1.

_____ is the means through which managers ensure that employees' activities
and outputs are congruent with the organization's goals.
A.

Performance standardization

B.

Performance budgeting

C.

Performance management

D.

Performance indicator

E.

Performance dampener

2. The process through which an organization gets information on how closely

an employee's actual performance meets his or her performance plan is
known as _____.
A.

performance appraisal

B.

job analysis

C.

performance feedback

D.

ability analysis

E.

achievement discrepancy

3. The performance effectiveness of employees is provided to them during the

_____ process.
A.

performance appraisal

B.

achievement discrepancy

C.

job rotation

D.

ability analysis

E.

performance feedback

4. The process of performance management begins with:

A.

developing employee goals, behavior, and actions to achieve

outcomes.

B.

defining performance outcomes for company division and

department.

C.

providing consequences for performance results.

D.

identifying the improvements needed.

E.

providing support and ongoing performance discussions.

5. Rick is the vice president of the Human Resources team. He designs a new
performance management process. He completes the first step and moves on
to the next step of developing employee goals and actions to achieve the
outcomes. Which of the following is he likely to do next to create an effective
performance management process?
A.

He will define
departments.

performance

B.

He will evaluate performance.

C.

He will identify improvements needed.

D.

He will provide
discussions.

E.

He will provide consequences for performance results.

support

outcomes

and

for

ongoing

divisions

and

performance

6. Which of the following is an example of using performance management to

fulfill an administrative purpose?
A.

Define the results, behaviors, and, to some extent, employee

characteristics that are necessary.

B.

Develop employees who are effective at their jobs.

C.

Use performance appraisal to make decisions such as pay

raises, promotions, retention-termination, layoffs, and
recognition of individual performance.

D.

Identify employees' strengths and weaknesses, link employees to

appropriate training and development activities.

E.

Confront employees with their performance weaknesses.

7. As the CEO of Blue Corp., George makes it a point to meet new hires at all
levels of his organization. He explains the goals of the company and
emphasizes on the importance of an individual employee's role in the larger
picture. This initiative of George focuses on the _____ of performance
management.
A.

strategic purpose

B.

administrative purpose

C.

developmental purpose

D.

statistical purpose

E.

validity purpose

8. _____ is the extent to which the performance management system elicits job
performance that is consistent with an organization's strategy, goals, and
culture.
A.

Specificity

B.

Reliability

C.

Validity

D.

Strategic congruence

E.

Acceptability

9. Globo Analytics Inc., a data analysis company, has modified its performance
management system. Apart from training employees on their specific tasks,
the trainers and managers help the employees become more aware of the
overall goals of the company and how their individual performances influence
the broader goals of the company. As a result of this, employees'
performances have become more consistent with the organization's
strategies, goals, and culture. This initiative of Globo focused on the _____
criterion of performance management.
A.

consistency

B.

strategic congruence

C.

social

D.

acceptability

E.

risk avoidance

10.Prometheus Corp. is a large-scale manufacturer of consumer electronic

gadgets. As part of its performance management system, Prometheus
measures the amount each employee contributes to the profits of the
company, and they are either held accountable or rewarded based on their
contributions. With regard to performance measurement, under which of the
following terms would contribution to profits be categorized?
A.

Key risk indicators (KRIs)

B.

Critical success factors (CSFs)

C.

Non-performing assets (NPAs)

D.

Key performance indicators (KPIs)

E.

Behavioral Observation Scales (BOSs)

11.Which performance management evaluation criterion reflects the extent to

which a performance measure assesses all the relevantand only the
relevantaspects of performance?
A.

Reliability

B.

Strategic congruence

C.

Acceptability

D.

Specificity

E.

Validity

12.Whittaker Publishing Corp. is a publishing company that wants to hire more

technical experts to handle the software requirements in the publishing
process. However, the test given to the programmers assesses not only their
technical knowledge, but also their communication skills, language abilities,
and understanding of client services. The test conducted by Whittaker
Publishing Corp. is _____.

A.

high on reliability

B.

low on strategic congruence

C.

high on specificity

D.

high on acceptability

E.

low on validity

13.A performance measure is said to be contaminated when:

A.

it does not measure all aspects of performance.

