CPM CPM Performance Management & Appraisal 2 — Questions and Answers
Question 1: Which appraisal bias causes a manager to rate an employee based primarily on their most recent behavior rather than the full evaluation period?
- Halo effect
- Recency bias (Correct answer)
- Similar-to-me bias
- Contrast effect
Correct answer: Recency bias
Recency bias occurs when recent events disproportionately influence an appraisal, overshadowing the employee's overall performance across the full period.
Question 2: Continuous performance management differs from annual reviews in that it:
- Eliminates the need for formal evaluations entirely
- Provides ongoing, real-time feedback and coaching throughout the year (Correct answer)
- Focuses only on corrective action
- Requires less manager involvement
Correct answer: Provides ongoing, real-time feedback and coaching throughout the year
Continuous performance management replaces or supplements annual reviews with regular check-ins, real-time feedback, and ongoing coaching.
Question 3: Key Performance Indicators (KPIs) in performance management should primarily be:
- Numerous to cover all possible activities
- Linked to strategic organizational objectives (Correct answer)
- Set exclusively by HR without manager input
- Based only on qualitative observations
Correct answer: Linked to strategic organizational objectives
Effective KPIs are directly connected to the organization's strategic goals, ensuring individual performance drives overall mission success.
Question 4: The halo effect in performance appraisals refers to:
- Rating an employee low due to one negative incident
- Allowing one strong trait to positively influence ratings across all dimensions (Correct answer)
- Rating all employees equally
- Evaluating only recent performance
Correct answer: Allowing one strong trait to positively influence ratings across all dimensions
The halo effect causes a single positive characteristic or impression to inflate ratings across unrelated performance areas.
Question 5: Which approach to performance management ties individual objectives directly to department and organizational goals?
- Forced distribution
- Cascading goals (Correct answer)
- Peer review
- Competency-based appraisal
Correct answer: Cascading goals
Cascading goals flow strategic objectives from the organization level down through departments to individual employees, ensuring alignment at every level.
Question 6: Calibration sessions in performance management are conducted to:
- Train employees on new software
- Ensure consistency and fairness in ratings across managers and teams (Correct answer)
- Assign workloads to employees
- Replace individual appraisal discussions
Correct answer: Ensure consistency and fairness in ratings across managers and teams
Calibration sessions bring managers together to compare and align performance ratings, reducing bias and ensuring equitable evaluation standards.
CPM CPM Performance Management & Appraisal 2
Which appraisal bias causes a manager to rate an employee based primarily on their most recent behavior rather than the full evaluation period?