MCQs – 306HR – PERFORMANCE MANAGEMENT

Q.1. Which of the following terms refers to the process of evaluating an employee's current
and/or past performance relative to his or her performance standards?
a) Recruitment b) Employee selection
c) Performance appraisal d) Employee orientation
Ans: c

0.2. The primary purpose of providing employees with feedback during a performance appraisal is to
motivate employees to _
a) apply for managerial positions
b) remove any performance deficiencies
c) revise their performance standards
d) enroll in work-related training
Ans: b programs

3.In most organizations, which of the following is primarily responsible for appraising an employee's
performance?
a) employee's direct supervisor b) company appraiser
c) human resources manager d) EEO representative
Ans: a

4.Supervisors should provide employees with feedback, development, and incentives necessary to
help employees eliminate performance deficiencies or to continue to perform well.
a) True b) False
Ans: a

Q.S. Which of the following is NOT one of the recommended guidelines for setting effective
employee goals?
a) assigning specific goals
b) assigning measurable goals
c) assigning challenging but
d) doable goals
Ans: d administering
consequences for failure to
meet goals
0.6. SMART goals are best described as _
a) specific, measurable, attainable, relevant, and timely
b) straight forward, meaningful, accessible, real, and tested
c) strategic, moderate, achievable, relevant, and timely
d)specific, measurable, achievable, relevant, and tested Ans:
a

Q.7. All of the following are reasons for appraising an

employee's performance EXCEPT _
e) assisting with career planning
f) correcting any work-related deficiencies
g) creating an organizational strategy map
h)determining appropriate salary and bonuses Ans:
c
MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE
Q.8. Which of the following is most likely NOT a role played by the HR department in the
performance appraisal process?
a) conducting appraisals of employees
b) monitoring the effectiveness of the appraisal system
c) providing performance appraisal training to supervisors
d) ensuring the appraisal system's compliance with EEO laws
Ans: a

Q.9. What is the first step in the appraisal process?

a) giving feedback b) defining the job
c) administering the appraisal tool

d) making plans to provide training

Ans: .b

0.10. All of the following are usually measured by a graphic rating scale EXCEPT_,
a) generic dimensions of performance b) performance of 'actual duties
c) performance of co-workers d) achievement of Objectives
Ans: c

a) who should measure and when to measure

0.11. When designing an actual appraisal method, the two basic considerations
b) when to measure and what to measure
are
c) what to measure and who should measure
d) what to measure and how to measure
Ans: d

0.12. Which of the following is the easiest and most popular technique for appraising employee
performance?
a) alternation ranking b) graphic rating scale
c) Likert d) MBO
Ans: b

0.13. Which performance appraisal technique lists traits and a range of performance values for each
trait?
a) behaviourally anchored rating scale b) graphic rating scale
c) forced distribution d) critical incident
Ans: b

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

Q.14. Which of the following, if true, best supports the argument that a graphic rating scale is the
most appropriate performance appraisal tool for Suzanne to use?
a)The firm wants Suzanne to evaluate her subordinates on an ongoing basis and to keep a log of
critical incidents.
b)Employees in Suzanne's department who are categorized in the bottom 10% of the firm's
employees will be immediately dismissed.
c)Suzanne wants to ensure that the firm is protected from employee discrimination lawsuits, so she
has conducted a job analysis of each position.
d)Suzanne wants a quantitative rating of each employee based on competencies important to the
firm, such as problem-solving skills.
Ans: d

Q.15. Which performance appraisal tool requires supervisors to categorize employees from best to
worst on various traits?
a) digital dashboard
c) critical incident method
b) graphic rating scale
d) alternation ranking method
Ans: d

0.16. The most popular

method for ranking
employees is the

method.
a) graphic ranking
scale b) constant sum
ranking scale
c) alternation
a) behaviorallyranking
anchored rating scale b) graphic ranking scale
c) alternation ranking d) forced distribution
d) paired comparison
Ans: d
Ans: c

. 0.18. Kendra needs to rate five of her subordinates. She makes a chart of all possible pairs of
0.17. Which performance appraisal tool is being used when a supervisor places predetermined
employees for each trait being evaluated. Then, she indicates the better employee of each pair with
percentages of ratees into various performance categories?
a positive symbol on the chart. Finally, she totals the number of positive symbols for each employee.
Which method of performance appraisal has Kendra most likely used?
a) comparison ranking scale b) graphic ranking scale
c) alternation ranking d) paired comparison
Ans: d

0.19. John, the supervisor of the manufacturing dep~rtment at a computer firm, is in the process of
evaluating his staff's performance. He has determined that 15% of the group will be identified as
high performers, 20% as above average performers, 30% as average performers, 20% as below
average performers, and 15% as poor performers. Which performance appraisal tool has John
chosen to use?
a) behaviorally anchored rating scale b) management by objectives
c) forced distribution d) alternation ranking
Ans: c

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.20. Which of the following measurement methods is similar to grading on a curve?
a) critical incident method b) forced distribution
c) graphic rating scale d) constant sums rating
Ans: b

0.21. Which of the following is one of the primary complaints regarding the use of the forced
distribution method for performance appraisals?
a) difficult to implement b) harm to employee morale
c) high costs of administration d) standardization of group sizes
Ans: b

0.22. Which performance appraisal tools requires a supervisor to maintain a log of positive and
negative examples of a subordinate's work-related behavior?
a) alternation ranking b) paired comparison
c) forced distribution d) critical incident
Ans: d

0.23. The first step in developing a behaviourally anchored rating scale is to

a) develop performance dimensions b) generate critical incidents
c) compare subordinates d) reallocate incidents
Ans: b

0.24. Which of the following is NOT a characteristic of the critical incident method for performance
appraisal?
a) providing examples of excellent work performance
b) comparing and ranking employees within a group
c) connecting specific incidents with performance goals
d) reflecting performance throughout the appraisal period
Ans: b

