MBA 755 Final Exam Module 4 Test
Questions with Rationales 2026-2027
Updated.
3 basic functions of performance appraisal - Answer 1) reward, 2) develop, and 3) promote.
The job analysis sets the standards for satisfactory job performance, and performance appraisal
evaluates the employee's job performance against these standards.
This evaluation can then be used for making administrative decisions about continued
employment, transfer, promotion, merit pay, bonuses, profit sharing, incentives, and other
organizational rewards.
The develop function is to give employees feedback on their job performance, which can be
used for career planning and employee development.
The third function is to identify candidates for promotion by using the performance appraisal
data to predict the future job performance of an employee in a higher level position.
4 requirements for an effective performance appraisal system - Answer 1) relevance, 2)
sensitivity, 3) reliability, and 4) acceptability.
Relevance means that there are clear links between the performance standards for jobs and the
organization's goals and between the performance standards for jobs and the performance
dimensions evaluated in the performance appraisal.
Sensitivity means that the performance appraisal system can distinguish effective from
ineffective performers.
Reliability means that there is consistency in the performance appraisal process. Different raters
should agree with each other about the performance of a given employee; if they are evaluating
the employee on the same performance dimensions, they should give the same score.
Acceptability means that the performance appraisal system has the support of the managers
and employees who use it. If the system is not acceptable, it may be undermined or used
ineffectively.
According to Longenecker and Goff (1990), although many organizations have a performance
appraisal system, it has been estimated that less than 20% of all performance appraisals are
, effective. What are the reasons that performance appraisals fail? - Answer The performance
standards against which employees are to be evaluated may be unclear, the manager may not
have had opportunities to observe the employee's job performance, the manager may lack skill
in conducting the appraisal, or the appraisal is not taken seriously by the person doing the
rating.
What are the negative consequences of ineffective performance appraisals? - Answer Failure
to reward better performing employees reduces their motivation to exert higher levels of effort.
Failure to identify employees who are ready for promotion leads to less effective promotion
decisions.
Failure to identify areas of employees' job performance that need improvement makes
employees less productive than they could be.
-They regard performance appraisal as one of the most difficult things they are required to do;
nearly 1/2 of employees surveyed said that their manager was not clear about what he or she
thought of their work performance, and a third said that their manager provided little or no
assistance in improving their job performance.
-The higher the employees rise in an organization, the less likely they are to receive quality
feedback about job performance.
5 common ways of conducting a performance appraisal - Answer 1) Checklist,
2) Rank ordering,
3) Narrative appraisals,
4) Graphic Rating Scales (GRS),
5) Behaviorally Anchored Rating Scales (BARS)
A Checklist - Answer a list of job tasks, and the manager conducting the performance appraisal
checks off those tasks that have been completed satisfactorily
Rank Ordering - Answer requires manager to rank-order a group of employees from highest
performer to lowest.
A group of employees on their job performance is easy for the manager to do, as long as the
number of employees is not too large.
Narrative Appraisals - Answer require managers to write an essay about the job performance
of the employee.
Questions with Rationales 2026-2027
Updated.
3 basic functions of performance appraisal - Answer 1) reward, 2) develop, and 3) promote.
The job analysis sets the standards for satisfactory job performance, and performance appraisal
evaluates the employee's job performance against these standards.
This evaluation can then be used for making administrative decisions about continued
employment, transfer, promotion, merit pay, bonuses, profit sharing, incentives, and other
organizational rewards.
The develop function is to give employees feedback on their job performance, which can be
used for career planning and employee development.
The third function is to identify candidates for promotion by using the performance appraisal
data to predict the future job performance of an employee in a higher level position.
4 requirements for an effective performance appraisal system - Answer 1) relevance, 2)
sensitivity, 3) reliability, and 4) acceptability.
Relevance means that there are clear links between the performance standards for jobs and the
organization's goals and between the performance standards for jobs and the performance
dimensions evaluated in the performance appraisal.
Sensitivity means that the performance appraisal system can distinguish effective from
ineffective performers.
Reliability means that there is consistency in the performance appraisal process. Different raters
should agree with each other about the performance of a given employee; if they are evaluating
the employee on the same performance dimensions, they should give the same score.
Acceptability means that the performance appraisal system has the support of the managers
and employees who use it. If the system is not acceptable, it may be undermined or used
ineffectively.
According to Longenecker and Goff (1990), although many organizations have a performance
appraisal system, it has been estimated that less than 20% of all performance appraisals are
, effective. What are the reasons that performance appraisals fail? - Answer The performance
standards against which employees are to be evaluated may be unclear, the manager may not
have had opportunities to observe the employee's job performance, the manager may lack skill
in conducting the appraisal, or the appraisal is not taken seriously by the person doing the
rating.
What are the negative consequences of ineffective performance appraisals? - Answer Failure
to reward better performing employees reduces their motivation to exert higher levels of effort.
Failure to identify employees who are ready for promotion leads to less effective promotion
decisions.
Failure to identify areas of employees' job performance that need improvement makes
employees less productive than they could be.
-They regard performance appraisal as one of the most difficult things they are required to do;
nearly 1/2 of employees surveyed said that their manager was not clear about what he or she
thought of their work performance, and a third said that their manager provided little or no
assistance in improving their job performance.
-The higher the employees rise in an organization, the less likely they are to receive quality
feedback about job performance.
5 common ways of conducting a performance appraisal - Answer 1) Checklist,
2) Rank ordering,
3) Narrative appraisals,
4) Graphic Rating Scales (GRS),
5) Behaviorally Anchored Rating Scales (BARS)
A Checklist - Answer a list of job tasks, and the manager conducting the performance appraisal
checks off those tasks that have been completed satisfactorily
Rank Ordering - Answer requires manager to rank-order a group of employees from highest
performer to lowest.
A group of employees on their job performance is easy for the manager to do, as long as the
number of employees is not too large.
Narrative Appraisals - Answer require managers to write an essay about the job performance
of the employee.
