PHR Performance Management

Question 1

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

Accepted Answer

360-degree feedback

Answer

Management by Objectives (MBO)

Answer

Behaviorally Anchored Rating Scale (BARS)

Answer

Forced ranking

Question 2

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

Accepted Answer

SMART goal

Answer

KPI

Answer

Balanced Scorecard objective

Answer

Critical incident

Question 3

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

Accepted Answer

Relative ranking/forced distribution

Answer

Graphic rating scale

Answer

Narrative essay

Answer

Critical incident method

Question 4

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

Accepted Answer

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

Answer

Rates all employees in the middle of the scale to avoid conflict

Answer

Rates recent events more heavily than past performance

Answer

Gives higher ratings at the end of the year than at midyear

Question 5

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

Accepted Answer

Collaborative goal-setting between the employee and their manager

Answer

Top management dictating targets to employees

Answer

HR setting universal company-wide standards

Answer

A committee of peers reviewing job requirements

Question 6

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

Accepted Answer

Rate all employees higher than their actual performance warrants

Answer

Rate all employees lower than their actual performance warrants

Answer

Use only the midpoint of the rating scale

Answer

Focus only on the most recent performance period

Question 7

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

Accepted Answer

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

Answer

To document the employee's accomplishments for promotion consideration

Answer

To notify the employee that termination is imminent within 30 days

Answer

To create a record for compensation benchmarking purposes