0.25. Wilson Consulting is a management consulting firm with seventy employees. As associate vice
president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the
twelve employees under her direct supervision. Suzanne plans to use the critical incident method to
evaluate the performance of her subordinates. Which of the following, if true, undermines the
argument that the critical incident method is the most appropriate performance appraisal tool for
Suzanne to use?
a)Employee performance standards are closely aligned with Wilson Consulting's long-term strategic
plans.
b)Other departments at Wilson Consulting have seen employee performance improve as a result of
providing ongoing evaluations.
c)Suzanne will be conducting performance appraisals in conjunction with the HR manager to ensure
EEO compliance.
d)Due to economic difficulties, the firm will be laying off the two lowest performing employees in
Suzanne's department.
Ans: d

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.26. Graphic rating scales are subject to all of the following problems EXCEPT .
a) unclear standards b) halo effects
c) complexity d) leniency
Ans: c

0.27. .Which appraisal method combines the benefits of narrative critical incidents and quantified
scales by assigning scale points with specific examples of good or poor performance?
a) behaviorally anchored rating scale b) constant sums rating scale
c) graphic rating scale d) alternation ranking
Ans: a

0.28. Which of the following best describes a behaviorally anchored rating scale?
a) chart of paired subordinates ranked in order of performance
b) combination of narrative critical incidents and quantified performance scales
c) diary of positive and negative examples of a subordinate's work performance
d) predetermined percentages of subordinates in various performance
Ans: b categories

0.29. Stacey is using a behaviorally anchored rating scale as a performance appraisal tool. She has
already asked employees and supervisors to describe critical incidents of effective and ineffective job
performance. What should Stacey do next?
a) create a final appraisal instrument
b) develop performance dimensions
c) rank employees from high to low
d) reallocate the incidents
Ans: b

0.30. Wilson Consulting is a management consulting firm with seventy employees. As associate vice
president of marketing, Suzanne Boyle is responsible for conducting performance appraisals of the
twelve employees under her direct supervision. Suzanne plans to use the behaviorally anchored
rating scale (BARS) to evaluate the performance of her subordinates. Which of the following, if true,
supports the argument that BARS is the most appropriate performance appraisal tool for Suzanne to
use?
a} Suzanne wants to provide her subordinates with specific examples of their good and poor job
performance during the appraisal interview.
b)Suzanne encourages her subordinates to review and make comments about their appraisal during
a formal appeals process.
c)Wilson Consulting recently installed an electronic performance monitoring system to help
supervisors conduct appraisals.
d)Wilson Consulting provides training to all supervisors regarding legally defensible performance
appraisals.
Ans: a

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

Q.31. What is the primary disadvantage of developing a behaviorally anchored rating scale?
a) costly
c) time consuming
b) unreliable
d) lack of feedback for subordinates
Ans: c

0.32. Which of the following terms refers to setting specific measurable goals with each employee
and then periodically reviewing the progress made?
a) behaviorally anchored rating scale b) management by objective
c) narrative form technique d) forced distribution
Ans: b

0.33. It is most important that supervisors who choose management by objectives as a performance
appraisal tool use
a) SMART goals b) EPM systems
c) computerized notes d) graphic rating scales
Ans: a

0.34. All of the following are benefits of using computerized or Web-based performance appraisal
systems EXCEPT
a) merging examples with performance ratinqs
b) helping managers maintain computerized notes
c) allowing employees to perform self-evaluations
d) enabling managers to monitor employees'
Ans: d computers

Q.35. Which of the following enables supervisors to oversee the amount of computerized data an
employee is processing each day?
a) computerized performance appraisal system
b) online management assessment center
c) digitized high-performance work center
d) electronic performance monitoring system
Ans: d

0.36. Which of the following is a performance appraisal problem that occurs when a supervisor's
rating of a subordinate on one trait biases the rating of that person on other traits?
a) recency effect b) halo effect
c) central tendency d) discrimnation
Ans: b

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.37. Nick supervises a team of data entry specialists. Lately, productivity has been down, and Nick
believes his subordinates are not working as efficiently as possible. Which of the following tools
would provide Nick with daily information about each employee's rate, accuracy, and time spent
entering data?
a) digital dashboard device
b) electronic performance monitoring system
c) Web-based management oversight device
d) computerized performance appraisal system
Ans: b

0.38. Formal performance appraisals have been eliminated by almost all major firms and replaced by
daily assessments by peers in addition to extensive training opportunities.
a) True b) False
Ans: b

0.39. Which of the following terms refers to an appraisal that is too open to interpretation?
a) unclear standards b) halo effects
c) strictness d) biased
Ans: a

0.40. Which of the following is the best way for a supervisor to correct a performance appraisal
problem caused by unclear standards?
a) focusing on performance instead of personality traits
b) using graphic rating scales to rank employees
c) avoiding the use of extremely low ratings
d) using descriptive phrases to illustrate traits
Ans: d

0.41. Stephanie manages the accounting department at an advertising agency. She needs to conduct
performance appraisals for the eight employees in her department. Stephanie wants a performance
appraisal tool that is highly accurate, ranks employees, and uses critical incidents to help explain
ratings to appraise. Which performance appraisal tool is best suited for Stephanie?
a) graphic rating scale b) alternation ranking method
c) forced distribution method d) behaviorally anchored rating scale
Ans: d

0.42. Jason is a conscientious employee, but he is viewed by most of his co-workers as unfriendly.
Jason's supervisor rates him low on the traits "gets along well with others" and "quality of work."
Which of the following problems has most likely affected Jason's performance appraisal?
a) central tendency b) leniency
c) stereotyping d) halo effect
Ans: d

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.43. A supervisor who frequently rates all employees as average on performance appraisals most
likely has a problem known as
a) halo effect b) stereotyping
c) central tendency d) strictness
Ans: c

