TEST BANK for Performance Management Fifth Edition by Herman Aguinis

TEST BANK FOR Performance Management Fifth Edition by Herman Aguinis

TABLE OF CONTENTS Chapter 1 Performance in Context Chapter 2 Performance Management Process Chapter 3 Performance Management and Strategic Planning Chapter 4 Defining Performance and Choosing a Measurement Approach Chapter 5 Measuring Results and Behaviors Chapter 6 Performance Analytics Chapter 7 Rolling Out the Performance Management System Chapter 8 Performance Management and Employee Development Chapter 9 Performance Management Leadership Chapter 10 Performance Management, Rewards, and the Law Chapter 11 Team Performance Management

Part I: Strategic and General Considerations___________________________________________________

Chapter 1—Performance Management and Reward Systems in Context True/False Questions 1.1

A performance management system is the systematic description of an employee’s strengths and weaknesses.

(Suggested points: 2, [1.1]); Pg. 3 LO: 1 Answer: False. Performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization

1.2

Linking the organization’s goals to individual and team goals helps reinforce behaviors that will help with organizational goal achievement and communicates the most crucial business initiatives.

(Suggested points: 2, [1.2]); Pg. 5 LO: 2 Answer: True

1.3

Feedback can increase motivation to perform when it points out how an employee is performing and acknowledges past successes.

(Suggested points: 2, [1.3]); Pg. 9 LO: 3 Answer: True

1.4

Dangers of a poorly implemented performance management system include wasted time and money, lack of standardized employee ratings, and confusion on how ratings are obtained.

(Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: True

1.5

A performance management system helps encourage employees to speak up and offer innovative ideas.

(Suggested points: 2, [1.3]); Pg. 10 LO: 3 Answer: True

1.6

Unfair performance ratings are the main problem with performance management systems.

264

Chapter 1

(Suggested points: 2, [1.4]); Pg. 15-16 LO: 5 Answer: False. Performance ratings are the “canary in the coal mine” and indicators of problems with the PM system 1.7

Reliability and validity of performance management systems refer to the same thing.

(Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: False. Reliability refers to consistency and freedom from error, while Validity refers to the fact that the measures include all relevant performance facets and do not include irrelevant information.

1.8

The strategic purpose of PM systems involves constructing the strategic vision for the organization.

(Suggested points: 2, [1.5]); Pg. 5 LO: 2 Answer: False. The strategic purpose of PM systems is to link an organization’s goals with individuals’ goals.

1.9

A reliable performance management system includes all relevant performance facets and does not include irrelevant performance facets.

(Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: False. This describes a system’s validity, not reliability. A reliable performance management system is consistent. For example, if two supervisors provided ratings of the same employee, or if one supervisor rated the same employee twice over a short period of time during which nothing noticeable occurs, then the ratings should be similar or identical.

1.10 Distributive justice is the perception that the performance evaluation received is fair relative to the work performed.

(Suggested points: 2, [1.5]); Pg. 20 LO: 6 Answer: True 1.11 Performance management systems in foreign subsidiaries often differ from those in home country headquarters as differences in the power distance (i.e., the degree to which a society accepts unequal distribution of power) increase between/among countries.

265

Part I: Strategic and General Considerations___________________________________________________

(Suggested points: 2, [1.5]); Pg. 18 LO: 6 Answer: True 1.12 The current consensus amongst most employees (as reported by the CEB) is that performance review systems are helpful in improving their productivity.

(Suggested points: 2, [1.1]); Pg. 4 LO: 1 Answer: False. 66% of employees feel that the performance review process interferes with their productivity.

1.13 Poorly implemented performance management systems have little to no negative legal ramifications for the organization.

(Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: False. Poorly implemented performance management systems are likely to result in negative legal ramifications such as possible discrimination lawsuits.

1.14 Many large companies such as General Electric, Deloitte, and Adobe no longer use performance ratings at all.

(Suggested points: 2, [1.4]); Pg. 16-17 LO: 1 Answer: False. Many large companies who tried to eliminate performance ratings are now using ratings again—but they are using more than one system and emphasizing developmental feedback.

Multiple-Choice Questions 1.15 ________________ is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.

A. Strategic planning B. Performance management C. Reward system D. Performance appraisal (Suggested points: 2, [1.1]); Pg. 3 LO: 1 Answer: B 1.16 Dangers of a poorly implemented performance management system include all of the following EXCEPT: A. Increased emphasis on behaviors rather than results 266

Chapter 1

B. Lawsuits/internal complaints of discrimination C. Biased performance ratings D. Decreased employee motivation (Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: A 1.17 When employees of an organization do not see the PM system as fair, the organization may witness from its employees all of the following EXCEPT: A. Job burnout B. Lowered self-esteem C. Increased engagement D. Lawsuits (Suggested points: 2, [1.4]); Pg. 16 LO: 4 Answer: C 1.18 The meaningfulness characteristic of performance management systems includes all the following EXCEPT: A. Standards and evaluations are important and relevant B. All functions that an employee performs are evaluated C. System should evaluate performance regularly D. Evaluator skill should be developed continuously (Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: B 1.19 The ___________ purpose of PM systems is to furnish valid and useful information for making employment decisions including salary adjustments, promotions, and terminations.

A. strategic B. informational C. administrative D. developmental (Suggested points: 2, [1.2]); Pg. 6 LO: 2 Answer: C 1.20 Information gained from the organizational maintenance purpose of a PM system is used for all of the following EXCEPT: A. Workforce planning B. Creating job descriptions C. Evaluating the effectiveness of HR interventions D. Creating talent inventories (Suggested points: 2, [1.2]); Pg. 7 267

Part I: Strategic and General Considerations___________________________________________________

LO: 2 Answer: B 1.21 An ideal PM system is __________, which means that performance is evaluated and feedback is given on an ongoing basis, the appraisal meeting consists of twoway communication, and performance standards are clear.

A. open B. standardized C. ethical D. specific (Suggested points: 2, [1.5]); Pg. 21 LO: 6 Answer: A 1.22 PM system information is important for the effective implementation of which of the following HR function(s)?

A. Workforce planning B. Training C. Recruitment and selection D. All of these are correct (Suggested points: 2, [1.6]); Pg. 22-23 LO: 7 Answer: D 1.23 All of the following are possible benefits of a performance management system EXCEPT: A. Protection from lawsuits B. Employees become more ethical C. Employees become more competent D. The definitions of job and criteria are clarified (Suggested points: 2, [1.3]); Pg. 9-12 LO: 3 Answer: B 1.24 Which of the following does the text identify as a possible danger of a poorly implemented performance management system?

A. Salaries must be increased.

B. Poorly performing employees will always stay at the organization.

C. No time or money is spent on the system.

D. Motivation to perform is decreased.

(Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: D 1.25 The ____________ characteristic allows employees to receive concrete guidance about what is expected of them and how they can meet those expectations: 268 Copyright © 2023

Chapter 1

A. Standardization B. Specificity C. Strategic congruence D. Correctability (Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: B 1.26 All of the following are characteristics of an ideal performance management system EXCEPT: A. Reliability B. Meaningfulness C. Inexpensive D. Thorough (Suggested points: 2, [1.5]); Pg. 18-22 LO: 6 Answer: C 1.27 All of the following are purposes of a performance management system EXCEPT: A. Make decisions about retention and termination B. Provide documentation C. Increase profits D. Give the HR department something to do (Suggested points: 2, [1.2]); Pg. 5-8 LO: 2 Answer: D 1.28 An ideal performance management system is correctable. What does this mean?

A. If an employee is dissatisfied with a rating, it will be changed.

B. If an employee is dissatisfied with a rating, there is a process to appeal the rating decision.

C. An ideal performance management system is not correctable.

D. The system software has an undo function.

(Suggested points: 2, [1.5]); Pg. 21 LO: 6 Answer: B 1.29 In which country should performance management be adapted to the country’s unique culture?

A. South Korea B. South Africa C. Australia D. All of these are correct (Suggested points: 2, [1.5]); Pg. 18qq LO: 6 269 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

Answer: D 1.30 In what manner is performance management typically similar around the world?

A. Standardization of performance measurement B. Emphasis on behavior versus results of employee performance C. Interpersonal aspects D. None of these are correct (Suggested points: 2, [1.5]); Pg. 18-21 LO: 6 Answer: A 1.31 All of the following are related to the changing nature of performance management EXCEPT: A. Cloud computing B. Big Data C. Technological advancements and virtual teams D. Rising costs (Suggested points: 2, [1.7]); Pg. 23-25 LO: 8 Answer: D 1.32 The performance management system should link to other human resources and development activities EXCEPT: A. Training B. Workforce planning C. Recruitment and hiring D. Financial accounting (Suggested points: 2, [1.6]); Pg. 22-23 LO: 7 Answer: D 1.33 Current factors that are bringing about changes to the performance management process include all of the following EXCEPT: A. Big Data B. Demographic changes in the workforce C. Equal pay legislation D. Electronic performance monitoring (Suggested points: 2, [1.7]); Pg. 23-25 LO: 8 Answer: C Short-Answer and Essay-Type Questions 1.34

You want to transition your organization’s performance appraisal system into a performance management system. Write a one-page memo to your supervisor 270 Copyright © 2023

Chapter 1

describing the advantages of having a well-designed, properly implemented performance management system.

(Suggested points: 2, [1.3]); Pg. 9-12 LO: 3 Answer: Memos will vary, but they should all include the following benefits of a welldesigned and implemented PM system: Performance appraisal is the systematic description of an employee’s strengths and weaknesses, whereas performance management is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. o Increased motivation to perform. If given correctly, feedback can increase the motivation to improve future performance. o Increased self-esteem. Receiving feedback about one’s performance fulfills a basic need to be appreciated and valued at work. Feeling appreciated and valued will increase an employee’s self-esteem. o Managers gain insight about subordinates. Direct supervisors and other managers in charge of the appraisal gain new insights into the person being appraised. o Clarification and definition of job and criteria. The job of the person being appraised may be clarified and better defined; thus, employees gain a better understanding of what it takes to be a successful performer. o Self-insight and development. Participants in the system also gain a better understanding of their strengths and weaknesses, which can help them better define future career paths. o Fair and appropriate administrative actions. Performance management systems provide valid information about performance that can be used for administrative actions such as merit increases, promotions, transfers, and terminations. o Organizational goals made clear. The goals of the unit and organization are made clear. o More competent employees. Performance of employees is improved, especially when developmental plans are put in place. o Protections from lawsuits. Data collected through performance management systems can help document compliance with regulations. o Differentiates between good and poor performers. Performance management systems allow for a quicker identification of good and poor performers. o Communicates supervisor’s view of performance. Good systems force managers to communicate to their subordinates their judgments and expectations regarding performance.

1.35 Identify the two main components of the definition of Performance Management and write one sentence describing each (Suggested points: 2, [1.1]); Pg. 3 271 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

LO: 1 Answer: Two main components are: o Continuous process: Performance management is ongoing. It involves an ongoing process of setting goals and objectives, observing performance, talking about performance, and giving and receiving ongoing coaching and feedback o Alignment with strategic goals. Performance management requires that managers ensure that employees’ activities and outputs are congruent with the organization’s goals, and consequently, help the organization gain a competitive advantage. Performance management therefore creates a direct link between employee and team performance and organizational goals, and makes the employees’ contribution to the organization explicit 1.36 There are several characteristics of an ideal performance management system.

Please discuss five characteristics of an ideal system and explain how an organization can achieve each characteristic. (For example, one characteristic of an ideal PM system is that it is reliable. An organization can make its system reliable by ensuring that performance measures are consistent across equally or similarly qualified judges and free of error.)

(Suggested points: 5, [1.5]); Pg. 18-22 LO: 6 Answer: The answer may involve any five of these characteristics: o Congruent with strategy. The system should be congruent with the unit’s and organization’s strategy. Organizations need to ensure that individual goals are aligned with unit and organizational goals. o Congruent with context. The system should be congruent with the organization’s culture as well as the broader cultural context of the region or country. o Thorough. All employees should be evaluated, all major job responsibilities should be evaluated, the evaluation should include performance spanning the entire review period, and feedback should be given on positive performance aspects as well as those that are in need of improvement. Organizations should train managers on how to give thorough reviews. o Practical. Good systems are available, easy to use, and acceptable to those who want to use them to make decisions, and the benefits of using the system outweigh the costs. Organizations need to get employee and manager input when designing the PM system to ensure that both parties are able to use the system and trust its results. o Meaningful. The standards and evaluations conducted for each job function must be considered important and relevant, the system must emphasize those functions that are under the control of the employee only, evaluations must take place at regular intervals and at appropriate moments, the system should provide for continuing skill development of evaluators, and the results should be used 272 Copyright © 2023

Chapter 1

o o

o o

o o

o

o

o o

for important administrative decisions. Again, organizations must involve employees and managers in the development of the system and train them on how to use the system effectively in order for it to be meaningful.

Specific. A good system provides detailed and concrete guidance to employees about what is expected of them and how they can meet these expectations.

Supervisors must clearly communicate to employees what is expected of them.

Identifies effective and ineffective performance. The system discriminates between effective and ineffective performance. Organizations design performance criteria in a way that distinguishes between good and bad performance.

Reliable. The system uses performance measures that are consistent, free of error, and high in inter-rater reliability.

Valid. The measures of performance are relevant (i.e., include important performance facets), they are not deficient (i.e., do not include unimportant performance facets), and they are not contaminated (because they measure only what the employee can control). Organizations identify through job analysis what are essential for the job and only measure those results and behaviors.

Acceptable and Fair. A good system is acceptable and perceived as fair by all participants. Organizations can set clear rules that are applied consistently by all supervisors.

Inclusive. Good systems include input from multiple sources on an ongoing basis. Organizations should encourage employees to conduct self-appraisals, and employees must participate in the process of creating the system by providing input regarding what should be measured and how it should be measured.

Open. Performance is evaluated frequently, performance feedback is provided on an ongoing basis, the appraisal meeting consists of a two-way communication, and standards are clear and communicated continually.

Organizations should train managers on how to effectively give feedback and communicate expectations to their employees.

Correctable. When employees perceive an error has been made, there should be a mechanism through which this can be corrected. Organizations should establish an appeals process, through which employees can challenge what may be unjust decisions. This is an important aspect of a good performance management system.

Standardized. As noted previously, good systems are standardized. This means that performance is evaluated consistently across people and time.

Organizations must train individuals in charge of appraisals.

Ethical. Good systems comply with ethical standards. Organizations should train managers to suppress personal self-interest when providing evaluations, to only evaluate performance dimensions for which they have sufficient information, and to respect the employee.

