Title: Performance Management and Appraisal
Course: Question Banks

Q: Employee alignment, motivation, and development are the three primary purposes of:
- job design. (Incorrect. Job design is centered around employee engagement)
- job analysis. (Incorrect. The purpose of job analysis is to determine the competencies, job duties and conditions.)
- employee training programs. (Incorrect. Training programs are meant to help employees develop skills.)
- performance management. (Correct. Performance management is meant to accomplish those three things.)
A: performance management.

Q: Performance observations and feedback should be offered with what frequency?
- It should be offered monthly. (Incorrect. Monthly is certainly better than waiting longer between feedback intervals, but there’s a better option!)
- It should be offered as part of an annual appraisal process. (Incorrect. As author Daniel Pink said, “There’s no way to get better at something you only hear about once a year.”)
- It should be offered annually with a six-month check-in. (Incorrect. Many companies operate on this schedule, but informal feedback can be offered with even more frequency.)
- It should be offered as an ongoing process. (Correct. As author Daniel Pink said, “There’s no way to get better at something you only hear about once a year.”)
A: It should be offered as an ongoing process.

Q: Performance appraisals provide an administrative function by providing documentation for what processes?
- job analysis and creation of job descriptions. (Incorrect. There might be a thing or two to support these functions, but not too much!)
- job design and employee engagement (Incorrect. Performance management does help engagement, but that wouldn’t be its administrative function.)
- employee analysis and development (Incorrect. What is employee analysis, anyway?)
- employee disciplinary action and employee engagement (Correct. Performance appraisals, when written with regularity, support those functions.)
A: employee disciplinary action and employee engagement

Q: When establishing performance standards, the first step in the performance appraisal process, one should establish goals that are:
- SMART: simple, monitorable, achievable, reliable and timebound. (Incorrect. Are you sure that’s what SMART stands for?)
- SMART: simple, monitorable, achievable, relevant and time sensitive. (Incorrect. Employees wish their goals were simple, but they’re often not.)
- SMART: specific, measurable, achievable, reliable, and time sensitive. (Incorrect. Not all goals are time sensitive.)
- SMART: specific, measurable, achievable, relevant and timebound. (Correct. SMART goals are used by many companies as a way to measure employee performance.)
A: SMART: specific, measurable, achievable, relevant and timebound.

Q: Teresa is looking at Aleksander’s sales performance and measuring it against last year’s numbers, as well as what was budgeted. In which step of the process does this activity take place?
- measuring performance (Incorrect. Teresa is already aware of Aleksander’s performance; she’s moved on to another step.)
- establishing performance standards (Incorrect. Performance standards have been established if Aleksander is already being measured for them.)
- communicating performance standards (Incorrect. Hopefully this step has already taken place so Aleksander knows what he was responsible for producing.)
- comparing actual performance to performance standards (Correct. Teresa is looking at performance standards when considering John’s performance.)
A: comparing actual performance to performance standards

Q: A raise, promotion or corrective action is referred to as:
- an employee engagement tool. (Incorrect. Corrective action isn’t considered an engagement tool.)
- job reevaluation. (Incorrect. No job reevaluation is taking place as a part of these activities.)
- something that should be tabled until the next performance evaluation. (Incorrect. None of those actions should wait until the next evaluation!)
- personnel action. (Correct. The final step in the performance management process is to take action for the employee, either to reward or correct.)
A: personnel action.

Q: A form of performance appraisal that involves identifying primary job behaviors and developing a 3–7 point rating scale with which to rate them, and then also provides qualitative data. What type of appraisal does this describe?
- graphic rating scale appraisal (Incorrect. A graphic rating scale appraisal would include only quantitative data.)
- relative appraisal (Incorrect. Relative appraisals use comparative standards.)
- management by objective (Incorrect. In management by objective, goals are established at the top and cascaded down to employees, where they are translated into individual goals.)
- absolute appraisal (Correct. This is a BARS (behaviorally anchored rating scale) appraisal and it falls under the absolute appraisals.)
A: absolute appraisal

Q: Which absolute appraisal focuses on the essential behaviors that determine whether a task is done well or poorly?
- graphic rating scale (Incorrect. This one lists job behaviors, skills, competencies and results.)
- BARS (Incorrect. This type of appraisal combines critical incident and graphic rating scale styles.)
- management by objective (Incorrect. This is not a type of absolute appraisal.)
- critical incident (Correct. This is an intensive type of appraisal that requires the appraiser to have much attention to detail.)
A: critical incident

