Performance Management
Textbook Exam Questions
Course Introduction
Performance Management explores the strategies, tools, and techniques organizations use to assess, maintain, and improve employee performance. The course covers the development and implementation of effective performance appraisal systems, the alignment of individual and organizational goals, feedback and coaching methods, and the integration of performance management with broader human resources practices. Students will analyze case studies, learn how to set measurable objectives, examine the role of motivation and rewards, and address challenges such as bias and fairness in evaluation. Emphasis is placed on using performance management as a tool for driving organizational success and fostering continuous employee development.
Recommended Textbook
Human Resource Management Gaining a Competitive Advantage 8th Edition by Raymond A. Noe
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Chapter 1: Human Resource Management: Gaining a Competitive Advantage
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Sample Questions
Q1) Discuss the balanced scorecard approach of measuring stakeholder performance.
Answer: The balanced scorecard gives managers an indication of the performance of a company based on the degree to which stakeholder needs are satisfied. The balanced scorecard is important because it brings together most of the features that a company needs to focus on to be competitive. The balanced scorecard should be used to (1)link human resource management activities to the company's business strategy and (2)evaluate the extent to which the HRM function is helping the company meet its strategic objectives. Communicating the scorecard to employees gives them a framework that helps them see the goals and strategies of the company, how these goals and strategies are measured, and how they influence the critical indicators.
Q2) According to the financial perspective of the balanced scorecard, which of the following questions should be answered?
A)How do customers see us?
B)Can we continue to improve and create value?
C)What must we excel at?
D)How do we look to shareholders?
E)What strategy must we employ?
Answer: D
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Chapter 2: Strategic Human Resource Management
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Q1) _____ is used to ensure that employees' activities and outcomes are congruent with the organization's objectives.
A)Divestment
B)Differentiation
C)Performance management
D)Selection
E)Recruitment
Answer: C
Q2) An overall cost leadership strategy is achieved by offering unique product features.
A)True
B)False
Answer: False
Q3) Companies going through downsizing often develop compensation programs that tie the individual's compensation to the company's success.
A)True
B)False Answer: True
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Page 4
Chapter 3: The Legal Environment: Equal Employment
Opportunity and Safety
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Q1) Directives issued and amended unilaterally by the president are known as:
A)judicial decisions.
B)legislation.
C)presidential bills.
D)executive orders.
E)constitutional amendments. Answer: D
Q2) Reasonable accommodation simply requires an employer to refrain from discriminating acts.
A)True
B)False Answer: False
Q3) Quid pro quo harassment occurs when some kind of benefit or punishment or reward is made contingent on the employee submitting to sexual advances.
A)True
B)False
Answer: True
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Page 5
Chapter 4: The Analysis and Design of Work
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Q1) An organization needs to create a fit between its environment, competitive strategy, and _____.
A)products
B)services
C)philosophy
D)finances
E)production processes
Q2) Which of the following is true about outcomes when the core job characteristics are high?
A)Fall in performance quality
B)Lower job complexity
C)Reduced job satisfaction
D)Higher external work motivation in individuals
E)Critical psychological states are high
Q3) Career planning entails matching an individual's skills and aspirations with opportunities that are or may become available in the organization.
A)True
B)False
Q4) Describe how job analysis information is used in HR activities/functions.
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Chapter 5: Human Resource Planning and Recruitment
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Q1) Jack Murske is looking for a job that fits his requirements. He has applied for a job vacancy in two companies in his town and five companies outside town. Jack is an example of a(n)_____.
A)referral
B)direct applicant
C)virtual employee
D)internal employee
E)poached employee
Q2) _____ are people who are prompted to apply by someone within the organization.
A)Direct applicants
B)Internal employees
C)Boomerang employees
D)Referrals
E)Virtual employees
Q3) An advantage of employing temporary workers is that it frees the firm from many administrative tasks and financial burdens associated with being the "employer of record."
A)True
B)False
Q4) Explain forecasting and the different types of forecasting methods.
Page 7
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Chapter 6: Selection and Placement
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Q1) A person who is agreeable in nature will be _____.
