CPHR CPHR Performance Management 2 — Questions and Answers
Question 1: What is the 'central tendency error' in performance appraisals?
- The tendency to rate all employees as average or in the middle of the scale (Correct answer)
- Rating employees higher than their actual performance warrants
- Allowing recent events to disproportionately influence ratings
- Judging employees by comparing them to oneself
Correct answer: The tendency to rate all employees as average or in the middle of the scale
Central tendency error occurs when appraisers avoid extreme ratings and cluster all evaluations near the midpoint of the scale, failing to differentiate performance levels.
Question 2: What is the purpose of a Performance Improvement Plan (PIP)?
- To document performance deficiencies and outline specific improvements required within a defined timeframe (Correct answer)
- To recognize and reward high-performing employees
- To document the reasons for terminating an employee
- To establish goals for a newly hired employee
Correct answer: To document performance deficiencies and outline specific improvements required within a defined timeframe
A PIP is a formal document that identifies performance gaps, sets specific measurable improvement goals, and establishes timelines and support mechanisms to help an employee meet performance standards.
Question 3: Which approach to performance management involves providing employees with frequent, real-time feedback rather than relying solely on annual reviews?
- Continuous performance management (Correct answer)
- Forced ranking
- Critical incident method
- Graphic rating scale
Correct answer: Continuous performance management
Continuous performance management replaces or supplements annual reviews with ongoing feedback, regular check-ins, and real-time coaching to improve performance throughout the year.
Question 4: What does 'calibration' mean in the context of performance management?
- A process where managers align and standardize their performance ratings to ensure consistency across the organization (Correct answer)
- The adjustment of performance goals mid-year based on changing business conditions
- The process of validating that a performance appraisal instrument measures what it intends to measure
- The method of weighting different performance criteria in an evaluation
Correct answer: A process where managers align and standardize their performance ratings to ensure consistency across the organization
Calibration sessions bring managers together to discuss and align their performance ratings, ensuring consistent application of standards and reducing individual rater bias.
Question 5: What is 'recency bias' in performance appraisals?
- Over-weighting recent events and under-weighting performance from earlier in the review period (Correct answer)
- Rating employees higher when the review period is near the end of the fiscal year
- Preferring recently hired employees over tenured employees
- Giving more weight to negative feedback than positive feedback
Correct answer: Over-weighting recent events and under-weighting performance from earlier in the review period
Recency bias occurs when evaluators disproportionately base their performance ratings on events that happened most recently, rather than considering the employee's entire performance throughout the review period.
Question 6: In performance management, what is the difference between 'outcome-based' and 'behavior-based' performance evaluation?
- Outcome-based measures results achieved while behavior-based measures how those results were accomplished (Correct answer)
- Outcome-based is conducted annually while behavior-based is conducted quarterly
- Outcome-based focuses on future goals while behavior-based reviews past performance
- Outcome-based is used for executives while behavior-based is used for front-line employees
Correct answer: Outcome-based measures results achieved while behavior-based measures how those results were accomplished
Outcome-based evaluation focuses on whether the employee achieved specific measurable results, while behavior-based evaluation assesses the actions, competencies, and methods used to achieve those results.
CPHR CPHR Performance Management 2
What is the 'central tendency error' in performance appraisals?