Q: The complexity of development and maintenance, with each position requiring a set of evaluation criteria and rating descriptions is the downfall of this absolute appraisal method:
- Graphic rating scale (Incorrect. The downside of this appraisal method is that it can be vague and subject to interpretation.)
- Critical incident (Incorrect. This type of appraisal requires a lot of detail and observation.)
- Management by objective (Incorrect. This is not a type of absolute appraisal.)
- BARS (Correct. This appraisal method combines both critical incident and graphic rating scale, and it’s a lot of work!)
A: BARS

Q: If the CEO wants to look at his leadership team and rank them by the 20/70/10 rule (where 20% is top performing and 10% is bottom performing), this is a form of what kind of appraisal?
- absolute appraisal (Incorrect. It can’t be absolute if employees are being compared to one another.)
- BARS (Incorrect. BARS is a type of appraisal that combines a rating scale with qualitative data.)
- management by objective (Incorrect. MBO is one that features employees that are measured on goals that have been cascaded from the top of the company.)
- relative appraisal (Correct. Ranking employees is a way of looking at them relative to one another.)
A: relative appraisal

Q: Which appraisal method remains controversial, as studies show employee performance can decline?
- paired comparison (Incorrect. This appraisal method is hard to do for lots of employees, though.)
- BARS (Incorrect. This appraisal method requires performance data as well as ranking, which resonates well for employees but can be cumbersome for the rater.)
- management by objective (Incorrect. There is really no formal appraisal attached to this approach.)
- ranking (Correct. Though Jack Welch swears by it, studies show that it’s not a motivating method.)
A: ranking

Q: An appraisal method that requires the evaluator to compare all their employees’ performance in each category individually, assigning a plus or a minus to indicate relative strength or weakness, is called:
- ranking (Incorrect. This appraisal method would require you to rank each employee against the others.)
- BARS (Incorrect. This appraisal combines critical incident and graphic ranking scale.)
- graphic ranking scale. (Incorrect. This appraisal ranks skills, not people against one another.)
- paired comparison (Correct. This appraisal method requires all the employees holding a position be compared to one another.)
A: paired comparison

Q: When performance objectives (evaluation criteria) are discussed and agreed to by management and employees, this is an approach called:
- absolute appraisal. (Incorrect. An absolute appraisal is one that uses quantitative and qualitative data to determine the performance of an individual.)
- relative appraisal. (Incorrect. A relative appraisal is one where you compare the employee’s performance to that of another.)
- a BARS appraisal. (Incorrect. A BARS appraisal features quantitative and qualitative data to rank an individual’s performance.)
- management by objective. (Correct. Management by objective is an approach that is more complicated but results in a higher level of employee buy-in.)
A: management by objective.

Q: Which method of performance evaluation has the potential to increase employee performance and organizational productivity?
- BARS (Incorrect. This combination of two absolute appraisals is not a demotivator, but it’s not noted to increase motivation.)
- ranking (Incorrect. Studies show that this type of appraisal is actually a demotivator.)
- Critical incident (Incorrect. This detail-heavy absolute appraisal method isn’t noted for its ability to motivate.)
- management by objective (Correct. It’s time consuming but serves as a motivator for employees.)
A: management by objective

Q: Alba is working on a project to establish new appraisal norms at her company. Why might she implement the management by objective method?
- MBO focuses employees and their managers on departmental versus organizational goals. (Incorrect. MBO cascades objectives from the organizational to the individual level so there is a clear connection between (and alignment of) individual and organizational goals.)
- MBO is simple to develop and implement. (Incorrect. One of the disadvantages of a MBO appraisal/management approach is that it is time-consuming to develop and maintain.)
- MBO allows management to retain control over the goal-setting and appraisal process. (Incorrect. MBO is a participative goal-setting process.)
- MBO is a participative objective and goal-setting process that may improve the clarity of expectations and increase employee buy-in and motivation. (Correct. MBO is a participative objective and goal-setting process that has been shown to increase employee performance and organizational productivity.)
A: MBO is a participative objective and goal-setting process that may improve the clarity of expectations and increase employee buy-in and motivation.

Q: What is the first step in presenting a performance appraisal?
- requesting that the employee complete a self-evaluation (Incorrect. Always a good idea, but not necessarily the first step.)
- developing your talking points (Incorrect. Planning what you’ll say at the meeting should come later down the line.)
- deciding on the desired outcome (Incorrect. Always good to have the end in mind, but other items come first.)
- scheduling an appraisal meeting in advance (Correct. Above all, an employee should know that the discussion is imminent and be able to plan for it.)
A: scheduling an appraisal meeting in advance

Q: Sebastián has requested his direct reports to complete a self-evaluation regarding their performances. Why is this a good idea?
- It will allow Sebastián extra time to prepare thoughts on each employee’s performance. (Incorrect. Sebastián can schedule each appraisal appointment to give as much time as needed, he doesn’t need to stall!)
- It will provide Sebastián with information he may have forgotten about each employee’s performance. (Incorrect. It’s true that an employee might bring up some key points, but Sebastián should already have a good idea about the outcome of the appraisal. conversation.)
- It allows each employee the opportunity to influence Sebastián’s final report. (Incorrect. While this could be true to a certain extent, that’s not the main reason for this part of the process.)
- It allows the employee to reflect and will give Sebastián a heads up on any differences of opinion. (Correct. This is an optional step, but always a good idea.)
A: It allows the employee to reflect and will give Sebastián a heads up on any differences of opinion.

