Performance Appraisal Methods Quiz
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Questions and Answers

Who typically completes a rating scale to evaluate performance?

  • An External Consultant
  • The Immediate Supervisor (correct)
  • Subordinates
  • An Internal HR Specialist

Which option best describes subjective performance measures?

  • Ratings That Are Verifiable By Others
  • Ratings Based On Having Witnessed The Performance
  • Ratings Based On Opinion Or Perception (correct)
  • Ratings That Are Usually Quantitative

Which of these is FALSE about comparative evaluation methods for performance appraisals?

  • Forced Distributions
  • Behaviour Observation Scale
  • Management By Objectives (correct)
  • Performance Tests

After establishing the purpose of a performance appraisal system, what should be considered next?

<p>Transforming Organizational Objectives Into Measurable Outcomes (B)</p> Signup and view all the answers

Which appraisal approach is considered future-oriented?

<p>Management-By-Objectives (A)</p> Signup and view all the answers

Which of the following measures is NOT typically considered objective?

<p>Peer Reviews (B)</p> Signup and view all the answers

Which method is an example of a comparative performance evaluation?

<p>Behaviourally Anchored Rating Scales (D)</p> Signup and view all the answers

What is typically the first step in the performance appraisal process?

<p>Identifying Purpose of the Appraisal (A)</p> Signup and view all the answers

What is one purpose of conducting performance appraisals?

<p>To inform employee career development plans (A)</p> Signup and view all the answers

Which term describes the rater error when a supervisor's general opinion of an employee influences their specific performance rating?

<p>Halo effect (C)</p> Signup and view all the answers

What is the employee evaluation method that includes feedback from self, peers, supervisors, and subordinates?

<p>The 360-degree performance appraisal (D)</p> Signup and view all the answers

Who should be involved in determining performance indicators for a sound performance management program?

<p>Employees (A)</p> Signup and view all the answers

Which rater error involves giving unusually high ratings to all employees regardless of their actual performance?

<p>Leniency bias (C)</p> Signup and view all the answers

What is a key attribute of the Management-By-Objectives approach?

<p>Setting specific operational goals (D)</p> Signup and view all the answers

Which appraisal method measures performance based on documented significant events?

<p>The critical incident method (B)</p> Signup and view all the answers

In performance appraisals, what does the error of central tendency refer to?

<p>Rating most employees as average (D)</p> Signup and view all the answers

Which statement correctly describes the nature of a completed performance appraisal form?

<p>Is a legal document that proves job-related criteria were valid and used consistently (D)</p> Signup and view all the answers

Which performance evaluation method uses critical incidents and measures the frequency of those behaviors with scales ranging from high to low?

<p>The Behaviour Observation Scale (B)</p> Signup and view all the answers

What is a key characteristic of the 'linking up' approach in aligning organizational and individual goals?

<p>It allows for a direct line of sight between the individual goals and the organization's objectives (A)</p> Signup and view all the answers

Which of the following is considered a non-comparative performance evaluation method?

<p>Job Analysis (A)</p> Signup and view all the answers

Which characteristic associated with the 'linking up' approach can result in less redundancy in goal setting?

<p>There is a direct connection to overall business objectives (A)</p> Signup and view all the answers

Which of the following statements about the completed performance appraisal form is false?

<p>It must be submitted to the Provincial Labour Relations Board (C)</p> Signup and view all the answers

What is the primary focus of the Behaviourally Anchored Rating Scale?

<p>To measure based on specific behaviors with defined anchors (B)</p> Signup and view all the answers

Which of the following methods is associated with comparing employees against set criteria rather than against each other?

<p>The Rating Scale Method (D)</p> Signup and view all the answers

Which of the following are key benchmarks for performance appraisal systems?

<p>Performance Standards (A), A Competency Matrix (D)</p> Signup and view all the answers

Performance management systems should be:

<p>Simple and Practical (B)</p> Signup and view all the answers

Which objective should organizations strive to achieve in an effective performance management system?

