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Chapter 1

Chapter 1—Performance Management and Reward Systems in Context True/False Questions 1.1

A performance management system is the systematic description of an employee’s strengths and weaknesses. (Suggested points: 2, [1.1]); Pg. 4 LO: 1 Answer: False. Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization

1.2

Linking the organization’s goals to individual and team goals helps reinforce behaviors that will help with organizational goal achievement and communicates the most crucial business initiatives. (Suggested points: 2, [1.2]); Pg. 6 LO: 2 Answer: True

1.3

Feedback can increase motivation to perform when it points out how an employee is performing and acknowledges past successes. (Suggested points: 2, [1.3]); Pg. 11 LO: 3 Answer: True

1.4

Dangers of a poorly implemented performance management system include wasted time and money, lack of standardized employee ratings, and confusion on how ratings are obtained. (Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: True

1.5

A performance management system helps encourage employees to speak up and offer innovative ideas. (Suggested points: 2, [1.3]); Pg. 11 LO: 3 Answer: True

1.6

Unfair performance ratings are the main problem with performance management systems. 255

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(Suggested points: 2, [1.4]); Pg. 16 LO: 5 Answer: False. Performance ratings are the “canary in the coal mine” and indicators of problems with the PM system 1.7

Reliability and validity of performance management systems refer to the same thing. (Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer: False. Reliability refers to consistency and freedom from error, while Validity refers to the fact that the measures include all relevant performance facets and do not include irrelevant information.

1.8

The strategic purpose of PM systems involves constructing the strategic vision for the organization. (Suggested points: 2, [1.5]); Pg. 6 LO: 2 Answer: False. The strategic purpose of PM systems is to link an organization’s goals with individuals’ goals.

1.9

A reliable performance management system includes all relevant performance facets and does not include irrelevant performance facets. (Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer: False. This describes a system’s validity, not reliability. A reliable performance management system is consistent. For example, if two supervisors provided ratings of the same employee, or if one supervisor rated the same employee twice over a short period of time during which nothing noticeable occurs, then the ratings should be similar or identical.

1.10 Distributive justice is the perception that the performance evaluation received is fair relative to the work performed. (Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer: True 1.11

Performance management systems in foreign subsidiaries often differ from those in home country headquarters as differences in the power distance (i.e., the degree to which a society accepts unequal distribution of power) increase between/among countries. (Suggested points: 2, [1.5]); Pg. 19 256

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LO: 6 Answer: True 1.12 The current consensus amongst most employees (as reported by the CEB) is that performance review systems are helpful in improving their productivity. (Suggested points: 2, [1.1]); Pg. 6 LO: 1 Answer: False. 66% of employees feel that the performance review process interferes with their productivity. 1.13 Poorly implemented performance management systems have little to no negative legal ramifications for the organization. (Suggested points: 2, [1.4]); Pg. 15 LO: 4 Answer: False. Poorly implemented performance management systems are likely to result in negative legal ramifications such as possible discrimination lawsuits. 1.14 Many large companies such as General Electric, Deloitte, and Adobe no longer use performance ratings at all. (Suggested points: 2, [1.4]); Pg. 16-17 LO: 1 Answer: False. Many large companies who tried to eliminate performance ratings are now using ratings again—but they are using more than one system and emphasizing developmental feedback. Multiple-Choice Questions 1.15 ________________ is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. A. Strategic planning B. Performance management C. Reward system D. Performance appraisal (Suggested points: 2, [1.1]); Pg. 4 LO: 1 Answer: B 1.16 Dangers of a poorly implemented performance management system include all of the following EXCEPT: A. Increased emphasis on behaviors rather than results B. Lawsuits/internal complaints of discrimination 257 Copyright © 2019 Chicago Business Press

Part I: Strategic and General Considerations___________________________________________________

C. Biased performance ratings D. Decreased employee motivation (Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: A 1.17 When employees of an organization do not see the PM system as fair, the organization may witness from its employees all of the following EXCEPT: A. Job burnout B. Lowered self-esteem C. Increased engagement D. Lawsuits (Suggested points: 2, [1.4]); Pg. 16 LO: 4 Answer: C 1.18 The meaningfulness characteristic of performance management systems includes all the following EXCEPT: A. Standards and evaluations are important and relevant B. All functions that an employee performs are evaluated C. System should evaluate performance regularly D. Evaluator skill should be developed continuously E. Results should be used for administrative purposes (Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: B 1.19 The ___________ purpose of PM systems is to furnish valid and useful information for making employment decisions including salary adjustments, promotions, and terminations. A. strategic B. informational C. administrative D. developmental (Suggested points: 2, [1.2]); Pg. 6 LO: 2 Answer: C 1.20 Information gained from the organizational maintenance purpose of a PM system is used for all of the following EXCEPT: A. Workforce planning B. Evaluating the effectiveness of job descriptions C. Evaluating the effectiveness of HR programs D. Creating talent inventories (Suggested points: 2, [1.2]); Pg. 8 LO: 2 258 Copyright © 2019 Chicago Business Press

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Answer: C 1.21 A. B. C. D.

