Performance Management and Appraisal Systems
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Questions and Answers

What is a key advantage of behaviorally anchored rating scales (BARS)?

  • They require minimal training for raters.
  • They offer precise and well-defined scales. (correct)
  • They solely depend on graphic representations.
  • They are simple to implement in any organization.
  • Which of the following best describes the disadvantage of using checklists in performance evaluation?

  • They require extensive financial resources to create.
  • Rater errors are common, such as halo or leniency effects. (correct)
  • They must be complex to ensure precision.
  • They provide highly detailed behavioral examples.
  • What process is essential in developing behaviorally anchored rating scales (BARS)?

  • Eliminating the need for defining job dimensions.
  • Retranslation of critical incidents into relevant dimensions. (correct)
  • Rating behavioral examples without prior sorting.
  • Generating behavioral examples through random selection.
  • Which evaluation method involves comparing employees to each other?

    <p>Employee comparison methods.</p> Signup and view all the answers

    What is a significant drawback of behaviorally anchored rating scales (BARS)?

    <p>They require extensive time and resources to develop.</p> Signup and view all the answers

    Which type of checklist forces raters to select items that characterize an employee best?

    <p>Force-choice checklist.</p> Signup and view all the answers

    What is a common issue faced when using graphic rating scales?

    <p>Clear behavioral examples are not provided.</p> Signup and view all the answers

    Which method allows employees to be rated on a 7-point scale according to organizational expectations?

    <p>Graphic rating scales.</p> Signup and view all the answers

    What is the primary purpose of continuous coaching and feedback in performance management?

    <p>To gradually improve individual performance over time</p> Signup and view all the answers

    Which rating format involves multiple individuals providing feedback at various levels?

    <p>360-degree Feedback</p> Signup and view all the answers

    What is a key assumption of 360-degree feedback?

    <p>It reduces bias by incorporating multiple perspectives</p> Signup and view all the answers

    What is typically the format through which performance appraisals are conducted?

    <p>Top-down evaluation</p> Signup and view all the answers

    What occurs when there is around 80% agreement in 360-degree feedback ratings?

    <p>Confidence in the ratings is quite high</p> Signup and view all the answers

    Which of the following is NOT a purpose of performance appraisal?

    <p>Providing informal feedback</p> Signup and view all the answers

    What role do graphic rating scales play in performance management?

    <p>They assess multiple traits or behaviors with quantitative measures</p> Signup and view all the answers

    The process of Development planning in performance management is aimed at what?

    <p>Assisting employees in their professional growth</p> Signup and view all the answers

    Which aspect is essential for creating a fair appraisal process?

    <p>Raters believing in the appraisal's fairness</p> Signup and view all the answers

    What factor is least likely to negatively impact performance due to appraisal?

    <p>Satisfaction with the appraisal process</p> Signup and view all the answers

    Which feedback intervention theory element focuses on the source of feedback?

    <p>Feedback Environment</p> Signup and view all the answers

    Which type of feedback is considered most effective according to feedback intervention theory?

    <p>Feedback directed at specific tasks</p> Signup and view all the answers

    What is a core reason for employee participation in the appraisal process?

    <p>To increase satisfaction and motivation</p> Signup and view all the answers

    How does a high Feedback Orientation affect employees?

    <p>Encourages them to seek feedback more often</p> Signup and view all the answers

    Which statement about legal considerations in performance appraisal is correct?

    <p>Only performance-related factors can influence appraisals.</p> Signup and view all the answers

    Which of the following is NOT a component of Feedback Orientation?

    <p>Feedback reflection period</p> Signup and view all the answers

    What is a primary disadvantage of grading on a normal curve?

    <p>It is time intensive.</p> Signup and view all the answers

    What is the first step in the cognitive-processing model of performance appraisal?

    <p>Observe behavior.</p> Signup and view all the answers

    Why might raters exhibit leniency in their ratings?

    <p>To maintain peace among employees.</p> Signup and view all the answers

    What does the halo error lead raters to do?

    <p>Make dimension-specific ratings based on overall impressions.</p> Signup and view all the answers

    What cognitive error can occur during the information encoding process?

    <p>Storing irrelevant information.</p> Signup and view all the answers

    What characterizes raters who exhibit severity in their evaluations?

    <p>Consistently lower ratings than peers.</p> Signup and view all the answers

    Which of the following is a reason why understanding rating errors is important?

    <p>To improve the accuracy of performance evaluations.</p> Signup and view all the answers

    What typically occurs during the information retrieval phase of the cognitive-processing model?