Q: What should the evaluator do for the employee when conducting the performance appraisal?
- focus on personal issues as well as professional ones. (Incorrect. The evaluation should be focused on professional contributions only.)
- schedule the next feedback session right away. (Incorrect. Ideally, this discussion should be the springboard for the next review, but it’s not necessary to schedule it immediately.)
- conduct the discussion based on the employee’s self-review. (Incorrect. The discussion should be based on the evaluator’s paperwork.)
- provide a written copy of the appraisal (Correct. It’s also a good idea to give them an opportunity to review it before the discussion starts.)
A: provide a written copy of the appraisal

Q: What is it called when an evaluator allows one favored effect or work factor to affect the entire performance review?
- the horns effect (Incorrect. This is when an evaluator lets one bad effect or work factor affect the entire appraisal.)
- high potential error (Incorrect. This is where an evaluator confuses potential with performance)
- biased rating error (Incorrect. When an evaluator allows personal feelings to influence an employees appraisal, this is called a bias rating error.)
- the halo effect (Correct. This is one of the eleven perceptual errors Indiana University cited in performance appraisals.)
A: the halo effect

Q: What is it called when an evaluator confuses potential with performance?
- the halo effect (Incorrect. This is when an evaluator lets one favored effect or work factor affect the entire appraisal.)
- the recency error (Incorrect. This is when an evaluator who takes into account a recent performance episode instead of the whole evaluation period.)
- biased rating error (Incorrect. When an evaluator allows personal feelings to influence an employees appraisal, this is called a bias rating error.)
- high potential error (Correct. This is one of the eleven perceptual errors Indiana University cited in performance appraisals.)
A: high potential error

Q: One way to avoid errors in performance appraisals is to:
- avoid accurate ratings. (Incorrect. This would be the ultimate error.)
- schedule the appraisal in advance with the employee. (Incorrect. This is the first step in the appraisal process, but this will not help you avoid errors.)
- provide the employee with a written copy of the appraisal. (Incorrect. Always a good idea, but not something that will help you avoid errors.)
- rely on data and documentation you’ve compiled. (Correct. Data and documentation are key to avoiding errors.)
A: rely on data and documentation you’ve compiled.

Q: Avoiding hard conversations is often a source of errors in a performance appraisal. Which of the following is NOT a good tip for having a successful conversation?
- clarify your position without minimizing the other person’s position. (Incorrect. This is step #3 in avoiding an error, advocacy.)
- show you’ve heard what the other person is saying. (Incorrect. This is step #2 in avoiding an error, acknowledgement)
- begin building solutions. (Incorrect. This is step #4 in avoiding an error, problem-solving.)
- cultivate an attitude of professionalism (Correct. While one should approach all business with a professional attitude, what one should cultivate is an attitude of discovery and curiosity.)
A: cultivate an attitude of professionalism

Q: When conducting an evaluation and looking to be effective, a combination of caring personally and challenging directly is referred to as:
- Lenny Rachitsky’s Performance Management System (Incorrect. This is more of a “360” approach that allows managers to consider the feedback of other stakeholders.)
- The Halo Effect (Incorrect. This is an appraisal error, not an improvement for effectiveness.)
- performance management (Incorrect. This is basically true, but we’re looking for something that improves effectiveness.)
- radical candor (Correct. This is Kim Scott’s approach to improving appraisal effectiveness.)
A: radical candor

Q: To avoid overloading on development, Rachitsky suggests:
- showing that you can be a caring yet challenging manager. (Incorrect. This is Kim Scott’s radical candor.)
- focusing on having the hard conversation without errors. (Incorrect. This was not Rachitsky’s suggestion, though it’s always a good idea.)
- creating a relative appraisal, where you rank employees against others. (Incorrect. This is not necessarily a solution to overloading development.)
- highlighting employees’ “superpowers” and how they can leverage it (Correct. This helps employees see how they can use this unique capability further.)
A: highlighting employees’ “superpowers” and how they can leverage it