1.37 According to the text, performance management is …

(Suggested points: 2, [1.1]); Pg. 3 273 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

LO: 1 Answer: A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.

1.38 Performance management systems serve many purposes. Describe the developmental purpose.

(Suggested points: 2, [1.2]); Pg. 6-7 LO: 2 Answer: A performance management system serves a developmental purpose by using performance feedback to allow individuals to learn about their strengths and weaknesses, by identifying training needs, and by helping management and employees to make better decisions regarding job assignments.

1.39 Describe the strategic purpose of performance management.

(Suggested points: 2, [1.2]); Pg. 5 LO: 2 Answer: A performance management system serves a strategic purpose by linking the organization’s goals with individual employee goals; in this way, the performance management system reinforces behaviors consistent with organizational goals.

1.40 What is meant when we say that an ideal performance management system must be practical?

(Suggested points: 2, [1.5]); Pg. 18-19 LO: 6 Answer: When we say that an ideal performance management system is practical, we mean that it is available, easy to use, and acceptable to those who want to use it for decisions, and the benefits of using the system outweigh the costs.

1.41 What is meant when we say that an ideal performance management system must be valid?

(Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: When we say that an ideal performance management system is valid, we mean that the measures of performance are relevant (i.e., include important performance facets), they are not deficient (i.e., do not include unimportant performance facets), and they are not contaminated (because they measure only what the employee can control).

1.42 What is meant when we say that an ideal performance management system must be reliable?

274 Copyright © 2023

Chapter 1

(Suggested points: 2, [1.5]); Pg. 19 LO: 6 Answer: When we say that an ideal performance management system is reliable, we mean that the system uses performance measures that are consistent across judges of equal or similar qualification and free of error.

1.43 List four possible dangers of a poorly implemented performance management system.

(Suggested points: 2, [1.4]); Pg. 14-15 LO: 4 Answer: Possible dangers of a poorly-implemented performance management system include the following: o Lowered self-esteem o Increased turnove o Damaged relationships o Decreased motivation to perform o Employee burnout and job dissatisfaction o Use of misleading information o Wasted time and money o Emerging biases o Unclear ratings system o Varying and unfair standards and ratings o Unjustified demands on managers’ and employees’ resources o Increased risk of litigation 1.44 List four possible contributions of a good performance management system.

(Suggested points: 2, [1.3]); Pg. 9-13 LO: 3 Answer: Possible contributions of a good performance management system include the following: o Self-insight and development are enhanced. o Self-esteem of employees is increased. o Motivation to perform is increased. o Employee engagement is enhanced. o Employees become more competent. o Voice behavior is encouraged. o Definition of job and criteria are clarified. o Employee misconduct is minimized. o Declines in performance can be addressed early on. o Motivation, commitment, and intentions to stay in the organization are enhanced. o Managers gain insight about direct reports.

275 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

o There is better and more timely differentiation between good and poor performers. o Supervisor’s views of performance are communicated more clearly. o Administrative actions are more fair and appropriate. o Organizational goals are made clear. o There is better protection from lawsuits. o Organizational change is facilitated.

1.45 Identify two ways in which PM systems in the United States might differ from those in South Korea?

(Suggested points: 2, [1.5]); Pg. 18 LO: 6 Answer: Possible differences between the United States and South Korea might include: o Espouses collectivist values over individual performance o Male-dominated o Respect for hierarch in terms of political and administrative leaders o Sociocultural norms have a clear influence on organizational decision making and practices

276 Copyright © 2023

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.

(Suggested points: 2, [2.1], pg.38) LO: 4 Answer: True

2.2

Knowledge is having the information to do the job and having experience at the job.

(Suggested points: 2, [2.1], pg.38) LO: 4 Answer: False. Knowledge includes only having the information needed to do the job but not necessarily having done the work.

2.3

Job descriptions stay stable over time and therefore do not need to be updated.

(Suggested points: 2, [2.1], pg.42) LO: 4 Answer: False. Jobs change, so job descriptions must be checked and updated on ongoing basis.

2.4

Results criteria fall into the following categories: quality, quantity, costeffectiveness, and timeliness.

(Suggested points: 2, [2.1], pg.45) LO: 5 Answer: True

2.5

Key accountabilities are the yardstick used to evaluate how well an employee has achieved each objective.

(Suggested points: 2, [2.2], pg.45) LO: 5 Answer: False. Performance standards are the yardstick used to evaluate how well an employee has achieved each objective.

2.6

Employees should be measured exclusively on the results that they achieve.

(Suggested points: 2, [2.2], pg.45) LO: 5 Answer: False. Employees should be measured on results and behaviors.

277 Copyright © 2023

Chapter 2

2.7

Employees and supervisors should both evaluate employee performance during the performance assessment phase.

(Suggested points: 2, [2.4], pg.49) LO: 7 Answer: True

2.8

Self-serving bias refers to the degree to which participants in job analysis differ in how carefully they attend to the job analysis rating at hand.

(Suggested points: 2, [2.1], pg.41) LO: 4 Answer: False. Carelessness bias refers to the degree to which participants in job analysis differ in how carefully they attend to the job analysis rating at hand.

2.9

It is very important that the components of a performance management system all be related to one another.

(Suggested points: 2, [2.1], pg.36) LO: 2 Answer: True

2.10

The employee should wait until the review cycle is over, or until a serious problem develops, to solicit performance feedback and ask for coaching.

(Suggested points: 2, [2.3], pg.47) LO: 6 Answer: False. The employee should not wait until the review cycle is over to solicit performance feedback in the form of “check-ins.” Also, the employee should not wait until a serious problem develops to ask for coaching.

Multiple-Choice Questions 2.11

2.12

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 (Suggested points: 2, [2.1], pg.37) LO: 3 Answer: A A job description includes a summary of: 278 Copyright © 2023

Chapter 2

A. Job duties B. Working conditions C. Needed KSAs D. All of these are correct (Suggested points: 2, [2.1], pg.38) LO: 4 Answer: D 2.13

__________ are clusters of measurable KSAs. A. Job duties B. Competencies C. Performance standards D. Key accountabilities (Suggested points: 2, [2.2], pg.46) LO: 5 Answer: B

2.14

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 (Suggested points: 2, [2.1], pg.36) LO:1 Answer: C

2.15

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 (Suggested points: 3, [2.4], pg.49) LO: 7 Answer: C

2.16

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 these are correct (Suggested points: 2, [2.10, pg.50]) LO: 8 Answer: D 279 Copyright © 2023

Chapter 2

2.17

The correct order of the phases of a performance management process is: A. Performance planning, prerequisites, performance execution, performance assessment, performance review.

B. Prerequisites, performance planning, performance execution, performance assessment, performance review.

C. Performance planning, prerequisites, performance execution, performance review, performance assessment.

D. Prerequisites, performance execution, performance planning, performance assessment, performance review.

(Suggested points: 2, [2.1], pg.36) LO: 1 Answer: B

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 these are correct (Suggested points: 2, [2.4], pg.36) LO: 2 Answer: D

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 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 (Suggested points: 2, [2.6], pg. 37) LO: 3 Answer: D

2.20

Methods of conducting a work analysis include all of these EXCEPT: A. Reading textbooks B. Observation of employees in action C. Off-the-shelf questionnaires D. Interviews with employees (Suggested points: 2, [2.2], pg.38) LO: 4 Answer: A

280 Copyright © 2023

Chapter 2

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 (Suggested points: 2, [2.3], pg.42) LO: 4 Answer: D

2.22

During the performance planning component, 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 (Suggested points: 2, [2.2], pg.45] LO: 5 Answer: B

2.23

Which of the following are primarily the responsibilities of the employee in terms of performance execution?

A. Check-ins and performance touchpoints B. Collection and sharing of performance data C. Commitment to goal achievement D. All of these are correct (Suggested points: 2, [2.3], pg.47) LO: 6 Answer: D

2.24

Which of the following are primarily the responsibilities of the supervisor in terms of performance execution?

A. Feedback B. Observation and documentation C. Reinforcement D. All of these are correct (Suggested points: 2, [2.3], pg.48) LO: 6 Answer: D

2.25

The text offers six recommended steps for conducting productive performance reviews. Which of the following are included in those steps?

A. Cite specific positive and negative behaviors B. Agree on a bonus C. Prepare on an termination plan D. Discuss diversity objectives 281 Copyright © 2023

Chapter 2

(Suggested points: 2, [2.5], pg.52) LO:8 Answer: D 2.26

“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 (Suggested points: 2, [2.1], pg.38) LO: 3 Answer: B

2.27

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.

(Suggested points: 2, [2.1], pg.42) LO: 4 Answer: C

2.28

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 (Suggested points: 2, [2.7], pg.45) LO: 5 Answer: D

2.29

During the collection of information from individuals for the purpose of conducting a work 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 their own behaviors and personality traits are more needed for successful job performance compared to behaviors and personality traits of others.

B. Insufficient rater training was provided prior to the collection of information from the individuals.

C. Participants in job analysis differ in how carefully they attend to the job analysis rating at hand.

282 Copyright © 2023

Chapter 2

D. All of these are correct (Suggested points: 2, [2.1], pg.41) LO: 4 Answer: D 2.30

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 dimension C. Defines the scale anchors D. Describes what behaviors were indicative of each rating dimension (Suggested points: 2, [2.1], pg. 41) LO: 4 Answer: B. Note: Programs provide raters with definitions of rating dimensions, they do NOT allow raters to define rating dimensions.

2.31

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 (Suggested points: 2, [2.1], pg. 41) LO: 4 Answer: D

2.32

______________________ leads people to believe that others behave similarly to themselves and hence lead people to think about themselves instead of people in general when reporting KSAs for their jobs.

A. Social projection bias B. Optimism bias C. Carelessness bias D. Self-serving bias (Suggested points: 2, [2.1], pg. 41) LO: 4 Answer: A

2.33

___________________leads people to believe that others share the same beliefs and attitudes as themselves.

A. Social projection bias B. Optimism bias C. Carelessness bias D. False consensus bias (Suggested points: 2, [2.1], pg. 41) LO: 4 283 Copyright © 2023

Chapter 2

Answer: D 2.34

___________________results from the use of automatic versus controlled processing of information, leading to differences in how carefully people attend to the job analysis rating task at hand.

A. Social projection bias B. Optimism bias C. Carelessness bias D. Self-serving bias (Suggested points: 2, [2.1], pg.41) LO: 4 Answer: C

Short-Answer and Essay-Type Questions 2.36

Performance management is an ongoing process including five interrelated components. Please explain how the poor implementation of a phase in the process or how a disrupted link between any of the phases will have a negative impact on the performance management process as a whole.

(Suggested points: 3, .5[Summary Point #2], .5[Summary Point #3], pg. 42, pg. 52) LO: 2 Answer: Each of the five components of the performance management process plays an important role. If any of these components is implemented poorly, then the entire performance management system suffers. For example, the lack of knowledge of the organization’s mission and the job in question (i.e., prerequisites) will not allow performance planning (i.e., performance roadmap) to be aligned with organizational goals, thereby leading to poor performance execution. In short, a performance management system is only as good as its weakest component.

The links between the various components need to be established clearly. One example would be that performance planning needs to be closely related to performance execution. Performance planning is a futile exercise if execution does not follow from planning. The same applies to all the various components of performance management.

2.37

The employee and the supervisor both have important roles during the performance execution phase. Please list and explain each party’s responsibilities in this phase of the performance management process.

(Suggested points: 2, [2.3], ppg.47-48) LO: 6 Answer: During the performance execution phase, these are the employee’s responsibilities: 284 Copyright © 2023

Chapter 2

A. Commitment to goal achievement. The employee must be committed to the goals that were set. One way to enhance commitment is to allow the employee to be an active participant in the process of setting the goals.

B. Check-ins and performance touchpoints. The employee should not wait until the review cycle is over to solicit performance feedback. Also, the employee should not wait until a serious problem develops to ask for coaching. The employee needs to take a proactive role in soliciting performance feedback and coaching from his or her supervisor.

C. Collecting and sharing performance data. The employee should provide the supervisor with regular updates on the employee’s progress toward goal achievement both in terms of behaviors and results.

D. Preparing for performance reviews. The employee should not wait until the end of the review cycle approaches to prepare for the review. On the contrary, the employee should engage in an ongoing and realistic self-appraisal so that corrective actions can be taken if necessary. The usefulness of the selfappraisal process can be enhanced by gathering informal performance information from peers and customers (both internal and external).

During the performance execution phase, these are supervisor’s responsibilities: A. Observation and documentation. Supervisors must observe and document performance on a daily basis. It is important to keep track of examples of both good and poor performance.

B. Updates. As the organization’s goals may change, it is important to update and revise initial objectives, standards, and key accountabilities (in the case of results) and competency areas (in the case of behaviors).

C. Feedback. Feedback on progression toward goals and coaching to improve performance should be provided on a regular basis and certainly before the review cycle is over.

D. Resources. Supervisors should provide employees with resources and opportunities to participate in developmental activities. Thus, supervisors should encourage (and sponsor) participation in training, classes, and special assignments.

E. Reinforcement. Supervisors must let employees know that the employees’ outstanding performance is noticed by reinforcing effective behaviors and progress toward goals. Also, supervisors should provide feedback regarding negative performance and how to remedy the observed problem. So, observation and communication are not sufficient. Performance problems must be diagnosed early on and appropriate steps taken as soon as the problem is discovered.

2.38

Define knowledge in terms of the prerequisites needed for performance planning.

(Suggested points: 2, [2.1], pg.38) LO: 3 Answer: Knowledge is having the information needed to perform the work but not necessarily having done it.

285 Copyright © 2023

Chapter 2

2.39

Define skills in terms of the prerequisites needed for performance planning.

(Suggested points: 2, [2.1], pg.38) LO: 3 Answer: Skills are the required attributes that are usually acquired by having done the work in the past.

2.40

Define abilities in terms of the prerequisites needed for performance planning.

(Suggested points: 2, [2.2], pg.38) LO: 3 Answer: 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.

2.41

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

(Suggested points: 2, [2.4], pg.49) LO: 7 Answer: 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 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.

2.42

Why is the performance review meeting considered the “Achilles’ heel of the entire process”?

(Suggested points: 2, [2.5], pg.50) LO: 8 Answer: 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.

2.43

A good performance appraisal meeting includes discussions of what?

(Suggested points: 2, [2.5], pg.50-51) LO: 8 Answer: 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 286 Copyright © 2023

Chapter 2

compensation, if any, the employee may be receiving as a result of his/her performance (the present).

2.44

What are the five components in the performance management cycle?

(Suggested points: 2, [2.1], pg.36) LO: 1 Answer: The five components of the performance management cycle are: prerequisites, performance planning, performance execution, performance assessment, and performance review.

