MGMT 443 EXAM 2 QUESTIONS AND VERIFIED
ANSWERS
Performance Management - Answers - the process of identifying, measuring, managing,
and developing the performance of human resources
Performance Appraisal - Answers - is the ongoing process of evaluating employee
performance.
Purposes of Performance Appraisal Systems - Answers - 1) Employment decisions
2) Employee feedback
3) Criteria in test validation
4) Objectives for training program
5) Diagnosis of organizational problems
Performance Appraisal Process - Answers - Step 1: Job Analysis
Step 2: Develop standards and measurement methods; communicate standards to
workforce
Step 3: Informal PA-- coaching and discipline
Step 4: Prepare for and conduct formal PA
**Organization methods and objectives are intermixed among all steps
Accurate Performance Measures are... - Answers - 1) Valid and reliable- consistency of
judgment
2) Acceptable- must have support of those who will use them
3) Feasible and practical
4) Specific
5) Sensitive - i.e. can distinguish between ineffective and effective workers
6) Based on the mission and objectives
Why conduct performance appraisals? - Answers - 1) Communicate employee's
performance strengths and improvement needs
2) Make employment-related decisions
3) Motivate-- develop
Aspects of communicating employee's performance strengths and improvement needs -
Answers - managers and employees should have a formal 2-way conversation that
allows employees to respond.
Aspects of making employment-related decisions - Answers - managers can use
objective criteria to decide employee raises, promotions, demotions, training,
development, termination.
, Aspects of motivating (developing) - Answers - managers and employees can discuss
tools and opportunities that can help employees improve their performance (and
thereby improve organizational performance).
Forms of Appraisal - Answers - 1) Ranking Method
2) Graphic Rating Scales form
3) BARS Form
4) Narrative Method or Form
5) MBO Method
6) Critical Incidents Method
Ranking Methods - Answers - -Manager ranks a group of employees by making
comparisons from best to worst.
-Typically used for evaluative decision making and development
Forced Ranking - Answers - 1) Relative Comparison
2) Absolute Comparison
3) Forced Distribution
Relative Comparison - Answers - An appraisal that compares employees against each
other, forcing some to be rated above others, such as, "How did Joe do compared to
Sally and Bob?"
Absolute Comparison - Answers - A conventional performance appraisal, such as, "How
well did Joe do against the responsibilities and goals set at the beginning of the year?"
Forced Distribution - Answers - An appraisal that does not compare people against
each other but gives employees ratings such as "excellent," "good," or "needs
improvement." A set number or percentage of workers must fall into each category.
Graphic Rating Scales - Answers - Manager uses an appraisal checklist to rate
employee performance on a continuum, often expressed as a numerical scale.
(unsatisfactory, fair, satisfactory, good, outstanding)
Critical Incidents Method - Answers - -Manager records examples of the employee's
effective and ineffective behavior during the time period between evaluations, which is
in the behavioral category.
-The disadvantage of this method is the tendency to record only negative incidents
instead of positive ones.
-This method can work well if the manager has the proper training to record incidents
(perhaps by keeping a weekly diary) in a fair manner.
Behaviorally Anchored Rating Scales (BARS) - Answers - -Combines elements from
critical incident and graphic rating scale approaches.
ANSWERS
Performance Management - Answers - the process of identifying, measuring, managing,
and developing the performance of human resources
Performance Appraisal - Answers - is the ongoing process of evaluating employee
performance.
Purposes of Performance Appraisal Systems - Answers - 1) Employment decisions
2) Employee feedback
3) Criteria in test validation
4) Objectives for training program
5) Diagnosis of organizational problems
Performance Appraisal Process - Answers - Step 1: Job Analysis
Step 2: Develop standards and measurement methods; communicate standards to
workforce
Step 3: Informal PA-- coaching and discipline
Step 4: Prepare for and conduct formal PA
**Organization methods and objectives are intermixed among all steps
Accurate Performance Measures are... - Answers - 1) Valid and reliable- consistency of
judgment
2) Acceptable- must have support of those who will use them
3) Feasible and practical
4) Specific
5) Sensitive - i.e. can distinguish between ineffective and effective workers
6) Based on the mission and objectives
Why conduct performance appraisals? - Answers - 1) Communicate employee's
performance strengths and improvement needs
2) Make employment-related decisions
3) Motivate-- develop
Aspects of communicating employee's performance strengths and improvement needs -
Answers - managers and employees should have a formal 2-way conversation that
allows employees to respond.
Aspects of making employment-related decisions - Answers - managers can use
objective criteria to decide employee raises, promotions, demotions, training,
development, termination.
, Aspects of motivating (developing) - Answers - managers and employees can discuss
tools and opportunities that can help employees improve their performance (and
thereby improve organizational performance).
Forms of Appraisal - Answers - 1) Ranking Method
2) Graphic Rating Scales form
3) BARS Form
4) Narrative Method or Form
5) MBO Method
6) Critical Incidents Method
Ranking Methods - Answers - -Manager ranks a group of employees by making
comparisons from best to worst.
-Typically used for evaluative decision making and development
Forced Ranking - Answers - 1) Relative Comparison
2) Absolute Comparison
3) Forced Distribution
Relative Comparison - Answers - An appraisal that compares employees against each
other, forcing some to be rated above others, such as, "How did Joe do compared to
Sally and Bob?"
Absolute Comparison - Answers - A conventional performance appraisal, such as, "How
well did Joe do against the responsibilities and goals set at the beginning of the year?"
Forced Distribution - Answers - An appraisal that does not compare people against
each other but gives employees ratings such as "excellent," "good," or "needs
improvement." A set number or percentage of workers must fall into each category.
Graphic Rating Scales - Answers - Manager uses an appraisal checklist to rate
employee performance on a continuum, often expressed as a numerical scale.
(unsatisfactory, fair, satisfactory, good, outstanding)
Critical Incidents Method - Answers - -Manager records examples of the employee's
effective and ineffective behavior during the time period between evaluations, which is
in the behavioral category.
-The disadvantage of this method is the tendency to record only negative incidents
instead of positive ones.
-This method can work well if the manager has the proper training to record incidents
(perhaps by keeping a weekly diary) in a fair manner.
Behaviorally Anchored Rating Scales (BARS) - Answers - -Combines elements from
critical incident and graphic rating scale approaches.
