460+ Performance Management Solved MCQs

Chapters

Chapter: Unit 1
1.

People are known to be more productive when they:

A. Are knowledgeable of their results through feedback as to how they are performing.
B. Have clear, attainable objectives (also called goals) to achieve.
C. Are involved in setting of tasks and objectives.
D. (a), (b) and (c)
Answer» D. (a), (b) and (c)
2.

It is necessary to review the goals of the organization to:

A. Create a linkage between units of performance and the preferred organizational goals.
B. Maximize profits of the organization
C. Align the individual and organizational goals
D. Create distinctiveness.
Answer» A. Create a linkage between units of performance and the preferred organizational goals.
3.

Performance agreement aims at helping

A. The organization to work effectively.
B. Decide the matters of compensation
C. The staff to develop, put in place at least one more chance to meet the expectation of the staff members.
D. Identify the training needs
Answer» C. The staff to develop, put in place at least one more chance to meet the expectation of the staff members.
4.

An effective performance management helps in

A. Evaluation of a job
B. Evaluation of competitiveness in market
C. Evaluate the decision taking capacity of managers
D. Evaluate the decision taking capacity of the subordinates
Answer» A. Evaluation of a job
5.

Performance management is an interlinked process because:

A. It interlinks the organization with the globalized market
B. It interlinks with other key processes such as business strategy, employee development, total quality management and other business processes.
C. It interlinks the individual goals with the organizational goals.
D. It interlinks the management and subordinates
Answer» B. It interlinks with other key processes such as business strategy, employee development, total quality management and other business processes.
6.

Performance management is a continuous process because:

A. It involves the human resource of the organization
B. It involves the work environment of the organization.
C. It involves planning, sharing, measuring, interacting, motivating and development of employees as well as organization
D. It involves the strategies of the organization
Answer» C. It involves planning, sharing, measuring, interacting, motivating and development of employees as well as organization
7.

Which one of these is function of performance appraisal system?

A. Training and development
B. Compensation strategies
C. Promotion
D. All of the above
Answer» D. All of the above
8.

Effectiveness of an appraisal system depends upon:

A. The degree of clarity of roles
B. The structure, design and method of appraisal system
C. The level of organizational commitment
D. The degree of honesty in the answers of the appraisal system
Answer» B. The structure, design and method of appraisal system
9.

What did the Hawthorne experiments discover?

A. That people need to belong to a 'social group'
B. That people need heat and good lighting to work well
C. Money is a motivator
D. It makes no difference how you treat people at work in relation to their behavior.
Answer» A. That people need to belong to a 'social group'
10.

A distinction can be made between 'hard' and 'soft' types of HRM. Soft HRM can be characterized by:

A. Seeing people as organizational assets
B. A quantitative approach to HRM
C. A mutual commitment of employees and employers to the goals of the organization
D. Being driven by costs
Answer» C. A mutual commitment of employees and employers to the goals of the organization
11.

The resource based view of the firm is one that believes the key human resources are:

A. Those employees not members of trade unions
B. Knowledge workers
C. Used to create new capabilities that help achieve organisational success
D. Those willing to work overtime
Answer» C. Used to create new capabilities that help achieve organisational success
12.

Do HR activities have an effect on employee and managerial behavior?

A. Yes, but these effects can be negative as well as positive
B. HR has limited impact on either employee behaviour or managerial
C. HR impacts on employee behaviour but not on managerial
D. No, it is managerial behaviour which impacts on HR
Answer» A. Yes, but these effects can be negative as well as positive
13.

The view that employees are critical to organizational success is now generally accepted. Does this mean that?

A. All employees have the same value or potential for the organisation
B. It reflects the unprecedented success of HR practitioners to deliver
C. Good management of people will prevail
D. Managing the human resource has become even more important because it is the one resource most difficult to replicate
Answer» D. Managing the human resource has become even more important because it is the one resource most difficult to replicate
14.

The most common activities performed by HR, which are often outsourced, are:

A. Recruitment an selection
B. Occupational health, payroll, pensions and training
C. Human resource planning
D. Assessment centres
Answer» B. Occupational health, payroll, pensions and training
15.

Performance management should be seen as a process which is a:

A. Once a year task
B. Twice a year activity
C. Ongoing process or cycle
D. Is engaged in when the appraisals are carried out
Answer» C. Ongoing process or cycle
16.

What will make some organizations more successful, and therefore more likely to survive and prosper, than others?

A. Creating cultures and systems in which staff can use their talents
B. Creating management systems to ensure high performance from everyone
C. Creating superior organisations
D. Only recruiting talented people
Answer» B. Creating management systems to ensure high performance from everyone
17.