B.

it evaluates irrelevant aspects of performance.

C.

it is a subjective supervisory measure of job performance.

D.

it is not reliable over time.

E.

the overlap between actual job performance and the measure of job
performance is maximized.

14.A software company assesses its developers more on their client support
skills rather than their development skills. Which of the following terms would
best describe the software company's performance management process?
A.

Deficient

B.

Contaminated

C.

Unreliable

D.

Inconsistent

E.

Unspecified

15.Elle Inc. is a firm that holds frequent reviews and feedback sessions for its
employees. It demands that the same person should review the employees of
a team to ensure that the performance evaluation is consistent; tests
retests are conducted periodically to make sure the evaluation is consistent.
These two steps taken by Elle focus on the _____ of performance
management.

A.

reliability

B.

strategic congruence

C.

specificity

D.

acceptability

E.

validity

16.The consistency in the ratings given by two different individuals who evaluate
an employee's performance is known as _____ reliability.
A.

internal consistency

B.

interrater

C.

inter-method

D.

test-retest

E.

parallel-forms

17.A measure that results in drastically different ratings over time lacks _____
reliability.
A.

internal consistency

B.

interrater

C.

parallel-forms

D.

test-retest

E.

inter-method

18.Which of the following statements best defines the acceptability of a

performance measure?
A.

It is the extent to which the performance management system

elicits job performance that is consistent with the organization's
strategy, goals, and culture.

B.

It is the extent to which a performance measure gives detailed

guidance to employees about what is expected of them and in what
ways they are unsuitable for the job.

C.

It is the extent to which a performance measure assesses all the

relevantand only the relevantaspects of job performance.

D.

It is the extent to which a performance measure is free from

random error.

E.

It is the extent to which a performance measure is deemed

to be satisfactory or adequate by those who use it.

19.The extent to which the performance measure gives guidance to employees

about what is expected of them is called _____.
A.

reliability

B.

validity

C.

specificity

D.

acceptability

E.

strategic congruence

20.Which of the following approaches to measuring performance uses some

overall assessment of an individual's performance or worth and seeks to
develop some ranking of the individuals within a work group?
A.

The results approach

B.

The attribute approach

C.

The comparative approach

D.

The consequential approach

E.

The behavioral approach

21.Which of the following is a comparative approach to ranking that consists of a

manager looking at a list of employees, deciding who the best employee is,
and crossing that person's name off the list?

A.

Simple ranking

B.

Alternation ranking

C.

Reverse ranking

D.

Elimination by aspect

E.

Forced distribution

22.The ranking technique that requires certain percentages of employees to be

categorized into predetermined categories or groups based on their
performance is known as _____.
A.

forced distribution

B.

high/low ranking system

C.

paired comparison

D.

alternation ranking

E.

simple ranking

23.The _____ method requires managers to compare every employee with every
other employee in the work group, giving an employee a score of every time
he/she is considered the higher performer.
A.

partner measurement

B.

probability distribution

C.

forced distribution

D.

paired comparison

E.

alternation ranking

24.Jason is a manager at Eros Corp. He needs to perform an evaluation of his

subordinates. He does this by pairing each of his subordinates with every
other subordinate in the same group, and then selects the higher performer
between the two. At the end of the process, he calculates the number of
times a subordinate has been the higher performer in a match-up. Which type
of performance management system does Jason employ to perform the
evaluation?

A.

Probability distribution

B.

Simple ranking

C.

Forced distribution

D.

Paired comparison

E.

Scanlon plans

25.Roundel Inc. is a company that sells automobile tires. The company is

projecting an increase in sales in the next twelve months, and is looking to fill
the senior positions through internal recruiting to meet this demand. The
company is evaluating the individual performances and seeking to develop
some ranking of the individuals within a work group to identify the best
performer. Which of the following approaches is the company using?
A.

The results approach

B.

The attribute approach

C.

The comparative approach

D.

The behavioral approach

E.