<p>Justify HR decisions using documentation of performance (C)</p> Signup and view all the answers

The design of a performance appraisal process will depend on which of the following?

<p>The purpose of the performance appraisal system (C)</p> Signup and view all the answers

If a rater's performance ratings are generally lower for female employees than for male employees, which rater error is likely being committed?

<p>Personal Prejudice (B)</p> Signup and view all the answers

Which of the following should not be a common focus of performance management systems?

<p>Providing incentives for unrealistic goals (D)</p> Signup and view all the answers

What is a critical feature of an effective performance appraisal process?

<p>Continuous feedback mechanisms (C)</p> Signup and view all the answers

Which of the following describes the relationship between performance appraisals and employee career development?

<p>Appraisals can help identify strengths and weaknesses (C)</p> Signup and view all the answers

Which of the following is an indicator of how the salary of an employee relates to the midpoint of the relevant pay grade?

<p>The Compa-Ratio (A)</p> Signup and view all the answers

In a point system matrix, which of the following could represent components of the 'Working Conditions' factor?

<p>Hazards (A)</p> Signup and view all the answers

Which compensation strategy requires a common framework but not a one-size-fits-all solution?

<p>A Progressive Strategy (C)</p> Signup and view all the answers

Which of the following compensation philosophies pays rates lower than those of the relative marketplace?

<p>A Lag Strategy (B)</p> Signup and view all the answers

How long does data from wage salary surveys maintain market reliability?

<p>2 Years (C)</p> Signup and view all the answers

Which of the following would NOT be a component in determining direct compensation through job evaluation?

<p>Employee Tenure (D)</p> Signup and view all the answers

Which term describes a pay rate that is above the pay range for the position?

<p>Red-Circled Rate (B)</p> Signup and view all the answers

Which strategy aims to match the highest pay rates within the relevant marketplace?

<p>A Lead Strategy (C)</p> Signup and view all the answers

Which action should employers take to manage rising benefit costs effectively?

<p>Introduce separate maximums for each paramedical service (C)</p> Signup and view all the answers

What characterizes the Canada Pension Plan?

<p>A contributory plan mandatory for all self-employed persons and employees in Canada (C)</p> Signup and view all the answers

Which component is NOT part of identifying inefficiencies in benefit programs?

<p>Utilizing demographic data analysis (A)</p> Signup and view all the answers

What is a primary purpose of the Canada Pension Plan?

<p>To ensure a regular income for retirees based on contributions (D)</p> Signup and view all the answers

Which of the following audits specifically targets benefit inefficiencies?

<p>A benefit audit (B)</p> Signup and view all the answers

What is a misconception about employer health care spending accounts?

<p>Employers fully fund these accounts with no employee contribution. (D)</p> Signup and view all the answers

What should a benefits audit primarily assess?

<p>Cost-effectiveness and inefficiencies in the program (D)</p> Signup and view all the answers

What is a common characteristic of the Canada Pension Plan?

<p>Benefits are linked to a formula based on age and length of service. (D)</p> Signup and view all the answers

Flashcards

What is a performance appraisal form?

A performance appraisal form is a legal document that proves job-related criteria were used consistently and validly. It ensures accountability and serves as evidence in case of legal disputes.

What does the behaviorally anchored rating scale (BARS) use?

The behaviorally anchored rating scale (BARS) uses critical incidents and measures their frequency on a scale from high to low. It provides a strong foundation for performance appraisals.

What is the "linking up" approach?

The "linking up" approach aligns individual goals with organizational objectives directly, providing a clear line of sight between the two. This promotes a sense of purpose and contribution.

What is a non-comparative performance evaluation method?

A non-comparative performance evaluation method focuses on individual performance without comparing employees to others. It assesses skills, knowledge, and effort based on individual standards.

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What type of performance evaluation method is the rating scale method?

The rating scale method is a non-comparative performance evaluation method. It uses performance indicators and scales to assess employee performance. It offers a structured and quantitative approach.