2.45

List the six recommended steps for conducting productive performance reviews.

(Suggested points: 2, [2.5], pg. 52) LO: 8 Answer: The six recommended steps for conducting productive performance reviews are: A. Identify what the employee has done well and poorly by citing specific behaviors.

B. Solicit feedback from the employee about these behaviors.

C. Discuss the implications of changing or not changing the behaviors.

D. Explain to the employee how skills used in past achievements can help overcome any current performance problems.

E. Agree on an action plan.

F. Set a meeting to follow up and agree on the behaviors, actions, and attitudes that will be evaluated.

2.46

Define self-serving bias, and explain how it may affect the job analysis process.

(Suggested points: 3, [2.1], pg.41) LO: 4 Answer: Self-serving bias is the tendency for people to attribute success to themselves and failure to external causes (i.e., factors outside of their control). As a result, this bias leads people to report that their own behaviors and personality traits are more needed for successful job performance compared to behaviors and personality traits of others.

2.47

Distinguish between social projection bias and false consensus bias.

(Suggested points: 3, [2.1], pg.41) LO: 4 Answer: Social projection bias leads people to believe that others behave similarly to themselves and hence leads people to think about themselves instead of people in general when reporting KSAs for their jobs. False consensus bias is different from social projection bias, because false consensus bias leads people to believe that others share the same beliefs and attitudes as themselves.

287 Copyright © 2023

Chapter 2

2.48

How do the self-serving, social projection, false consensus biases, and carelessness bias commonly affect the job analysis process?

(Suggested points: 3, [2.1], pg.41) LO: 4 Answer: Self-serving, social projection, and false consensus biases, and carelessness bias 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.

2.49

How does a Web-based rater training program work to help raters become less susceptible to rater biases and thus more accurate in the ratings that are collected in a job analysis?

(Suggested points: 3, [2.1], pg. 41) LO: 4 Answer: Taken together, self-serving, social projection, false consensus biases, and carelessness bias 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. Given such, a rater training program helps participants converge onto a common point of reference, which is a point where the exaggeration is significantly mitigated. As a result, rater training program participants tend to provide significantly lower ratings for certain KSAs than do nonparticipants who tend to exaggerate those KSAs.

2.50

List the five steps that typically make up a Web-based rater training program.

(Suggested points: 3, [2.1], pg. 41) LO: 4 Answer: A Web-based training program usually includes the following five steps: (1) Provide raters with a definition of each rating dimension.

(2) Define the scale anchors.

(3) Describe what behaviors were indicative of each dimension.

(4) Allow raters to practice their rating skills.

(5) Provide feedback on the practice

288 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

Chapter 3—Performance Management and Strategic Planning True/False Questions 3.1

Strategic planning is a process that involves describing the organization’s destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward.

(Suggested points: 2, [3.1]); Pg. 60 LO: 1 Answer: True

3.2

The only purpose of a strategic plan is to guide employees’ daily activities.

(Suggested points: 2, [3.1]); Pg. 60 LO: 1 Answer: False. Strategic planning serves several purposes, including defining an organization’s identity, preparing for the future, providing focus, creating a culture of cooperation, and serving as a guide for the daily activities of all organizational members.

3.3

The performance management criteria must be linked to the vision, mission, objectives, and strategies of the organization and unit.

(Suggested points: 2, [3.1]); Pg. 66 LO: 1 Answer: True

3.4

Environmental analysis is an examination of the external environment where the organization operates.

(Suggested points: 2, [3.3]); Pg. 67 LO: 4 Answer: False. Environmental analysis considers internal as well as external trends.

3.5

An analysis of the economic environment would be included in the external environment analysis.

(Suggested points: 2, [3.3]); Pg. 68 LO: 4 Answer: True

3.6

Leverage is a combination of an opportunity in the external environment and a matching strength in the organization.

(Suggested points: 2, [3.3]); Pg. 70

290 Copyright © 2023

Chapter 3

LO: 5 Answer: True 3.7

A problem is a situation where an external threat can be compensated by strengths in other areas.

(Suggested points: 2, [3.3]); Pg. 71 LO: 5 Answer: False. A vulnerability is a situation where an external threat can be compensated for by strengths in other areas.

3.8

A gap analysis consists of pairing strengths/weaknesses with opportunities/threats and determining whether the situation is conducive to positive outcomes, negative outcomes, or a mixture of both.

(Suggested points: 2, [3.3]); Pg. 70 LO: 5 Answer: True

3.9

A mission statement is a description of what the organization would like to become in the future.

(Suggested points: 2, [3.3]); Pg. 73 LO: 6 Answer: False. A vision statement is a description of what the organization would like to become in the future.

3.10

A vision statement provides more specific information on how the mission will be implemented.

(Suggested points: 2, [3.3]); Pg. 76 LO: 7 Answer: False. Objectives provide more specific information on how the mission will be implemented.

3.11

Job descriptions should focus only on an individual’s tasks and responsibilities.

(Suggested points: 2, [3.3]); Pg. 79 LO: 7 Answer: False. Job descriptions should include activities that contribute to the mission and vision of the unit and organization.

3.12

Well-designed performance management systems define a clear path from mission, vision, objectives, and strategies at the organizational-level to the unitlevel and to individual job descriptions.

291 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

(Suggested points: 2, [3.2]); Pg. 61-62 LO: 2 Answer: True 3.13

Performance management systems allow all employees to understand where the organization stands and where it needs to go and provide tools to employees so that their behaviors will help the organization meet its objectives.

(Suggested points: 2, [3.4]); Pg. 81 LO: 8 Answer: True

3.14

HR support is sufficient for a successful performance management system; employee and top management buy-in is not necessary.

(Suggested points: 2, [3.4]); Pg. 81-82 LO: 8 Answer: False. HR, employee, and management buy-in are all necessary for successful performance management systems.

3.15

A balanced scorecard allows the HR department to evaluate which employees are contributing the most to the organization’s success.

(Suggested points: 2, [3.2]); Pg. 63 LO: 2 Answer: False. A balanced scorecard is a way to formalize the link between strategic planning and performance management.

Multiple-Choice Questions 3.16

The main goal of the strategic planning process is to: A. Establish job descriptions for customer-facing positions B. Allocate resources to provide the organization with a competitive advantage C. Form the foundation for the performance management process D. None of these are correct (Suggested points: 2, [3.1]); Pg. 60 LO: 1 Answer: B

3.17

The strategic planning process consists of all of the following EXCEPT: A. An environmental analysis B. Development of the marketing plan C. Creation of a mission statement D. Setting organizational objectives 292 Copyright © 2023

Chapter 3

(Suggested points: 2, [3.3]); Pg. 65-81 LO: 4, 5, 6, 7 Answer: B 3.18

Which of the following external factors should be considered in any external environmental analysis?

A. Organizational culture B. Organizational politics C. Competitors D. Organizational structure (Suggested points: 2, [3.3]); Pg. 68-69 LO 4 Answer: C

3.19

If a company identifies an external opportunity that it cannot pursue due to an internal weakness, this is considered a: A. Leverage B. Constraint C. Vulnerability D. Problem (Suggested points: 2, [3.3]); Pg. 70-71 LO: 5 Answer: B

3.20

A good mission statement contains which of the following?

A. Statement of why the organization exists B. Description of the organization’s customers C. List of the organization’s products and services D. All of these are correct (Suggested points: 2, [3.3]); Pg. 71-73 LO: 6 Answer: D

3.21

A good vision statement is all of the following EXCEPT: A. Focused B. Detailed C. Inspiring D. A statement of future aspirations (Suggested points: 2, [3.3]); Pg. 73-76 LO: 6 Answer: B 293 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

3.22

___________________ are the descriptions of game plans to reach the stated objectives.

A. Mission statements B. Strategies C. Goals D. Vision statements (Suggested points: 2, [3.3]); Pg. 77 LO: 6 Answer: B

3.23

Which of the following choices must be made when designing a performance management system?

A. Behavioral criteria versus results criteria B. Low employee participation versus high employee participation C. Short-term criteria versus long-term criteria D. All of these are correct (Suggested points: 2, [3.3]); Pg. 66 LO: 3 Answer: D

3.24

The process of describing the organization’s destination, assessing barriers that stand in the way of that destination, and selecting approaches for moving forward is called ____________________________.

A. organizational planning B. strategic planning C. business planning D. successful planning (Suggested points: 2, [3.1]); Pg. 60 LO: 1 Answer: B

3.25

Which of the following is a purpose served by strategic planning?

A. Allows an organization to increase profit B. Allows an organization to reduce overhead cost C. Allows an organization to find the best employees D. Allows an organization to produce an organizational culture of cooperation (Suggested points: 2, [3.1]); Pg. 60-61 LO: 1 Answer: D

3.26

Which of the following is a purpose served by strategic planning?

294 Copyright © 2023

Chapter 3

A. Helps define the organization’s identity B. Enhances ability to adapt to environmental changes C. Allows for the consideration of new options and opportunities D. All of these are correct (Suggested points: 2, [3.1]); Pg. 60-61 LO: 1 Answer: D 3.27

In order to ensure that strategy cascades down the organization and leads to concrete actions, which of the following must be done?

A. Effort must be made to link the strategic plan with what everyone does in the organization on a daily basis.

B. Company executives must mandate that employees follow the plan or be fired.

C. Employees should not be involved in making the plan.

D. Supervisors should evaluate how well an employee is following the plan.

(Suggested points: 2, [3.2]); Pg. 61 LO: 2 Answer: A

3.28

Characteristics of the external environment that can help the organization succeed are known as ______________________.

A. advantages B. opportunities C. good situations D. expectant situations (Suggested points: 2, [3.3]); Pg. 68 LO: 4 Answer: B

3.29

Characteristics of the external environment that can prevent the organization from being successful are known as ______________________.

A. disadvantages B. weaknesses C. global factors D. threats (Suggested points: 2, [3.3]); Pg. 68 LO: 4 Answer: D

3.30

An examination of the internal environment includes a consideration of: A. Employees and supervisors B. Supply and demand 295 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

C. Strengths and weaknesses D. Employees and customers (Suggested points: 2, [3.3]); Pg. 69 LO: 4 Answer: C 3.31

_______________________ analyzes the external environment vis-à-vis the internal environment.

A. Business analysis B. Environmental analysis C. Gap analysis D. Opportunity analysis (Suggested points: 2, [3.3]); Pg. 70 LO: 5 Answer: C

3.32

The mission statement summarizes: A. The organization’s most important reason for existing B. The organization’s future aspiration C. The organization’s financial objectives D. The organization’s needs (Suggested points: 2, [3.3]); Pg. 71 LO: 6 Answer: A

3.33

A description of what the organization would like to become in the future is called: A. The mission statement B. The organizational plan C. The strategic plan D. The vision statement (Suggested points: 2, [3.3]); Pg.73 LO: 6 Answer: D

3.34

Which of the following is characteristic of a good vision statement?

A. Controversial B. Free of a specific timeline to create flexibility C. Long-lasting D. Provides a stretch goal (Suggested points: 2, [3.3]); Pg. 75 LO: 6 296 Copyright © 2023

Chapter 3

Answer: D 3.35

________________ are what the organization intends to do in the short term, say, one to three years.

A. Strategies B. Strategic plans C. Objectives D. Game plans (Suggested points: 2, [3.3]); Pg. 76 LO: 6 Answer: C

3.36

Contributions of the HR function to the strategic planning process include all of the following EXCEPT: A. Communicating knowledge B. Outlining KSA’s needed C. Proposing compensation systems D. Benchmarking functions (Suggested points: 2, [3.3]); Pg. 66 LO: 3 Answer: D

Short-Answer and Essay-Type Questions 3.38

Conduct an environmental analysis of the United Nations (www.un.org). Make sure your analysis includes a consideration of both internal (strengths and weaknesses) and external (opportunities and threats) trends. See the Millennium Report of the Secretary-General of the United Nations as a source of information (available at http://www.un.org/millennium/sg/report/).

(Suggested points: 10, [3.3.2]); Pg. 68-71 LO: 4 Answer: Answers will vary. Possible answers: o Opportunity + Strength = Leverage. The best combination of external and internal factors occurs when there is an opportunity in the environment and a matching strength within the organization to take advantage of the opportunity. “The UN’s influence derives not from power, but from the values it represents, its role in helping to set and sustain global norms, its ability to stimulate global concern and action, and the trust inspired by its practical work to improve people’s lives. We must build on those strengths, especially by insisting on the importance of the rule of law.” Doing this will help bring about peace to the many people around the world facing health concerns, including HIV/AIDS, poor nutrition, and unfit living environments. People in 297 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

poorer countries also need the UN’s help in preventing civil war, enforcing civil rights, and reducing the prevalence of firearms around the world. o Opportunity + Weakness = Constraint. In a constraint situation, the external opportunity is present. However, the internal situation is not conducive to taking advantage of the external opportunity. With the increase of globalization and technology, people around the world are more “connected” than ever before, and they are looking to their leaders to help them face the challenges associated with globalization. Thus, the United Nations has a great opportunity to serve as a model of inclusion. Furthermore, new technology can help developing countries to accelerate through early stages of development. Providing developing countries with access to this information will help business and education networks. The UN can use the new information technology to be more efficient and improve its interaction with the rest of the world. However, the UN is currently change-resistant and will need the help of the information technology industry to help them utilize the vast amount of information available and enable change with this information. o Threat + Strength = Vulnerability. In this situation, an external threat can be contained because of the presence of internal strengths. The presence of war around the globe is a major threat to the UN. However, with the work of the Security Council, the threat can be deterred. The Security Council needs “reforming so it can both work effectively and enjoy unquestioned legitimacy.” Furthermore, the UN must expand its “relationship with civil society organizations, as well as with the private sector and foundations.”

Further strengthening the Security Council will ensure that the threat of war across the globe is contained. “In the last decade internal wars have claimed more than 5 million lives, and driven many times that number of people from their homes. At the same time, weapons of mass destruction continue to cast their shadow of fear.” By working with the Security Council and finding strength in the shared values held by the nations in the UN, the UN resolves to lessen the threat of deadly conflict at every stage: • “Prevention. Conflicts are most frequent in poor countries … and the best way to prevent them is to promote healthy and balanced economic development combined with human rights, minority rights, and political arrangements in which all groups are fairly represented …”

• “Protecting the vulnerable. We must find better ways to enforce international and human rights law, and ensure that gross violations do not go unpunished.”

• “Addressing the dilemma of intervention. National sovereignty must not be used as a shield for those who wantonly violate the rights and lives of their fellow human beings …”

• “Strengthening peace operations.” Operate more effective peace operations.