Performance management systems should be thorough, meaning that: All employees should be evaluated An employee’s flaws should be discussed at length The review should cover the entire review period A and C (Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: D

1.22 An ideal PM system is __________, which means that performance is evaluated and feedback is given on an ongoing basis, the appraisal meeting consists of twoway communication, and performance standards are clear. A. open B. standardized C. ethical D. specific (Suggested points: 2, [1.5]); Pg. 21 LO: 6 Answer: A 1.23 PM system information is important for the effective implementation of which of the following HR function(s)? A. Workforce planning B. Training C. Recruitment and selection D. All of the above (Suggested points: 2, [1.6]); Pg. 23 LO: 7 Answer: D 1.24 All of the following are possible benefits of a performance management system EXCEPT: A. Protection from lawsuits B. Employees become more ethical C. Employees become more competent D. The definitions of job and criteria are clarified (Suggested points: 2, [1.3]); Pg. 10-13 LO: 3 Answer: B 1.25 Which of the following does the text identify as a possible danger of a poorly implemented performance management system? A. Salaries must be increased. B. Poorly performing employees will always stay at the organization. 259 Copyright © 2019 Chicago Business Press

Part I: Strategic and General Considerations___________________________________________________

C. D.

No time or money is spent on the system. Motivation to perform is decreased. (Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: D

1.26 The ____________ characteristic allows employees to receive concrete guidance about what is expected of them and how they can meet those expectations: A. Standardization B. Specificity C. Strategic congruence D. Correctability (Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer: B 1.27 All of the following are characteristics of an ideal performance management system EXCEPT: A. Reliability B. Meaningfulness C. Inexpensive D. Thorough (Suggested points: 2, [1.5]); Pg. 18-22 LO: 6 Answer: C 1.28 All of the following are purposes of a performance management system EXCEPT: A. Make decisions about retention and termination B. Provide documentation C. Increase profits D. Give the HR department something to do (Suggested points: 2, [1.2]); Pg. 6-10 LO: 2 Answer: D 1.29 An ideal performance management system is correctable. What does this mean? A. If an employee is dissatisfied with a rating, it will be changed. B. If an employee is dissatisfied with a rating, there is a process to appeal the rating decision. C. An ideal performance management system is not correctable. D. None of the above is correct. (Suggested points: 2, [1.5]); Pg. 21 LO: 6 Answer: B

Chapter 1

1.30 In which country should performance management be adapted to the country’s unique culture? A. South Korea B. South Africa C. Australia D. All of the above (Suggested points: 2, [1.5]); Pg. 18-19 LO: 6 Answer: D 1.31 In what manner is performance management typically similar around the world? A. Standardization of performance measurement B. Emphasis on behavior versus results of employee performance C. Interpersonal aspects D. None of the above (Suggested points: 2, [1.5]); Pg. 19-20 LO: 6 Answer: A 1.32 All of the following are related to the changing nature of performance management EXCEPT: A. Cloud computing B. Big Data C. Technological advancements and virtual teams D. Changing workforce demographics E. Rising costs (Suggested points: 2, [1.7]); Pg. 24-26 LO: 8 Answer: E 1.33 The performance management system should link to other human resources and development activities EXCEPT: A. Training B. Workforce planning C. Recruitment and hiring D. Financial accounting (Suggested points: 2, [1.6]); Pg. 23-24 LO: 7 Answer: D 1.34 Current factors that are bringing about changes to the performance management process include all of the following EXCEPT: A. Big Data B. Demographic changes in the workforce C. Equal pay legislation D. Electronic performance monitoring 261 Copyright © 2019 Chicago Business Press

Part I: Strategic and General Considerations___________________________________________________

(Suggested points: 2, [1.7]); Pg. 24-26 LO: 8 Answer: C Short-Answer and Essay-Type Questions 1.35

You want to transition your organization’s performance appraisal system into a performance management system. Write a one-page memo to your supervisor describing the advantages of having a well-designed, properly implemented performance management system. (Suggested points: 2, [1.3]); Pg. 10-14 LO: 3 Answer: Memos will vary, but they should all include the following benefits of a welldesigned and implemented PM system: Performance appraisal is the systematic description of an employee’s strengths and weaknesses, whereas performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. o Increased motivation to perform. If given correctly, feedback can increase the motivation to improve future performance. o Increased self-esteem. Receiving feedback about one’s performance fulfills a basic need to be appreciated and valued at work. Feeling appreciated and valued will increase an employee’s self-esteem. o Managers gain insight about subordinates. Direct supervisors and other managers in charge of the appraisal gain new insights into the person being appraised. o Clarification and definition of job and criteria. The job of the person being appraised may be clarified and better defined; thus, employees gain a better understanding of what it takes to be a successful performer. o Self-insight and development. Participants in the system also gain a better understanding of their strengths and weaknesses, which can help them better define future career paths. o Fair and appropriate administrative actions. Performance management systems provide valid information about performance that can be used for administrative actions such as merit increases, promotions, transfers, and terminations. o Organizational goals made clear. The goals of the unit and organization are made clear. o More competent employees. Performance of employees is improved, especially when developmental plans are put in place. o Protections from lawsuits. Data collected through performance management systems can help document compliance with regulations. o Differentiates between good and poor performers. Performance management systems allow for a quicker identification of good and poor performers. 262