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Who completes a rating scale?

The immediate supervisor typically completes the performance evaluation form using a rating scale. This practice ensures direct assessment of an employee's work by the person most familiar with their performance.

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What are subjective performance measures?

Subjective performance measures depend heavily on opinions, perceptions, and interpretations. Instead of objective metrics, these evaluations rely on a person's individual judgment about an employee's performance.

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What are comparative evaluation methods?

Comparative evaluation methods compare employees against each other instead of using absolute standards. This approach ranks employees based on their relative performance within a specific group.

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What are forced distributions?

Forced distributions are a type of comparative performance appraisal where employees are ranked according to a predetermined distribution curve. This means only a certain percentage of employees can fall into each performance category.

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What's the next step after defining the purpose of a performance appraisal system?

After setting the purpose of a performance appraisal system and linking it to organizational objectives, the next step is to translate those objectives into measurable outcomes. This process ensures that the appraisal system aligns with the organization's goals and can be effectively used to assess progress.

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What appraisal approach is future-oriented?

Management-by-Objectives (MBO) is a future-oriented appraisal approach that focuses on goals and outcomes. It encourages collaboration between managers and employees to set clear goals and develop actionable plans for achieving those goals.

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What's a key purpose of performance appraisals?

Performance appraisals help guide employees in their career paths by identifying strengths, weaknesses, and potential areas for development. They provide feedback for improvement and assist in setting future goals.

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What error occurs when a supervisor's personal opinion impacts performance evaluation?

When a supervisor lets their personal feelings about an employee influence their performance evaluation, it's called personal prejudice. This bias can lead to unfair and inaccurate assessments.

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Which appraisal method uses feedback from various sources?

The 360-degree performance appraisal gathers feedback from multiple sources, including the employee themselves, peers, supervisors, and even subordinates. This comprehensive approach provides a well-rounded view of performance.

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Who should be involved in defining performance indicators?

Effective performance management requires input from all involved parties. Employees should participate in defining performance indicators to ensure they are relevant, achievable, and understood.

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What are Performance Standards?

Performance standards are crucial metrics that outline the expected levels of performance for specific roles, tasks, or objectives within an organization. They provide a clear framework for measuring individual and team performance against predefined goals.

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What is a Competency Matrix?

A competency matrix is a table that lists a specific set of skills, knowledge, and abilities (competencies) needed for various roles or job levels within a company. It helps assess and develop employees by matching their skills with the demands of their positions.

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What are the Characteristics of an Effective Performance Management System?

Performance management systems should be straightforward, practical, and forward-looking. They should be easy to use, provide real-world value, and proactively guide employee development and performance.

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Why are Performance Appraisals Used?

Performance appraisals are designed to serve a variety of purposes, including: providing feedback to employees, identifying training needs, making promotion decisions, and documenting performance for legal reasons. They are an important tool for improving employee performance and achieving organizational goals.

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How do Performance Management Systems Support HR Decisions?

One of the key objectives of a well-functioning performance management system is to gather concrete evidence of performance to support HR decisions. This ensures fairness, transparency, and accountability in employee-related decisions.

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What Influences the Design of a Performance Appraisal System?

The design of a performance appraisal process should be tailored to the specific objectives of the organization. This means considering the organization's goals, values, and the roles of the employees involved.

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What is a Potential Rater Error if an Evaluator Rates Female Employees Lower?

If a performance rating is consistently lower for female employees compared to male employees, it suggests the rater might be exhibiting personal prejudice in their assessments. This is a serious issue that needs to be addressed to ensure fairness and equity in performance evaluations.

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What is a compa-ratio?

The compa-ratio is a compensation metric that compares an employee's current salary to the midpoint of their relevant pay grade. It reflects how well an employee's pay aligns with the company's pay structure.

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What are 'working conditions' in a point system?

