TEST BANK
PERFORMANCE MANAGEMENT
4TH EDITION
CHAPTER NO. 01—PERFORMANCE MANAGEMENT AND REWARD
SYSTEMS IN CONTEXT
TRUE/FALSE QUESTIONS
1.1 A performance management system is the systematic description of an employee’s
strengths and weaknesses.
(Suggested points: 2, [1.1]); Pg. 4
LO: 1
Answer:
False. Performance management is a continuous process of identifying, measuring,
and developing the performance of individuals and teams and aligning
performance with the strategic goals of the organization
1.2 Linking the organization’s goals to individual and team goals helps reinforce
behaviors that will help with organizational goal achievement and communicates
the most crucial business initiatives.
(Suggested points: 2, [1.2]); Pg. 6
LO: 2
Answer:
True
1.3 Feedback can increase motivation to perform when it points out how an employee
is performing and acknowledges past successes.
(Suggested points: 2, [1.3]); Pg. 11
LO: 3
Answer:
True
1.4 Dangers of a poorly implemented performance management system include
wasted time and money, lack of standardized employee ratings, and confusion on
how ratings are obtained.
(Suggested points: 2, [1.4]); Pg. 14-15
LO: 4
Answer:
, True
1.5 A performance management system helps encourage employees to speak up and
offer innovative ideas.
(Suggested points: 2, [1.3]); Pg. 11
LO: 3
Answer:
True
1.6 Unfair performance ratings are the main problem with performance management
systems.
(Suggested points: 2, [1.4]); Pg. 16
LO: 5
Answer:
False. Performance ratings are the “canary in the coal mine” and indicators of
problems with the PM system
1.7 Reliability and validity of performance management systems refer to the same
thing.
(Suggested points: 2, [1.5]); Pg. 20
LO: 6
Answer:
False. Reliability refers to consistency and freedom from error, while Validity
refers to the fact that the measures include all relevant performance facets and do
not include irrelevant information.
1.8 The strategic purpose of PM systems involves constructing the strategic vision for
the organization.
(Suggested points: 2, [1.5]); Pg. 6
LO: 2
Answer:
False. The strategic purpose of PM systems is to link an organization’s goals with
individuals’ goals.
1.9 A reliable performance management system includes all relevant performance
facets and does not include irrelevant performance facets.
(Suggested points: 2, [1.5]); Pg. 20
LO: 6
Answer:
, False. This describes a system’s validity, not reliability. A reliable performance
management system is consistent. For example, if two supervisors provided ratings
of the same employee, or if one supervisor rated the same employee twice over a
short period of time during which nothing noticeable occurs, then the ratings
should be similar or identical.
1.10 Distributive justice is the perception that the performance evaluation received is
fair relative to the work performed.
(Suggested points: 2, [1.5]); Pg. 20
LO: 6
Answer:
True
1.11 Performance management systems in foreign subsidiaries often differ from those
in home country headquarters as differences in the power distance (i.e., the degree
to which a society accepts unequal distribution of power) increase between/among
countries.
(Suggested points: 2, [1.5]); Pg. 19
LO: 6
Answer:
True
1.12 The current consensus amongst most employees (as reported by the CEB) is that
performance review systems are helpful in improving their productivity.
(Suggested points: 2, [1.1]); Pg. 6
LO: 1
Answer:
False. 66% of employees feel that the performance review process interferes with
their productivity.
1.13 Poorly implemented performance management systems have little to no negative
legal ramifications for the organization.
(Suggested points: 2, [1.4]); Pg. 15
LO: 4
Answer:
False. Poorly implemented performance management systems are likely to result in
negative legal ramifications such as possible discrimination lawsuits.
1.14 Many large companies such as General Electric, Deloitte, and Adobe no longer use
performance ratings at all.
, (Suggested points: 2, [1.4]); Pg. 16-17
LO: 1
Answer:
False. Many large companies who tried to eliminate performance ratings are now
using ratings again—but they are using more than one system and emphasizing
developmental feedback.
Multiple-Choice Questions
1.15 ________________ is a continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning performance
with the strategic goals of the organization.
A. Strategic planning
B. Performance management
C. Reward system
D. Performance appraisal
(Suggested points: 2, [1.1]); Pg. 4
LO: 1
Answer: B
1.16 Dangers of a poorly implemented performance management system include all of
the following EXCEPT:
A. Increased emphasis on behaviors rather than results
B. Lawsuits/internal complaints of discrimination
C. Biased performance ratings
D. Decreased employee motivation
(Suggested points: 2, [1.4]); Pg. 14-15
LO: 4
Answer: A
1.17 When employees of an organization do not see the PM system as fair, the
organization may witness from its employees all of the following EXCEPT:
A. Job burnout
B. Lowered self-esteem
C. Increased engagement
D. Lawsuits
(Suggested points: 2, [1.4]); Pg. 16
LO: 4
Answer: C
PERFORMANCE MANAGEMENT
4TH EDITION
CHAPTER NO. 01—PERFORMANCE MANAGEMENT AND REWARD
SYSTEMS IN CONTEXT
TRUE/FALSE QUESTIONS
1.1 A performance management system is the systematic description of an employee’s
strengths and weaknesses.