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o Communicates supervisor’s view of performance. Good systems force managers to communicate to their subordinates their judgments and expectations regarding performance. 1.36 Identify the two main components of the definition of Performance Management and write one sentence describing each (Suggested points: 2, [1.1]); Pg. 4 LO: 1 Answer: Two main components are: o Continuous process: Performance management is ongoing. It involves an ongoing process of setting goals and objectives, observing performance, talking about performance, and giving and receiving ongoing coaching and feedback o Alignment with strategic goals. Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organization’s goals, and consequently, help the organization gain a competitive advantage. Performance management therefore creates a direct link between employee and team performance and organizational goals, and makes the employees’ contribution to the organization explicit 1.37 There are several characteristics of an ideal performance management system. Please discuss five characteristics of an ideal system and explain how an organization can achieve each characteristic. (For example, one characteristic of an ideal PM system is that it is reliable. An organization can make its system reliable by ensuring that performance measures are consistent across equally or similarly qualified judges and free of error.) (Suggested points: 5, [1.5]); Pg. 18-22 LO: 6 Answer: The answer may involve any five of these characteristics: o Congruent with strategy. The system should be congruent with the unit’s and organization’s strategy. Organizations need to ensure that individual goals are aligned with unit and organizational goals. o Congruent with context. The system should be congruent with the organization’s culture as well as the broader cultural context of the region or country. o Thorough. All employees should be evaluated, all major job responsibilities should be evaluated, the evaluation should include performance spanning the entire review period, and feedback should be given on positive performance aspects as well as those that are in need of improvement. Organizations should train managers on how to give thorough reviews. o Practical. Good systems are available, easy to use, and acceptable to those who want to use them to make decisions, and the benefits of using the system outweigh the costs. Organizations need to get employee and manager input 263 Copyright © 2019 Chicago Business Press

Part I: Strategic and General Considerations___________________________________________________

o o

when designing the PM system to ensure that both parties are able to use the system and trust its results. Meaningful. The standards and evaluations conducted for each job function must be considered important and relevant, the system must emphasize those functions that are under the control of the employee only, evaluations must take place at regular intervals and at appropriate moments, the system should provide for continuing skill development of evaluators, and the results should be used for important administrative decisions. Again, organizations must involve employees and managers in the development of the system and train them on how to use the system effectively in order for it to be meaningful. Specific. A good system provides detailed and concrete guidance to employees about what is expected of them and how they can meet these expectations. Supervisors must clearly communicate to employees what is expected of them. Identifies effective and ineffective performance. The system discriminates between effective and ineffective performance. Organizations design performance criteria in a way that distinguishes between good and bad performance. Reliable. The system uses performance measures that are consistent, free of error, and high in inter-rater reliability. Valid. The measures of performance are relevant (i.e., include important performance facets), they are not deficient (i.e., do not include unimportant performance facets), and they are not contaminated (because they measure only what the employee can control). Organizations identify through job analysis what are essential for the job and only measure those results and behaviors. Acceptable and Fair. A good system is acceptable and perceived as fair by all participants. Organizations can set clear rules that are applied consistently by all supervisors. Inclusive. Good systems include input from multiple sources on an ongoing basis. Organizations should encourage employees to conduct self-appraisals, and employees must participate in the process of creating the system by providing input regarding what should be measured and how it should be measured. Open. Performance is evaluated frequently, performance feedback is provided on an ongoing basis, the appraisal meeting consists of a two-way communication, and standards are clear and communicated continually. Organizations should train managers on how to effectively give feedback and communicate expectations to their employees. Correctable. When employees perceive an error has been made, there should be a mechanism through which this can be corrected. Organizations should establish an appeals process, through which employees can challenge what may be unjust decisions. This is an important aspect of a good performance management system. Standardized. As noted previously, good systems are standardized. This means that performance is evaluated consistently across people and time. Organizations must train individuals in charge of appraisals. 264