A)unsociable and gregarious
B)depressed and secured
C)dependable and unorganized
D)courteous and trusting
E)narrow-minded and imaginative
Q2) Executive orders are monitored by the Office of Federal Contract Compliance Programs.
A)True
B)False
Q3) _____ is defined as the degree to which the validity of a selection method established in one context extends to other contexts.
A)Utility
B)Generalizability
C)Reliability
D)Legality
E)Exclusivity
Q4) The Polygraph Act permitted the use of polygraphs in employment screening. A)True
B)False
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Chapter 7: Training
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Q1) Discuss the six steps of the training design process.
Q2) A learning management system combines online learning, face-to-face instruction, and other methods for distributing learning content and instruction.
A)True
B)False
Q3) Hands-on training techniques are most effective for:
A)developing specific skills or dealing with interpersonal issues on the job.
B)teaching new facts or alternative problem-solving solutions.
C)continuously attempting to learn new things to apply for quality improvements.
D)sharing ideas and experiences and getting to know one's strengths and weaknesses.
E)enhancing communication and developing a peer network.
Q4) Processes, checklists, flowcharts, formulas, and definitions are examples of _____.
A)Learning management system
B)Tacit knowledge
C)Informal training
D)Explicit knowledge
E)Formal training
Q5) Discuss several ways that training helps companies gain a competitive advantage.
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Chapter 8: Performance Management
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Q1) A performance management system should link employee activities with the organization's goals. This is its developmental purpose.
A)True
B)False
Q2) The performance management method that requires managers to rate the frequency with which the employee has exhibited a behavior during a rating period is the _____.
A)simple ranking method
B)behavioral observation scale
C)graphic rating scale
D)organizational behavior modification method
E)forced distribution scale
Q3) _____ is described as a rater error that occurs when one rates those who are comparable to themselves in the immediate work group higher than those who are not.
A)Contrast
B)Distributional error
C)Halo/horns
D)Leniency
E)Similar to me
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Page 10
Chapter 9: Employee Development
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Sample Questions
Q1) Transfers necessarily increase job responsibilities and compensation.
A)True
B)False
Q2) _____ is used to retain and motivate employees by identifying and meeting their development needs.
A)Career management system
B)Action planning
C)Scheduling
D)Transfer system
E)Job training system
Q3) Which of the following assessment center exercises measures employees' leadership skills, problem solving skills, interpersonal skills, administrative skills, and personal skills?
A)In-basket exercise
B)Leaderless group discussion
C)Scheduling exercise
D)Personality test
E)Role-play
Q4) Discuss the relationship between training and development.
Q5) Discuss the Myers-Briggs Type Indicator.
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Chapter 10: Employee Separation and Retention
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Q1) Due to negative affectivity, if job satisfaction remains relatively stable across time and jobs, transient changes in job satisfaction will be difficult to sustain in the individuals.
A)True
B)False
Q2) Which of the following is true about family-friendly policies introduced to help employees manage their multiple roles?
A)The aim of introducing these policies is to hold onto the talent the company already has. Thus, it need not worry about recruiting new talent.
B)A traditional 4-hour work week schedule is one of the policies.
C)These provisions do not attract potential job applicants.
D)Due to flexible work arrangement, employees tend to practice absenteeism.
E)These programs increase employees' organizational commitment.
Q3) The two primary sets of people in the organization who affect an individual's job satisfaction are his/her subordinates and co-workers.
A)True
B)False
Q4) Define the employment-at-will doctrine and a wrongful discharge suit.
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Chapter 11: Pay Structure Decisions
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Q1) What is skill-based pay and what are its advantages?
Q2) As per the Fair Labor Standards Act, the current minimum wage stands at:
A)$8.85 per hour.
B)$9.40 per hour
C)$7.25 per hour.
D)$7.50 per hour.
E)$8.30 per hour.
Q3) _____ is a public policy that advocates remedies for any undervaluation of women's jobs.