• “Targeting sanctions. Recent research has explored ways to make sanctions ‘smarter’ by targeting them better. The Security Council should draw on this research when designing and applying sanctions regimes in future.”

298 Copyright © 2023

Chapter 3

•

“Pursuing arms reductions. The Secretary-General urges Member States to control small arms transfers more rigorously; and to recommit themselves to reducing the dangers both of existing nuclear weapons and of further proliferation.” o Threat + Weakness = Problem. In the worst of the situations, there is an external threat and an accompanying internal weakness. The global environment is suffering because the UN has not committed to helping keep the environment safe. The security and viability of future generations is at stake. “We have been plundering our children’s heritage to pay for unsustainable practices.” The UN must commit to helping the following areas: • “Coping with climate change. Reducing the threat of global warming requires a 60 percent reduction in emissions of carbon and other ‘greenhouse gases.’ …”

• “Confronting the water crisis. The report urges endorsement of the World Water Forum Ministerial Conference’s target of cutting by half the proportion of people without access to safe and affordable water before 2025 …”

• “Defending the soil. The best hope of feeding a growing world population from shrinking agricultural land may lie in biotechnology, but its safety and environmental impact are hotly debated …”

• “Preserving forests, fisheries, and biodiversity. In all these areas, conservation is vital. Governments and the private sector must work together to support it.”

• “Building a new ethic of stewardship. The Secretary-General recommends four priorities:” include more education for the public, “integrate the environment into economic policy,” implement “regulations and incentives,” and receive “more accurate scientific data.”

3.39

As with organizations, people can have mission statements. Write a personal mission statement for yourself. Be sure that it includes all of the characteristics of a good mission statement. Use the following tool at the Franklin Covey Web site, and add to it as necessary: https://msb.franklincovey.com/ (Suggested points: 10, [3.3.3]); Pg. 71-73 LO: 6 Answer: Answers will vary, but here is one example: Throughout each day in my life, I strive to be loyal to my friends and family, lead a successful career that I will enjoy, stay healthy, and take on any challenges that come my way. I value my family members, friends, spiritual fulfillment, sense of accomplishment, and respect for others.

3.40

Using the mission statement that you wrote in the previous question, write a vision statement, objectives, and accompanying strategies for how to reach your goals.

(Suggested points: 10, .3[3.3.4], .3[3.3.5], .4[3.3.6]); Pg. 73-77 LO: 6, 7 299 Copyright © 2023

Part I: Strategic and General Considerations___________________________________________________

Answer: Answers will vary, but here is an example: Vision Statement: In five years, I will still be happily married and in contact with friends and family. I will be a manager in my firm and running on a daily basis.

Objectives: Take the lead on a project within one year where I will gain visibility. Plan one family vacation. Run a 10K twice a year.

Strategies: Take a lead on one section of a project this month, and ask the project manager for feedback. Save money and vacation days. Continue to run daily with my friend.

3.41

What are the steps in the creation of a successful strategic plan?

(Suggested points: 2, [3.3]); Pg. 67 LO: 2 Answer: The steps for creation of a successful strategic plan are: • Environmental or SWOT analysis • Creation of an organizational mission • Creation of an organizational vision • Setting objectives • Creation of strategies that allow for fulfillment of mission and vision and achieving objectives

3.42

Define strengths in the context of strategic planning.

(Suggested points: 2, [3.3]); Pg. 69 LO: 4 Answer: In the context of strategic planning, strengths are internal characteristics that the organization can use to its advantage.

3.43

Define weaknesses in the context of strategic planning.

(Suggested points: 2, [3.3]); Pg. 69 LO: 4 Answer: In the context of strategic planning, weaknesses are internal characteristics that are likely to hinder the success of the organization.

3.44

Define leverage in the context of strategic planning.

(Suggested points: 2, [3.3]); Pg. 77 LO: 5 Answer: In the context of strategic planning, leverage is an external opportunity paired with an internal strength.

3.45

Define constraint in the context of strategic planning.

(Suggested points: 2, [3.3]); Pg. 71 LO: 5 300 Copyright © 2023

Chapter 3

Answer: In the context of strategic planning, a constraint is an external opportunity paired with an internal weakness.

3.46

Define vulnerability in the context of strategic planning.

(Suggested points: 2, [3.3]); Pg. 71 LO: 5 Answer: In the context of strategic planning, a vulnerability is an external threat paired with an internal strength.

3.47

Define problem in the context of strategic planning.

(Suggested points: 2, [3.3]); Pg. 71 LO: 5 Answer: In the context of strategic planning, a problem is an external threat paired with an internal weakness.

3.48

A good mission statement answers four questions. What are they?

(Suggested points: 2, [3.3]); Pg. 71 LO: 6 Answer: A good mission statement answers these questions: • Why does the organization exist?

• What is the scope of the organization?

• Who are the customers served?

• What are the products or services offered?

3.49

List the characteristics of a good vision statement.

(Suggested points: 2, [3.3]); Pg. 76 LO: 6 Answer: The characteristics of a good vision statement are that it is: • Brief • Verifiable • Bound by a timeline • Current • Focused • Understandable • Inspiring • A stretch

301 Copyright © 2023

Chapter 4

Chapter 4—Defining Performance and Choosing a Measurement Approach True/False Questions 4.1

Behaviors that we label as performance can be judged as negative, neutral, or positive for individual and organizational effectiveness.

(Suggested points: 2, [4.1]); Pg. 91 LO: 1 Answer: True.

4.2

Typically, there is only one type of behavior that has the capacity to advance organizational goals.

(Suggested points: 2, [4.1]); Pg. 91 LO: 1 Answer: False. There are many different kinds of behaviors that have the capacity to advance (or hinder) organizational goals

4.3

When the behaviors that contribute to success in a particular job are not observable, one can include measures of results that we infer to be the direct result of an employee’s behavior.

(Suggested points: 2, [4.1]); Pg. 92 LO: 1 Answer: True.

4.4

Declarative knowledge is information about facts and things, including an understanding of a given task’s requirements, information on labels, facts, principles, and goals.

(Suggested points: 2, [4.2]); Pg. 92 LO: 2 Answer: True.

4.5

The three determinants of performance have an additive relationship.

(Suggested points: 2, [4.2]); Pg. 92 LO: 2 Answer: True.

4.6

Performance management systems need to not only measure performance but also provide information on the source of any performance deficiencies.

(Suggested points: 2, [4.2]); Pg. 97 LO: 5 Answer: 303 Copyright © 2023

Part II: System Implementation_____________________________________________________________

True.

4.7

Contextual performance is also known as organizational citizenship or pro-social behavior.

(Suggested points: 2, [4.3]); Pg. 97 LO: 7 Answer: True.

4.8

Many organizations now realize that there is no need to focus on both task and contextual performance.

(Suggested points: 2, [4.3]); Pg. 98 LO: 7 Answer: False. Many organizations now realize that there is a need to focus on both task and contextual performance because organizations cannot function properly with a minimum dose of contextual behaviors on the part of all employees.

4.9

Task performance varies across jobs and is likely to be role prescribed.

(Suggested points: 2, [4.3]); Pg. 99 LO: 7 Answer: True.

4.10

The fact that there are many ways to deliver effective results in a job is an indication that a results approach to performance measurement might be appropriate for the job.

(Suggested points: 2, [4.5]); Pg. 107 LO: 9 Answer: True.

4.11

Counterproductive behavior is the opposite of contextual performance.

(Suggested points: 2, [4.3]); Pg.101 LO: 7 Answer: False. It may seem that counterproductive performance is simply the opposite of contextual performance, but it is not. Specifically, the same employee can engage in both contextual and counterproductive performance

4.12

The behavior approach is a process-oriented approach that emphasizes how an employee does the job.

(Suggested points: 2, [4.5]); Pg. 105 LO: 8 Answer: True.

304 Copyright © 2023

Chapter 4

4.13

When workers are skilled in the needed behaviors, behaviors and results are related, and results show consistent improvement over time, it is best to use the results approach to measuring performance.

(Suggested points: 2, [4.5]); Pg. 107 LO: 9 Answer: True.

4.14

Contextual factors, such as voice behavior and cultural differences, should be considered when organizations choose to define and measure performance.

(Suggested points: 2, [4.3]); Pg. 98 LO: 2 Answer: True.

4.15

A competency architecture offers a set of rules to guide the selection of competencies and proficiency levels required for every job profile in a firm.

(Suggested points: 2, [4.4]; Pg. 104 LO: 6 Answer: True.

4.16

A competency-based job profile can provide up to ten behavioral indicators, each of which clearly defines the job requirements in a very specific way.

(Suggested points: 2, [4.4]; Pg. 104 LO: 6 Answer: False. A competency-based job profile can provide up to five behavioral indicators, each of which clearly defines the job requirements in a very specific way.

Multiple-Choice Questions 4.17 The combination of each of the following factors allows some individuals to perform at higher levels than others EXCEPT: A. Declarative knowledge B. Procedural knowledge C. Biases D. Motivation (Suggested points: 2, [4.2]); Pg. 92 LO: 2 Answer: C. 305 Copyright © 2023

Part II: System Implementation_____________________________________________________________

4.18

Procedural knowledge is: A. Information about facts and things B. Knowing what to do and how to do it C. Choosing to expend effort D. None of these are correct (Suggested points: 2, [4.2]); Pg. 192 LO: 2 Answer: B.

4.19

Motivation involves which of the following behaviors?

A. Choice to expend effort B. Choice of level of effort C. Choice to persist in the expenditure of that level of effort D. All of these are correct (Suggested points: 2, [4.2]); Pg. 94 LO: 2 Answer: D.

4.20

Which of the following performance facets must be considered to understand performance?

A. Task performance and results B. Declarative knowledge and procedural knowledge C. Contextual performance and results D. Task performance and contextual performance (Suggested points: 2, [4.3]); Pg. 97 LO: 7 Answer: D.

4.22

____________________ is defined as those behaviors that contribute to the organization’s effectiveness by providing a good environment in which task performance can occur.

A. Contextual performance B. Results C. Declarative knowledge D. Procedural knowledge (Suggested points: 2, [4.3]); Pg. 98 LO: 7 Answer: A.

4.23

_________________ performance is fairly similar across jobs and is not likely to be role prescribed.

A. Task 306 Copyright © 2023

Chapter 4

B. Contextual C. Exceptional D. None of these are correct (Suggested points: 2, [4.3]); Pg. 98 LO: 7 Answer: B. 4.24

Which of the following factors are causing organizations to focus on contextual as well as task performance: A. Increased amount of teamwork B. Employee perceptions of performance management C. Supervisors’ views D. All of these are correct (Suggested points: 2, [4.3]); Pg. 100 LO: 7 Answer: D.

4.25

The technical definition of performance includes: A. The employee’s behaviors and the results of the employee’s behaviors B. Only the results of the employee’s behaviors C. Only the employee’s behaviors D. None of these are correct (Suggested points: 2, [4.1]); Pg. 91 LO: 1 Answer: A.

4.26

Declarative knowledge is: A. Information that an employee can be tested on B. Information about facts and things C. Information that is included in the employee handbook D. All of these are correct (Suggested points: 2, [4.2]); Pg. 92 LO: 2 Answer: B.

4.27

Procedural knowledge is: A. Knowing what the boss wants done B. Knowing how well the job has to be done to “get by” C. Knowing what to do and how to do it D. Knowing where all the required equipment are located (Suggested points: 2, [4.2]); Pg. 92 LO: 2 307 Copyright © 2023

Part II: System Implementation_____________________________________________________________

Answer: C. 4.28

Declarative knowledge includes which of the following?

A. Facts B. Psychomotor skill C. Persistence of effort D. Cognitive skill (Suggested points: 2, [4.2]); Pg. 92 LO: 2 Answer: A.

4.29

Contextual performance and task performance should: A. Only be considered in higher level employees B. Be considered as one and the same C. Be listed in the employee manual D. Be considered separately (Suggested points: 3, [4.2]); Pg. 97 LO: 7 Answer: D.

4.30

The behavior approach emphasizes ______________ rather than _____________.

A. what employees do; outcomes or results B. employee traits; results C. results; employee traits D. None of these are correct (Suggested points: 2, [4.5]); Pg. 105 LO: 8 Answer: A.

4.31

Under which of the following conditions would a behavior approach be most appropriate?

A. Behaviors and results are obviously related.

B. There are many ways to do the job correctly.

C. Results show consistent improvement over time.

D. Outcomes are distant in the future.

(Suggested points: 2, [4.5]); Pg. 105 LO: 8 Answer: D.

4.34

The results approach emphasizes ______________ rather than _______________.

A. employee behaviors; results and employee traits 308 Copyright © 2023

Chapter 4

B. outcomes; financial gain C. employee traits; results and employee behaviors D. outcomes; employee behaviors (Suggested points: 2, [4.5]); Pg. 107 LO: 9 Answer: D. 4.35

When results and behaviors are obviously related, which approach to measuring performance is most appropriate?

A. Trait approach B. Results approach C. Behavior approach D. Orthodox approach (Suggested points: 2, [4.5]); Pg. 107 LO: 9 Answer: B.

4.36

When poor results are due to causes beyond the performer’s control, which approach to measuring performance is most appropriate?

A. Trait approach B. Results approach C. Behavior approach D. Orthodox approach (Suggested points: 2, [4.5]); Pg. 105 LO: 8 Answer: C.

4.37 When employees challenge the status quo in a positive way and make innovative suggestions for change, they are exhibiting: A. Cultural differences B. Declarative knowledge C. Psychomotor skills D. Voice behavior (Suggested points: 2, [4.3]); Pg. 100 LO:7 Answer: D. 4.38

Which one of the following benefits is not contributed by designing and implementing a competency- architecture: A. Alignment B. Voice behavior C. Fairness 309 Copyright © 2023

Part II: System Implementation_____________________________________________________________

D. Continuity (Suggested points: 2, [4.4]; Pg. 104 LO: 6 Answer: B. 4. 39

Which one group of people cannot benefit from a competency-based job profile?

A. Job seeker B. Leaders and HR professionals C. Board of directors D. Organization (Suggested points: 2, [4.4]; Pg. 104 LO: 6 Answer: C.

Short Answer and Essay-Type Questions 4.40

What are the five steps of deliberate practice that lead to excellence?

(Suggested points: 2, [4.2]); Pg. 95 LO: 4 Answer: The five steps of deliberate practice that lead to excellence are: 1. Approach performance with the goal of getting better and better.

2. As you are performing, focus on what is happening and why you are doing things the way you do them.

3. Once your task is finished, seek feedback on your performance from expert sources, and the more the sources, the better.