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o Ethical. Good systems comply with ethical standards. Organizations should train managers to suppress personal self-interest when providing evaluations, to only evaluate performance dimensions for which they have sufficient information, and to respect the employee. 1.38 According to the text, performance management is … (Suggested points: 2, [1.1]); Pg. 4 LO: 1 Answer: A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. 1.39 Performance management systems serve many purposes. Describe the developmental purpose. (Suggested points: 2, [1.2]); Pg. 7-8 LO: 2 Answer: A performance management system serves a developmental purpose by using performance feedback to allow individuals to learn about their strengths and weaknesses, by identifying training needs, and by helping management and employees to make better decisions regarding job assignments. 1.40 Describe the strategic purpose of performance management. (Suggested points: 2, [1.2]); Pg. 6 LO: 2 Answer: A performance management system serves a strategic purpose by linking the organization’s goals with individual employee goals; in this way, the performance management system reinforces behaviors consistent with organizational goals. 1.41 What is meant when we say that an ideal performance management system must be practical? (Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: When we say that an ideal performance management system is practical, we mean that it is available, easy to use, and acceptable to those who want to use it for decisions, and the benefits of using the system outweigh the costs. 1.42

What is meant when we say that an ideal performance management system must be valid? (Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer:

Part I: Strategic and General Considerations___________________________________________________

When we say that an ideal performance management system is valid, we mean that the measures of performance are relevant (i.e., include important performance facets), they are not deficient (i.e., do not include unimportant performance facets), and they are not contaminated (because they measure only what the employee can control). 1.43

What is meant when we say that an ideal performance management system must be reliable? (Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer: When we say that an ideal performance management system is reliable, we mean that the system uses performance measures that are consistent across judges of equal or similar qualification and free of error.

1.44 List four possible dangers of a poorly implemented performance management system. (Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: Possible dangers of a poorly-implemented performance management system include the following: o Lowered self-esteem o Increased turnove o Damaged relationships o Decreased motivation to perform o Employee burnout and job dissatisfaction o Use of misleading information o Wasted time and money o Emerging biases o Unclear ratings system o Varying and unfair standards and ratings o Unjustified demands on managers’ and employees’ resources o Increased risk of litigation 1.45 List four possible contributions of a good performance management system. (Suggested points: 2, [1.3]); Pg. 10-13 LO: 3 Answer: Possible contributions of a good performance management system include the following: o Self-insight and development are enhanced. o Self-esteem of employees is increased. o Motivation to perform is increased. o Employee engagement is enhanced. 266 Copyright © 2019 Chicago Business Press

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o o o o o o o o o o o o o

Employees become more competent. Voice behavior is encouraged. Definition of job and criteria are clarified. Employee misconduct is minimized. Declines in performance can be addressed early on. Motivation, commitment, and intentions to stay in the organization are enhanced. Managers gain insight about direct reports. There is better and more timely differentiation between good and poor performers. Supervisor’s views of performance are communicated more clearly. Administrative actions are more fair and appropriate. Organizational goals are made clear. There is better protection from lawsuits. Organizational change is facilitated.

1.46 Identify two ways in which PM systems in the United States might differ from those in South Korea? (Suggested points: 2, [1.5]); Pg. 18 LO: 6 Answer: Possible differences between the United States and South Korea might include: o Espouses collectivist values over individual performance o Male-dominated o Respect for hierarch in terms of political and administrative leaders o Sociocultural norms have a clear influence on organizational decision making and practices

Chapter 2

Chapter 2—Performance Management Process True/False Questions 2.1

Ability is the physical, emotional, intellectual, and psychological aptitude to perform the work. (Suggested points: 2, [2.1], pg.44) LO: 4 Answer: True

2.2

Knowledge is having the information to do the job and having experience at the job. (Suggested points: 2, [2.1], pg.44) LO: 4 Answer: False. Knowledge includes only having the information needed to do the job but not necessarily having done the work.

2.3

Job descriptions stay stable over time and therefore do not need to be updated. (Suggested points: 2, [2.1], pg.51) LO: 4 Answer: False. Jobs change, so job descriptions must be checked and updated on ongoing basis.

2.4

Results criteria fall into the following categories: quality, quantity, costeffectiveness, and timeliness. (Suggested points: 2, [2.1], pg.51) LO: 5 Answer: True

2.5

Key accountabilities are the yardstick used to evaluate how well an employee has achieved each objective. (Suggested points: 2, [2.2], pg.52) LO: 5 Answer: False. Performance standards are the yardstick used to evaluate how well an employee has achieved each objective.

2.6

Employees should be measured exclusively on the results that they achieve. (Suggested points: 2, [2.2], pg.52) LO: 5 Answer: False. Employees should be measured on results and behaviors. Copyright © 2019 Chicago Business Press

Chapter 2

2.7

Employees and supervisors should both evaluate employee performance during the performance assessment phase. (Suggested points: 2, [2.4], pg.56) LO: 7 Answer: True

2.8

Self-serving bias refers to the degree to which participants in job analysis differ in how carefully they attend to the job analysis rating at hand. (Suggested points: 2, [2.1], pg.47) LO: 4 Answer: False. Carelessness bias refers to the degree to which participants in job analysis differ in how carefully they attend to the job analysis rating at hand.