Q.44. The best way to reduce the problem of central tendency in performance appraisals is to
a) rank employees
b) establish SMART goals
c) use graphic rating scales
d)limit the number of appraisals
Ans: a

Q.45. Which performance appraisal problem is associated with supervisors giving all of their
subordinates consistently high ratings?
a) central tendency b) leniency
c) strictness d) recency effect
Ans: b

Q.46. The problem occurs when supervisors tend to rate all their subordinates
consistently low.
a) central tendency
b) leniency
c) strictness
d)unclear standards
Ans: c

Q.47. The best method for reducing the problems of leniency or strictness in performance appraisals
is to
e) keep critical incident logs
f) adhere to EEO guidelines
g) require multiple appraisals
h)impose a performance distribution
Ans: d

Q.48. Which of the following has most likely occurred when a supervisor conducting a performance
appraisal is influenced by a subordinate's individual differences such as age, sex, and race?
a) bias b) unclear standards
c) central tendency d) broad banding
Ans: a

Q.49. Which of the following is LEAST likely to cause a supervisor's performance appraisal of a
subordinate to be biased?
a) purpose of the appraisal
b) personality of the supervisor
c) location and time of the appraisal
d) personal characteristics of the
Ans: c subordinate
MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE
0.50. All of the following guidelines will most likely improve the effectiveness of a performance
appraisal EXCEPT
a) maintaining a diary of employees' performance during the year
b) establishing a tool for employees to appeal performance appraisals
c) using a graphic rating scale to ensure fair and consistent ratings
d) knowing the advantages and disadvantages of different appraisal tools
Ans: c

0.51. Which of the following is the primary advantage of using graphic rating scales as performance
appraisal tools?
a) eliminates central tendency errors
b) offers extremely high rate of accuracy
c) provides quantitative rating for each
d) employee
Ans: c links with mutually agreed upon
performance objectives
0.52. All of the following are considered best practices for administering fair performance appraisals
EXCEPT _
a) explaining how subordinates can improve their performance
b) clarifying in advance what the performance expectations are
c) basing the appraisal on observable job behaviors
d) using subjective performance data for appraisals
Ans: d

0.53. Which of the following would most likely result in a legally questionable appraisal process?
a) conducting a job analysis to establish performance standards
b) basing appraisals on subjective supervisory observations
c) administering and scoring appraisals in a standardized fashion
d) using job performance dimensions that are too clearly defined
Ans: b

0.54. Who is in the best position to observe and evaluate an employee's performance for the
purposes of a performance appraisal?
a) peers b) customers
c) top management d) immediate supervisor
Ans: d

0.55. Employee performance appraisals are conducted by all of the following EXCEPT
a) peers
c) supervisors
b) competitors
d) subordinates
Ans: b

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.56. Which of the following terms refers to several peers agreeing to rate each other highly?
a) social loafing
b) group think
c) logrolling
d)alliance forging
Ans: c

0.57. Peer
appraisals have
been shown to
result in a (n) _
a)
reduction
of social
loafing

b)
reduction
of group
cohesion
c)
decrease
in task
motivatio
n d)
decrease
in group
satisfactio
n
Ans:
a) a Ratings are reliable but invalid.
b) Ratings are subject to halo effects.
0.58. YouLogrolling
are conducting
leads toanunrealistic
appraisal ratings.
interview with an employee whose performance is satisfactory
c)
but for Ratings
whom promotion is not
are higher than possible. Which incentive listed below would most likely be the
when
d)
LEAST effective option for maintaining satisfactory performance in this situation?
Ans: d provided by supervisors.
a) time off b) small bonus
c) compliments d) professional development
0.61. Which of the following terms refers to the process of allowing subordinates to rate their
Ans: d
supervisor's performance anonymously?
a) supplemental evaluation b) downward feedback
59.In most firms, a rating committee used for performance appraisals consists of
c) upward feedback d) peer evaluation
members.
Ans: c
a) 1-2 b) 3-4
c) 5-6 d) 9-1 0
0.62. Upward feedback primarily helps top-level managers to _
Ans: b
a) protect the firm against biased appraisals
b) implement organizational strategies
60. What usually occurs when employees rate themselves for performance appraisals?
c) compare appraisal techniques
d) diagnose management styles
Ans: d

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.63. Which of the following terms refers to a performance appraisal based on surveys from peers,
supervisors, subordinates, and customers?
a) 360-degree feedback b) team appraisals
c) upward feedback d) rating committee
Ans: a

0.64. Which of the following best describes the purpose of an appraisal interview?
a) training supervisors in the rating process
b) identifying potential interpersonal problems
c) providing constructive feedback to supervisors
d) making plans to correct employee weaknesses
Ans: d

0.65. When conducting an appraisal interview, supervisors should do all of the following EXCEPT _
a) ask open-ended questions
b) talk in terms of objective work data
c) give specific examples of poor performance
d) compare the person's performance to that of other employees
Ans: d

0.66. A performance appraisal is based on the assumption that an employee understood what his or
her performance standards were prior to the appraisal.
a) True
b) False
c)According to situation
Ans: a

0.67. When a supervisor must criticize a subordinate in an appraisal interview, it is most important
for the supervisor to _
a) limit negative feedback to once every year
b) provide specific examples of critical incidents
c) acknowledge the supervisor's personal biases
d) in the situation
Ans: b hold the meeting with other people who can
document the situation
0.68. When an employee's performance is so poor that a written warning is required, the warning
should _
a) identify the standards by which the employee is judged
b) provide examples of employees who met the standards
c) be mailed to the employee and to an EEOC representative
d) provide examples of times when the employee met the
Ans: a standards

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.69. Based on corporate surveys, which of the following is a true statement?
a) Very few employers require any type of performance appraisal.
b) Very few employers conduct performance appraisals on an annual basis.
c) Most employers require a review and feedback session during the appraisal process.
d) Most employers use behaviorally anchored rating scales for performance appraisals.
Ans: c