4. Build mental models of your job, your situation, and your organization.

5. Repeat steps 1 through 4 continually.

4.41

Performance consists of both task and contextual dimensions. Please define each type of performance, and explain whether companies should focus on task performance, contextual performance, or a combination of both.

(Suggested points: 2, [4.3]); Pg. 97 LO: 7 Answer: Task performance is defined as activities that transform raw materials into the goods and services that are produced by the organization and activities that help with the transformation process by replenishing the supply of raw materials, distributing its finished products, or providing important planning, coordination, supervising, or staff functions that enable the organization to function effectively 310 Copyright © 2023

Chapter 4

and efficiently. Contextual performance is defined as those behaviors that contribute to the organization’s effectiveness by providing a good environment in which task performance can occur.

Both task and contextual performance are important dimensions to take into account in performance management systems. First, global competition is raising the effort levels required of employees. Second, many organizations are organizing based on teams. Although some teams may not be permanent and are formed to complete specific tasks only, the reality of today’s world of work is that teams are here to stay. Third, contextual performance behaviors can make a profound impact on customer satisfaction. Finally, when supervisors evaluate performance, it is difficult for them to ignore the contextual performance dimension, although it may not be part of the formal evaluation process. In short, performance includes both a task and a contextual dimension.

4.42

Using your current work situation, or one of someone you know well, describe whether performance is measured using a behavior or results approach. Use the checklist below to identify whether or not your company should measure performance using the behavior or results method.

Adopting a Behavior Approach to Measuring Performance Is Most Appropriate When …

Employees will take a long time to achieve the desired outcomes The link between behaviors and results is not obvious Outcomes are distant in the future Poor results are due to causes beyond the performer’s control Adopting a Results Approach to Measuring Performance Is Most Appropriate When …

Workers are skilled in the needed behaviors Behaviors and results are obviously related Results show consistent improvement over time There are many ways to do the job right

Is this approach appropriate given your job responsibilities and the climate of the organization? Explain whether or not you think that the system could be improved using a different approach to measuring performance.

(Suggested points: 3, [4.5]); Pg.105-107 LO: 8, 9 Answer: (Answers will vary but should be aligned with the definitions of each type of performance measure.)

The behavior approach emphasizes what employees do on the job and does not consider employees’ traits or the outcomes resulting from their behaviors. This is basically a process-oriented approach that emphasizes how an employee does the job.

The results approach emphasizes the outcomes and results produced by the employees. It does not consider the traits that employees may possess or how employees do the job and focuses on what is produced (e.g., sales, number of 311 Copyright © 2023

Part II: System Implementation_____________________________________________________________

accounts acquired, time spent with clients on the telephone, number of errors, etc.). A results approach to measuring performance usually takes less time because defining and measuring results usually takes less time than defining and measuring behaviors needed to achieve these results. In fact, measuring both behavior and results is the approach adopted by many organizations.

For example, assume an organization measures performance using results through the management by objectives methodology. This would be appropriate if the organization employs a highly skilled workforce, and there are several different ways to do a job successfully. Usually, the better you do your particular job, the better your results will be. This organization may be a metric-oriented organization, so results are seen immediately. However, there are some elements of performance such as a supervisor’s ability to manage that would be better measured through the behavior method. Using behaviors would draw attention to managers’ behaviors and put more focus on walking the talk, rather than just fulfilling the relevant metrics.

4.43

What are the three determinants of performance that allow some people to perform at higher levels than others?

(Suggested points: 2, [4.2]); Pg. 92 LO: 2 Answer: The three determinants of performance that allow some people to perform at higher levels than others are: A. Abilities and other traits B. Knowledge and skills C. Context

4.44

Motivation involves three types of choice behaviors. What are they?

(Suggested points: 2, [4.2]); Pg. 94 LO: 2 Answer: Motivation involves the following types of choice behaviors: A. Choice to expend effort B. Choice of level of effort C. Choice to persist in the expenditure of that level of effort

4.44

What is the expected outcome if any of the determinants of performance are lacking?

(Suggested points: 5, [4.2]); Pg. 92 LO: 2 Answer: If any of the determinants of performance are lacking, overall performance will unlikely be satisfactory.

312 Copyright © 2023

Chapter 4

4.45

The contextual factors that influence determinants of performance include what three things?

(Suggested points: 5, [4.2]); Pg. 95 LO: 3 Answer: The contextual factors that influence determinants of performance include: A. HR policies and procedures (e.g., compensation system) B. Managerial and peer leadership C. Organizational and national culture D. Time and timing of performance E. Resources and opportunities given to employees to perform.

4.46

Activities that transform raw materials into goods and services that are produced by an organization are called …

(Suggested points: 2, [4.3]); Pg. 97 LO: 7 Answer: Task performance includes activities that transform raw materials into goods and services that are produced by an organization.

4.47

Activities that help with the transformation process by replenishing the supply of raw materials, distributing its finished products, or providing important planning, coordination, or supervision are called …

(Suggested points: 2, [4.3]); Pg. 97 LO: 7 Answer: Task performance includes activities that help with the transformation process by replenishing the supply of raw materials, distributing finished products, or providing important planning, coordination, or supervision.

4.48

Behaviors that contribute to the organization’s effectiveness by providing a good working environment are called …

(Suggested points: 2, [4.3]); Pg. 97 LO: 7 Answer: Contextual performance is defined as behaviors that contribute to the organization’s effectiveness by providing a good working environment.

4.49

List the differences between task performance and contextual performance.

(Suggested points: 5, [4.3]); Pg. 99 LO: 7 Answer: Task performance and contextual performance differ in the following ways: A. Task performance varies across jobs, whereas contextual performance is similar across jobs.

313 Copyright © 2023

Part II: System Implementation_____________________________________________________________

B. Task performance is likely to be role prescribed, whereas contextual performance is not.

C. Task performance requires skills and abilities; contextual performance requires personality.

4.50

List and define the four dimensions of performance (Suggested points: 5, [4.3]); Pg. 97 LO: 7 Answer: The four dimensions of performance include: A. Task performance: a. Activities that transform raw materials into the goods and services that are produced by the organization b.

Activities that help with the transformation process by replenishing the supply of raw materials; distributing its finished products; or providing important planning, coordination, supervising, or staff functions that enable the organization to function effectively and efficiently.

B. Contextual performance: those behaviors that contribute to the organization’s effectiveness by providing a good environment in which task performance can occur.

C. Counterproductive performance: behaviors and results that are voluntary and that violate organizational norms, and consequently, threaten the well-being of the organization, it’s members, or both.

D. Adaptive performance: Adaptive performance is related to an individual’s adaptability to changes-be it in the organization and its goals, in the requirements of the job, or the overall work context.

4.51

Why is adaptive performance becoming an increasingly important performance dimension?

(Suggested points: 2, [4.3]); Pg. 102 LO: 7 Answer: Given the rapid pace of technology and other factors that are constantly changing the nature of work and organizations, adaptive performance is becoming an increasingly importance performance dimension.

4.50

Voice behavior is a type of behavior that emphasizes what three things?

(Suggested points: 2, [4.3]); Pg. 100 LO: 7 Answer: Voice behavior emphasizes: A. Raising constructive challenges with the goal to improve rather than merely criticize.

B. Challenging the status quo in a positive way.

314 Copyright © 2023

Chapter 4

C. Making innovative suggestions for change when others, including an employee’s supervisor, disagree 4.51 List five of the key performance indicators of counterproductive performance.

(Suggested points: 5, [4.3]); Pg. 101 LO:7 Answer: Some key performance indicators of counterproductive performance include: • Exaggerating hours worked • Falsifying a receipt to get reimbursed for more money than was spent on business expenses • Starting negative rumors about the company • Gossiping about coworkers • Covering up one’s mistakes • Competing with coworkers in an unproductive way • Gossiping about one’s supervisor • Staying out of sight to avoid work • Blaming one’s coworkers for one’s mistakes • Intentionally working slowly or carelessly • Being intoxicated during working hours • Seeking revenge on coworkers • Cyberloafing • Presenting colleagues’ ideas as if they were one’s own 4.52

List five of the key performance indicators of adaptive performance.

(Suggested points: 5, [4.3]); Pg. 102 LO:7 Answer: Some key performance indicators of adaptive performance include: • Handling experience or crisis situations • Handling work stress • Solving problems creatively • Dealing with uncertain and unpredictable work situations • Learning work tasks, technologies and procedures • Demonstrating interpersonal adaptability • Demonstrating cultural adaptability • Demonstrating physically oriented adaptability

4.53

What are two ways to improve our own performance? Briefly describe each (in 12 sentences)?

(Suggested points: 5, [4.2]); Pg. 95 LO: 4 Answer: 315 Copyright © 2023

Part II: System Implementation_____________________________________________________________

Two ways to improve our own performance is to engage in deliberate practice and assume extreme ownership. Deliberate practice involves approaching performance with the goal of getting better and better, focusing on what is happening and why you are doing things the way you do, seeking performance feedback from expert sources, and building mental models of your job, your situation, and your organization.

Extreme ownership involves taking responsibility for poor performance no matter how painful this process may be. Acknowledging that we have performed under par is never easy, it hurts our egos, and our self-esteem. But, these are short-term effects only. Unless we engage in this process, it will be very difficult to address any type of performance problem 4.54

The behavior approach is most appropriate under what three conditions?

(Suggested points: 2, [4.5]); Pg. 105 LO: 8 Answer: The behavior approach is most appropriate under the following conditions: A. The link between behaviors and results is not obvious.

B. Outcomes occur in the distant future.

C. Poor results are due to causes beyond the performer’s control.

4.55

Give three examples of jobs in which the results approach would be the most appropriate approach to performance measurement.

(Suggested points: 5, [4.5]); Pg. 107 LO: 9 Answer: Adopting a results approach to measuring performance is most appropriate in the following three job examples: A. Professional basketball players’ offensive performance is well measured by their free throw shooting percentage.

B. The performance of a postal delivery worker can be measured using the results approach: whether the mail is delivered to every customer within a particular time frame.

C. The results approach is appropriate for measuring an artist’s performance such as by the public response to their exhibit and profits made from pieces sold.

Answers will vary, but they should encompass three or all of the following circumstances.

A. Workers are skilled in the needed behaviors.

B. Behaviors and results are obviously related.

C. Results show consistent improvement over time.

D. There are many ways to do the job right.

316 Copyright © 2023

Part II: System Implementation_____________________________________________________________

Chapter 5—Measuring Results and Behaviors True/False Questions 5.1

Key accountabilities are the broad areas of a job for which the employee is responsible for producing results.

(Suggested points: 2, [5.1]); Pg. 115 LO: 1 Answer: True.

5.2

Performance standards are statements of important and measurable outcomes.

(Suggested points: 2, [5.1]); Pg. 115 LO: 1 Answer: False. Objectives are statements of important and measurable outcomes.

5.3

After determining the accountabilities of a particular job, the next step in measuring results is to determine specific objectives.

(Suggested points: 2, [5.1]); Pg. 115 LO: 1 Answer: True.

5.4

Good objectives are set in stone and will not change throughout the performance review period.

(Suggested points: 2, [5.1]); Pg. 117 LO: 3 Answer: False. Good objectives are flexible.

5.5

Good performance standards are related to the position, concrete, specific, measurable, practical to measure, meaningful, realistic, achievable, and reviewed regularly.

(Suggested points: 2, [5.1]); Pg. 119 LO: 4 Answer: True.

5.6

Differentiating competencies are competencies that allow us to distinguish between average and superior performers.

(Suggested points: 2, [5.1]); Pg. 121 LO: 5 Answer: True.

318 Copyright © 2023

Chapter 5

5.7

An indicator is a behavior that suggests whether a particular competency is present.

(Suggested points: 2, [5.1]); Pg. 121 LO: 5 Answer: True.

5.8

Absolute systems base the measurement on comparing employees with one another.

(Suggested points: 2, [5.2]); Pg. 123 LO: 5 Answer: False. Comparative systems base the measurement on comparing employees with one another.

5.9

Comparative performance measurement systems are better than absolute systems at controlling for several rater biases and errors.

(Suggested points: 2, [5.2]); Pg. 127 LO: 5 Answer: True.

5.10

In an alternation rank order procedure, employees are simply ranked from the best performer to the worst performer.

(Suggested points: 2, [5.2]); Pg. 124 LO: 7 Answer: False. In a simple rank order system, employees are simply ranked from the best performer to the worst performer.

5.11

Behaviorally Anchored Rating Scales (BARS) include graphic rating scales that use critical incidents as anchors.

(Suggested points: 2, [5.2]); Pg. 136 LO: 7 Answer: True.

5.12

Forced distribution encourages teamwork and contextual performance behaviors and reduces competition within an organization.

(Suggested points: 2, [5.2]); Pg. 125 LO: 7 Answer: False. A forced distribution method may discourage contextual performance behaviors and teamwork and may increase competition within an organization.

319 Copyright © 2023

Part II: System Implementation_____________________________________________________________

5.13

The relative percentile method is a type of absolute performance measurement system.

(Suggested points: 2, [5.2]); Pg. 124 LO: 7 Answer: False. Relative percentile is a type of comparative performance measurement system.

5.14

Recent research shows that most performance follows a normal distribution.

(Suggested points: 2, [5.2]); Pg. 129 LO: 7 Answer: False. Recent research shows that most performance follows a heavy-tail distribution.

5.15

A heavy-tailed distribution means that the mean of performance is shifted to the right of the mean of the performance distribution.

(Suggested points: 2, [5.2]); Pg. 129 LO: 7 Answer: True.

5.16

Context plays no role in measuring performance.

(Suggested points: 2, [5.3]); Pg. 138 LO: 8 Answer: False. Context plays an important role in determining how performance is measured.

5.17

The difference between performance appraisal and performance management is that one is a once-a-year evaluation and review while the other is an ongoing system of evaluation and feedback (Suggested points: 2, [5.2]); Pg. 127 LO: 5 Answer: True.

5.18

A forced distribution divides employees into two-halves: Above-Average and Below-Average.

(Suggested points: 2, [5.2]); Pg. 125 LO: 7 Answer:

320 Copyright © 2023

Chapter 5

False. In a forced distribution, employees are apportioned according to an approximately normal distribution—which has approximately the same number of performers to the right and the left of the mean score.

5.19

Headlines such as “Performance Evaluation is Dead” and “The End of Performance Reviews” correctly indicate that evaluation of performance is no longer used by companies.

(Suggested points: 2, [5.2]); Pg. 127 LO: 5 Answer: False. The evaluation of performance it is becoming a normal, routine, built-in, and ever-present aspect of work in twenty-first-century organizations.