The quality approach

26.The _____ approach to performance management focuses on the extent to

which individuals have certain characteristics or traits believed desirable for
the company's success.
A.

results

B.

quality

C.

behavioral

D.

comparative

E.

attribute

27.Which of the following attribute approaches to performance management is

most commonly used?

A.

Behaviorally anchored rating scales

B.

Mixed standard scales

C.

Behavior observation scales

D.

Graphic rating scales

E.

Simple ranking scales

28.Teknikal Inc. decides to implement a new performance management system.

It consists of a list of five traits used to evaluate all the employees. The
manager considers one employee at a time; and on a continuum with
different points, circles the number that signifies how much of a particular
trait the individual has. Which type of performance management system is
Teknikal Inc. using?
A.

Probability distribution

B.

Simple ranking

C.

Forced distribution

D.

Paired comparison

E.

Graphics rating scale

29.In the graphic rating scale, the rater:

A.

defines performance dimensions by developing behavioral anchors

associated with different levels of performance.

B.

defines the relevant performance dimensions and then develops

statements representing good, average, and poor performances
along each dimension.

C.

considers one employee at a time, circling the number that

signifies how much of that trait the individual has.

D.

identifies and provides descriptions of competencies that are

common for an entire occupation, organization, job family, or a
specific job.

E.

compares every employee with every other employee in the work

group, giving an employee a score of every time he or she is
considered the higher performer.

30.In which performance technique are managers given a total of three

statements of performance per dimension and asked to indicate whether the
employee's performance is above (+), at (), or below (-) the statements?
A.

Behaviorally anchored rating scale

B.

Forced distribution scale

C.

Behavior observation scale

D.

Graphic rating scale

E.

Mixed-standard scale

31.Which of the following is true regarding the attribute approach to

performance management?
A.

There is usually a high congruence between the techniques used in

this approach and the company's strategy.

B.

The methods usually have clearer performance standards due to

which different raters provide similar ratings and rankings.

C.

It is easy to develop and

organizations and strategies.

D.

It provides specific guidance and feedback to employees.

E.

The ratings from this approach are easily accepted by employees

during feedback.

is

generalizable

across

32.Which of the following approaches would be worst suited to provide

managers with the specific guidance required to correct an employee's
performance deficiencies?
A.

The quality approach

B.

The comparative approach

C.

The behavioral approach

D.

The attribute approach

E.

The results approach

33.Which performance management technique initially involves the

identification of a large number of critical incidents, followed by the
classification of these incidents into performance dimensions, and finally
ranking these incidents into levels of performance?
A.

Behaviorally anchored rating scales

B.

Graphic rating scales

C.

Comparative rating scales

D.

Organizational behavior modification

E.

Competency models

34.The performance management method that requires managers to rate the

frequency with which the employee has exhibited a behavior during a rating
period is the _____.
A.

simple ranking method

B.

behavioral observation scale

C.

graphic rating scale

D.

organizational behavior modification method

E.

forced distribution scale

35.Which of the following is

performance measurement?

true

regarding

behavioral

approaches

to

A.

They link the company's strategy to the specific behavior

necessary to implement that strategy.

B.

They adopt a very subjective approach to evaluating human

behavior at the workplace.

C.

They result in techniques that have a low degree of validity and

acceptability.

D.

They assume that there are multiple best ways to do the job.

E.

Despite substantial investments in training, the techniques are not

strong enough to be reliable.

36.The _____ approach assumes that subjectivity can be eliminated from the
measurement process and that outcomes are the closest indicator of one's
contribution to organizational effectiveness.
A.

behavior

B.

results

C.

attribute

D.

quality

E.

comparative

37.Which of the following is a means of measuring and feeding back productivity

information to personnel with the main goal of motivating employees to
higher levels of productivity?
A.

Projective tests

B.

Productivity measurement and evaluation system

C.

Assessment centers

D.

Critical incidents

E.

Multi-criteria decision analysis

38.Which of the following is the first step in the Productivity Measurement and
Evaluation System (ProMES)?
A.

The staff defines indicators of the products to measure how well the
products are being generated.

B.

The management develops a feedback system that provides

employees and work groups with information about their specific
level of performance.

C.

People in the organization identify the set of activities or

objectives the organization expects to accomplish.

