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. T

2.2 Knowledge is having the information to do the job and

having experience at the job. F

2.3 Job descriptions stay stable over time and therefore do

not need to be updated. F

2.4 Results criteria fall into the following categories:

quality, quantity, cost effectiveness, and timeliness. T

2.5 Key accountabilities are the yardstick used to evaluate

how well an employee has achieved each objective. F

2.6 Employees should be measured exclusively on the

results that they achieve. F

2.7 Employees and supervisors should both evaluate

employee performance during the performance
assessment phase. T

2.8 After the performance renewal and recontracting

phase, the performance management process is
complete. F

2.9 It is very important that the phases of a performance

management system all be linked to one another. T
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Multiple-Choice Questions

2.10 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

2.11 A job description includes a summary of:

A. Job duties
B. Working conditions
C. Needed KSAs
D. All of the above

2.12 __________ are clusters of measurable KSAs.

A. Job duties
B. Competencies
C. Performance standards
D. Key accountabilities

2.13 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

2.14 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

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2.15 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

2.16 Performance renewal and recontracting is a phase similar to the

______________ phase of the performance management process.
A. performance planning
B. prerequisites
C. performance evaluation
D. performance assessment

2.17 The correct order of the phases of a performance management process

is:
A. Performance planning, prerequisites, performance execution,
performance assessment, performance review, performance
renewal and recontracting
B. Prerequisites, performance planning, performance execution,
performance assessment, performance review, performance
renewal and recontracting
C. Performance planning, prerequisites, performance execution,
performance review, performance assessment, performance
renewal and recontracting
D. Prerequisites, performance execution, performance planning,
performance assessment, performance review, performance
renewal and recontracting

2.18 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

2.19 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
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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

2.20 Methods of conducting a job analysis include all of these EXCEPT:

A. Reading textbooks
B. Observation of employees in action
C. Off-the-shelf questionnaires
D. Interviews with employees

2.21 O*NET is:

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

2.22 At the beginning of each performance cycle, 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

2.23 Which of the following are primarily the responsibilities of the

employee in terms of performance execution?
A. Communication with supervisor
B. Collection and sharing of performance data
C. Commitment to goal achievement
D. All of the above

2.24 Which of the following are primarily the responsibilities of the

supervisor in terms of performance execution?
A. Regular performance feedback and coaching
B. Observation and documentation
C. Reinforcement
D. All of the above
E. B and C only

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2.25 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.
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.

2.26 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

2.27 “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

2.28 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.
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2.29 In the performance planning stage, the term “results” refers to what?
A. Customer reactions
B. Ratings that result from performance
C. Customer complaints resulting from performance
D. Outcomes an employee must produce

2.30 During the collection of information from individuals for the purpose
of conducting a job 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 KSAs on which they score highly
drive success in their jobs but not the KSAs on which they score
poorly.
B. Insufficient rater training was provided prior to the collection of
information from the individuals.
C. Even if the raters have the same position and duties, some of the
raters may be more highly involved in certain job duties than are
other raters.
D. All of the above

2.31 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 criterion
C. Defines the scale anchors
D. Describes what behaviors were indicative of each rating criterion
E. Permits raters to practice their rating skills

2.32 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

2.33 ______________________ leads people to believe that others behave

similarly to themselves and hence lead people to think about

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 Chapter 2

themselves instead of people in general when reporting KSAs for their

jobs.
A. Social projection bias
B. Optimism bias
C. Availability heuristic
D. Self-serving bias
E. False consensus bias

2.34 ___________________leads people to believe that others share the

same beliefs and attitudes as themselves.
A. Social projection bias
B. Optimism bias
C. Availability heuristic
D. Self-serving bias
E. False consensus bias

Essay-Type Questions

2.37 Define knowledge in terms of competencies needed for performance

planning

Knowledge is having the information needed to perform the work but not
necessarily having done it.

2.38 Define skills in terms of competencies needed for performance

planning.
Skills are the required attributes that are usually acquired by having done the
work in the past

2.39 Define abilities in terms of competencies needed for performance

planning.
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 In what ways is self-appraisal beneficial for performance assessment?

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
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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”?
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?

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 is the final stage in the performance management cycle?

The final stage in the performance management cycle is performance
renewal and recontracting.

2 .47 How do the self-serving, social projection, and false consensus biases
ommonly affect the job analysis process?
Self-serving, social projection, and false consensus biases 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.

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