0.70. The continuous process of identifying, measuring, and developing the performance of
individuals and teams and aligning their performance with the organization's goals is known as _
a) employee performance monitoring
b) strategic management
c) performance analysis
d)performance management
Ans: d

0.71. Which component of performance management refers to communicating a firm's higher-level

goals throughout the organization and then translating them into departmental and individual goals?

a) role clarification b) goal alignment

c) performance monitoring d) direction sharing
Ans: d

0.72. In order to ensure that performance goals are challenging and relevant, Matthew, a marketing
manager, should independently set goals for. his subordinates because participatively set goals
usually produce lower job performance ..
a) True b) False
Ans: b

0.73. Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The
firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals
from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's
CEO advocates shifting from performance appraisals to performance rnanaqement in an attempt to
make Oshman more competitive and performance driven. Which of the following, if true, supports
the argument to replace Oshman's traditional appraisal methods with the performance management
approach?
a)Oshman's competitors in the small appliance industry monitor the performance of their employees
through electronic performance monitoring systems.
b)Oshman executives want to align the firm's strategic plan with individual employee goals and
development needs.
c)Oshman executives believe that upward feedback helps managers improve their own management
style and interpersonal skills.
d)Oshman has experienced problems associated with central tendency and bias, and the firm wants
to ensure that appraisals are legally sound.
Ans: b

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.74. Oshman manufactures small kitchen appliances, such as blenders, toasters, and mixers. The
firm has nearly 80,000 employees in 22 countries. Employees receive annual performance appraisals
from their supervisors that combine critical incidents with a graphic rating scale. However, the firm's
CEO advocates shifting from performance appraisals to performance management in an attempt to
make Oshman more competitive and performance driven. All of the following questions are relevant
to Oshman's decision to replace its traditional appraisal methods with the performance
management approach EXCEPT _
a)What technology is available to help managers gain immediate access to employee performance
data?
b)How would work procedures need to be modified to provide more frequent feedback to
employees?
c) How would the firm's mission and vision translate into departmental, team, and individual
goals?
d) What procedures are already in place to effectively identify and measure critical incidents?
Ans: d

0.75. Job descriptions serve as the primary tool for developing performance standards because they
already include specific job goals.
a) True b) False
Ans: b

0.76. Rewards offered to labors involved in production, are categorized as;

a) Salary b) Fringe benefits
c) Wage d) Commission
Ans:c

0.77. The goal of pre-retirement educational programs is to;

a) Improve job satisfaction
b) Increase employee commitment
c) Minimize medical claims from
d) retirees
Ans:d Ease the transition from working
life to retirement
0.78. Alternative work arrangements include all of the following EXCEPT;
a) Part-time work b) Flexible hours
c) On-site child care d) Job sharing
Ans:c

0.79. Organizations put maximum effort in measuring performance of organizational people because;

a) It makes procedures cost effective

b) It helps in detecting the problems
c) It leads to product innovation
d) It assists in implementing new
Ans:b technology

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.80. Willingness, capacity & opportunity to perform are said to be;
a) Performance outcomes
b) Determinants of performance
c) Performance appraisals
d) Types of performance
Ans:b standards

0.81. One of the major barriers to career advancement experiencing by working ladies is;
a) Difficulty in balancing work and family life
b) Top management is usually male oriented
c) Lack of educational opportunities
d) Common perception that woman cannot
Ans:a be better boss

0.82. Mr. Ahmed is a cashier and he feels dissatisfied at work. What best justifies this situation?
a) His job may not be structured to suit his preferences
b) It involves physical toughness
c) It requires mental toughness
d) It involves too much customer interaction
Ans:a

0.83. The problem occurs when supervisors tend to rate all their subordinates consistently
high.
a) Central tendency b) Leniency
c) Strictness d) Halo effect
Ans:b

0.84. What is another term for 360-degree feedback?

a) Feedback loop
c) Upward feedback
b) Multi-source assessment
d) Circle feedback
Ans:b

0.85. The relationship between critical incident method & BARS (behaviorally anchored rating scale)
is;
a) No relationship exists
b) Different methods to evaluate performance
c) Both are similar PA methods
d) Comparison method is used for PA, while
Ans:c BARS is related to training evaluation

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.86. Standards are established to;
a) Achieve desired outcomes
b) Meet legal compliance
c) Achieve competitive advantage
d) Promote goodwill in MARKET
Ans: a

0.87. The point method to evaluate job i~ an extension of; ,

a) Ranking method
b) Factor comparison method
c) Classification method
d) Point factor method
Ans:b

0.88. Job evaluation is based on the;

a) Physical skills required by the job
b) Relative job worth for an organization
c) Complexity of the job to perform
d) Conceptual skill required by the job
Ans:b

0.89. Who is in the best position to observe and evaluate an employee's performance for the
purposes of a performance appraisal?
a) Peers, b) Customers
c) Top management d) Immediate supervisor
Ans:d

0.90. Groups are called if jobs are similar.

a) Classes b) Grades
c) Scales d) Roles
Ans:a

Q.91. Train the raters prior to conduct the performance appraisal is an important responsibility of;
a) Top management
c) Line managers
b) HR department
d) Production department
Ans:b

Q.92. Currently
Organizations
a) are new blood in the organization
To attract
providing benefits to their
b) To create stronger customer relationship
employees;
c) To enhance the MARKET share
d) All of the above
Ans:a

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

Q.93. Following are all examples of direct compensation EXCEPT;
a) Pension b) Salary
c) Bonus d) Income
Ans:a

Q.94. One of the main flaws of Classification method to evaluate the jobs is;
a) It is an expensive method
b) Only beneficial for small organizations
c) Maximum probability of biasness
d) Not useful when jobs are different
Ans:d

0.95. Which of the following measurement methods rates employee performance? relative to other
employees?
a) Graphic rating scale
b) Comparative method
c) Essay method
d) Critical incident
Ans:b method

