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Chapter:

60+ Unit 3 Solved MCQs

in Performance Management

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) .

Chapters

Chapter: Unit 3
1.

One of the following is future oriented appraisal technique.

A. MBO
B. Rating scale
C. Checklist
D. BARS
Answer» A. MBO
2.

The basis of performance standards is:

A. Managers
B. HR plans
C. Employee
D. Job analysis
Answer» C. Employee
3.

As little as 20% of all human performance problems is attributable to individual employees; as much as 80% of all such problems is attributable to the work environments or systems in which employees work. An example of such problems would be:

A. Because people are often absent from work
B. Because people at work don't perform
C. Because low standards of performance are legitimised
D. Because of barriers created to reduce performance
Answer» D. Because of barriers created to reduce performance
4.

Performance plans to be successful and sustainable the plan must

A. Provide for independent employee voice and participation
B. The decision to initiate a new plan
C. Its design
D. All of the above
Answer» D. All of the above
5.

Key performance indicators are used in situations when:

A. When objectives can not 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 organisations 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 organisations central objectives
6.

Which of the following is not a major personnel selection method?

A. Focus groups
B. Biodata
C. Graphology
D. References
Answer» A. Focus groups
7.

Work-sample tests:

A. Normally make use of many different complementary predictors
B. Do not necessarily have any obvious link with the job in question
C. Often use in-tray or in-basket exercises for selecting shop floor workers
D. Require candidates to conduct a sample of the work required for the job
Answer» D. Require candidates to conduct a sample of the work required for the job
8.

Which of the following is not a major evaluative standard for personnel selection procedures?

A. Administrative convenience/practicality
B. Discrimination
C. Applicant reactions
D. Faith validity
Answer» D. Faith validity
9.

The statistical technique of meta-analysis:

A. Estimates the amount of sampling error in one study to derive a more accurate estimate of the validity coefficient
B. Changes the magnitude of the validity coefficient by removing the effect of the sampling error
C. Changes the estimated variance in observed coefficients and hence widens the confidence interval around the mean coefficient
D. Cumulates the results from many separate studies to obtain a more stable indication of the effect under investigation
Answer» D. Cumulates the results from many separate studies to obtain a more stable indication of the effect under investigation
10.

Selection interviews are likely to be subjective, unreliable and vulnerable to bias if:

A. The interviewers have been trained in interviewing candidates
B. The interviewers use their empathy and intuition to evaluate each interviewee
C. The questions are used consistently across interviewers and interviewees
D. The interviewer questions are based on a job analysis
Answer» B. The interviewers use their empathy and intuition to evaluate each interviewee
11.

In general, it has been shown that the single best predictor of job performance across different jobs and organizational settings is which of the following?

A. Personality tests
B. Work-sample tests
C. Cognitive ability tests
D. Handwriting analysis
Answer» C. Cognitive ability tests
12.

Which of the following situations does not necessarily lead to bias and unfairness to certain groups in selection?

A. An employer applies a requirement for applicants which a larger proportion of one ethnic group finds considerable harder to comply with
B. A psychometric test produces different test scores for different subgroups of candidates
C. Subgroup differences in test scores are used to select characteristics that are not directly related to job performance
D. A validity study is based on only one subgroup but then used to select members of another
Answer» B. A psychometric test produces different test scores for different subgroups of candidates
13.

Reward management in the modern era involves:

A. Just dealing with issues of pay
B. A total reward approach
C. Dealing solely with trade unions
D. Dealing solely with legal issues
Answer» B. A total reward approach
14.

How organizations should be rewarding their employees is based:

A. On best practice
B. Is arbitrary
C. Is based on understanding behavioral theories
D. Is based on Herzberg theory
Answer» B. Is arbitrary
15.

Herzberg (2003) and Kohn (1993a) have consistently taken the view that rewards such as performance related pay fail to deliver because:

A. They are viewed as 'hygiene factors'
B. They are motivators
C. They are unfair
D. They are unwelcome by trade unions
Answer» A. They are viewed as 'hygiene factors'
16.