In a point system job evaluation, 'Working Conditions' factors assess the environmental aspects of the job, including potential hazards, safety risks, and overall comfort level. These factors do not directly relate to the skills, responsibility, or effort required for the position.

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What is a compensation philosophy?

A compensation philosophy lays out the overall approach to employee compensation within an organization. It clarifies the company's values and priorities regarding employee pay, ensuring a consistent and fair framework for salary decisions.

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What is a lag compensation strategy?

A lag strategy in compensation involves paying employees below the average market rate. This approach may be chosen to conserve costs or to focus on other aspects of employee benefit.

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What is a lead compensation strategy?

A lead compensation strategy aims to attract and retain top talent by paying above-market wages and providing high-quality benefits. This approach can be costly but helps to ensure competitiveness in the talent market.

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What is wage compression?

Wage compression occurs when there is a small differential between the salaries of employees at different levels within a company, often leading to dissatisfaction among more experienced employees.

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What is a red-circled rate?

A red-circled rate refers to an employee's salary that is above the maximum range for their job grade. This situation may arise due to promotions or historical pay practices.

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What is market pricing in compensation?

Market pricing involves using external data, such as salary surveys, to determine a competitive salary range for each job. This approach ensures that salaries are aligned with the market value of similar positions.

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What is a benefit audit?

A type of audit that examines the efficiency and effectiveness of employee benefit programs, identifying areas to improve cost control and program design.

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What is a preferred provider organization (PPO)?

A type of health insurance plan that aims to control healthcare costs by encouraging employees to seek cheaper and more efficient services like generics or one-month prescription refills.

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What is a human resources audit?

It involves a thorough review of all human resource functions and policies, analyzing areas like recruitment, compensation, benefits, and training to identify potential improvements and areas for cost-effectiveness.

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Describe a contributory pension plan.

A plan that requires both employees and employers to contribute financially, ensuring coverage for retirement and disability benefits.

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What is the BARS method?

This approach to performance appraisal methods uses specific examples of effective and ineffective behaviors to create a scale for evaluating performance.

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Describe defined contribution pension plan.

A pension plan where the contributions are used to invest in secured funds, providing a regular income for retirees based on the performance of these investments.

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What is the purpose of introducing separate maximums for paramedical services?

It aims to control excessive healthcare costs by setting individual limits for specific medical services, encouraging more cost-conscious choices.

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Describe a defined benefit pension plan.

A plan that provides a predetermined benefit amount for retirees based on their age and years of service, guaranteeing a specific payment regardless of the fund's performance.

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Study Notes

Multiple Choice Questions

  • Question 44: A competency framework defines the skills needed for employees to add value to the business.

  • Question 45: Strategic Human Resource Development involves familiarizing employees with roles, identifying essential job skills, and looking for growth opportunities.

  • Question 46: Using "desirable behaviour" as a development strategy reinforces appropriate management styles.

  • Question 47: Human Resource Departments are involved in employee career planning to tap employee potential and reduce hiring costs.

  • Question 48: Employees use outcome measures like work-life balance to evaluate career success.

  • Question 49: Counselors must encourage employees to assess themselves and their environment to raise awareness of career options.

  • Question 50: Cost-effectiveness is one of several factors to consider when selecting training techniques.

  • Question 51: Behavioural developmental strategies aim to change employee attitudes and values.

  • Question 52: Cross-cultural and diversity training are both part of the employee development strategy.

  • Question 53: An asynchronous digital delivery method allows learning materials to be accessed anytime, regardless of trainer or trainee presence.

  • Question 54: The reaction criterion in training evaluation assesses the overall organizational results and benefits of a program.

  • Question 55: The first step in any training program is to assess the organization's needs.

  • Question 56: A needs assessment in training involves diagnosing challenges through analysis of the workforce.

  • Question 57: Decision-making, interpersonal, and problem-solving skills are considered critical for success in current and future jobs.

  • Question 58: Using instruments like behavioral modelling and mentoring indicates a developmental strategy based on behavioral and environmental approaches.

