Performance Management Flashcards

Which bias occurs when a rater's evaluation is disproportionately influenced by the employee's most recent actions rather than their full-year performance?

Answer: Recency bias

Recency bias leads evaluators to base performance ratings primarily on events that happened just before the appraisal, ignoring earlier performance across the full evaluation period.

A SMART goal used in performance management should be:

Answer: Specific, Measurable, Achievable, Relevant, and Time-bound

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound — a framework for creating clear and attainable performance goals.

An HR professional notices that managers consistently rate members of their own demographic group more favorably. This is an example of:

Answer: Similar-to-me bias

Similar-to-me bias occurs when raters give higher ratings to employees who share their own characteristics, background, or values, undermining objectivity.

Forced distribution in performance management means:

Answer: Assigning performance ratings according to a predetermined bell curve

Forced distribution requires managers to rate employees according to a preset percentage distribution (e.g., top 10%, middle 70%, bottom 20%), similar to grading on a curve.

Which performance management approach is most closely associated with continuous feedback and ongoing coaching rather than annual reviews?

Answer: Agile performance management

Agile performance management replaces infrequent formal reviews with frequent check-ins, real-time feedback, and adaptive goal setting aligned to business cycles.

When an employee's performance rating is influenced upward because the previous employee evaluated was a poor performer, this is known as:

Answer: Contrast effect

The contrast effect occurs when a rater's evaluation of one person is influenced by the rating of the person evaluated immediately before, rather than by objective performance criteria.

In performance management, 'calibration sessions' are held primarily to:

Answer: Ensure consistent and fair application of ratings across teams and departments

Calibration sessions bring managers together to compare and align performance ratings, reducing rater bias and ensuring equity across the organization.