Circumstances in which rewards normally impact on behavior are:

A. When given a pay increase
B. When the wage or salary is seriously out of line with expectations
C. Will not occur as pay is a 'hygiene factor'
D. In all cases
Answer» B. When the wage or salary is seriously out of line with expectations
17.

The individual most associated with first recognizing the link between pay and performance was:

A. Mayo
B. F.W Taylor
C. Herzberg
D. Kohn
Answer» B. F.W Taylor
18.

The incentivized level of effort and performance can only be accessed through additional financial payments that are between:

A. 5 - 10%
B. 10 - 15%
C. 25 - 33%
D. 34 - 40%
Answer» C. 25 - 33%
19.

A set wage or salary is an expression of what type of reward?

A. Rewards as rights
B. Rewards as those which are contingent
C. Rewards which are discretionary
D. PRP
Answer» A. Rewards as rights
20.

Paying people, a monthly salary would not be suitable in which circumstances?

A. When employing people on a part-time basis
B. For those on regular fixed incomes
C. When overtime varies, and is a large part of the remuneration
D. When employing people on a temporary basis
Answer» C. When overtime varies, and is a large part of the remuneration
21.

Annualized hours refers to:

A. Those individuals who are seasonal workers
B. Those employees working on shifts
C. Full-time permanent employees
D. Calculating working time on an annual rather than a weekly basis
Answer» D. Calculating working time on an annual rather than a weekly basis
22.

The defining feature of incremental payment systems is:

A. A fair day pay for a fair day’s work
B. Cost of living
C. Length of service
D. The quantity of qualifications achieved
Answer» C. Length of service
23.

Performance appraisals serve as building blocks of

A. Recruiting
B. Career planning
C. Manpower planning
D. Selecting
Answer» B. Career planning
24.

Which of the following technique is least susceptible to personal bias?

A. Forced choice
B. Critical incidents
C. Rating scales
D. BARS
Answer» D. BARS
25.

A disadvantage of rating scales is

A. Cost
B. Feedback
C. Time involved
D. Quantitative of scores
Answer» D. Quantitative of scores
26.

The simplest and most popular technique for appraising performance is the _____ method.

A. Alternation ranking
B. Forced distribution
C. Critical incident
D. Graphic rating scale
Answer» A. Alternation ranking
27.

The _____ performance appraisal method ranks the highest employees and lowest employees in alternate order.

A. Paired comparison
B. Behaviorally anchored rating scale
C. Forced distribution
D. Alternation ranking
Answer» D. Alternation ranking
28.

Supervisors using the forced distribution appraisal method can protect against bias claims by:

A. Using multiple raters.
B. Appointing a review committee.
C. Training raters to be objective.
D. All of the above.
Answer» B. Appointing a review committee.
29.

A problem(s) with management by objectives is (are) that it can:

A. Be time consuming.
B. Result in un measurable objectives.
C. 1 and 2
D. None of the above.
Answer» C. 1 and 2
30.

Rating an employee high on several traits because he or she does one thing well is called the:

A. Bias problem.
B. Central tendency.
C. Halo effect.
D. Unclear standards.
Answer» D. Unclear standards.
31.

Which of the following is not a role played by the HR department regarding performance appraisals?

A. Training of supervisors
B. Monitoring the appraisal system
C. Appraising of employees
D. Ensuring compliance with EEO laws
Answer» C. Appraising of employees
32.

When designing an actual appraisal method, the two basic considerations are _____.

A. who should measure and when to measure
B. when to measure and what to measure
C. what to measure and who should measure
D. what to measure and how to measure
Answer» D. what to measure and how to measure
33.

The most popular technique for appraising performance is the ______ method.

A. alternation ranking
B. graphic rating scale
C. Likert
D. MBO
Answer» B. graphic rating scale
34.

Which performance appraisal technique lists traits and a range of performance?