(Suggested points: 2, [1.1]); Pg. 4
LO: 1
Answer:
False. Performance management is a continuous process of identifying, measuring,
and developing the performance of individuals and teams and aligning
performance with the strategic goals of the organization
1.2 Linking the organization’s goals to individual and team goals helps reinforce
behaviors that will help with organizational goal achievement and communicates
the most crucial business initiatives.
(Suggested points: 2, [1.2]); Pg. 6
LO: 2
Answer:
True
1.3 Feedback can increase motivation to perform when it points out how an employee
is performing and acknowledges past successes.
(Suggested points: 2, [1.3]); Pg. 11
LO: 3
Answer:
True
1.4 Dangers of a poorly implemented performance management system include
wasted time and money, lack of standardized employee ratings, and confusion on
how ratings are obtained.
(Suggested points: 2, [1.4]); Pg. 14-15
LO: 4
Answer:
, True
1.5 A performance management system helps encourage employees to speak up and
offer innovative ideas.
(Suggested points: 2, [1.3]); Pg. 11
LO: 3
Answer:
True
1.6 Unfair performance ratings are the main problem with performance management
systems.
(Suggested points: 2, [1.4]); Pg. 16
LO: 5
Answer:
False. Performance ratings are the “canary in the coal mine” and indicators of
problems with the PM system
1.7 Reliability and validity of performance management systems refer to the same
thing.
(Suggested points: 2, [1.5]); Pg. 20
LO: 6
Answer:
False. Reliability refers to consistency and freedom from error, while Validity
refers to the fact that the measures include all relevant performance facets and do
not include irrelevant information.
1.8 The strategic purpose of PM systems involves constructing the strategic vision for
the organization.
(Suggested points: 2, [1.5]); Pg. 6
LO: 2
Answer:
False. The strategic purpose of PM systems is to link an organization’s goals with
individuals’ goals.
1.9 A reliable performance management system includes all relevant performance
facets and does not include irrelevant performance facets.
(Suggested points: 2, [1.5]); Pg. 20
LO: 6
Answer:
, False. This describes a system’s validity, not reliability. A reliable performance
management system is consistent. For example, if two supervisors provided ratings
of the same employee, or if one supervisor rated the same employee twice over a
short period of time during which nothing noticeable occurs, then the ratings
should be similar or identical.
1.10 Distributive justice is the perception that the performance evaluation received is
fair relative to the work performed.
(Suggested points: 2, [1.5]); Pg. 20
LO: 6
Answer:
True
1.11 Performance management systems in foreign subsidiaries often differ from those
in home country headquarters as differences in the power distance (i.e., the degree
to which a society accepts unequal distribution of power) increase between/among
countries.
(Suggested points: 2, [1.5]); Pg. 19
LO: 6
Answer:
True
1.12 The current consensus amongst most employees (as reported by the CEB) is that
performance review systems are helpful in improving their productivity.
(Suggested points: 2, [1.1]); Pg. 6
LO: 1
Answer:
False. 66% of employees feel that the performance review process interferes with
their productivity.
1.13 Poorly implemented performance management systems have little to no negative
legal ramifications for the organization.
(Suggested points: 2, [1.4]); Pg. 15
LO: 4
Answer:
False. Poorly implemented performance management systems are likely to result in
negative legal ramifications such as possible discrimination lawsuits.
1.14 Many large companies such as General Electric, Deloitte, and Adobe no longer use
performance ratings at all.
, (Suggested points: 2, [1.4]); Pg. 16-17
LO: 1
Answer:
False. Many large companies who tried to eliminate performance ratings are now
using ratings again—but they are using more than one system and emphasizing
developmental feedback.
Multiple-Choice Questions
1.15 ________________ is a continuous process of identifying, measuring, and
developing the performance of individuals and teams and aligning performance
with the strategic goals of the organization.
A. Strategic planning
B. Performance management
C. Reward system
D. Performance appraisal
(Suggested points: 2, [1.1]); Pg. 4
LO: 1
Answer: B
1.16 Dangers of a poorly implemented performance management system include all of
the following EXCEPT:
A. Increased emphasis on behaviors rather than results
B. Lawsuits/internal complaints of discrimination
C. Biased performance ratings
D. Decreased employee motivation
(Suggested points: 2, [1.4]); Pg. 14-15
LO: 4
Answer: A
1.17 When employees of an organization do not see the PM system as fair, the
organization may witness from its employees all of the following EXCEPT:
A. Job burnout
B. Lowered self-esteem
C. Increased engagement
D. Lawsuits
(Suggested points: 2, [1.4]); Pg. 16
LO: 4
Answer: C