A)Acceptability
B)Glass ceiling
C)Efficiency wage
D)Comparable worth
E)Exempt
Q4) Explain the reasons for the controversy over executive pay.The issue of executive pay has been given widespread attention in the press.
Q5) What are some potential limitations of using a job-based pay structure?
Q6) Product market competition places a lower bound on labor costs and compensation.
A)True
B)False
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Chapter 12: Recognizing Employee Contributions With Pay
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Q1) When an organization is using concentration strategy, it will _____.
A)have short-run pay levels below the market
B)have a long-term orientation
C)make centralized pay decisions
D)maintain variable pay levels high
E)have benefit levels below the market
Q2) Which of the following payment programs uses equity changes as the payment method?
A)Merit pay
B)Skill-based payment
C)Profit sharing payment
D)Ownership payment
E)Incentive pay
Q3) Which of the following is characteristic of profit sharing programs?
A)Employers are encouraged to think like employees.
B)Organizations feel the need to rely on layoffs during tough times.
C)Payments do not become part of base pay in such programs.
D)Labor costs automatically increase during difficult economic times.
E)Employees' self-interest is encouraged when using such plans.
Q4) Differentiate between outcome-oriented contracts and behavior-based contracts.
Page 14
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Chapter 13: Employee Benefits
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Q1) Financial Accounting Statement 106 requires that any benefits provided after retirement must be paid on a(n)_____ basis.
A)pay-as-you-go
B)accrual
C)annual
D)subtraction
E)monthly
Q2) Survey information on competitors' benefits packages and information on benefits costs are available through _____.
A)public consultants
B)PBGC
C)BLS
D)EEOC
E)unemployment offices
Q3) Which of the following statements is true about flexible spending accounts?
A)They can only be used for dependent-care expenses.
B)They restrict pretax employee contributions.
C)They are regulated under the state tax code.
D)Funds must be used by the plan's yearend or they revert to the employer.
E)These accounts cause a reduction in the take-home pay.
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Chapter 14: Collective Bargaining and Labor Relations
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Q1) The shop steward:
A)is also known as the arbitrator.
B)represents the management in contract grievances.
C)represents employees in contract grievances.
D)is a neutral party who assists in negotiations and conflict resolution.
E)is the person who reports on the reasons for the labor-management dispute.
Q2) Which of the following is true of Section 8(a)(3)of the National Labor Relations Act?
A)It prohibits discrimination in any aspect of employment that attempts to encourage or discourage union-related activity.
B)It prohibits employer domination of or interference with the formation or activities of a labor union.
C)It prohibits employers from restraining employees in exercising their rights to join a labor organization.
D)It prohibits discrimination against employees for providing testimony relevant to enforcement of the act.
E)It prohibits employers from refusing to bargain collectively with a labor organization that has standing under the act.
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Chapter 15: Managing Human Resources Globally
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Q1) Softel, Inc. is a company based in the U.S. After functioning at the domestic level for 5 years, the company is planning to expand its operations to Brazil. In this scenario, Brazil is the _____ country for the company.
A)intermediate
B)third
C)host
D)governing
E)facilitating
Q2) The North American Free Trade Agreement (NAFTA)is an agreement among Canada, the United States, and Mexico that has created a free market even larger than the European Economic Community.
A)True
B)False
Q3) Most companies begin by operating within a(n)_____ marketplace.
A)universal
B)international
C)multinational
D)domestic
E)global
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Chapter 16: Strategically Managing the HRM Function
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Q1) _____ involves contracting with an outside vendor to provide a product or service to a firm, as opposed to producing the product using employees within the firm.
A)Offshoring
B)Importing human capital
C)Outsourcing
D)Transferring human capital
E)Exporting
Q2) _____ show the types of data used within a business function and the relationship among the different types of data.
A)Focus groups
B)Scenario analyses
C)Cost-benefit analyses
D)Data-entity relationship diagrams
E)Data-flow diagrams
Q3) The audit approach to evaluating HR effectiveness focuses on reviewing the various outcomes of the HRM functional areas.
A)True
B)False
Q4) Discuss how outsourcing is being used to increase the effectiveness of HR.
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