Human Resources Performance Management

Question 1

What is a 'SMART' goal in performance management?

Accepted Answer

Specific, Measurable, Achievable, Relevant, Time-bound

Answer

Simple, Manageable, Achievable, Relevant, Timely

Answer

Strategic, Meaningful, Aligned, Realistic, Tracked

Answer

Supported, Monitored, Assessed, Reviewed, Tracked

Question 2

What is 'halo effect' as a performance appraisal bias?

Accepted Answer

Allowing one outstanding trait to positively influence ratings on all other dimensions

Answer

Rating all employees above average

Answer

Giving better ratings to employees who work overtime

Answer

Focusing only on recent performance rather than the full review period

Question 3

What is 'management by objectives' (MBO)?

Accepted Answer

A process where managers and employees jointly set goals, and performance is evaluated against those goals

Answer

Managing only through written policies and objectives

Answer

Setting objectives only at the senior management level

Answer

A budgeting process for HR departments

Question 4

What is 'central tendency error' in performance appraisals?

Accepted Answer

The tendency to rate all employees near the middle of the rating scale, avoiding extremes

Answer

Rating all employees as exceptional performers

Answer

Rating employees based on their central job duty only

Answer

Giving the same rating as the previous year

Question 5

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

Accepted Answer

To document performance deficiencies and establish a structured plan with specific expectations and support for improvement

Answer

To recognize top performers for advancement

Answer

To conduct annual compensation reviews

Answer

To identify training needs across the department

Question 6

What is 'forced ranking' or 'stack ranking' in performance management?

Accepted Answer

A system requiring managers to distribute performance ratings on a fixed curve (e.g., top 20%, middle 70%, bottom 10%)

Answer

Rating employees alphabetically

Answer

Ranking job candidates for open positions

Answer

Ordering employees by seniority for promotion