2.9

It is very important that the components of a performance management system all be related to one another. (Suggested points: 2, [2.1], pg.42) LO: 2 Answer: True

2.10

The employee should wait until the review cycle is over, or until a serious problem develops, to solicit performance feedback and ask for coaching. (Suggested points: 2, [2.3], pg.54) LO: 6 Answer: False. The employee should not wait until the review cycle is over to solicit performance feedback in the form of “check-ins.” Also, the employee should not wait until a serious problem develops to ask for coaching.

Multiple-Choice Questions 2.11

2.1

The two main steps in the prerequisites phase of performance management are: A. Understanding the organization’s mission and conducting job analysis B. Developing the organization’s mission and conducting job analysis C. Conducting job analysis and writing a development plan D. Understanding the organization’s mission and writing a development plan (Suggested points: 2, [2.1], pg.42) LO: 3 Answer: A A job description includes a summary of: Copyright © 2019 Chicago Business Press

Chapter 2

A. Job duties B. Working conditions C. Needed KSAs D. All of the above (Suggested points: 2, [2.1], pg.44) LO: 4 Answer: D 2.1

__________ are clusters of measurable KSAs. A. Job duties B. Competencies C. Performance standards D. Key accountabilities (Suggested points: 2, [2.2], pg.52) LO: 5 Answer: B

2.1

Performance execution is linked to _____________ and _____________. A. prerequisites; performance planning B. performance planning; performance review C. performance planning; performance assessment D. performance assessment; performance review (Suggested points: 2, [2.1], pg.42) LO:1 Answer: C

2.1

Self-ratings of performance are important because they do all of the following EXCEPT: A. Emphasize discrepancies between the employee’s and supervisor’s views of performance B. Reduce employee defensiveness during an appraisal meeting C. Decrease employee satisfaction with the performance management system D. Increase employee ownership and commitment to the programs (Suggested points: 3, [2.4], pg.56) LO: 7 Answer: C

2.1

Performance reviews should focus on: A. What has been done and how (past) B. What compensation may be received as a consequence (present) C. Goals for the upcoming review period (future) D. All of the above (Suggested points: 2, [2.10, pg.57]) LO: 8 Answer: D

Chapter 2

2.1

The correct order of the phases of a performance management process is: A. Performance planning, prerequisites, performance execution, performance assessment, performance review. B. Prerequisites, performance planning, performance execution, performance assessment, performance review. C. Performance planning, prerequisites, performance execution, performance review, performance assessment. D. Prerequisites, performance execution, performance planning, performance assessment, performance review. (Suggested points: 2, [2.1], pg.42) LO: 1 Answer: B

2.1

The poor implementation of the performance planning phase will result in the poor implementation of the: A. Performance execution phase B. Performance assessment phase C. Performance review phase D. All of the above (Suggested points: 2, [2.4], pg.42) LO: 2 Answer: D

2.2

The prerequisites to the implementation of a performance management system are: A. Money and time B. Knowledge of the organization’s culture and knowledge of the jobs in question C. Knowledge of the organization’s mission and knowledge of the organization’s culture D. Knowledge of the organization’s mission and knowledge of the jobs in question (Suggested points: 2, [2.6], pg. 43) LO: 3 Answer: D

2.3

Methods of conducting a work analysis include all of these EXCEPT: A. Reading textbooks B. Observation of employees in action C. Off-the-shelf questionnaires D. Interviews with employees (Suggested points: 2, [2.2], pg.44) LO: 4 Answer: A

2.4

Chapter 2

A. An online resource for pay scale information B. An online resource for job testing C. An online resource for finding jobs D. An online resource for generic job descriptions (Suggested points: 2, [2.3], pg.48) LO: 4 Answer: D 2.5

During the performance planning component, the supervisor and employee meet to discuss and agree upon: A. The employee’s salary B. Results, behaviors, and a development plan C. Performance, corrections, and a timeline D. The supervisor’s expectations (Suggested points: 2, [2.2], pg.52] LO: 5 Answer: B

2.6

Which of the following are primarily the responsibilities of the employee in terms of performance execution? A. Check-ins and performance touchpoints B. Collection and sharing of performance data C. Commitment to goal achievement D. All of the above (Suggested points: 2, [2.3], pg.55) LO: 6 Answer: D

2.7

Which of the following are primarily the responsibilities of the supervisor in terms of performance execution? A. Feedback B. Observation and documentation C. Reinforcement D. All of the above E. B and C only (Suggested points: 2, [2.3], pg.55) LO: 6 Answer: D

2.8

Which of the following statements is true according to the text? I. Employees are primarily responsible for finding resources for development plans in the performance execution state. II. Both employees and supervisors should rate performance in the performance assessment phase. III. Any discrepancy between employee and supervisor ratings is unacceptable. Copyright © 2019 Chicago Business Press

