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HRM > Week 4 - Performance Management > Flashcards

Week 4 - Performance Management Flashcards

1
Q
  1. Performance Management Purposes

Cuppa Coffee is introducing a new performance management system with the dual goals of administrative accuracy and employee development. Which two roles must a manager balance in this system?

A. Judge and Coach
B. Director and Consultant
C. Administrator and Peer
D. Observer and Analyst

A

A

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2
Q
  1. Goal Setting and Employee Engagement

Harry, a sales representative at Adobe, is tasked with setting performance goals using the SMART framework. What advantage does Harry gain by being involved in setting these goals rather than being assigned them?

A. Harry becomes more motivated and persistent in achieving the goals.
B. Harry will be automatically promoted when he meets the goals.
C. Harry can negotiate for higher pay based on goal difficulty.
D. Harry’s work will not be monitored as closely.

A

A

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3
Q
  1. Absolute vs. Comparative Rating Methods

Sally’s manager at Cuppa Coffee is comparing her performance with other employees to decide on promotions. Which rating method is her manager likely using?

A. Behavioral Scales
B. Comparative Rating Method
C. Graphic Rating Scales
D. Central Tendency Error

A

B

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4
Q
  1. Comparative Methods – Forced Ranking

McDonald’s recently switched to a forced ranking system where only 20% of employees can be designated as top performers. What is one potential risk of using this method?

A. Employees will focus too much on teamwork.
B. Managers will find it easier to assess all employees as excellent.
C. Employee competition may lead to unethical behaviors.
D. It simplifies decisions about pay increases for all employees.

A

C

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5
Q
  1. Reducing Rater Errors

What common rater error occurs when a manager rates all employees too similarly regardless of their actual performance, often resulting in middle scores?

A. Severity Error
B. Leniency Error
C. Central Tendency Error
D. Halo Error

A

C

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6
Q
  1. Feedback Process at Cuppa Coffee

Sally’s manager provides her feedback on a monthly basis rather than waiting for an annual review. What is the main benefit of this approach?

A. It makes the performance review process quicker.
B. It allows for immediate feedback, leading to faster performance improvements.
C. It reduces the amount of paperwork required for annual reviews.
D. It avoids unnecessary communication between managers and employees.

A

B

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7
Q
  1. Performance Indicators – Objective vs. Subjective

Harry is a sales representative at Adobe who receives feedback on both the number of sales he makes (objective) and the quality of his customer interactions (subjective). What is the advantage of using both types of indicators in performance evaluations?

A. Objective indicators are easy to measure, while subjective indicators allow for manager discretion.
B. It provides a more complete picture of performance by balancing measurable outcomes with qualitative factors.
C. Objective indicators only apply to low-level employees, while subjective ones are for managers.
D. Subjective indicators increase the likelihood of salary raises.

A

B

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8
Q
  1. 360-Degree Feedback

Cuppa Coffee introduces a 360-degree feedback process where peers, subordinates, and customers provide input on employee performance. What is one main benefit of using 360-degree feedback?

A. It makes performance reviews quicker and more efficient.
B. It provides a broader and fairer assessment by gathering multiple perspectives.
C. It eliminates the need for managers to provide any feedback themselves.
D. It allows employees to anonymously criticize their managers.

A

B

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9
Q
  1. Evaluating Performance for Administrative Decisions

Cargill introduced an “Everyday Performance Management” system, eliminating annual reviews in favor of daily conversations. Why is this shift particularly useful for making administrative decisions such as bonuses?

A. Managers can provide employees with daily promotions based on performance.
B. It increases opportunities for bonuses, as they can be awarded more frequently.
C. It reduces the chance of employees receiving inaccurate yearly ratings.
D. Daily conversations ensure performance is continuously monitored and assessed.

A

C

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10
Q
  1. Rater Accountability

At Goldman Sachs, managers are required to justify their performance ratings to their superiors. What is the main impact of such accountability on the accuracy of performance evaluations?

A. Managers are less likely to provide positive feedback.
B. Managers are more attentive and thorough in their evaluations.
C. It decreases the frequency of performance reviews.
D. Employees lose trust in the performance management system.

A

B

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11
Q
  1. Developing Employee Performance

Sally’s manager at Adobe is preparing for her performance development review. What is one important factor in ensuring Sally perceives her performance feedback as fair?

A. The manager should avoid giving any negative feedback.
B. The manager should focus only on past mistakes.
C. The feedback should focus on both past performance and future development opportunities.
D. The feedback should come from multiple sources, such as peers.

A

C

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12
Q
  1. Common Rater Errors

Which of the following describes the halo effect in performance management?
A. A manager rates an employee’s overall performance highly due to one outstanding trait or accomplishment.
B. A manager rates all employees similarly regardless of actual performance.
C. A manager only evaluates an employee based on their most recent performance.
D. A manager rates an employee negatively based on their comparison to a better-performing colleague.

A

A

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13
Q
  1. What are the two main functions of performance management?

A. Disciplinary and developmental
B. Administrative and disciplinary
C. Administrative and developmental
D. Developmental and promotional

A
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14
Q
  1. Which of the following is an administrative purpose of performance management?

A. Providing feedback to help an employee improve
B. Promoting an employee based on performance
C. Identifying training needs for future development
D. Establishing long-term career goals for the employee

A
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15
Q
  1. Which of the following is a developmental purpose of performance management?

A. Deciding on pay raises
B. Making layoff decisions
C. Giving feedback to improve future performance
D. Deciding on employee promotions

A
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16
Q
  1. What does the “SMART” in SMART goals stand for in the context of performance management?