5.20

Artificial intelligence (AI) promises to allow firms to be more efficient and less biased. While the use of AI is still nascent, this is an increasing trend that is here to stay.

(Suggested points: 2, [5.4]); Pg. 139 LO: 8 Answer: True.

5.21

AI is objective and do not replicate or reinforce existing biases.

(Suggested points: 2, [5.4]); Pg. 139 LO: 8 Answer: False. AI technology may replicate or even reinforce existing biases.

Multiple-Choice Questions 5.22 A(n) _____________ is a yardstick used to evaluate how well employees have achieved each objective.

A. accountability B. results statement C. performance standard D. none of these are correct (Suggested points: 2, [5.1]); Pg. 115 LO: 1 Answer: C. 5.23

Characteristics of good objectives include all of the following EXCEPT: A. Specific and clear B. Spontaneous C. Challenging D. Bound by time (Suggested points: 2, [5.1]); Pg. 117 LO: 3 321 Copyright © 2023

Part II: System Implementation_____________________________________________________________

Answer: B. 5.24

Which of the following characteristics can be used to judge the extent to which an objective has been achieved?

A. Quality B. Quantity C. Time D. All of these are correct (Suggested points: 2, [5.1]); Pg. 119 LO: 6 Answer: D.

5.25

________________ are measurable clusters of KSAs that are critical in determining how results will be achieved.

A. Objectives B. Competencies C. Performance standards D. None of these are correct (Suggested points: 2, [5.1]); Pg. 121 LO: 2 Answer: B.

5.26

___________ are competencies that each employee needs to display to do the job to a minimally adequate standard.

A. Differentiating competencies B. Threshold competencies C. Distinguishing competencies D. None of these are correct (Suggested points: 2, [5.1]); Pg. 121 LO: 5 Answer: B.

5.27

To understand the extent to which a competency is present, we measure _______.

A. indicators B. performance standards C. objectives D. none of these are correct (Suggested points: 2, [5.1]); Pg. 121 LO: 6 Answer: A.

322 Copyright © 2023

Chapter 5

5.28

________________ systems base the measurement on comparing employees with a pre-specified performance standard.

A. Comparative B. Subjective C. Absolute D. Results (Suggested points: 2, [5.2]); Pg. 123 LO: 7 Answer: C.

5.29

In this type of comparative system, employees are apportioned according to an approximately normal distribution.

A. Simple rank order B. Paired comparisons C. Alternative rank order D. Forced distribution (Suggested points: 2, [5.2]); Pg. 125 LO: 7 Answer: D.

5.30

All of the following are examples of absolute systems EXCEPT: A. Essay comparing the employee to other team members B. Essay identifying employee strengths and weaknesses C. Graphic rating scales D. Critical incidents (Suggested points: 2, [5.2]); Pg. 132 LO: 7 Answer: A.

5.31

The use of _________________ ensure that the response categories are clearly defined, that interpretation of the rating by an outside party is clear, and that the supervisor and employee also understand the rating.

A. essays B. graphic rating scales C. critical incidents D. all of these are correct (Suggested points: 2, [5.2]); Pg. 136 LO: 7 Answer:

323 Copyright © 2023

Part II: System Implementation_____________________________________________________________

B. 5.32

Broad areas of a job for which the employee is responsible for producing results are called ___________________.

A. responsibilities B. performance standards C. results D. key accountabilities (Suggested points: 2, [5.1]); Pg. 116 LO: 2 Answer: D.

5.33

Statements of important and measurable outcomes are called _______________.

A. key accountabilities B. performance standards C. objectives D. yardsticks (Suggested points: 2, [5.1]); Pg. 115 LO: 3 Answer: C.

5.34

A yardstick used to evaluate how well employees have achieved each objective is called ____________________________.

A. a performance standard B. a key accountability C. results D. responsibilities (Suggested points: 2, [5.1]); Pg. 115 LO: 4 Answer: A.

5.35

Good objectives should have which of the following characteristics?

A. Creativity B. Prioritized C. Open ended D. Set in stone (Suggested points: 2, [5.1]); Pg. 117 LO: 3 Answer: B.

5.36

Which of the following is characteristic of good performance standards?

A. Concrete 324 Copyright © 2023

Chapter 5

B. Realistic C. Reviewed regularly D. All of these are correct (Suggested points: 2, [5.1]); Pg. 120 LO: 4 Answer: D. 5.37

Competencies are composed of which of the following?

A. Knowledge B. Abilities C. Skills D. All of these are correct (Suggested points: 2, [5.1]); Pg. 121 LO: 5 Answer: D.

5.38

Differentiating competencies are: A. Those which allow us to distinguish between poor and average performers B. Those which allow us to distinguish between acceptable candidates and unacceptable candidates C. Those which allow us to distinguish between average and superior performers D. None of these is correct (Suggested points: 2, [5.1]); Pg. 121 LO: 5 Answer: C.

5.39

Threshold competencies are: A. Those which allow us to see the threshold between good and poor performers B. Those which allow us to see the threshold between average and superior performers C. Those which must be attained in order to get an annual bonus D. Those which everyone must display in order to do the job at a minimally adequate level (Suggested points: 2, [5.1]); Pg. 121 LO: 5 Answer: D.

5.40

What are the two types of systems used to evaluate competencies?

A. Evaluative and Projective B. Comparative and Absolute C. Absolute and Evaluative D. Projective and Comparative 325 Copyright © 2023

Part II: System Implementation_____________________________________________________________

(Suggested points: 2, [5.2]); Pg. 123 LO: 7 Answer: B. 5.41

All of the following are disadvantages of comparative systems EXCEPT: A. Competitive behaviors may become a problem B. Relative distance between employees’ performance is unclear C. Higher risk of leniency, severity, and central tendency biases D. Risk of legal issues (Suggested points: 2, [5.2]); Pg. 127 LO: 7 Answer: C.

5.42

Use of simple rank order, alteration rank order, and relative percentile would be most appropriate in _____________ systems of evaluating competencies.

A. declarative B. absolute C. projective D. comparative (Suggested points: 2, [5.2]); Pg. 124 LO: 7 Answer: D.

5.43

When raters are asked to consider all ratees at the same time and to estimate the relative performance of each by using a 100-point scale, which method are they using?

A. Forced distribution B. Behaviorally anchored rating scales (BARS) C. Simple rank order D. Relative percentile (Suggested points: 2, [5.2]); Pg. 124 LO: 7 Answer: D.

5.44

When supervisors select (in order) the best performer, then the worst performer, then the second best performer, then the second worst performer, and so forth,

326 Copyright © 2023

Chapter 5

alternating between top and bottom until the list is completed (and they meet in the middle), they are using which measurement method?

A. Paired comparisons B. Alternation rank order C. Random assignment D. Relative distance (Suggested points: 2, [5.2]); Pg. 124 LO: 7 Answer: B. 5.45

Use of essays, critical incidents, and graphic rating scales would be most appropriate in a(n) ______________ system of evaluating competencies.

A. declarative B. absolute C. projective D. comparative (Suggested points: 2, [5.2]); Pg. 132 LO: 7 Answer: B.

5.46

Gathering reports of situations in which employees performed behaviors that were especially effective or ineffective in accomplishing their jobs is an example of __________________________________.

A. a critical incident approach B. an essay approach C. a comparative approach D. a direct report approach (Suggested points: 2, [5.2]); Pg. 134 LO: 7 Answer: A.

5.47

Recommendations for producing more star performers include all of the following EXCEPT: A. Eliminating situational constraints B. Paying attention to their developmental network C. Allowing stars to rotate across teams D. Don’t tell others about the preferential treatment that stars receive (Suggested points: 2, [5.2]); Pg. 131 LO: 7 Answer:

327 Copyright © 2023

Part II: System Implementation_____________________________________________________________

D. 5.48

In terms of performance management, MBO stands for: A. Management by Objectives B. Management Buyout Offer C. Minimally Biased Objective D. Maximally Branched Outlier (Suggested points: 2, [5.1]); Pg. 115 LO: 1 Answer: A.

5.49

Which one of the following performance management activities cannot be conducted by Artificial Intelligence?

A. Hiring B. Identification of high or low performers C. Planning performance appraisal conversation D. Retention (Suggested points: 2, [5.4]); Pg. 139 LO: 8 Answer: C.

Short-Answer and Essay-Type Questions 5.50

Describe the critical steps in adopting a results approach to measuring performance. Define and distinguish between accountabilities, objectives, and standards.

(Suggested points: 5, .25[5.1], .25[5.1.1], .25[5.1.2], .25[5.1.3]); Pg. 115-120 LO: 2, 3, 4 Answer: Key accountabilities are broad areas of a job for which the employee is responsible for producing results. Objectives are statements of important and measurable outcomes. Finally, a performance standard is a yardstick used to evaluate how well employees have achieved each objective. Performance standards provide information on acceptable and unacceptable performance regarding, for example, quality, quantity, cost, and time.

The first step in determining accountabilities is to collect information about the job. Tasks included in the job description can be grouped into clusters of tasks based on their degree of relatedness. Each of these clusters or accountabilities is a broad area of the job for which the employee is responsible for producing results.

Once the accountabilities are identified, we need to determine their relative degree of importance and specific objectives. The purpose of establishing objectives is to identify a limited number of highly important results that, when achieved, will have a dramatic impact on the overall success of the organization. After 328 Copyright © 2023

Chapter 5

objectives are set, employees should receive feedback on their progress toward attaining the objective, and rewards should be allocated to employees according to whether they have reached their objectives. Once accountabilities and objectives have been determined, the next step is to define performance standards. Standards can refer to various aspects of a specific objective including quality, quantity, and time.

5.51

Explain the difference between absolute and comparative systems. What are the advantages and disadvantages to each type of system?

(Suggested points: 5, .5[5.2.1], .5[5.2.2]); Pg. 123-137 LO: 7 Answer: Comparative systems base the measurement on comparing employees with one another. Advantages of using relative measurement methods include: these types of measurement procedures are usually easy to explain, decisions resulting from these types of systems are fairly easy and cut and dry, and they tend to control for several biases and errors made by those rating performance better than absolute systems. Disadvantages associated with the use of relative systems include: employees usually are compared only in terms of a single overall category, and we don’t have information on the relative distance between employees.

Absolute systems base the measurement on comparing employees with a prespecified performance standard. Advantages of using absolute systems include: the essay system has the potential to provide detailed feedback to employees regarding their performance, behavior checklists are easy to use and understand, and critical incidents allow supervisors to focus on actual job behavior rather than on vaguely defined traits. Disadvantages of using absolute systems include: essays are almost totally unstructured, detailed and useful feedback is difficult to extract from the numerical rating provided by a behavior checklist, and collecting critical incidents is very time consuming.

5.52

Discuss the questions that one must be able to answer when adopting a results approach.

(Suggested points: 2, [5.1]); Pg. 115 LO: 1 Answer: When adopting a results approach, one must be able to answer the following questions: • What are the different areas in which this individual is expected to focus his/her efforts (key accountabilities)?

• Within each area, what are the expected objectives?

• How do we know how well the results have been achieved (performance standards)?

5.53

Explain why accountabilities are determined.

(Suggested points: 2, [5.1.1]); Pg. 115-116 329 Copyright © 2023

Part II: System Implementation_____________________________________________________________

LO: 2 Answer: Accountabilities are determined to identify a limited number of highly important results that, when achieved, will have a dramatic impact on the overall success of the organization.

5.54

List the characteristics of good objectives.

(Suggested points: 2, [5.1.2]); Pg. 117-119 LO: 3 Answer: Good objectives have the following characteristics. They are: • Specific and clear • Challenging • Agreed upon • Significant • Prioritized • Bound by time • Achievable • Fully communicated • Flexible • Limited in number

5.55

List the four characteristics necessary of a useful standard, and give an example of each characteristic using the following standard as an example: Increase sales from $15,000 to $22,000 by December 1st at a cost not to exceed $3,000.

(Suggested points: 2, [5.1.3]); Pg. 120 LO: 4 Answer: Standards must include an action (increase), the desired result (to $22,000), a due date (by December 1st), and some type of quality or quantity indicator (the increase in sales from $15,000 to $22,000 and at a cost not to exceed $3,000).

5.56

Explain the difference between a threshold competency and a differentiating competency.

(Suggested points: 2, [5.2]); Pg. 121 LO: 6 Answer: There are two types of competencies: differentiating and threshold.

Differentiating competencies are those that allow us to distinguish between average and superior performers. Threshold competencies are those that everyone needs to display to do the job at a minimally adequate standard. In other words, the difference is that threshold competencies are essential in order to perform a job, whereas differentiating competencies will distinguish the top performers from the rest.

330 Copyright © 2023

Chapter 5

5.57

Discuss the three aspects of specific objectives that can be used to judge the extent to which an objective has been achieved.

(Suggested points: 3, [5.1.2]); Pg. 119 LO: 3 Answer: When judging the extent to which an objective has been achieved, the following three aspects of the specific objective should be considered in comparison to what was expected: o Quality—in terms of how well the objective was achieved o Quantity—in terms of how much of the objective was achieved, how many objectives were achieved, how often the objective was achieved, and at what cost the objective was achieved o Time—in terms of due dates, the schedule, cycle times, and how quickly the objective was achieved

5.58

List the characteristics of good performance standards.

(Suggested points: 2, [5.1.3]); Pg. 120 LO: 4 Answer: Good performance standards have the following characteristics. They are: o Related to the position o Concrete, specific, and measurable o Practical to measure o Meaningful o Realistic and achievable o Reviewed regularly

5.59

To understand the extent to which an employee possesses a competency, we measure indicators. Explain the term indicator.

(Suggested points: 2, [5.2]); Pg. 121 LO: 7 Answer: An indicator is an observable behavior that gives us information regarding the competency in question.

5.60

List the components that must be present when describing a competency.

(Suggested points: 2, [5.2]); Pg. 123 LO: 5 Answer: When describing a competency, we need to provide the following components: o Definition of a competency o Description of specific behavioral indicators that can be observed when someone demonstrates a competency effectively o Description of specific behaviors that are likely to occur when someone doesn’t demonstrate a competency effectively (what a competency is not) 331 Copyright © 2023

Part II: System Implementation_____________________________________________________________

o Suggestions for developing the competency 5.61

Identify and explain five comparative measurement systems.

(Suggested points: 3, [5.2.1]); Pg. 124-129 LO: 7 Answer: Comparative measurement systems are as follows: • Simple rank order is simply when employees are ranked from best performer to worst performer.

• Alternation rank order is when the supervisor selects (in the following order) the best performer (i.e., #1), then the worst performer (e.g., #2000), then the second best performer (i.e., #2), then the second worst performer (e.g., #1999), and so forth, alternating between top and bottom until the list is completed (and they meet in the middle).