D.

The employee and manager identify what the employee can do to

capitalize on performance strengths.

E.

The staff establishes the contingencies between the amount of the

indicators and the level of evaluation associated with that amount.

39.Which of the following is true about the results approach to performance

management?
A.

The results approach relies primarily on a combination of the

attribute and results approaches to performance measurement.

B.

The results approach virtually eliminates problems of leniency,

central tendency, and strictness.

C.

The techniques of the results approach usually have very little

congruence with the company's strategy.

D.

The results approach is usually highly unacceptable to both

managers and employees.

E.

The results approach minimizes subjectivity, relying on

objective, quantifiable indicators of performance.

40.A performance management system designed

orientation can be expected to:

with

a strong

quality

A.

emphasize an assessment of system factors in the measurement

system, but not of the person factors.

B.

emphasize that managers' and employees' work separately to solve

performance problems.

C.

involve only the external customers in setting standards and

measuring performances.

D.

use multiple sources to evaluate person and system factors.

E.

emphasize an assessment of person factors in the measurement

system, but not of the system factors.

41._____ refers to practices participated in by employees from all levels of the

company that focus on continuous improvement of business processes.
A.

Quality circle

B.

Muda

C.

Kaizen

D.

Root cause analysis

E.

Business process reengineering

42.Which of the following statistical process quality control techniques helps

identify the redundancies in procedures that increase manufacturing or
service time?
A.

Cause-and-effect diagrams

B.

Control charts

C.

Pareto charts

D.

Process-flow analysis

E.

Histograms

43.A _____ is a quality control technique that lists causes of a problem in

decreasing order of importance.
A.

cause-and-effect diagram

B.

control chart

C.

Pareto chart

D.

process-flow analysis

E.

histogram

44.Which quality control technique is useful for understanding the amount of

variance between an outcome and the expected value or average outcome?
A.

A control chart

B.

A histogram

C.

A cause-and-effect diagram

D.

A process-flow analysis

E.

A Pareto chart

45.Which of the following observations is true about scattergrams?

A.

They help in identifying the most important cause of a problem.

B.

They are useful for understanding the amount of variance between

an outcome and the expected value or average outcome.

C.

They help employees determine whether the relationship

between two variables or events is positive, negative, or
zero.

D.

They assume that that the majority of problems are the result of a
small number of causes.

E.

They are useful for identifying redundancy in processes that

increase manufacturing or service time.

46.Which of the following is true about the quality approach to performance

measurement?
A.

The quality approach techniques usually have very little strategic

congruence.

B.

The quality approach has very low acceptability.

C.

The quality approach does not advocate the evaluation of personal

traits.

D.

The quality approach adopts a systems-oriented focus.

E.

The quality approach relies primarily on a combination of the

comparative and results approaches to performance measurement.

47.Both the comparative and the attribute approaches to performance

measurement are _____.
A.

high on strategic congruence

B.

very low on specificity

C.

low on acceptability

D.

high on reliability

E.

very high on validity

48.Which of the following approaches to performance measurement minimizes

contamination and deficiency?
A.

The comparative approach

B.

The attribute approach

C.

The behavioral approach

D.

The results approach

E.

The quality approach

49._____ are the most frequently used source of performance information.

A.

Peers

B.

Managers

C.

Subordinates

D.

Employees themselves

E.

Customers

50.Which of the following is true of peers as the source for performance

information?

A.

Peers have expert knowledge of job requirements and often

have the most opportunity to observe the employee in dayto-day activities.

B.

Peer evaluations give employees power over their managers, thus

putting the manager in a difficult situation.

C.

Peers are comfortable providing evaluations for both administrative

and developmental purposes.

D.

Peers have the ability to discard the fact that they may be friends
with the ratee in order to provide an unbiased rating.

E.

Peers give feedback that is strongly related to performance and to

employee perceptions of the accuracy of the appraisal.

51.The appraisals that involve collecting subordinates' evaluations of manager's

behavior or skills are known as _____.
A.

-degree feedback

B.

screening interviews

C.

peer review

D.