The aim of performance management is to:

A. Consolidate goal setting.
B. Ensure employee's performance is supporting the company's strategic aims.
C. Ensure employee has the tools needed to perform the job.
D. Evaluate employee's performance against standards.
Answer» D. Evaluate employee's performance against standards.
18.

The increasing use of performance management reflects:

A. Every employee's efforts must focus on helping the company achieve its strategic goals.
B. The popularity of TQM concepts.
C. Traditional performance appraisals are often counter-productive.
D. All the above.
Answer» A. Every employee's efforts must focus on helping the company achieve its strategic goals.
19.

Reasons for appraising a subordinate's performance include:

A. Appraisals play a part in the employer's salary raise decisions.
B. The supervisor and the employee together develop a plan for correcting the employee's deficiencies.
C. Appraisals play an integral role in performance management.
D. All the above.
Answer» D. All the above.
20.

Supervisors can ensure that employees are satisfied with their performance appraisals by ensuring that employees:

A. Have the opportunity to present their ideas and feelings.
B. Have a helpful and constructive supervisor conduct the interview.
C. Do not feel threatened during the interview.
D. All the above.
Answer» D. All the above.
21.

Which of the following statements about performance management systems is not true?

A. They encourage a short-term view among managers.
B. Recommendations are prescriptive and suggest one best way.
C. They cause stress for employees.
D. They improve organizational performance in the long-term.
Answer» A. They encourage a short-term view among managers.
22.

The process of evaluating an employee’s current and/or past performance relative to his or her performance standards is called _____.

A. recruitment
B. employee selection
C. performance appraisal
D. organizational development
Answer» C. performance appraisal
23.

When goal setting, performance appraisal, and development are consolidated into a single, common system designed to ensure that employee performance supports a company’s strategy, it is called _____.

A. strategic organizational development
B. performance management
C. performance appraisal
D. human resource management
Answer» B. performance management
24.

Performance management combines performance appraisal with _____ to ensure that employee performance is supportive of corporate goals.

A. goal setting
B. training
C. incentive systems
D. All the above
Answer» D. All the above
25.

Managers following a performance management approach to appraisals will usually meet with employees on a _____ basis.

A. weekly
B. monthly
C. bi-annual
D. yearly
Answer» A. weekly
26.

Managers following a traditional performance appraisal system will typically meet with employees on a _____ basis.

A. daily
B. weekly
C. monthly
D. yearly
Answer» D. yearly
27.

The component of an effective performance management process that communicates the organization’s higher level goals throughout the organization and then translates these goals into departmental goals is called _____.

A. role clarification
B. goal alignment
C. developmental goal setting
D. direction sharing
Answer» D. direction sharing
28.

The component of an effective performance management process that explains each employee’s role in terms of his or her day-to-day work is called _____.

A. role clarification
B. goal alignment
C. developmental goal setting
D. direction sharing
Answer» A. role clarification
29.

When using goal setting in performance management, the goals should be _____.

A. difficult
B. challenging
C. specific
D. All the above
Answer» D. All the above
30.

The philosophy of performance is about:

A. Task of an employee
B. Behavior of the employee
C. Actual outcome or results
D. All the above
Answer» D. All the above
31.

Performance management should be a process which is a:

A. Once a year task
B. Twice a year activity
C. Ongoing process or cycle
D. Is engaged in when the appraisals are carried out
Answer» C. Ongoing process or cycle
32.

Performance management combines performance appraisal with _____ to ensure that employee performance is supportive of corporate goals.

A. goal setting
B. training
C. incentive systems
D. All the above
Answer» D. All the above
33.

The aim of performance management is to:

A. Ensure employee's performance is supporting the company's strategic aims.
B. Ensure employee has the tools needed to perform the job.
C. Consolidate goal setting.
D. Evaluate employee's performance against standards.
Answer» D. Evaluate employee's performance against standards.
34.

The increasing use of performance management reflects:

A. Every employee's efforts must focus on helping the company achieve its strategic goals.
B. The popularity of TQM concepts
C. Traditional performance appraisals are often counter-productive.
D. All the above.
Answer» D. All the above.
35.

The aim of performance management is to

A. evaluate and reward the employee's efforts
B. giving employees the opportunity to regularly discuss performance with their supervisors
C. providing the supervisor with a means of identifying the strengths and weaknesses of an employee's performance.
D. All the above
Answer» D. All the above
36.