A. alternation ranking
B. graphic rating scale
C. Likert
D. MBO
Answer» B. graphic rating scale
35.

What do performance appraisals measure?

A. generic dimensions of performance
B. performance of actual duties
C. employee competency
D. all of the above
Answer» D. all of the above
36.

Who is the primary person responsible for doing the actual appraising of an employee’s performance?

A. the employee’s direct supervisor
B. the company appraiser
C. the human resource manager
D. none of the above
Answer» A. the employee’s direct supervisor
37.

Suppose you have five employees to rate. You make a chart of all possible pairs of employees for each trait being evaluated. Then, you indicate the better employee of the pair for each pair. Finally, you add up the number of positives for each employee. In this case, you have used the _____ method of performance appraisal.

A. graphic ranking scale
B. constant sum ranking scale
C. alternation ranking
D. paired comparison
Answer» D. paired comparison
38.

Jason is generally considered unfriendly at work. His supervisor rates him low on the trait “gets along well with others” but also rates him lower on other traits unrelated to socialization at work. Jason’s performance appraisal may be unfair due to _____.

A. impression management
B. bias
C. stereotyping
D. halo effects
Answer» D. halo effects
39.

What is another term for 360-degree feedback?

A. feedback loop
B. multi-source assessment
C. upward feedback
D. circle feedback
Answer» B. multi-source assessment
40.

Rating of all employees equal such as 'good' is called

A. lenient tendency
B. strict tendency
C. biasing tendency
D. central tendency
Answer» D. central tendency
41.

New performance appraisal systems and incentives usage is part of

A. mobilize commitment
B. consolidation of gains
C. creating guiding coalition
D. reinforcement of new programs
Answer» D. reinforcement of new programs
42.

Which of these is an issue while designing an appraisal programme?

A. Quality
B. What methods of appraisal are to be used
C. Quantity
D. Cost of effectiveness
Answer» B. What methods of appraisal are to be used
43.

When appraisals are made by superiors, peers, subordinates and clients then it is called ____.

A. 360 degree feedback
B. 180 degree feedback
C. Self – appraisal
D. None of the above
Answer» A. 360 degree feedback
44.

Which company first developed the 360 degree system of appraisal?

A. Wipro in 1990
B. Godrej Soaps in 1991
C. General Electric, US in 1992
D. None of the above
Answer» C. General Electric, US in 1992
45.

Which factors lower the accuracy rate of the rater?

A. The rater is aware of personal biases and is willing to take action to minimize their effect
B. Performance factors are properly defined
C. The rater has documented behaviors to improve the recall
D. The rater is unable to express himself or herself honestly and unambiguously
Answer» D. The rater is unable to express himself or herself honestly and unambiguously
46.

Which is the simplest and most popular technique for appraising employee performance?

A. Rating Scales
B. Critical Incident
C. Cost accounting
D. BARS
Answer» A. Rating Scales
47.

Which of these is a major weakness of the forced distribution method?

A. Assumes that employee performance levels always conform to a normal distribution
B. Work is reliable
C. The error of central tendency
D. None of the above
Answer» A. Assumes that employee performance levels always conform to a normal distribution
48.

What do behaviourally anchored scales represent?

A. The scales are anchored by descriptions of actual job behavior
B. Superiors would feel comfortable to give feedback
C. A range of descriptive statements of behaviour varying from the least to the most effective
D. None of the above
Answer» C. A range of descriptive statements of behaviour varying from the least to the most effective
49.

Who conducts the field review method?

A. Peers
B. Supervisor
C. Subordinates
D. Someone from corporate office or the HR department
Answer» D. Someone from corporate office or the HR department
50.

Which of the following is one of the primary complaints regarding the use of the forced distribution method for performance appraisals?

A. difficult to implement
B. harm to employee morale
C. high costs of administration
D. standardization of group sizes
Answer» B. harm to employee morale

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