A. Standard, Measurable, Accurate, Relevant, Time-bound
B. Specific, Measurable, Attainable, Relevant, Time-bound
C. Simple, Measurable, Achievable, Realistic, Time-bound
D. Structured, Measurable, Attainable, Realistic, Transparent

A
17
Q
  1. Which of the following is NOT a component of SMART goals?

A. Specific
B. Measurable
C. Attainable
D. Incentive-based

A
18
Q
  1. Which of the following is a key characteristic of absolute rating methods?

A. Employees are ranked against each other
B. Employees are evaluated against a fixed standard
C. Employees are rated only by peers
D. Employees are given bonuses based on their rank

A
19
Q
  1. Graphic rating scales and behavioral observation scales are examples of which performance management method?

A. Absolute rating methods
B. Comparative rating methods
C. Developmental rating methods
D. Standardized performance methods

A
20
Q
  1. Which of the following describes a comparative rating method?

A. Employees are rated on a scale based on behaviors
B. Employees are ranked relative to each other
C. Employees are rated on their potential future performance
D. Employees are rated against a set of predefined standards

A
21
Q
  1. Which method of performance management often leads to competition among employees and can drive unethical behaviors?

A. Absolute rating methods
B. Comparative rating methods
C. Developmental rating methods
D. Graphic rating scales

A
22
Q
  1. What is a potential drawback of using graphic rating scales in performance management?

A. They are expensive and time-consuming to develop
B. They require constant recalibration with every evaluation
C. They can lead to biases because the “standards” exist in the mind of the rater
D. They make it difficult to rate employees across different roles

A
23
Q
  1. Which of the following errors occurs when a manager gives all employees similar ratings, regardless of their actual performance?

A. Leniency error
B. Severity error
C. Central tendency error
D. Halo error

A
24
Q
  1. What is the halo error in performance management?

A. Rating an employee too highly due to one positive trait
B. Rating an employee based on the most recent performance only
C. Rating all employees similarly due to central tendencies
D. Rating employees harshly to avoid favoritism

A
25
Q
  1. Which error occurs when a manager rates employees based only on their most recent performance, rather than their performance over the entire review period?

A. Recency error
B. Severity error
C. Halo error
D. Contrast error

A
26
Q
  1. In performance management, what is the purpose of 360-degree feedback?

A. To provide feedback from only the employee’s manager
B. To provide feedback from a variety of sources, including peers, subordinates, and customers
C. To rank employees based on their overall performance
D. To limit feedback to only objective performance metrics

A
27
Q
  1. Which of the following is a key benefit of continuous feedback, such as in Cargill’s “Everyday Performance Management” system?

A. It reduces paperwork needed for formal reviews
B. It increases the likelihood of positive feedback only
C. It allows for immediate course correction and improvements
D. It eliminates the need for comparative rating methods

A
28
Q
  1. Why is it important for feedback to be balanced in performance management?

A. It allows managers to avoid giving negative feedback.
B. It ensures that employees receive only positive feedback.
C. It combines positive and constructive feedback to improve employee development.
D. It reduces the need for regular performance reviews.

A
29
Q
  1. What is one advantage of using behavioral observation scales (BOS) over graphic rating scales?

A. BOS are more general and apply to multiple roles
B. BOS provide specific behavioral feedback, which is perceived as fairer by employees
C. BOS are less time-consuming to develop
D. BOS are used mainly for administrative purposes

A
30
Q
  1. What is the purpose of “frame-of-reference training” in performance management?

A. To help employees understand how to rate their own performance
B. To help raters establish consistent benchmarks for evaluating performance
C. To increase the frequency of performance reviews
D. To allow managers to avoid giving negative feedback

A
31
Q
  1. Which method is more likely to result in competition and distrust among employees if not managed properly?

A. Absolute rating methods
B. Comparative rating methods
C. Behavioral observation scales
D. Graphic rating scales

A
32
Q
  1. What is one advantage of holding raters accountable for their performance evaluations?

A. It reduces the need for regular performance reviews
B. It increases the accuracy of performance ratings
C. It eliminates the chance of central tendency error
D. It encourages leniency in feedback

A
33
Q
  1. Which of the following is a common drawback of using forced ranking systems in performance management?

A. Employees tend to perform poorly over time
B. It fosters an atmosphere of competition rather than collaboration
C. It reduces the number of employees eligible for bonuses
D. It encourages all employees to be ranked as top performers

A
34
Q
  1. In which of the following methods is an employee compared directly with others to determine their rank within the organization?

A. Graphic rating scale
B. Behavioral observation scale
C. Forced distribution
D. 360-degree feedback

A
35
Q
  1. What is a benefit of using absolute rating methods in performance evaluation?

A. Employees are compared to each other
B. It’s easier to evaluate multiple jobs using the same scale
C. It fosters competition between employees
D. Employees must meet the company’s overall performance benchmark

A
36
Q
  1. Which of the following is a common issue with rating employees using graphic rating scales?

A. Ratings are influenced by the personal biases of the rater
B. The scale is too specific to apply across different roles
C. The scales are too expensive to develop
D. They lead to more accurate evaluations than behavioral scales

A
37
Q
  1. Why is accountability important in the performance management process?

A. It allows managers to compare employee performance to others.
B. It encourages more effort and attention to accuracy in performance evaluations.
C. It reduces the number of performance reviews needed annually.
D. It allows for leniency and flexibility in providing feedback.

A

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