Performance Management Flashcards

Which performance appraisal method requires managers to rank employees from best to worst performer?

Answer: Forced ranking

Forced ranking requires managers to place employees in a comparative order from highest to lowest performer, often following a predetermined distribution.

What is the primary purpose of a performance improvement plan (PIP)?

Answer: To give employees a structured opportunity to meet performance standards

A PIP is designed to provide employees with a clear set of objectives, support, and a timeline to bring their performance up to the required standard.

Behaviorally Anchored Rating Scales (BARS) are best described as:

Answer: Rating scales that use specific behavioral descriptions to define performance levels

BARS link numerical rating scales to specific behavioral examples, making evaluations more objective and job-relevant.

In Management by Objectives (MBO), performance is assessed primarily by:

Answer: Achievement of mutually agreed-upon goals

MBO evaluates employees based on whether they achieved specific, pre-agreed objectives set collaboratively with their managers.

Which term describes the tendency for a rater to allow one outstanding positive trait to overshadow all other aspects of an employee's performance?

Answer: Halo effect

The halo effect occurs when a rater's overall impression of an employee is dominated by a single positive attribute, inflating ratings in unrelated areas.

A manager consistently rates all employees near the midpoint of a rating scale, avoiding high or low scores. This is an example of:

Answer: Central tendency error

Central tendency error occurs when raters avoid extreme scores and cluster all ratings near the middle of the scale, reducing the appraisal's usefulness.

Which of the following best describes a 360-degree feedback system?

Answer: Performance data collected from the employee's manager, peers, subordinates, and sometimes customers

360-degree feedback gathers performance input from multiple sources surrounding the employee, including supervisors, peers, direct reports, and sometimes external stakeholders.