

Answer 16

A performance rating error in which the evaluation is based largely on the employee’s most recent behaviour rather than on behavior throughout the evaluation period

Question 17

Contrast error

Answer 17

Occurs when an employee’s evaluation is biased either upward or downward because of another employee’s performance

Question 18

Similar-to-me Error

Answer 18

A PR error in which an appraiser inflates the evaluation of an employee because of a mutual personal connection

Question 19

Trait Methods

Answer 19

Designed to measure the extent to which an employee possesses certain characteristics (e.g dependability, reactivity, initiative, and leadership) that are viewed as important for the job and the organization

Question 20

Graphic rating scales

Answer 20

A trait approach to performance rating whereby each employee is rated according to a scale of characteristics

Question 21

Mixed-standard scale method

Answer 21

A trait approach to performance rating similar to other scale methods but based on comparison with (better than, equal to, worse than) a standard

Question 22

Forced-choice method

Answer 22

A trait approach to performance rating that requires the rater to choose from statements designed to distinguish between successful and unsuccessful performance (The rater will not know which statement is linked to successful job behaviour; hopefully resulting in less bias)

Question 23

Essay Method

Answer 23

A trait approach that requires the rater to compose a statement describing employee behaviour

Question 24

Critical incident

Answer 24

An unusual event that denotes superior or inferior employee performance in some part of the job

Question 25

Behavioural Methods

Answer 25

Performance rating methods that describe which actions should or should not be exhibited on the job

Question 26

Behaviourally anchored rating scale (BARS)

Answer 26

A behavioural approach to performance rating that consists of a series of vertical scales, one for each important dimension of job performance - these should be anchored to behaviours identified through critical incident job analysis

Question 27

Behavioural checklist method

Answer 27

Requires the rater to check statements on a list that describes characteristics of employee’s behaviour

Question 28

Behaviour Observation Scale (BOS)

Answer 28

A behavioural approach to performance rating that measures the frequency of observed behaviour; also based on critical incident job analysis; often preferred over BARS

Question 29

Results methods

Answer 29

Focuses on evaluating employee accomplishments or results rather than on traits or behaviours

Question 30

Management by Objectives

Answer 30

A philosophy of management that rates the performance of employees based on their achievement of goals set mutually by them and their manager

Question 31

Guidelines of MBO

Answer 31

Objectives should be quantifiable and measurable; Expected results must be under the employee’s control; Firm goals must be aligned with employee goals; Time frames must be established