The performance management includes

A. daily and weekly interactions
B. meeting semiannually
C. yearly meetings
D. never meeting with subordinates
Answer» A. daily and weekly interactions
37.

In performance management, the main feature of performance management is to

A. increase salary
B. planning incentives
C. comparing performance with goals
D. comparing sales figures from last year
Answer» C. comparing performance with goals
38.

Company's HR team is responsible for

A. training of supervisors
B. monitor appraisal system affectivity
C. training employees
D. All of above
Answer» D. All of above
39.

Reason that why employers are moving to performance management is

A. total quality
B. appraisal issues
C. strategic planning
D. All of above
Answer» D. All of above
40.

Which of these is the main purpose of employee assessment?

A. Making correct decisions
B. To effect promotions based on competence and performance
C. Establish job expectations
D. None of the above
Answer» B. To effect promotions based on competence and performance
41.

How performance appraisal can contribute to a firm's competitive advantage?

A. Ensures legal compliances
B. Minimizing job dissatisfaction and turnover
C. Improves performance
D. All the above
Answer» D. All the above
42.

From the strategic point of view, in which three categories can an organization be grouped?

A. Defenders
B. Prospectors
C. Analyzers
D. All the above
Answer» D. All the above
43.

Successful defenders use performance appraisal for identifying ____________.

A. Staffing needs
B. Job behavior
C. Training needs
D. None of the above
Answer» C. Training needs
44.

Analyzers tend to emphasize both ______ and _______ and employee extensive training programmes.

A. Skill building and skill acquisition
B. Current performance and past performance
C. Strategy and behavior
D. None of the above
Answer» A. Skill building and skill acquisition
45.

What do successful analyzers tend to examine?

A. Division and corporate performance evaluation
B. Current performance with past performance
C. Ideal appraisal process
D. None of the above
Answer» B. Current performance with past performance
46.

______ is an objective assessment of an individual's performance against well-defined benchmarks.

A. Performance Appraisal
B. HR Planning
C. Information for goal identification
D. None of the above
Answer» A. Performance Appraisal
47.

What is linked with performance appraisal?

A. Job Design
B. Development
C. Job analysis
D. None of the above
Answer» C. Job analysis
48.

Method of keeping and reviewing, record of employees' undesirable behavior at different time intervals is

A. critical incident method
B. forced distribution method
C. alternation ranking method
D. paired comparison method
Answer» A. critical incident method
49.

An interview, in which supervisor and subordinate review appraisal, is called

A. structured interview
B. unstructured interview
C. appraisal interview
D. hiring interview
Answer» C. appraisal interview
50.

First step in appraising process is

A. defining job
B. training session
C. feedback session
D. interview sessions
Answer» A. defining job
51.

When ratings are collected from supervisors, customers and peers, it is called

A. 350-degree feedback
B. 320-degree feedback
C. 360-degree feedback
D. 380-degree feedback
Answer» C. 360-degree feedback
52.

Which of the following terms refers to the process of evaluating an employee's Current and/or past performance relative to his or her performance standards?

A. Recruitment
B. Employee selection
C. Performance appraisal
D. Employee orientation
Answer» C. Performance appraisal
53.

In most organizations, which of the following is primarily responsible for appraising an employee's performance?

A. employee's direct supervisor
B. company appraiser
C. human resources manager
D. EEO representative
Answer» A. employee's direct supervisor
54.

SMART goals are best described as _

A. specific, measurable, attainable, relevant, and timely
B. straight forward, meaningful, accessible, real, and tested
C. strategic, moderate, achievable, relevant, and timely
D. specific, measurable, achievable, relevant, and tested
Answer» A. specific, measurable, attainable, relevant, and timely
55.

All the following are reasons for appraising an employee's performance EXCEPT _______

A. assisting with career planning
B. correcting any work-related deficiencies
C. creating an organizational strategy map
D. determining appropriate salary and bonuses
Answer» C. creating an organizational strategy map
56.

Which of the following is NOT one of the recommended guidelines for setting effective employee goals?

A. assigning specific goals
B. assigning measurable goals
C. assigning challenging but doable goals
D. administering consequences for failure to meet goals
Answer» D. administering consequences for failure to meet goals
57.

The primary purpose of providing employees with feedback during a Performance eappraisal is to motivate employees to _

A. apply for managerial positions
B. remove any performance deficiencies
C. revise their performance standards
D. enroll in work-related training programs
Answer» B. remove any performance deficiencies
58.

Aligning and evaluating the employee's performance with company's set goals is called

A. appraisal management
B. performance management
C. hierarchy of management
D. off-the-job training
Answer» B. performance management
59.

