40 Questions
What type of performance appraisal method compares an employee's performance directly with that of their peers?
Comparative method
What is the primary drawback of the ranking method?
It does not define the size of differences among individuals
What is the purpose of the essay appraisal method?
To describe an employee's actions
What is the forced distribution method?
A method that distributes ratings along a bell-shaped curve
What is the critical incident method used for?
To keep a record of favorable and unfavorable actions
What is the field review method?
A method that involves an outside reviewer in the rating process
What do narrative methods focus on?
Documenting and describing employee actions
What is the purpose of a ranking method?
To list employees from highest to lowest in performance
What is a potential issue with a results-based approach to measuring performance?
It may lead to an emphasis on measurable aspects at the expense of other important parts of the job.
What is a characteristic of a contaminated criterion?
It includes irrelevant aspects of the job.
Why is it important to use relevant criteria when measuring performance?
To focus on the most important aspects of the job.
What is a potential consequence of only measuring results in a job?
Employees may ignore important but unmeasurable aspects of the job.
What is an example of a subjective measure of performance?
A customer service representative's attitude.
What is a potential issue with using appearance as a criterion for measuring a telemarketing sales representative's performance?
It is not relevant to the job.
Why is it important to identify the most important aspects of an employee's job?
To focus on the most important aspects of the job when measuring performance.
What is an example of an objective measure of performance?
The number of calls handled properly.
What is a limitation of the graphic rating scale and checklist methods?
They are subjective and can be influenced by personal biases
What is the primary advantage of the graphic rating scale?
It is easy to use and understand
What is a common issue with the checklist method?
The words or statements may have different meanings to different raters
Who is typically responsible for tabulating the weights assigned to the statements in a checklist?
A member of the HR unit
What is the main purpose of a performance appraisal method?
To evaluate employee performance and provide feedback
What is a category of performance appraisal methods?
Category rating methods
Why can the checklist method be limiting in terms of providing feedback to employees?
Because the weights assigned to the statements are not known to the rating supervisor
What is a benefit of using a weighted checklist?
It makes the appraisal process more quantitative
What is the Field Review method of performance appraisal?
An outsider interviews the manager about each employee's performance
What is a limitation of the Field Review method?
All of the above
What is the primary goal of Behavioral/Objectives methods?
To overcome difficulties of other appraisal methods
What is Management by Objectives (MBO)?
A method that specifies performance goals for individuals
What is the main advantage of MBO?
It increases employee commitment and performance
What is a key assumption underlying MBO?
If an employee is involved in planning and setting objectives, a higher level of commitment and performance may result
What is another name for MBO?
Appraisal by Results
Who is primarily evaluated using MBO?
Mostly managers
What is the main problem with giving a student a course grade based only on their performance in the last week of class?
The student's grade may not be accurately reflected in the final course grade
What is central tendency error in performance appraisal?
Rating all employees within a narrow range, usually the middle or average
What is the difference between the leniency error and the strictness error?
Leniency error is rating employees too high, while strictness error is rating employees too low
What is an example of rater bias?
A manager rating employees based on their personal characteristics, such as age or ethnicity
How can the halo effect be prevented in performance appraisal?
By rating employees based on established standards
What is the purpose of having higher-level managers examine ratings?
To correct rater bias and ensure accurate ratings
Why is it important to establish standards for rating employees?
To ensure that employees are rated fairly and accurately
What is the contrast error in performance appraisal?
Rating employees without established standards
Study Notes
Performance Appraisal
- Performance appraisal is a systematic evaluation of an employee's job performance, aiming to improve performance, provide feedback, and make informed decisions.
Criteria for Performance Appraisal
- Results-based information considers what an employee has accomplished.
- Relevant criteria should be used, focusing on the most important aspects of an employee's job.
- Criteria can be contaminated if some important job duties are left out or irrelevant criteria are included.
Methods for Appraising Performance
- Category Rating Methods:
- Graphic Rating Scale: allows the rater to mark an employee's performance on a continuum.
- Checklist: composed of a list of statements or words, with varying weights assigned to each.
- Comparative Methods:
- Ranking: lists employees from highest to lowest in performance.
- Forced Distribution: ratings are distributed along a bell-shaped curve.
- Narrative Methods:
- Critical Incident: records both favorable and unfavorable actions in an employee's performance.
- Essay: a written description of an employee's performance during the rating period.
- Field Review: an outside reviewer becomes an active partner in the rating process.
- Behavioral/Objectives Methods:
- Behavioral Rating Approaches: assesses an employee's behaviors instead of other characteristics.
- Management by Objectives (MBO): specifies performance goals that an individual hopes to attain within a set time frame.
Errors in Performance Appraisal
- Central Tendency Error: rating all employees within a narrow range (usually the middle or average).
- Leniency Error: rating all employees at the high end of the scale.
- Strictness Error: rating all employees at the low end of the scale.
- Rater Bias: when a rater's values or prejudices distort the rating.
- Halo Effect: rating an employee high or low on all items because of one characteristic.
- Contrast Error: rating should be done using established standards.
Identifying and evaluating job performance metrics, including verbal persuasion and results-based approaches, with examples from sales representative roles.
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