0.96. The aim of performance management is to:

a) Ensure employee has the tools needed to perform the job.
b) Consolidate goal setting.
c) Evaluate employee's performance against standards.
d) Ensure employee's performance is supporting the
Ans:d company's strategic aims,

0.97. The increasing use of performance management reflects:

a) Traditional performance appraisals are often counter-productive.
b) The popularity of TOM concepts.
c) Every employee's efforts must focus on helping the company
goals. achieve its
d) All of the above.
strategic
Ans:d

0.98. Reasons for

appraising
a) a
Appraisals play an integral role in performance management.
subordinate's
b) Appraisals playa part in the employer's salary raise decisions.
performance
a)
includesThe supervisor and the employee together develop a plan for
correcting the employee's
deficiencies.
b) All of the above.
Ans:d

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.99. Steps that supervisors should follow in the performance appraisal process include all the
following except:
a) Prepare detailed forms and procedures to be used.
b) Provide feedback.
c) Define the job.
d) Appraise performance.
Ans: a

0.100. The simplest and most popular technique for appraising performance is the method.
a) Critical incident
c) Forced distribution
b) Alternation ranking
d) Graphic rating scale
Ans:d

0.101. The performance appraisal method ranks the highest employees and lowest employees in
alternate order.
a) Paired comparison
b) Forced distribution
c) Behaviorally anchored rating scale
d) Alternation ranking
Ans:d

0.102. The S in the acronym for SMART goals stands for .

a) specific b) straightforward
c) strategic d) source
Ans: a

0.103. Supervisors using the forced distribution appraisal method can protect against bias claims by:
a) Training raters to be objective.
b) Using multiple raters.
c) Appointing a review committee.
d) All of the above.
Ans:d

0.104. A appraisal method combines the benefits of narratives, critical incidents, and quantified
scales with specific behavioral examples of good or poor performance.
a) Graphic rating scale
b) BARS
c) MBO
d)Narrative
Ans:b

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.105. A problem(s) with management by objectives is (are) that it can:
a) Be time consuming.
b) Result in immeasurable objectives.
c) 1 and 2
d) None of the above.
Ans:c

0.106. Rating an employee high on several traits because he or she does one thing well is called the:
a) Central tendency.
b) Unclear standards.
c) Halo effect.
d)Bias problem.
Ans:c

0.107. The
problemSupervisors
a) with rate employees too highly.
self-ratings is
b) Supervisors accentuate differences and rigidify positions.
that:
c) Employees rate themselves higher than do supervisors.
d) All of the above.
Ans:c

0.108. Supervisors can ensure that employees are satisfied with their performance appraisals by
ensuring that employees:
a) Do not feel threatened during the interview.
b) Have the opportunity to present their ideas and feelings.
c) Have a helpful and constructive supervisor conduct the interview.
d) All of the above.
Ans:d

0.109. The process of evaluating an employee's current and/or past performance relative to his or
her performance standards is called .
a) recruitment b) employee selection
c) performance appraisal d) organizational development
Ans:c

0.110. When goal setting, performance appraisal, and development are consolidated into a single,
common system designed to ensure that employee performance supports a company's strategy, it is
called .
a) strategic organizational development b) performance management
c) performance appraisal d) human resource management
Ans:b

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

0.111. Performance management combines performance appraisal with to ensure that employee
performance is supportive of corporate goals.
a) goal setting b) training
c) incentive systems d) all of the above
Ans:d

0.112. Managers following a performance management approach to appraisals will usually meet
with employees on a basis.
a) weekly b) monthly
c) bi-annual d) yearly
Ans:a

0.113. Managers following a traditional performance appraisal system wi" typically meet with
employees on a basis.
a) daily
b) weekly
c) monthly
d)yearly
Ans:d

0.114. The component of an effective performance management process that communicates the
organization's higher-level goals throughout the organization and then translates these goals into
departmental goals is called .
a) role clarification b) goal alignment
c) developmental goal setting d) direction sharing
Ans:d

0.115. The component of an effective performance management process that explains each
employee's role in terms of his or her day-to-day work is called .
a) role clarification b) goal alignment
c) developmental goal setting d) direction sharing
Ans:a

0.116. Which of the following is not one of the guidelines for effective goal setting?
a) assign specific goals
b) assign measurable goals
c) assign challenging but doable goals
d) assign consequences for performance
Ans: d

0.117. The M in the acronym for SMART goals stands for .

a) moderate b) measurable
c) meaningful d) merit
Ans:b

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0.118. The A in the acronym for SMART goals stands for .
a) actionable b) appropriate
c) attainable d) attitude
Ans:a

0.119. Participative set goals result in higher performance than assigned goals when
a) participative set goals are more difficult
b) assigned goals are more difficult
c) the rewards are also higher
d) participative set goals are used
Ans:a consistently

0.120. When using goal setting in performance management, the goals should be
a) difficult
c) doable
b) challenging
d) all of the above
Ans:d

0.121. Who is the primary person responsible for doing the actual appraising of an employee's
performance?
a) the employee's direct supervisor
b) the company appraiser
c) the human resource manager
d)the EEO contact person
Ans:a

Q.122. Which of the following is not a role played by the HR department regarding performance
appraisals?
a) Training of supervisors
b) Monitoring the appraisal system
c) Appraising of employees
d) Ensuring compliance with EEO
Ans:c laws

Q.123. When designing an actual appraisal method, the two basic considerations are
a) who should measure and when to measure
b) when to measure and what to measure
c) what to measure and who should measure
d) what to measure and how to measure
Ans:d

0.124. The most popular technique for appraising performance is the method.
a) alternation ranking b) graphic rating scale
c) MBO d) constant sum rating scale
Ans:b

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0.125. Which performance appraisal technique lists traits and a range of performance?
a) alternation ranking b) graphic rating scale
c) Likert d) constant sum rating scale
Ans:b

