Performance Management Flashcards

Which of the following is a primary legal risk associated with poorly conducted performance appraisals?

Answer: Exposure to discrimination claims if ratings lack objective criteria

Subjective or inconsistently applied appraisals can serve as evidence of discriminatory treatment, exposing the organization to EEOC complaints and lawsuits.

What distinguishes a graphic rating scale from other appraisal methods?

Answer: It uses a numbered or descriptive scale to rate employees on specific traits or behaviors

A graphic rating scale presents a continuum (e.g., 1–5 or 'poor' to 'excellent') for each job-related trait or behavior, and raters select the point that best describes the employee.

Which component of an effective performance management system directly links individual goals to organizational strategy?

Answer: Goal alignment or cascading goals

Goal alignment (or cascading goals) ensures that each employee's objectives are derived from and support department and organizational strategic goals.

An employee consistently meets expectations in all areas but receives a low rating because the manager expected exceptional performance. This reflects:

Answer: Strictness or high-standards bias

Strictness bias (also called severity error) occurs when a rater consistently assigns lower ratings than deserved because their personal standard is set unusually high.

Under Title VII of the Civil Rights Act, a performance appraisal system could be challenged if it:

Answer: Produces outcomes with disparate impact on a protected class without business justification

If appraisal results disproportionately and negatively affect a protected class and the employer cannot show job-relatedness or business necessity, the system may violate Title VII.

Which of the following best represents the 'development' purpose of a performance appraisal?

Answer: Identifying employee strengths and areas for growth to guide coaching and training

The developmental purpose of appraisals focuses on helping employees grow by identifying skill gaps, setting improvement goals, and guiding future training or coaching.

When designing a performance management system, which HR principle helps ensure the process is perceived as fair by employees?

Answer: Procedural justice — using consistent, transparent, and bias-free processes

Procedural justice refers to the perceived fairness of the processes used to make decisions; when employees see the process as consistent and unbiased, they are more likely to accept outcomes.