Chapter 2

IV. Many sources can be utilized for data regarding performance. A. All of the statements are correct. B. I, II, and IV only are correct. C. II and IV only are correct. D. None of the statements are correct. (Suggested points: 2, [2.4], pg.56) LO: 7 Answer: C. Note: Supervisors, and NOT employees are primarily responsible for finding resources for development plans in the performance execution state (pg. 55) 2.9

2.10

The text offers six recommended steps for conducting productive performance reviews. Included in those steps are which of the following? A. Cite specific positive and negative behaviors B. Agree on a bonus C. Agree on an action plan D. A and C only E. None of the above F. All of the above (Suggested points: 2, [2.5], pg.58) LO:8 Answer: D “KSA” in the text refers to what? A. Knowledge, social skills, and aptitude B. Knowledge, skills, and abilities C. Knowledge, skills, and agility D. Knowledge of situation and action (Suggested points: 2, [2.1], pg.44) LO: 3 Answer: B

2.11

2.12

Job descriptions are a key prerequisite for any performance management system because: A. Without them, employees will not “buy in” to the system. B. Performance management systems are not applicable unless certain job elements are present. C. They provide the criteria that will be used in measuring performance. D. They provide information to employees as to what tasks are most important in their jobs. (Suggested points: 2, [2.1], pg.51) LO: 4 Answer: C In the performance planning stage, the term “results” refers to what? A. Customer reactions Copyright © 2019 Chicago Business Press

Chapter 2

B. Ratings that result from performance C. Customer complaints resulting from performance D. Outcomes an employee must produce (Suggested points: 2, [2.7], pg.52) LO: 5 Answer: D 2.13

During the collection of information from individuals for the purpose of conducting a work analysis, why might different people in the same position and same job duties rate certain knowledge, skills, and abilities (KSAs) as more important than other KSAs? A. People tend to believe that the their own behaviors and personality traits are more needed for successful job performance compared to behaviors and personality traits of others. B. Insufficient rater training was provided prior to the collection of information from the individuals. C. Participants in job analysis differ in how carefully they attend to the job analysis rating at hand. D. All of the above (Suggested points: 2, [2.1], pg.47) LO: 4 Answer: D

2.14

A Web-based training program, designed to reduce rater bias, does all of the following EXCEPT: A. Provides a common point of reference B. Allows raters to define each rating dimension C. Defines the scale anchors D. Describes what behaviors were indicative of each rating dimension E. Permits raters to practice their rating skills (Suggested points: 2, [2.1], pg. 48) LO: 4 Answer: B. Note: Programs provide raters with definitions of rating dimensions, they do NOT allow raters to define rating dimensions.

2.15

People tend to attribute success to themselves and failure to external causes (i.e., factors outside of their control). This tendency is called: A. Social projection bias B. Optimism bias C. Availability heuristic D. Self-serving bias E. False consensus bias (Suggested points: 2, [2.1], pg. 47) LO: 4 Answer: D Copyright © 2019 Chicago Business Press

Chapter 2

2.16

______________________ leads people to believe that others behave similarly to themselves and hence lead people to think about themselves instead of people in general when reporting KSAs for their jobs. A. Social projection bias B. Optimism bias C. Carelessness bias D. Self-serving bias E. False consensus bias (Suggested points: 2, [2.1], pg. 47) LO: 4 Answer: A

2.17

___________________leads people to believe that others share the same beliefs and attitudes as themselves. A. Social projection bias B. Optimism bias C. Carelessness bias D. Self-serving bias E. False consensus bias (Suggested points: 2, [2.1], pg. 47) LO: 4 Answer: E

2.18

___________________results from the use of automatic versus controlled processing of information, leading to differences in how carefully people attend to the job analysis rating task at hand. A. Social projection bias B. Optimism bias C. Carelessness bias D. Self-serving bias E. False consensus bias (Suggested points: 2, [2.1], pg.47) LO: 4 Answer: C

Short-Answer and Essay-Type Questions 2.35

Performance management is an ongoing process including five interrelated components. Please explain how the poor implementation of a phase in the process or how a disrupted link between any of the phases will have a negative impact on the performance management process as a whole. (Suggested points: 3, .5[Summary Point #2], .5[Summary Point #3], pg. 42, pg. 59) LO: 2

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Answer: Each of the five components of the performance management process plays an important role. If any of these components is implemented poorly, then the entire performance management system suffers. For example, the lack of knowledge of the organization’s mission and the job in question (i.e., prerequisites) will not allow performance planning (i.e., performance roadmap) to be aligned with organizational goals, thereby leading to poor performance execution. In short, a performance management system is only as good as its weakest component. The links between the various components need to be established clearly. One example would be that performance planning needs to be closely related to performance execution. Performance planning is a futile exercise if execution does not follow from planning. The same applies to all the various components of performance management. 2.36