0.126. What do performance appraisals measure?

a) generic dimensions of performance
b) performance of actual duties
c) employee competency
d) all of the above
Ans:d

0.127. If a performance appraisal focuses on an employee's ability to "identify and analyze

problems" or to "maintain harmonious and effective working relationships," then the performance
appraisal is focused on measuring '
a) generic dimensions of performance
b) performance of actual duties
c) employee competency
d) all of the above
Ans: c

Q.128. If a performance appraisal focuses on an employee's quality and quantity of wok, then the
performance appraisal is focused on measuring '
a) generic dimensions of performance
b) performance of actual duties
c) employee competency
d) all of the above
Ans:a

0.129. The method of performance appraisal involves listing all the subordinates to be rated,
crossing out the names of any not known well enough to rank, indicating the employee who is the
highest on each characteristic being measured and who is the lowest, and then alternating between
the next highest and lowest until all employees have been ranked,
a) alternation ranking
b) graphic rating
c) scale Likert
d) constant sum
Ans:a rating scale

0.130. Alternation ranking refers to an appraisal method, which . .

a) is based on progress made toward the accomplishment of measurable goals
b) combines the benefits of narratives, critical incidents, and quantified scales by assigning
scale points with specific examples of good or poor performance
c)requires that the supervisor keep a log of positive and negative examples of a subordinate's work-
related behavior
d)involves listing all the subordinates to be rated, crossing out the names of any not known well
enough to rank, indicating the employee who is the highest on each characteristic being

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE

measured and who is the lowest, and then alternating between the next highest and lowest until all
employees . have been ranked
Ans:d

Q.131. Suppose you have five employees to rate. You make a chart of all possible pairs of employees
for each trait being evaluated. Then, you indicate the better employee of the pair for each pair.
Finally, you add up the number of positives for each employee. In this case, you have used the
method of performance appraisal.
a) §raphic ranking scale
b) constant sum ranking scale
c) alternation ranking
d)paired comparison
Ans:d

0.132. The most

popular method for
ranking employees is
the method.
a) graphic
ranking scale
b) constant
a) sum ranking
is based on progress made toward the accomplishment of measurable goals
b) scale
combines the benefits of narratives, critical incidents, and quantified scales by assigning
c) alternation
scale points with specific examples of good or poor performance
ranking
c)requires that the supervisor keep a log of positive and negative examples of a subordinate's work-
related behavior
d) paired
comparison
d)requires a supervisor to evaluate performance by assigning predetermined percentages of those
Ans:c rated into performance categories
being
Ans:d
0.133. Forced
distribution
0.134. Whenrefers to
a supervisor evaluates performance by assigning predetermined percentages of rates
an appraisal method,
into performance categories, he or she has used the method of performance appraisal.
which
e) graphic ranking scale
f) constant sum ranking scale
g) paired comparison
h)forced distribution
Ans:d

0.135. John, the supervisor of the manufacturing department, is in the process of evaluating his
staff's performance. He has determined that 15% of the group will be identified as high performers,
20% as above average performers, 30% as average performers, 20% as below average performers,
and 15% as poor performers. John is using a method.
a) graphic rating scale b) constant sum ranking scale
c) forced distribution d) alternation ranking
Ans:c

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0.136. Which of the following measurement methods rates employee performance relative to other
employees?
a) graphic rating scale
b) forced distribution
c) likert scale
d)constant sums rating
Ans:b

0.137. With the method, the supervisor keeps a log of positive and negative examples of a
subordinate's work-related behavior.
a) alternation ranking b) forced distribution
c) narrative forms d) critical incident
Ans:d

0.138. The critical incident technique refers to an appraisal method, which

a) is based on progress made toward the accomplishment of measurable goals
b) combines the benefits of narratives, critical incidents, and quantified scales by assigning
scale points with specific examples of good or poor performance
c)requires that the supervisor keep a log of positive and negative examples of a subordinate's work-
related behavior
d)requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories
Ans: c

0.139. All of the following are advantages of using the critical incident method for appraising
performance except that '
a) it provides examples of good performance
b) it does not include a numerical rating
c) it provides examples of poor performance
d) it reflects performance from throughout
Ans: b the appraisal period

0.140. Which appraisal method combines the benefits of narratives, critical incidents, and quantified
scales by assigning scale points with specific examples of good or poor performance?
a) behaviorally anchored rating scale b) graphic rating scale
c) constant sums rating scale d) none of the above
Ans: a

0.141. Behaviorally anchored rating scale (BARS) refers to an appraisal method, which
a) is based on progress made toward the accomplishment of measurable goals
b) combines the benefits of narratives, critical incidents, and quantified scales by assigning
scale points with specific examples of good or poor performance
c)requires that the supervisor keep a log of positive and negative examples of a subordinate's work-
related behavior
d)requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories
Ans:b

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0.142. The first step in developing a behaviorally anchored rating scale is to '
a) develop performance dimensions b) generate critical incidents
c) reallocate incidents d) scale incidents
Ans:b

Q.143. Which step in developing a behaviorally anchored rating scale involves clustering critical
incidents into a smaller set of performance dimensions?
a) first b) second
c) third d) fifth
Ans:b

0.144. Which step in developing a behaviorally anchored rating scale involves clustering definitions
and critical incidents, reassigning each incident to the cluster where rt fits best and then determining
the level of agreement among the group as to the allocation of incidents?
a) first
b) second
c) third
d)fourth
Ans:c

0.145. The entire following are advantages of behaviorally anchored rating scales (BARS) except that
they .
e) are more accurate
f) provide clearer standards
g) are time consuming
h)are reliable
Ans:c

0.146.
Management
a) is based on progress made toward the accomplishment of measurable goals
by objectives
a) combines the benefits of narratives, critical incidents, and quantified scales by assigning
(MBO) refers
scale
to an points with specific examples of good or poor performance
appraisal that the supervisor keep a log of positive and negative examples of a subordinate's work-
b)requires
method,
related behavior
which
c)requires a supervisor to evaluate performance by assigning predetermined percentages of those
being rated into performance categories
Ans:a