The first step in 'appraising process' is

A. defining the job
B. training session
C. feedback session
D. interview sessions
Answer» A. defining the job
60.

______ is the personnel activity by means of which the enterprise determines the extent to which the employee is performing the job effectively.

A. Job evaluation
B. Work evaluation
C. Performance evaluation
D. None of the above
Answer» C. Performance evaluation
61.

The technique that have been used to evaluate an employee in comparison with other employees

A. Ranking
B. Forced choice
C. Essay evaluation
D. Critical incident technique
Answer» A. Ranking
62.

Performance management should be seen as a process which is a:

A. Once a year task
B. Twice a year task
C. Ongoing process or cycle
D. Is engaged in when the appraisals are carried out
Answer» C. Ongoing process or cycle
63.

Many schemes that reward employees and managers for something additional to their normal level of performance fail. Why?

A. The link between extra pay and achievement is unclear
B. They are detrimental to trade union agreements
C. PRP is controversial
D. Everyone should receive the same
Answer» A. The link between extra pay and achievement is unclear
64.

A performance rating system is:

A. A grade or score relating to overall performance
B. Details of extent to which work objectives were met
C. Last years objectives
D. Achievements during the year
Answer» A. A grade or score relating to overall performance
65.

To be effective a points based rating systems require:

A. Close management control
B. Comprehensive, reliable and consistent information
C. Objectivity in assessments
D. 360% assessments
Answer» B. Comprehensive, reliable and consistent information
66.

Key performance indicators are used in situations when:

A. When objectives cannot easily be expressed in terms of numbers
B. When targets might be expressed in terms of delivery of a project
C. When objectives can be established which are supportive or secondary to the organizations central objectives.
D. Objectives that can be quantified using financial values.
Answer» C. When objectives can be established which are supportive or secondary to the organizations central objectives.
Chapter: Unit 2
67.

Which of the following is not a type of performance appraisal?

A. 45 degree appraisal.
B. Customer appraisals.
C. Appraisal of managers.
D. Team based appraisal
Answer» A. 45 degree appraisal.
68.

Why might an organization use multiple systems of appraisal? Select all that apply.

A. To prevent the misuse of performance appraisal systems by line managers.
B. Different systems for different part of the organization.
C. Different systems for different organizational groups.
D. To provide employees with a choice of methods.
Answer» B. Different systems for different part of the organization.
69.

Which of the following is not a reason why performance appraisal is used by organizations?

A. To allocate financial rewards.
B. To clarify and define performance expectations.
C. To determine promotion.
D. Because it is a legal requirement.
Answer» D. Because it is a legal requirement.
70.

What is the meaning of upward appraisal?

A. Line managers rate the performance of employees.
B. Employees rate the performance of their manager.
C. Senior managers rate the performance of line managers.
D. Employees rate the performance of their peers.
Answer» B. Employees rate the performance of their manager.
71.

What is meant by 360 degree appraisal?

A. A system where the line manager rates subordinates simultaneously.
B. A system where feedback is obtained from peers subordinates and supervisors.
C. A system where a senior manager rates all line managers simultaneously.
D. A system where every employee rates another employee chosen at random.
Answer» B. A system where feedback is obtained from peers subordinates and supervisors.
72.

Which of the following statements about 360 degree appraisal is not true?

A. 360 degree appraisal may be linked to pay awards.
B. 360 degree appraisal is normally conducted anonymously.
C. 360 degree appraisal has origins in the 1970s US army.
D. The data generated is normally highly accurate, valid and meaningful.
Answer» D. The data generated is normally highly accurate, valid and meaningful.
73.

What is the purpose of a 'mystery shopper'?

A. A person who pretends to be a manager to test the service process.
B. A person pretends to be a real customer to test the service encountered.
C. A person who pretends to be an employee to test service process.
D. A person who works for a competitor and pretends to be a customer to test the service encountered.
Answer» B. A person pretends to be a real customer to test the service encountered.
74.

Which of the following statements is not true?

A. Some performance appraisal systems have become bureaucratic.
B. The introduction of performance appraisal in the public sector has been controversial.
C. Deming believed performance appraisal was central to quality management.
D. Some line managers do not take the appraisal processes seriously.
Answer» C. Deming believed performance appraisal was central to quality management.
75.

Employees with …….. need for achievement desire challenging jobs over which they have control

A. Low
B. Medium
C. High
D. No
Answer» C. High
76.

Which statement about job satisfaction is most correct

A. It causes performance
B. It can affect turnover
C. It cannot be measured
D. It does not affect absenteeism
Answer» C. It cannot be measured
77.