The employee and the supervisor both have important roles during the performance execution phase. Please list and explain each party’s responsibilities in this phase of the performance management process. (Suggested points: 2, [2.3], ppg.54-55) LO: 6 Answer: During the performance execution phase, these are the employee’s responsibilities: A. Commitment to goal achievement. The employee must be committed to the goals that were set. One way to enhance commitment is to allow the employee to be an active participant in the process of setting the goals. B. Check-ins and performance touchpoints. The employee should not wait until the review cycle is over to solicit performance feedback. Also, the employee should not wait until a serious problem develops to ask for coaching. The employee needs to take a proactive role in soliciting performance feedback and coaching from his or her supervisor. C. Collecting and sharing performance data. The employee should provide the supervisor with regular updates on the employee’s progress toward goal achievement both in terms of behaviors and results. D. Preparing for performance reviews. The employee should not wait until the end of the review cycle approaches to prepare for the review. On the contrary, the employee should engage in an ongoing and realistic self-appraisal so that corrective actions can be taken if necessary. The usefulness of the selfappraisal process can be enhanced by gathering informal performance information from peers and customers (both internal and external). During the performance execution phase, these are supervisor’s responsibilities: A. Observation and documentation. Supervisors must observe and document performance on a daily basis. It is important to keep track of examples of both good and poor performance. Copyright © 2019 Chicago Business Press

Chapter 2

B. Updates. As the organization’s goals may change, it is important to update and revise initial objectives, standards, and key accountabilities (in the case of results) and competency areas (in the case of behaviors). C. Feedback. Feedback on progression toward goals and coaching to improve performance should be provided on a regular basis and certainly before the review cycle is over. D. Resources. Supervisors should provide employees with resources and opportunities to participate in developmental activities. Thus, supervisors should encourage (and sponsor) participation in training, classes, and special assignments. E. Reinforcement. Supervisors must let employees know that the employees’ outstanding performance is noticed by reinforcing effective behaviors and progress toward goals. Also, supervisors should provide feedback regarding negative performance and how to remedy the observed problem. So, observation and communication are not sufficient. Performance problems must be diagnosed early on and appropriate steps taken as soon as the problem is discovered. 2.37

Define knowledge in terms of the prerequisites needed for performance planning. (Suggested points: 2, [2.1], pg.44) LO: 3 Answer: Knowledge is having the information needed to perform the work but not necessarily having done it.

2.38

Define skills in terms of the prerequisites needed for performance planning. (Suggested points: 2, [2.1], pg.44) LO: 3 Answer: Skills are the required attributes that are usually acquired by having done the work in the past.

2.39

Define abilities in terms of the prerequisites needed for performance planning. (Suggested points: 2, [2.2], pg.44) LO: 3 Answer: Abilities are the physical, emotional, intellectual, and psychological aptitude to perform the work, but neither having done it nor having been trained to do the work is required.

2.40

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Answer: With self-appraisal, there is a greater likelihood that the information will be used productively in the future. Self-appraisals can reduce employees’ resentfulness and increase employee satisfaction with the performance management system. Also, the discrepancy between employee and supervisor appraisals is likely to trigger development efforts, particularly when supervisor appraisal is more negative than employee self-appraisal. 2.41

Why is the performance review meeting considered the “Achilles’ heel of the entire process”? (Suggested points: 2, [2.5], pg.57) LO: 8 Answer: Many managers are uncomfortable with providing performance feedback, particularly when performance is deficient; this discomfort may lead to anxiety and the avoidance of the appraisal interview. Because each component of the performance management process plays an important role, when any of these components is implemented poorly or not at all, then the entire performance management system suffers.

2.42

A good performance appraisal meeting includes discussions of what? (Suggested points: 2, [2.5], pg.57) LO: 8 Answer: A good performance appraisal meeting includes discussions of what has been done and how (the past); goals and development plans the employee will be expected to achieve during the following review period (the future); and what new compensation, if any, the employee may be receiving as a result of his/her performance (the present).

2.43

What are the five components in the performance management cycle? (Suggested points: 2, [2.1], pg.42) LO: 1 Answer: The five components of the performance management cycle are: prerequisites, performance planning, performance execution, performance assessment, and performance review.

2.44

List the six recommended steps for conducting productive performance reviews. (Suggested points: 2, [2.5], pg. 58) LO: 8 Answer: The six recommended steps for conducting productive performance reviews are: A. Identify what the employee has done well and poorly by citing specific behaviors. Copyright © 2019 Chicago Business Press

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B. Solicit feedback from the employee about these behaviors. C. Discuss the implications of changing or not changing the behaviors. D. Explain to the employee how skills used in past achievements can help overcome any current performance problems. E. Agree on an action plan. F. Set a meeting to follow up and agree on the behaviors, actions, and attitudes that will be evaluated. 2.45

Define self-serving bias, and explain how it may affect the job analysis process. (Suggested points: 3, [2.1], pg.47) LO: 4 Answer: Self-serving bias is the tendency for people to attribute success to themselves and failure to external causes (i.e., factors outside of their control). As a result, this bias leads people to report that their own behaviors and personality traits are more needed for successful job performance compared to behaviors and personality traits of others.