• Paired comparisons are when explicit comparisons are made between all pairs of employees to be evaluated, such that each employee’s performance is compared to all other employees’ performance.

• Relative percentile method asks raters to consider all ratees at the same time and to estimate the relative performance of each by using a 100-point scale. If an employee receives a 75-point mark on the scale, it means that about 25 percent of employees are better performers and about 75 percent of employees are worse performers than this individual. This method may include one such scale for each competency as well as one scale to evaluate the overall performance of all employees.

• Forced distribution apportions employees according to an approximately normal distribution. For example, about 20 percent will fall under the “top performers” category, about 70 percent will fall under the “average performers” category, and about 10 percent will fall under the “underperformance” category.

5.62

Describe the advantages and disadvantages of using the various absolute evaluation approaches.

(Suggested points: 3, [5.2.2]); Pg. 132-137 LO: 7 Answer: Absolute performance measurement systems compare employees with prespecified performance standards, using the following approaches: • Essays describe the employee’s strengths and weaknesses, making suggestions for improvement. An advantage is that essays have the potential to provide detailed feedback; disadvantages to essays include the fact that they are unstructured and may lack detail, their usefulness depends on the supervisor’s writing skill, and they are difficult to use in decisions regarding compensation, partially due to the lack of quantitative information provided.

They are also quite time consuming, considering the number of employees the supervisor may have.

332 Copyright © 2023

Chapter 5

•

•

•

Behavior checklists use a form listing behavioral statements that are indicators of the various competencies to be measured. An advantage is that such a checklist is easy to understand; disadvantages are that the scale points used are often arbitrary and that it is difficult to get detailed and useful feedback from the numerical rating.

Critical incidents: This approach involves gathering reports of situations in which employees performed behaviors that were especially effective or ineffective in accomplishing their objectives. An advantage is that this allows the supervisor to focus on actual employee behavior rather than on vaguely defined traits; the disadvantage is that collecting such information is very time consuming.

Graphic rating scales are considered the most popular tools to measure performance. It is important to ensure that the response categories are clearly defined, that interpretation of the rating by an outside party is clear, and that the employee and the supervisor would both understand the rating.

Behaviorally Anchored Rating Scales (BARS) improve on graphic rating scales by using critical incidents as anchors. Their development is dependent on active employee involvement at several points as well as final supervisor and employee checking of the items for dependability of the ratings.

333 Copyright © 2023

Part II: System Implementation_____________________________________________________________

Chapter 6—Performance Analytics True/False Questions 6.1

The basic components that appraisal forms should contain are employee information; accountabilities, objectives, and standards; competencies and behavioral indicators; major achievements and contributions; developmental achievements; developmental needs; plans and goals; multiple performance touchpoints; employee comments; and signatures.

(Suggested points: 2, [6.1]); Pg. 148 LO: 2 Answer: True.

6.2

Only forms adopting a results-oriented approach need the following features: simplicity, relevancy, descriptiveness, adaptability, comprehensiveness, clarity, communication, and time orientation.

(Suggested points: 2, [6.2]); Pg. 157 LO: 3 Answer: False. In spite of the large variability in terms of format, components, and length, these are desirable features that make appraisal forms particularly effective for all types of jobs and hierarchical positions in the organization.

6.3

The mechanical approach to computing an overall performance score involves taking every aspect of performance into consideration and arriving at a defensible summary.

(Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: False. This is the judgmental method of computing overall performance.

6.4

Yearly performance appraisal meetings falling on the anniversary date of the employee’s hire date are the ideal method of communicating performance expectations to the employee.

(Suggested points: 2, [6.4]); Pg. 164 LO: 5 Answer: False. More frequent communication with employees is desirable, and having appraisal meetings on the anniversary date makes it hard to allocate rewards and bonuses.

6.5

During the formal performance review meeting the employee’s performance is discussed from the employee and supervisor’s perspective.

(Suggested points: 2, [6.4]); Pg. 165 LO: 5 334 Copyright © 2023

Chapter 6

Answer: True.

6.6

All six appraisal meetings should be held as separate meetings.

(Suggested points: 2, [6.4]); Pg. 166 LO: 5 Answer: False. The appraisal meetings can be combined as needed or held separately.

6.7

Supervisors are the best raters of employee performance.

(Suggested points: 2, [6.5]); Pg. 168 LO: 6 Answer: False. Depending on the performance areas being rated, peers, direct reports, customers, may be better suited to rate performance.

6.8

Self-appraisals should not be used as the only source of performance data because they may be more lenient and biased than other ratings.

(Suggested points: 2, [6.5]); Pg. 170 LO: 6 Answer: True.

6.9

Ratings gathered from different sources in the organization will mostly be similar given that they are all rating the same employee.

(Suggested points: 2, [6.5]); Pg. 173 LO: 7 Answer: False. When the same dimension is evaluated across sources, we should not necessarily expect ratings to be similar.

6.10

Regardless of who rates performance, the rater is likely to be affected by biases that could distort the resulting ratings.

(Suggested points: 2, [6.6]); Pg. 174 LO: 7 Answer: True.

6.11

The two main reasons that open-ended (i.e., comments) sections are typically not used effectively are that (1) it is not easy to systematically categorize and analyze such comments and that (2) quality, length, and content may vary.

(Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: 335 Copyright © 2023

Part II: System Implementation_____________________________________________________________

True.

6.12

Peers are in the best position to evaluate performance in relation to strategic organizational goals.

(Suggested points: 2, [6.5]); Pg. 168 LO: 6 Answer: False. Supervisors are in the best position to evaluate performance in relation to strategic organizational goals

6.13

Many organizations have stopped collecting and compiling performance data to make administrative decisions about employees.

(Suggested points: 2); Pg. 146 LO: 1 Answer: False. Many organizations continue to gather and compile performance data to make administrative decisions about employees.

6.14

The critical issue in terms of collecting, compiling, and analyzing performance is not Big Data, but Smart Data.

(Suggested points: 2, [6.5]); Pg. 171 LO: 6 Answer: True.

Multiple-Choice Questions 6.15

The basic component that requires forms to contain job title, division, pay grade or salary, and evaluation period is referred to as: A. Accountabilities, objectives, and standards B. Competencies and indicators C. Basic employee information D. Major achievements and contributions (Suggested points: 2, [6.1]); Pg. 148 LO: 2 Answer: C.

6.16

The basic component that requires forms to contain definitions of the various competencies be assessed together with their behavioral indicators is referred to as: A. Accountabilities, objectives, and standards B. Competencies and indicators C. Basic employee information D. Major achievements and contributions (Suggested points: 2, [6.1]); Pg. 148 336 Copyright © 2023

Chapter 6

LO: 2 Answer: B. 6.17

6.18

The feature that recommends that a form specify expectations about past and future performance is referred to as: A. Clarity B. Comprehensiveness C. Time orientation D. Descriptiveness (Suggested points: 2, [6.2]); Pg. 158 LO: 3 Answer: C. ________________ is the feature of forms that ensures that raters provide evidence of performance regardless of the level of performance.

A. Clarity B. Comprehensiveness C. Time orientation D. Descriptiveness (Suggested points: 2, [6.2]); Pg. 157 LO: 3 Answer: D.

6.19

The _______________ method of computing an overall score relies on the weights given to indicate the relative importance of each performance dimension measured to prevent personal bias from entering into the rating.

A. creative B. mechanical C. methodological D. judgmental (Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: B.

6.20

The following are tools for addressing the challenges of open-ended (i.e., comments) sections, EXCEPT: A. Computer-aided text analysis (CATA) software B. Establish the goals of the information provided C. Training in systematic and standardized rating skills D. Add weighted scores to obtain overall score (Suggested points: 2, [6.3]); Pg. 163 337 Copyright © 2023

Part II: System Implementation_____________________________________________________________

LO: 4 6.21

Answer: D. The __________ meeting is a time to discuss how the system works and where the responsibility of the employee and the supervisor are outlined.

A. system inauguration B. self-appraisal C. development plan D. objective setting (Suggested points: 2, [6.4]); Pg. 165 LO: 5 Answer: A.

6.22

During the ______________ meeting, an employee’s developmental needs and the resources and methods available to meet those needs are discussed.

A. system inauguration B. self-appraisal C. development plan D. objective setting (Suggested points: 2, [6.5]) Pg. 165 LO: 5 Answer: C.

6.23

An employee’s _______________ is/are usually best-equipped to rate how well the employee removes organizational barriers, shields employees from politics, and improves other employee’s competence.

A. peers B. customers C. supervisor D. direct reports (Suggested points: 2, [6.5]); Pg. 169 LO: 6 Answer: D.

6.24

Suggestions to improve the quality of self-appraisals include all of the following, EXCEPT: A. Use comparative as opposed to absolute measurement systems.

B. Allow employees to practice their self-rating skills.

C. Assure confidentiality.

D. Focus on the past.

(Suggested points: 2, [6.5]); Pg. 170 LO: 6 Answer: 338 Copyright © 2023

Chapter 6

D. 6.25

To maximize merit increases, to encourage employees, to promote undesired employees out of the unit, and to make managers look good to their supervisors are all reasons to __________ employee ratings.

A. inflate B. not give C. deflate D. none of the above (Suggested points: 2, [6.6]); Pg. 175 LO: 8 Answer: A.

6.26

To shock employees, to teach rebellious employees a lesson, to send a message to employees to leave the division, and to build documentation of poor performance are all reasons to ___________ employee ratings.

A. inflate B. not give C. deflate D. none of these are correct (Suggested points: 2, [6.6]); Pg. 176 LO: 8 Answer: C.

6.27

Some of the unintended consequences of employee performance monitoring include A. feelings of invasion of privacy B. increased counterproductive performance C. perceptions of unfairness D. all of the these are correct (Suggested points: 2, [6.5]; Pg. 171) LO: 6 Answer: D.

6.28

______________ rating errors result because of the complexities involved in observing performance, storing that information in memory, and then recalling that information while rating an employee.

A. Intentional B. Unintentional C. Negative D. Positive 339 Copyright © 2023

Part II: System Implementation_____________________________________________________________

(Suggested points: 2, [6.6]); Pg. 174 LO: 8 Answer: B. 6.29

Which of the following are among the major components of an appraisal form?

A. Pay scale B. Names of feedback suppliers C. Developmental achievements D. None of these is correct (Suggested points: 2, [6.1]); Pg. 148 LO: 2 Answer: C.

6.30

What are the two main strategies to obtain an overall performance score for an employee?

A. Judgmental and mechanical B. Judgmental and objective C. Subjective and objective D. Mechanical and industrial (Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: A.

6.31

What is the purpose of using weights?

A. To gain strength B. To allow a supervisor to come to an objective and clear overall performance score C. To identify strengths and weaknesses D. To allow a supervisor to use his/her own subjective ideas when coming to a clear overall performance score (Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: B.

6.32

Which of the following are included in the six possible formal meetings between a subordinate and a supervisor in a performance management system?

A. Self-appraisal and debate session B. Debate session and performance review C. Customer satisfaction review and merit/salary review D. Merit/salary review and classical performance review (Suggested points: 2, [6.4]); Pg. 165 LO: 5 340 Copyright © 2023

Chapter 6

Answer: D. 6.33

The meeting during which the employee’s performance is discussed, including both the perspective of the supervisor and the employee, is called a ____________.

A. developmental plan B. self-appraisal C. classical performance review D. system inauguration (Suggested points: 2, [6.4]); Pg. 165 LO: 5 Answer: C.

6.34

Who can be included as possible sources of performance information?

A. Supervisor B. Peers C. Direct Reports D. All of these are correct (Suggested points: 2, [6.5); Pg. 167 LO: 6 Answer: D.

6.35

Disagreement about an employee’s performance as perceived by different sources is ____________ a problem.

A. always B. never C. inevitably D. not necessarily (Suggested points: 2, [6.5); Pg. 173 LO: 6 Answer: D.

6.36

Which of the following is a motivation to inflate ratings?

A. To build a strongly documented written record of poor performance B. To maximize merit raise and rewards C. To teach a rebellious employee a lesson D. To shock employees (Suggested points: 2, [6.6); Pg. 175 LO: 8 Answer: 341 Copyright © 2023

Part II: System Implementation_____________________________________________________________

B. 6.37

Which of the following is a motivation to give deflated ratings?

A. To promote undesired employees out of the unit B. To make the manager look good to his/her supervisor C. To teach a rebellious employee a lesson D. To increase supervisor’s likelihood of promotion (Suggested points: 2, [6.6]); Pg. 176 LO: 8 Answer: C.

6.38

Which of the following includes things that can be done to minimize employees’ negative reactions to employee performance monitoring?

A. Make sure employees understand the details of the monitoring system B. Makes sure all employees are being monitored C. Do not use employee performance monitoring for learning and development D. Make sure employees do not know they are being monitored (Suggested points: 2, [6.5]); Pg. 171 LO: 6 Answer: A.

Essay-Type Questions 6.38

Based on the following job description and list of competencies for a software sales position, please create a performance appraisal form that contains the basic components (Table 6.1) as well as the desirable features of a performance appraisal form (Table 6.2).

Job description: Responsible for selling company software programs to schools in designated districts. Individuals are responsible for project managing the preparation of customized sales material for each school in their districts.

Salespeople are also responsible for preparing and giving sales presentations to relevant district employees. Finally, the salesperson is responsible for identifying and cultivating key relationships in his/her districts.

Competencies: • Project Management: organizes and plans projects, completes in timely fashion, and performs at a high quality level • Sales Performance: total sales meet company standards, and demonstrates aggressive but ethical sales practice • New Clients: makes in-roads into school districts, schedules presentations to prospective clients, and closes contracts

342 Copyright © 2023

Chapter 6

• •

Client Relationships: maintains effective client relationships, able to upgrade and deliver new services to clients, and receives praise from clients Technical Expertise: understands software packages, able to teach clients how to best use software, and can troubleshoot with clients (Suggested points: 10, .5[6.1], .5[6.2]); Pg.148; Pg. 157 LO: 2, 3

Answer: Note: This form includes possible information for the overall rating provided to the hypothetical employee in question 6.39. Note that the respondent may provide very different information and ratings, which are acceptable as long as the information provided is consistent with the ratings.

Performance Review Form Employee Name: ________________________ Title: __________________________________ Manager: ______________________________ Date of Appraisal Meeting: _________________ Employee Performance Reviews improve employee performance and development by encouraging communication, establishing performance expectations, identifying developmental needs, and setting goals to improve performance.

Use the form below to list examples of outstanding performance or achievements, as well as areas of performance that need improvement. Please provide open comments on your employee’s performance. Complete each section and list examples of performance where applicable.