  • Question 59: An employer hiring workers occasionally should deliver orientation programs online.

  • Question 60: HR's involvement in employee career planning improves employee growth.

  • Question 61: Knowledge management is defined as capturing, distributing, and effectively using knowledge.

  • Question 62: Career counselling and job posting processes raise employment awareness.

  • Question 63: Employee orientation often covers benefits, duties, and regulations.

  • Question 64: On-the-job training techniques include job labs, job rotation, role-playing, and case studies.

  • Question 65: Cross-training employees through various jobs within the organization is called job rotation.

  • Question 66: Organizational results, using self-reports and observations, are criteria for training evaluation.

  • Question 67: Environmental strategies use tools like videos, job rotation, coaching, mentoring, and team building for employee development.

  • Question 68: Cost-benefit analysis, cognitive, behavioural, and environmental approaches are used to evaluate training program effectiveness.

  • Question 69: Needs assessment recommends training when procedures change or staff seems demotivated to improve performance.

  • Question 70: Proper onboarding reduces disciplinary issues and increases employee stability.

  • Question 71: Criteria for evaluating training programs are useful if they can be directly linked to the training program itself rather than just reactions.

  • Question 72: Employee career planning improves their likelihood of setting goals.

  • Question 73: Poor onboarding can increase employee anxiety, labour grievances, and reduce organizational stability.

  • Question 74: Job hopping describes employees changing employers as part of a career strategy.

  • Question 75: Employability, engagement, and psychological factors are learning principles.

  • Question 76: Making jobs more meaningful, focusing on employee progress through feedback, and engaging in new tasks aid in career development.

  • Question 77: Acceptable performance criteria and revised job descriptions should be stated in training objectives.

  • Question 78: Case studies, simulations, and programmed learning are examples of developmental strategies and off-the-job training techniques.

  • Question 79: Socialization is the process where new employees understand and accept organizational values, norms, and beliefs.

  • Question 80: Onboarding is a strategically aligned process to adjust new hires to job roles and company culture.

  • Question 81: Onboarding activities include hiring and socialization processes to support employee growth.

  • Question 82: Succession planning addresses unexpected vacancies in key positions.

  • Question 83: Senior managers and supervisors often act as coaches.

  • Question 84: Using tests at the start and end of a training program, or measuring costs are methods for measuring whether a training program is effective.

  • Question 85: A valid training program focuses on developing competencies and skills for a future role in the organization.

  • Question 86: Flight simulators demonstrate training relevance by replicating the actual cockpit.

  • Question 87: A lateral transfer moves the employee to a different position in the same class.

  • Question 88: Identifying barriers and linking competencies are steps succeeding the needs assessment.

  • Question 89: Determining resources and supporting employees during training, identifies the correct steps in establishing the process of creating employee development plans.

  • Question 90: Onboarding is a strategically aligned process aimed at improving the adjustment of new employees to their jobs and the organization.

  • Question 91: Organizations use training techniques to enable employees to understand and accept organizational values.

  • Question 92: A performance improvement plan is used to provide employees with opportunities to succeed while holding them accountable.

  • Question 93: Creating a performance improvement plan includes seeking HR input to ensure plan clarity and attainability.

  • Question 94: Defining improvement areas and action plans is part of the getting-started step in a performance improvement plan.

  • Question 95: High numbers of poor performers indicate shortcomings in leadership or HR practices, not just employee issues.

  • Question 96: The amount of time required for performance improvement depends on the complexity of the job, the employee's needs and the organizational goals.

  • Question 97: Inconsistencies in pay levels among employees are a frequent cause of dissatisfaction.

  • Question 98: The final step in the point system job evaluation method is determining levels for factors.

  • Question 99: A pay raise given to an employee based on performance evaluation is called a merit raise.

  • Question 100: Consulting companies, employment agencies, and professional search firms are good sources to gather pay data.