0.147. Which of the following is a problem with using MBO?

a) a tendency to set unclear objectives
b) it is time consuming
c) tug of war between subordinate and manager regarding goals
d) all of the above
Ans:d

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0.148. The forced distribution method is similar to grading on a curve meaning that predetermined
percentages of those being rated are placed into performance categories.
a) True b) False
Ans:b

0.149. Graphic rating scales are subject to all of the following problems except .
a) unclear standards b) halo effects
c) complexity d) central tendency
Ans:c

0.150. When different supervisors define levels of performance (good, fair, poor) differently, unfair
appraisals could result due to a problem with .
a) unclear standards b) halo effects
c) complexity d) central tendency
Ans:a

0.151. is defined as the influence of a rater's general impression on ratings of specific ratee qualities.
a) Impression management
b) Halo effect
c) Central tendency
d)Stereotyping
Ans: b

0.152. Jason is generally considered unfriendly at work. His supervisor rates him low on the trait
"gets along well with others" but also rates him lower on other traits unrelated to socialization at
work. Jason's performance appraisal may be unfair dueto
e) impression management
f) bias
g) stereotyping
h)halo effects
Ans:d

0.153. Some supervisors, when filling in rating scales, tend to avoid the highs and lows on the scale
and rate most people in the middle. This means that all employees may be rated average.
i) halo effect
j) stereotyping
k) central tendency
l)strictness
Ans:c

0.154. The
best way of
reducing
a) rank employees
the
b)
problembeof aware of the problem
c)
central train supervisors to avoid it
tendencyimpose
d) in a distribution for
performanc
Ans:a performance
e appraisals
is to .
MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE
0.155. The problem occurs when supervisors tend to rate all their subordinates consistently high.
a) central tendency
b) leniency
c) strictness
d)halo effect
Ans:b

0.156. The
problem
occurs when
supervisors
tend to rate
all their
subordinates
consistently
low.
e) central
tendency
f) leniency
g) strictness
h)bias
Ans:c

Q.157. Which big five-personality trait is associated with performance appraisal ratings that are too
strict?
i) agreeableness
j) extraversion
k) conscientiousness
l)openness
Ans:c

0.158. Goals
should be
challenging,
but not so
difficult that
they appear
impossible
or
unrealistic.
a)
Tru
e b)
Fals
e
Ans:a

0.159. Which big five personality trait is associated with performance appraisal ratings that are too
lenient?
m)agreeableness
n) extraversion
o) conscientiousness
MCQ’s – 306HR - PERFORMANCE MANAGEMENT
p)openness DIMR - PUNE
Ans:a
Q.161. When an employee's personal characteristics such as age, race, and gender influence a
supervisor's evaluation of his or her performance, the problem of has occurred.
a) bias
b) stereotyping
c) halo affect
d)strictness
Ans:a

0.162.
Which
a) ofconduct a job analysis to establish criteria and standards for successful performance
the
b) base appraisals on subjective supervisory observations
following
c) administer and score appraisals in a standardized fashion
could result
d) use clearly defined job performance dimensions
in a legally
questionabl
Ans:b
e appraisal
process?
0.163. Who is in the best position to observe and evaluate an employee's performance for the
purposes of a performance appraisal?
a) peers b) customers
c) rating committees d) immediate supervisor
Ans:d

0.164. Performance appraisals may be conducted by '

a) the immediate supervisor b) peers
c) rating committees d) all of the above
Ans:d

165.Rating committees, made up of an employee's immediate supervisor along with other

supervisors, usually have members,
a) 2-3 b) 4-5
c) 6-7 d) 8-9
Ans:b

166.While peer appraisals have many benefits, one problem is , when several peers collaborate to
rate each other highly,
a) social loafing b) group think
c) logrolling d) alliance forging
Ans:c

0.167. Peer appraisals have been shown to result in a(n) '

a) reduction of social loafing in the team
b) reduction of group cohesion
c) decrease in satisfaction with the group
d) lower task motivation
Ans:a

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0.168. What usually occurs when employees rate themselves in a performance appraisal?
a) appraisals are subject to halo effects
b) logrolling could occur
c) ratings are higher than when rated by supervisors or peers
d) ratings are about the same as when determined by peers
Ans:c

0.169. Firms that use let subordinates anonymously rate their.supervisor's performance,
a) downward feedback
b) upward feedback
c) MBO
d)narratives
Ans:b

Q.170. What process allows top management to diagnose the management styles of supervisors,
identify potential "people" problems, and take corrective action with individual supervisors as
necessary?
e) strategic performance appraisal
f) organizational development
g) upward feedback
h)MBO
Ans: c

Q.171. When subordinates provide feedback for supervisors, the comments should be . anonymous
because identifiable responses tend to result in '
a) more critical ratings
b) increased comfort with the process on the part of the subordinate
c) more negative attitudes from managers receiving the feedback
d) more inflated ratings
Ans:d

Q.172. What is another term for 360-degree feedback?

a) feedback loop b) multi-source assessment
c) upward feedback d) circle feedback
Ans: b '

Q.173. Which of the following responses is not typical during a negative appraisal interview?
a) denial
b) anger
c) relief
d)aggression
Ans: c

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Q.174. You are conducting an appraisal interview with an employee who is satisfactory, but not
promotable, Which incentive listed below would likely be the least effective for maintaining
satisfactory performance in this situation?
a) time off
b) small bonus
c) compliments
d) additional
Ans:d professional
development
Q.175. Which is the easiest type of appraisal interview to conduct?
a) satisfactory-not promotable b) satisfactory-promotable
c) unsatisfactory-correctable d) unsatisfactory-
uncorrectable
Ans:b

0.176. The alternation ranking method is the simplest and most popular technique for appraising
performance.
a) True b) False
Ans: b