Job analysis is a process of gathering information about the

A. Job holder
B. Job
C. Management
D. Organization
Answer» C. Management
78.

The final process of a job analysis is the preparation of two statements, namely,

A. Job observation and job description
B. Job specification and job observation
C. Job description and job specification
D. None of the above
Answer» B. Job specification and job observation
79.

The process of grouping of similar types of works together is known as

A. Job classification
B. Job design
C. Job evaluation
D. Job description
Answer» A. Job classification
80.

The system of ranking jobs in a firm on the basis of the relevant characteristics, duties, and responsibilities is known as

A. Job evaluation
B. Job design
C. Job specification
D. Job description
Answer» A. Job evaluation
81.

The written statement of the findings of job analysis is called

A. Job design
B. Job classification
C. Job description
D. Job evaluation
Answer» A. Job design
82.

Designing a job according to the worker’s physical strength and ability is known as

A. Ergonomics
B. Task assortment
C. Job autonomy
D. None of the above
Answer» D. None of the above
83.

Which of the following is not a component of job design?

A. Job enrichment
B. Job rotation
C. Job reengineering
D. Job outsourcing
Answer» A. Job enrichment
84.

Moving employees from one job to another in a predetermined way is call

A. Job rotation
B. Job reengineering
C. Work mapping
D. Job enrichment
Answer» A. Job rotation
85.

Stress that result in negative energy and decreases performance and health.

A. Distress
B. Worries
C. Burnout
D. Eustress
Answer» B. Worries
86.

A non stress prone person who is relaxed, agreeable and easy going.

A. Type A personality
B. Type B personality
C. Pessimist
D. Stressors
Answer» A. Type A personality
87.

A person who looks at the positive aspects of every situation.

A. Optimist
B. Pessimist
C. Type A personality
D. Type B personality
Answer» A. Optimist
88.

A mentally or emotionally disquieting response to a difficult condition or situation.

A. Stress
B. Worries
C. Burnout
D. Eustress
Answer» A. Stress
89.

Sources of stress

A. Stressors
B. Worries
C. Strain
D. Distress
Answer» D. Distress
90.

Which of the following are guidelines for drafting and maintaining a good job description?

A. Indicating the scope and nature of the work and all important relationships
B. Indicating the work and duties of the position
C. Explaining the supervisory responsibility to the individuals
D. All the above
Answer» D. All the above
91.

One of the main reasons for the negative attitude of employees towards performance appraisal is

A. It is associated with pay
B. It gives away how bad they are
C. It tends to become subjective because of poor implementation
D. It is not useful for any other organizational activity
Answer» C. It tends to become subjective because of poor implementation
92.

Supratim has been promoted to the post of an Area Sales Manager just last week, but finds himself lacking in some areas. His performance can be improved by

A. Reprimanding him
B. Training him
C. Linking his pay to performance
D. Providing him with an assistant
Answer» B. Training him
93.

What do performance appraisals measure?

A. generic dimensions of performance
B. performance of actual duties
C. employee competency
D. All the above
Answer» D. All the above
94.

If a performance appraisal focuses on an employee’s ability to “identify and analyze problems” or to “maintain harmonious and effective working relationships,” then the performance appraisal is focused on measuring _____.

A. generic dimensions of performance
B. performance of actual duties
C. employee competency
D. achievement of objectives
Answer» C. employee competency
95.

If a performance appraisal focuses on an employee’s quality and quantity of wok, then the performance appraisal is focused on measuring _____.

A. generic dimensions of performance
B. performance of actual duties
C. employee competency
D. achievement of objectives
Answer» A. generic dimensions of performance
96.

Who is in the best position to observe and evaluate an employee’s performance for the purposes of a performance appraisal?

A. peers
B. customers
C. rating committees
D. immediate supervisor
Answer» D. immediate supervisor
97.

The M in the acronym for SMART goals stands for _____.

A. moderate
B. measurable
C. meaningful
D. mid-range
Answer» B. measurable
98.

The A in the acronym for SMART goals stands for _____.

A. actionable
B. appropriate
C. attainable
D. attitude
Answer» C. attainable
99.

Which of the following is not one of the guidelines for effective goal setting?

A. assign specific goals
B. assign challenging but doable goals
C. assign consequences for performance
D. encourage participation
Answer» D. encourage participation
100.

Participatively set goals result in higher performance than assigned goals when _____.

A. participatively set goals are more difficult
B. assigned goals are more difficult
C. the rewards are also higher
D. participatively set goals are used consistently
Answer» A. participatively set goals are more difficult
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