    <p>Relevant information is overlooked.</p> Signup and view all the answers

    What is a primary reason for raters to exhibit central tendency in performance appraisals?

    <p>Laziness or lack of thorough consideration</p> Signup and view all the answers

    Which rater error is characterized by placing excessive weight on initial impressions during performance evaluations?

    <p>Primacy Error</p> Signup and view all the answers

    What effect does the Dunning-Kruger Effect have on unskilled individuals?

    <p>Overestimation of their abilities and disinterest in improvement</p> Signup and view all the answers

    How does the relationship between supervisors and subordinates affect performance appraisals?

    <p>It impacts the perceived fairness and satisfaction of the appraisal process.</p> Signup and view all the answers

    What is the main goal of Rater Error Training (RET)?

    <p>To help raters recognize and avoid common errors</p> Signup and view all the answers

    What is a key characteristic of the Similar-to-Me error in performance appraisals?

    <p>Raters favor those who exhibit similar traits or behaviors to themselves.</p> Signup and view all the answers

    In the context of performance appraisals, what can result when appraisals are perceived as unfair by ratees?

    <p>Emotional exhaustion and decreased job satisfaction</p> Signup and view all the answers

    What training focuses on enhancing raters' observational and categorization skills to improve rating accuracy?

    <p>Frame-of-Reference Training (FOR)</p> Signup and view all the answers

    Study Notes

    Performance Management

    • Motivational system for individual performance improvement
    • Objective goal setting and continuous coaching/feedback
    • Performance appraisal done annually, but management is continuous
    • Systematic job performance review and feedback
    • Personnel decisions (promotions, raises) and development
    • Documentation of organizational decisions (top-down)

    Upward Appraisal Ratings

    • Ratings from lower-ranked individuals
    • 360-degree Feedback: multiple raters at various levels provide feedback to an employee
    • Assumptions: multiple ratings reduce bias and provide diverse perspectives
    • Process advantages: wider perspective, more accurate performance view, participants are typically happier
    • Process implication: 80% agreement indicates good ratings

    Rating Formats

    • Graphic rating scales: evaluate traits/behaviors on a scale (e.g., dependability, procedures)
      • Advantages: easy to develop/use
      • Disadvantages: lack of precision
    • Behaviorally anchored rating scales (BARS): have specific examples/anchors for each rating
      • Advantages: more precise, well-defined dimensions
      • Disadvantages: time-consuming, expensive

    Rating Formats: Checklists

    • Weighted checklists: items pre-weighted for importance/effectiveness
    • Force-choice checklist: raters select two best/worst items from a group
      • Advantages: reduces bias
      • Disadvantages: frequent rater errors

    Employee Comparison Methods

    • Rank-ordering: rank employees based on performance
    • Paired comparisons: comparing each employee to others
      • More complex with increased number of employees

    Rating Errors

    • Halo error: positive overall impression influences ratings
    • Leniency: overly positive ratings
    • Severity: overly negative ratings
    • Central tendency: ratings clustered around the midpoint
    • Recency error: recent events heavily influence ratings
    • Primary error: first impressions heavily influence ratings

    Rater Considerations: Training

    • Rater error training (RET): describes errors and training methods to avoid them (accuracy not improved)
    • Frame of reference (FOR) training: improves observation/categorization skills (reduces errors, improves accuracy)

    Social-Psychological Context

    • Early research focused on rating accuracy and scale formats
    • Reactions of raters and ratees affect PA process (less anger among ratees and fairer justice perceptions)
    • Dunnning-Kruger effect: people overestimate abilities
    • Emotional reactions to feedback affect future goals

    Organizational Politics and Trust

    • Executives may manipulate appraisals for political reasons
    • Subordinates may use impression management to influence ratings
    • Trust in the appraisal process affects quality (if appraisals are perceived as unfair/biased, psychometric quality is irrelevant)

    Employee Participation

    • Self-assessments and expression of ideas during appraisal process crucial
    • Strong positive relationship with satisfaction, improvement motivation, and fairness perception

    Proving Performance Feedback

    • Employee development relies on receptivity to feedback
    • Good feedback is targeted at tasks and is clear, credible and delivered well
    • Organizational climate and feedback quality influence effectiveness
    • Illegal to discriminate based on unrelated factors (age, gender, race etc)
    • Performance appraisals must provide legal justification for personnel decisions

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    Description

    This quiz delves into the principles of performance management, including motivation systems, goal setting, and continuous feedback. It also explores upward appraisal ratings, the importance of diverse perspectives in performance evaluation, and the various rating formats used in appraisals. Test your understanding of these critical management concepts!

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