0.177.
a) When
talk inconducting an appraisal
terms of objective workinterview,
data supervisors should do all of the following except
b) compare the person's performance to a standard
c) give specific examples of poor performance
d) compare the person's performance to that of
Ans:d other employees-

0.178. When a supervisor must criticize a subordinate in an appraisal interview, it is bestto

a) hold the meeting with other people who can diffuse the negative situation
b) provide examples of critical incidents
c) acknowledge the supervisor's personal biases in the situation
d) provide feedback once per year
Ans:b

0.179. Top employees often outperform the average employees by as much as 100%.
(T; moderate; p. 320)
a) True b) False
Ans: a

Q.180. The alternation ranking method combines the benefits of narratives, critical incidents, and
quantified scales by anchoring a rating scale with specific behavioral examples of good or poor
performance.
a) True b) False
Ans:b

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0.181. Subordinates may feel dissatisfied with their appraisal interview when they
a) feel threatened during the interview
b) have an opportunity to express their ideas
c) have an opportunity to influence the course of the interview
d) have a constructive interviewer conduct the interview
Ans:a

0.182. When actual job duties are appraised, the idea is to focus on the extent to which the
employee exhibits the competencies that the employer values.)
a) True b) False
Ans:b

0.183. When an employee's performance is so poor that a written warning is required, the warning
should .
a) identify the standards by which the employee is judged
b) provide examples of employees who met the standards
c) provide examples of times when the employee did
d) meet the standards
Ans:a be sent to the employee in question, to the manager's
superior, and to the EEO office
0.184. Performance Management is:
a) The activity where a line manager sets objectives for his/her staff
b) To develop punitive steps to address poor performance
c) To ensure all stakeholder requirements will be met
d) To comply with the requirements of HR
Ans:c

0.185. Planning of Performance requires:

a) Translating the job description into objectives and measures
b) Assessing your culture
c) Setting aligned KPA's and Objectives
d) Defining a development plan for employees
Ans: c & d

0.186. Maintaining performance includes:

a) Checking up staff to ensure they perform optimally
b) Provide coaching and training where gaps exist
c) Formal feedback
d) Disciplining poor performance
Ans: b & d

0.187. The-HR department conducts performance appraisals, develops the appraisal tools, and
monitors the appraisal system.
a) True b) False
Ans:b

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0.188. Key Value Drivers are:
a) The assets of the company
b) The requirements and expectations of all key stakeholders
c) Formally reported in the annual report
d) The basis of strategy and operational focus areas
Ans: b & d

0.189. Benefits of a good PM system can include:

a) An effective HR Department b) Reduced labour costs
c) Improved communication d) Focused
development Ans: c & d

0.190. Mentoring can be seen as:

a) A trusting relationship and focus on the holistic development and growth of a person
b) Questions about life, work and beliefs
c) A very formal relationship
d) Job observation
Ans:a

0.191. Performance-based rewards should:

a) Be based on what the company has budgeted for
b) Should be highly confidential
c) Be based on stretch targets
d) Be known to staff
Ans: c & d

0.192. A Manager at the first level of management is known as a

a) Top Executive b) Middle manager
c) Assembly- line worker d) Supervisor
Ans: d

Q.193. Generally, supervisors focus on:

a) Day-to-day problems and goals to be achieved in one year or less.
b) Trying to get the entire organization to meet its goals.
c) Long-range goals extending over several years.
d) Themselves only and are not concerned with organizational goals.
Ans:a

Q.194. For a supervisor, conceptual skills would include:

a)Recognizing how the work of various employees affects the performance of the department as a
whole.
b)The specialized knowledge and expertise used to carry out particular techniques or procedures.

c) The ability to communicate with, motivate, and understand people.

d) The ability to analyze information and reach good decisions.
Ans:a

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Q.195. When supervisors and managers challenge people to question their assumptions about the
work and consider better ways of doing it, they rely on which set of managerial skills?
a) Encouraging innovative thinking
b) External monitoring
c) Empowering
d)Developing
Ans:a

Q.196.
Organizing
a) Conceptual skills. b) Good human relations skills.
draws heavily
c) Technical skills. d) Decision-making skills.
on the
Ans: a
supervisor's:

0.197. Monitoring performance and making needed corrections is the management function of:
a) Leading.
c) Staffing.
b) Planning.
d) Controlling.
Ans:d

0.198. Performance appraisals assume that the employee understood what his or her performance
standards were.
a) True
b)False
Ans:a

0.199.
Higher-
level
manag
ers
usually
spend
most of
their
time on
a)
these Giving employees clear instructions.
b)
two Looking for problems and trying to correct them before employees' performances
manag
deteriorate further.
ement
c) Speaking up for employees' interests to top management.
functio
d)
ns: Being inaccessible to subordinates.
Ans:d
a)
Leading
and The evidence suggests that participative set goals consistently result in higher performance
0.201.
controll
than assigned goals.
ing.
a) True b) False
c)
Ans:b
Leading
and
organizi
ng.
b)
MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE
Plannin
g and
organizi
0.202. A new supervisor's most reliable source of getting to know his/her new employees is probably
the.
a) Boss.
b) Performance appraisals of the new employees.
c) Personnel department.
d) Employees themselves.
Ans:d

0.203. All of the following are suggestions for making the transition smooth for a new supervisor
EXCEPT:
a) Setting limits on the supervisor's behavior.
b) Being a rescuer.
c) Figuring out how to measure success.
d) Communicating with everyone.
Ans:b

0.204. Which theory concerns the use of objectives to manage performance?

a) Probability theory
b) Goal theory
c) Results theory
d) Outcomes theory
Ans:b

0.205. Supervisors should provide employees with feedback, development, and incentives necessary
to help employees eliminate performance deficiencies or to continue to perform well.
a) True b) False
Ans: a

MCQ’s – 306HR - PERFORMANCE MANAGEMENT DIMR - PUNE