460+ Performance Management Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Human Resource Management (BBA HRM) , Master of Business Administration (MBA) .

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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)

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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.

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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.

discuss

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

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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.

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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

discuss

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

discuss

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

discuss

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'

discuss

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

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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

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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

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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

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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

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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

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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

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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.

discuss

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.

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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.

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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.

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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.

discuss

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

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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

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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

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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

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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

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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

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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

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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

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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

discuss

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

discuss

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

discuss

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.

discuss

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.

discuss

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

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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

discuss

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

discuss

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

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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

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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

discuss

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

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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

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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

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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

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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

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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

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47.	What is linked with performance appraisal?
A.	Job Design
B.	Development
C.	Job analysis
D.	None of the above
Answer» C. Job analysis

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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

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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

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50.	First step in appraising process is
A.	defining job
B.	training session
C.	feedback session
D.	interview sessions
Answer» A. defining job

discuss

460+ Performance Management Solved MCQs

People are known to be more productive when they:

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

Performance agreement aims at helping

An effective performance management helps in

Performance management is an interlinked process because:

Performance management is a continuous process because:

Which one of these is function of performance appraisal system?

Effectiveness of an appraisal system depends upon:

What did the Hawthorne experiments discover?

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

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

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

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

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

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

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

The aim of performance management is to:

The increasing use of performance management reflects:

Reasons for appraising a subordinate's performance include:

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

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

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

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 _____.

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

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

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

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 _____.

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 _____.

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

The philosophy of performance is about:

Performance management should be a process which is a:

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

The aim of performance management is to:

The increasing use of performance management reflects:

The aim of performance management is to

The performance management includes

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

Company's HR team is responsible for

Reason that why employers are moving to performance management is

Which of these is the main purpose of employee assessment?

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

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

Successful defenders use performance appraisal for identifying ____________.

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

What do successful analyzers tend to examine?

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

What is linked with performance appraisal?

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

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

First step in appraising process is

Analyzers tend to emphasize both and _ and employee extensive training programmes.