CPM CPM Performance Management & Appraisal

Question 1

The PRIMARY purpose of a performance appraisal in management is to:

Accepted Answer

Provide feedback and support employee development and goal alignment

Answer

Document employee weaknesses for termination

Answer

Satisfy legal compliance only

Answer

Compare employees for salary cuts

Question 2

Which performance appraisal method collects feedback from supervisors, peers, subordinates, and the employee themselves?

Accepted Answer

360-degree feedback

Answer

Management by objectives (MBO)

Answer

Forced ranking

Answer

Critical incident method

Question 3

SMART goals in performance management are defined as goals that are:

Accepted Answer

Specific, measurable, achievable, relevant, and time-bound

Answer

Simple, manageable, achievable, relevant, and timely

Answer

Strategic, motivational, actionable, results-based, and trackable

Answer

Structured, meaningful, aligned, realistic, and thorough

Question 4

Which appraisal bias occurs when a manager rates all employees similarly, ignoring actual performance differences?

Accepted Answer

Central tendency error

Answer

Halo effect

Answer

Recency bias

Answer

Leniency error

Question 5

Management by Objectives (MBO) involves:

Accepted Answer

Employees and managers jointly setting measurable goals

Answer

Managers unilaterally setting all performance standards

Answer

Ranking employees against each other

Answer

Evaluating only technical skills

Question 6

A performance improvement plan (PIP) is MOST appropriately used when:

Accepted Answer

An employee is not meeting expectations and needs a structured improvement path

Answer

Preparing a high performer for promotion

Answer

Documenting disciplinary action for termination purposes only

Answer

Onboarding new employees