  • Question 101: Job grading, ranking, classification, non-comparative systems, are job evaluation systems in use today and subjective methods include rating scales, forced rankings, etc.

  • Question 102: Job evaluation systems aim to objectively determine the worth of jobs to the organization.

  • Question 103: Internal equity refers to perceived fairness in pay relative to other jobs in the organization.

  • Question 104: Challenges like economic conditions and union power influence the adjustments to employee compensation.

  • Question 105: A compensation policy involving different rates for employees based on performance and experience can have advantages in various contexts.

  • Question 106: Job evaluation systems need data and methods that are relevant to the performance criteria of the job.

  • Question 107: Paying employees based on skill development (knowledge-based pay) considers aspects of skill depth and breadth.

  • Question 108: Compensation systems aim to increase job satisfaction and efficiency as part of a wider compensation strategy.

  • Question 109: Compensation systems offer the possibility to address gender pay inequity by evaluating if policies reflect appropriate compensation standards.

  • Question 110: Employee perceptions are affected by pay comparisons and may influence job satisfaction.

  • Question 111: The reasons that equal pay for work of equal value is challenging are varied and potentially difficult to apply uniformly across an organization.

  • Question 112: Job evaluation systems look at job factors that accurately reflect and measure the worth of the job being evaluated.

  • Question 113: Job grading is a method of subjective job evaluation based on the relative worth of jobs.

  • Question 114: The point approach to job evaluation uses a systematic approach to assign numerical points to jobs based on their essential factors and relative importance.

  • Question 115: Job ranking is a simple job evaluation method to compare the worth of jobs.

  • Question 116: A potential shortcoming in subjective performance measures is bias from the evaluator.

  • Question 117: Combining self, peer, supervisor, and subordinate feedback in evaluations (360-degree appraisal) is a method to give a more rounded perspective on employee performance.

  • Question 118: Maintaining a sound performance management program involves participation from all levels of the organization to provide accurate indicators of employee performance and to address issues through feedback.

  • Question 119: A variety of factors influence the time frame for performance improvement plans, including the employee's role and expectations of the plan, and also the complexity of the job in question.

  • Question 120: High numbers of poorly performing employees are a clear indication of managerial or organizational issues, not just an employee issue.

  • Question 121: The time frame in performance improvement plans must be developed considering various aspects to maintain clarity and achieve success.

  • Question 122: There are additional factors impacting performance beyond the needs assessment; the time frame for improvement needs to be accurate and achievable.

  • Question 123: Subjective evaluation methods can be prone to bias or inaccuracies, influenced by factors such as the rater's own prejudices or opinions, and the limited scope of observation of the actual work performed.

  • Question 124: Recency bias in evaluations can result from recent events skewing the evaluation to favour events that recently occurred.

  • Question 125: A valid performance appraisal system is based on criteria which are relevant to the measured job performance.

  • Question 126: Job evaluation impacts performance appraisal by providing clear criteria for measuring employee performance more accurately.

  • Question 127: The rating scale approach uses descriptive levels of performance for employees.

  • Question 128: Consistent feedback is necessary for employee development and should be part of a performance improvement plan.

  • Question 129: Feedback should be provided frequently to ensure employee performance improvement and timely interventions.

  • Question 130: Different means of categorization are used as a technique for analysis in job evaluation.

  • Question 131: Employee needs, which include basic, psychological, and security needs, are strongly impacted by compensation and job satisfaction.

  • Question 132: Organizations seeking to ensure fair compensation practices need to assess their current practices against relevant factors to determine whether their current level of compliance is sufficient in an accurate method.

  • Question 133, 134, 135, 136, 137: These relate to specific questions on compensation policies, factors, and procedures.

  • Question 138-149- 150 onwards: These are related to benefits and employee programs and policies.

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Description

Test your knowledge on various performance appraisal methods and evaluation criteria with this comprehensive quiz. It covers topics such as subjective and objective measures, comparative evaluation methods, and the performance appraisal process. Ideal for students and professionals in human resources and management.

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