2.46

Distinguish between social projection bias and false consensus bias. (Suggested points: 3, [2.1], pg.47) LO: 4 Answer: Social projection bias leads people to believe that others behave similarly to themselves and hence leads people to think about themselves instead of people in general when reporting KSAs for their jobs. False consensus bias is different from social projection bias, because false consensus bias leads people to believe that others share the same beliefs and attitudes as themselves.

2.47

How do the self-serving, social projection, false consensus biases, and carelessness bias commonly affect the job analysis process? (Suggested points: 3, [2.1], pg.48) LO: 4 Answer: Self-serving, social projection, and false consensus biases, and carelessness bias affect job analysis ratings because they lead people to believe that their own KSAs are those driving success in their jobs. So, these lead to an exaggerated view regarding the KSAs needed—and this exaggeration is based on precisely the KSAs that job incumbents have.

2.48

How does a Web-based rater training program work to help raters become less susceptible to rater biases and thus more accurate in the ratings that are collected in a job analysis? (Suggested points: 3, [2.1], pg. 48) LO: 4 Answer: Copyright © 2019 Chicago Business Press

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Taken together, self-serving, social projection, false consensus biases, and carelessness bias affect job analysis ratings because they lead people to believe that their own KSAs are those driving success in their jobs. So, these lead to an exaggerated view regarding the KSAs needed—and this exaggeration is based on precisely the KSAs that job incumbents have. Given such, a rater training program helps participants converge onto a common point of reference, which is a point where the exaggeration is significantly mitigated. As a result, rater training program participants tend to provide significantly lower ratings for certain KSAs than do nonparticipants who tend to exaggerate those KSAs. 2.49

List the five steps that typically make up a Web-based rater training program. (Suggested points: 3, [2.1], pg. 48) LO: 4 Answer: A Web-based training program usually includes the following five steps: (1) Provide raters with a definition of each rating dimension. (2) Define the scale anchors. (3) Describe what behaviors were indicative of each dimension. (4) Allow raters to practice their rating skills. (5) Provide feedback on the practice

Chapter 3

Chapter 3—Performance Management and Strategic Planning True/False Questions 3.1

Strategic planning is a process that involves describing the organization’s destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward. (Suggested points: 2, [3.1]); Pg. 68 LO: 1 Answer: True

3.2

The only purpose of a strategic plan is to guide employees’ daily activities. (Suggested points: 2, [3.1]); Pg. 68 LO: 1 Answer: False. Strategic planning serves several purposes, including defining an organization’s identity, preparing for the future, providing focus, creating a culture of cooperation, and serving as a guide for the daily activities of all organizational members. 3.3

The performance management criteria must be linked to the vision, mission, objectives, and strategies of the organization and unit. (Suggested points: 2, [3.1]); Pg. 69-71 LO: 1 Answer: True

3.4

Environmental analysis is an examination of the external environment where the organization operates. (Suggested points: 2, [3.3]); Pg. 74 LO: 4 Answer: False. Environmental analysis considers internal as well as external trends.

3.5

An analysis of the economic environment would be included in the external environment analysis. (Suggested points: 2, [3.3]); Pg. 75 LO: 4 Answer: True

3.6

Leverage is a combination of an opportunity in the external environment and a matching strength in the organization. (Suggested points: 2, [3.3]); Pg. 77

Part I: Strategic and General Considerations___________________________________________________

LO: 5 Answer: True 3.7

A problem is a situation where an external threat can be compensated by strengths in other areas. (Suggested points: 2, [3.3]); Pg. 77 LO: 5 Answer: False. A vulnerability is a situation where an external threat can be compensated for by strengths in other areas.

3.8

A gap analysis consists of pairing strengths/weaknesses with opportunities/threats and determining whether the situation is conducive to positive outcomes, negative outcomes, or a mixture of both. (Suggested points: 2, [3.3]); Pg. 77 LO: 5 Answer: True

3.9

A mission statement is a description of what the organization would like to become in the future. (Suggested points: 2, [3.3]); Pg. 81 LO: 6 Answer: False. A vision statement is a description of what the organization would like to become in the future. 3.10

A vision statement provides more specific information on how the mission will be implemented. (Suggested points: 2, [3.3]); Pg. 83 LO: 7 Answer: False. Objectives provide more specific information on how the mission will be implemented.

3.11

Job descriptions should focus only on an individual’s tasks and responsibilities. (Suggested points: 2, [3.3]); Pg. 87 LO: 7 Answer: False. Job descriptions should include activities that contribute to the mission and vision of the unit and organization.

3.12

Well-designed performance management systems define a clear path from mission, vision, objectives, and strategies at the organizational-level to the unitlevel and to individual job descriptions. 282