Kaizen

E.

upward feedback

52.Which of the following is a disadvantage of subordinate evaluations?

A.

Subordinates tend to focus only on aspects of their manager's

performance that are measured, neglecting those that are not.

B.

Subordinates do not have adequate opportunity to observe a

manager's interactions and behavior.

C.

Subordinates have the potential for friendship to bias ratings.

D.

Subordinates have power over their managers, thus putting

the managers in a difficult situation.

E.

Subordinates find the situation of being both rater and ratee

uncomfortable when the evaluations are made for administrative
decisions.

53.The _____ technique consists of having multiple raters above, equal to, and
below the manager providing input into a manager's evaluation.
A.

employee integrity testing

B.

background check

C.

-degree appraisal

D.

upward feedback

E.

performance appraisal

54.Which of the following rater errors is based on stereotypes the rater has
about how individuals with certain characteristics are expected to perform?
A.

Horns

B.

Similar to me

C.

Halo

D.

Contrast

E.

Central tendency

55.A competent employee receives lower-than-deserved ratings because of a

few outstanding colleagues who set very-high performance standards. This is
an example of a _____ rater error.
A.

contrast

B.

distributional

C.

halo

D.

similar to me

E.

horns

56._____ is a rater error in which a rater gives high ratings to all employees
regardless of their performance.

A.

Halo

B.

Contrast

C.

Central tendency

D.

Leniency

E.

Similar to me

57.A _____ rater error is one in which a rater gives middle or average ratings to
all employees despite their performance.
A.

horns

B.

leniency

C.

central tendency

D.

strictness

E.

contrast

58._____ rating error occurs when a rater gives an employee high ratings on all
aspects of performance because of his or her overall positive impression of
the employee.
A.

Contrast

B.

Halo

C.

Leniency

D.

Similar to me

E.

Central tendency

59.Brian, a psychology student, has had an overall negative impression of his

psychology professor. As a consequence, during the end of term appraisal, he
rates his professor low on all performance criteria. Which of the following
rater errors has Brian committed?
A.

Horns

B.

Leniency

C.

Central tendency

D.

Contrast

E.

Strictness

60.A situation in which evaluators purposefully distort a rating to achieve

personal or company goals is referred to as _____.
A.

Bayesian inference

B.

group dynamics

C.

-degrees feedback

D.

appraisal politics

E.

similar to me error

61._____ attempts to emphasize the multidimensional nature of performance and

thoroughly familiarize the raters with the actual content of various
performance dimensions.
A.

Performance training

B.

Sensitivity training

C.

Multidimensional training

D.

Rater accuracy training

E.

Process-flow analysis

62._____, attended by managers, provide a way to help ensure that performance

is evaluated consistently across managers and to reduce the influence of
rating errors and politics on appraisals.
A.

Calibration meetings

B.

Frame-of-reference trainings

C.

Multidimensional trainings

D.

Rater accuracy trainings

E.

Succession planning meetings

63.Which of the following is an example of a frame-of-reference training?

A.

Devon focuses primarily on making managers aware of rating errors

and how to reduce them effectively.

B.

Mark makes managers aware of how errors influence ratings.

C.

Dan emphasizes on using the same idea of high, medium,

and low performances when making evaluations.

D.

Sam stresses on having consistent standards of evaluation.

E.

Jennifer focuses on eliminating politics through discussion among

managers.

64.CobWeb Inc., a software firm, assesses managers based on how well they
understand their subordinates, and the factors involved in their poor
performance. Which of the following examples is the most appropriate
evaluation of the input factors involved in analyzing poor performance?
A.

Lin considers if her subordinate has the necessary technical skills

required for the task.

B.

Ray checks if his subordinate is emotionally able to perform at the

expected level.

C.

Jane looks into whether her subordinate has been given information
about his performance.

D.

Will analyzes if performance consequences are given in a timely

manner.

E.

Sebastian checks if the job flow and procedures are logical.

65.In what legal suit would the plaintiff allege that

measurement system varies according to individuals?
A.

Harassment suit

the

performance

B.

Statutory tort

C.

Unjust dismissal suit

D.

Discrimination suit

E.

Custody actions