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Performance Management Flashcards

7 cards from real PHR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Which performance appraisal method collects feedback from a subordinate's supervisors, peers, direct reports, and sometimes customers?

    Answer: 360-degree feedback

    360-degree feedback gathers input from multiple rater sources surrounding the employee—supervisors, peers, direct reports, and customers—providing a comprehensive performance view.

  2. A performance standard that is Specific, Measurable, Achievable, Relevant, and Time-bound is referred to as a:

    Answer: SMART goal

    SMART is an acronym standing for Specific, Measurable, Achievable, Relevant, and Time-bound, and it describes a well-structured performance goal.

  3. Which performance review approach compares employees against each other rather than against a fixed standard?

    Answer: Relative ranking/forced distribution

    Relative ranking or forced distribution ranks employees against one another, often placing a set percentage in each performance category.

  4. The 'halo effect' in performance appraisal occurs when a rater:

    Answer: Allows one positive trait to positively influence ratings across all other dimensions

    The halo effect is a cognitive bias where a single strong positive impression skews the rater's evaluation of all other performance dimensions upward.

  5. Under Management by Objectives (MBO), goals are set through a process that primarily involves:

    Answer: Collaborative goal-setting between the employee and their manager

    MBO is a collaborative process where managers and employees jointly establish specific, measurable objectives aligned with organizational goals.

  6. A 'leniency error' in performance appraisals refers to a rater tendency to:

    Answer: Rate all employees higher than their actual performance warrants

    Leniency error occurs when a rater consistently assigns inflated ratings to avoid conflict or to appear supportive, resulting in ratings higher than deserved.

  7. Which of the following best describes the purpose of a performance improvement plan (PIP)?

    Answer: To formally outline specific deficiencies and provide a structured path to meet performance expectations

    A PIP formally identifies performance gaps, sets clear expectations and timelines, and provides resources to help the employee reach required performance standards.