1. Job Description/Key Responsibilities/Required Tasks: Responsible for selling company software programs to schools in designated districts. Individuals are responsible for project managing the preparation of customized sales material for each school in their districts. Salespeople are also responsible for preparing and giving sales presentations to relevant district employees. Finally, the salesperson is responsible for identifying and cultivating key relationships in his/her districts.

2. Note expected accomplishments versus actual accomplishments (Please rate as Did not meet expectations—1, Met expectations—2, or Exceeded expectations—3 and provide comments): 343 Copyright © 2023

Part II: System Implementation_____________________________________________________________

Sally was expected to reach a reasonable amount of sales in all of her districts, and she performed at a lower rate compared to her peers. She did establish new relationships with several districts previously using other software companies. She gave an acceptable number of sales presentations and her sales materials meet company standards.

3. List the areas where the employee developed, such that they will be able to take on additional responsibilities or be eligible for high-profile assignments: Sally made significant strides developing new relationships within inner city school districts and she will receive three more new inner city school districts as a result of her accomplishments.

4. Areas of development for upcoming quarter (i.e., communication skills, teamwork, project management skills, budgeting experience, etc.): Sally must raise her sales figures in the upcoming quarter. She must also improve her technical expertise and her ability to tailor her sales presentations to her clients.

5. Goals for upcoming quarter (Please list S.M.A.R.T. goals): She will enroll in and successfully complete the “Closing Sales Part II” training course by the end of the first month in the quarter. She will also follow a more experienced salesperson on two sales calls during the first two weeks of the second month in the quarter. She will improve her sales figures in two of her five current districts by the end of the quarter.

Please circle the number below that best describes the employee’s performance in the following areas. (Please see attached job description for definitions of the following competencies and behavioral indicators that signal the presence of the following competencies): Competencies & Indicators

Needs Acceptable Excellent Improvement

Project Management: meets project deadlines, keeps stakeholders up-to-date on developments, holds organized project meetings Sales Performance: clients comment positively on 344 Copyright © 2023

1

2

3

1

2

3

Chapter 6

performance, organizes sales material, demonstrates good persuasion skills, tailors presentations to clients New Clients: seeks out new clients, attends conferences to build relationships, closes new contracts Client Relationships: receives high customer service ratings, gives excellent customer service, upgrades services to clients as needed, clients ask for by name Technical Expertise: answers questions about software, successfully teaches new team members and clients software attributes

1

2

3

1

2

3

1

2

3

Average Performance Score Including Key Accountabilities

2

Employee Use Only Please provide comments and examples of behaviors to describe your performance in the past quarter.

________________________ ________ _____________________ _______ Manager Signature Date Employee Signature Date

345 Copyright © 2023

Part II: System Implementation_____________________________________________________________

6.39

Using the form you designed in question 6.38, complete the form and come up with an overall rating of performance with a hypothetical employee in mind.

Next, using the weights below, recalculate an overall performance score.

Discuss the implications of using both methods for employee and organizational performance.

Actual Accomplishments Project Management Sales Performance New Clients Client Relationships Technical Expertise

.3 .1 .2 .1 .2 .1 (Suggested points: 10, [6.3]); Pg. 163 LO: 4

Answer: Please see the ratings in question 6.38 for the judgmental method of computing an overall score. (Note that the respondent may provide very different information and ratings, which are acceptable as long as the information provided is consistent with the ratings.) Based on some of the performance elements being rated between 1 and 3, we gave Sally an overall rating of a 2 (instead of the average of 1.6); See the table below for the overall score calculated using the mechanical procedure. (This rating came up even lower, at 1.4.) Using this method ensures that the rater’s personal biases are controlled and that the elements that are most important to organizational success are given the most weight.

6.40

Areas of Performance Actual Accomplishments Project Management Sales Performance New Clients Client Relationships

Weight .3 .1 .2 .1 .2

Score 1 3 1 1 2

W*S .3 .3 .2 .1 .4

Technical Expertise Overall Score of Performance

.1

1 1.4

1

Using the job description and appraisal form used in the previous two questions, discuss who should rate the performance of this employee (e.g., supervisor, peers, and/or customers)? Discuss why you chose each rater and how conflicts between ratings will be resolved.

(Suggested points: 5, [6.5]); Pg. 167-171 LO: 6, 7 Answer: Based on the nature of this sales job, we recommend that peers, clients, and the immediate supervisor all rate performance. The supervisor is qualified to rate actual accomplishments versus expected accomplishments, new clients, and 346 Copyright © 2023

Chapter 6

technical expertise. The supervisor is suited to rate these areas because he will be privy to sales information for each subordinate. Furthermore, the supervisor will know the number of new clients that the individual has contacted and the technical expertise based on direct evaluation of performance as well as customer feedback. The customer is best suited to rate performance regarding sales performance and client relationships, because the client is the individual witnessing the performance and interacting in the relationships. Peers are best suited to rate technical expertise and project management, because they will know how well peers know the software based on the classes that they take together, and they will know project management because they are the individuals who the salesperson will be managing. If ratings come into dispute, the supervisor’s rating will carry more weight over peers and an average of customer and supervisor ratings will be used in the event they are in disagreement.

6.41

List the desired features of all appraisal forms.

(Suggested points: 2, [6.2]); Pg. 157 LO: 3 Answer: The desired features of all appraisal forms are: o Simplicity o Relevance o Descriptiveness o Adaptability o Comprehensiveness o Definitional clarity o Communication o Time orientation

6.42

Describe the judgmental strategy for obtaining an overall performance score.

(Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: The judgmental strategy for obtaining an overall performance score requires consideration of every aspect of performance and then arriving at a defensible summary.

6.43

Describe the mechanical strategy for obtaining an overall performance score.

(Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: The mechanical strategy for obtaining an overall performance score requires consideration of the scores assigned to each section of the appraisal form and then adding them up to obtain an overall score.

347 Copyright © 2023

Part II: System Implementation_____________________________________________________________

6.44

In which strategy is a supervisor most likely to introduce his/her own bias and why?

(Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: A supervisor is most likely to introduce bias in the judgmental strategy because, in this strategy, there are no clear rules regarding the relative importance of various performance dimensions, and there is no direction as to how to combine scores for these dimensions into an overall score.

6.45

Describe the challenges associated with including an open-ended (i.e., comments) section in performance appraisal forms.

(Suggested points: 2, [6.3]); Pg. 163 LO: 4 Answer: Open-ended sections such as the comments section of performance appraisal forms are typically not used effectively because of two main challenges. First, it is not easy to systematically categorize and analyze such comments. Second, the quality, length, and content of these comments may be more a function of the culture of the organization and the writing skills of the person filling out the form than actual KSAs of the employee being rated.

6.46

What are the advantages and disadvantages of completing performance reviews on or around an employee’s anniversary date?

(Suggested points: 2, [6.4]); Pg.164 LO: 5 Answer: The advantages and disadvantages of completing performance reviews on or around the employee’s anniversary date are: Advantage: Supervisor doesn’t have to do all the forms at one time.

Disadvantage: Because anniversary dates vary, resulting rewards cannot be tied to the fiscal year.

6.47

What are the advantages and disadvantages of completing performance reviews on or around the end of the fiscal year?

(Suggested points: 2, [6.4]); Pg. 164 LO: 5 Answer: The advantages and disadvantages of completing performance reviews on or around the end of the fiscal year are: Advantages: Cross-employee comparisons are much easier; rewards can be tied to the fiscal year; goal setting is more easily aligned with organization goal setting.

Disadvantage: Supervisors have to complete forms for all employees at one time, creating an added workload.

6.48

What is meant to be accomplished in the self-appraisal meeting?

348 Copyright © 2023

Chapter 6

(Suggested points: 2, [6.4]); Pg. 165 LO: 5 Answer: In the self-appraisal meeting, the employee’s self-appraisal is discussed. It is the opportunity for the employee to share his/her perspective on his/her own performance. This is not a time for the supervisor to pass judgment on the employee’s self-appraisal 6.49

What are the problems with peer evaluations?

(Suggested points: 2, [6.5]); Pg. 168 LO: 6 Answer: Peer evaluations may cause problems because such evaluations may not be readily accepted when employees believe that there is friendship bias; peers are less discriminating among performance dimensions as compared to supervisors; peers evaluations are affected by context effect, that is peer evaluations may be quite different based on whether the rater is thinking about one specific situation versus another, or across situations in general.

6.50

What are the advantages and disadvantages of using customers as a source of performance information?

(Suggested points: 2, [6.5]); Pg. 170 LO: 6 Answer: The advantages and disadvantages of using customers as a source of performance information include the following: Advantage: The feedback from customers can be particularly useful when a job requires a high degree of interaction with the public or with customers.

Disadvantage: May involve a costly and time-consuming process.

6.51

Provide suggestions of what can be done to improve the quality of self-appraisals.

(Suggested points: 2, [6.5); Pg. 170 LO: 6 Answer: Suggestions to improve the quality of self-appraisals are as follows: o Use comparative as opposed to absolute measurement systems. o Allow employees to practice their self-rating skills. o Assure confidentiality. o Emphasize the future.

6.52

The motivation to provide accurate ratings is determined by …

(Suggested points: 2, [6.6]); Pg. 174 LO: 8 Answer: 349 Copyright © 2023

Part II: System Implementation_____________________________________________________________

The motivation to provide accurate ratings is determined by whether the rater expects positive and negative consequences of accurate ratings and whether the probability of receiving these rewards and punishments will be high if accurate ratings are provided.

6.53

The motivation to distort ratings is determined by …

(Suggested points: 2, [6.6]); Pg. 174 LO: 8 Answer: The motivation to distort ratings is determined by whether the rater expects any positive and negative consequences of rating distortions and the probability of experiencing such consequences if ratings are indeed distorted.

6.54

What are the motivations for rating inflation?

(Suggested points: 2, [6.6]); Pg. 175 LO: 8 Answer: Motivations for rating inflation include: o Maximize merit raise and rewards. o Encourage employees. o Avoid creating a written record. o Avoid confrontation with employees. o Promote undesired employees out of unit. o Make manager look good to his/her supervisor.

6.55

What are the motivations for rating deflation?

(Suggested points: 2, [6.6]); Pg. 176 LO: 8 Answer: Motivations for rating deflation include: o Shock employees. o Teach a rebellious employee a lesson. o Send a message to employee that he/she should consider leaving. o Build a strongly documented, written record of poor performance.

6.56

Provide two recommendations for reducing intentional rating distortion.

(Suggested points: 2, [6.6]); Pg. 177 LO: 8 Answer: Two recommendations for reducing intentional rating distortion are: o Have raters justify their ratings o Have raters justify their ratings in a face-to-face meeting

6.57

What are the advantages and disadvantages of using supervisors as raters?

(Suggested points: 2, [6.5]); Pg. 167 LO: 6 350 Copyright © 2023

Chapter 6

Answer: The advantages and disadvantages of using supervisors as raters are as follows: Advantages: Supervisors are in the best position to evaluate performance versus the organization’s strategic goals; supervisors can make decisions about rewards; and in some cultural contexts, supervisors are the exclusive source due to the pervasiveness of hierarchical organizational structure.

Disadvantages: Supervisors may not be able to directly observe performance and their evaluations may be biased.

6.58

What are the advantages and disadvantages of using peers as raters?

(Suggested points: 2, [6.5]); Pg. 168 LO: 6 Answer: The advantages and disadvantages of using peers as raters include: Advantages: Peers are in an excellent position to assess the employee’s contribution toward the team (teamwork); Disadvantages: Peers may be influenced by context effects, possible friendship bias, and they may be less discriminating.

6.59

When the performance management system uses different sources for ratings, what expectations and actions should be included in the process?

(Suggested points: 3, [6.5]); Pg. 173 LO: 6 Answer: When the performance management system uses different sources for ratings, disagreement should be expected. It is important to ensure that employees take an active role in selecting which sources will rate which dimensions and that the employees receive feedback by source (i.e., customers said this about your performance); In addition, different weights should be assigned to scores by source, depending on their importance

6.60

What are some of the evidence-based suggestions to improve the chances that employee performance monitoring (EPM) will lead to positive results?

(Suggested points: 2, [6.5]); Pg. 171 LO: 6 Answer: Four-evidence based suggestions to improve the chances that EPM will lead to positive results include: 1. Be transparent 2. Be aware of all potential employee reactions 3. Use EPM for learning and development 4. Restrict EPM to job-related behaviors and results.

351 Copyright © 2023

Chapter 7

Chapter 7—Rolling Out the Performance Management System True/False Questions 7.1

The steps that must be taken before the performance management system is launched include implementing a communication plan, establishing an appeals process, running training programs for raters, and pilot testing the system to fix any glitches.

(Suggested points: 2, [7.1]); Pg. 186 LO: 1 Answer: True

7.2

Having better knowledge of the performance management system leads to greater acceptance and satisfaction with the system.

(Suggested points: 2, [7.1]); Pg. 188 LO: 2 Answer: True

7.3

Selective retention is a tendency to remember only those pieces of information with which we already agree.

(Suggested points: 2, [7.1]); Pg. 189 LO: 3 Answer: True

7.4

To reduce biases in accepting the communication plan, only use one channel of communication when delivering the message.

(Suggested points: 2, [7.1]); Pg. 190 LO: 2 Answer: False. Use multiple channels of communication to deliver the message.

7.5

The inclusion of an appeals process increases perceptions of the performance management system’s fairness.

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: True

7.6

Judgmental issues involve whether performance management policies were followed.

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: 353 Copyright © 2023

Part II: System Implementation_____________________________________________________________

False. Administrative issues involve whether the policies were followed.

7.7

A Level 1 appeal occurs when a complaint is sent to the HR Department.

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: True

7.8

The goal of rater error training is to increase rating accuracy by making raters aware of the errors they are likely to make intentionally.

(Suggested points: 2, [7.3]); Pg. 194 LO: 6 Answer: False. The goal of rater error training is to increase rating accuracy by making raters aware of the errors they are likely to make unintentionally.

7.9

Frame of reference training involves discussing the dimensions for each scale to be used, including the types of behaviors that illustrate the various performance levels; then, participants are asked to evaluate a sample of employee performance, and they discuss how well they did.

(Suggested points: 2, [7.3]); Pg. 197 LO: 6 Answer: True.

7.10

The goal of behavioral observation training is to improve a rater’s confidence in his/her ability to manage.

(Suggested points: 2, [7.3]); Pg. 198 LO: 6 Answer: False. The goal of behavioral observation training is to improve a raters’ skills at observing performance.

7.11

A pilot test should be conducted after all potential problems have been fixed and the performance management system is fully operational throughout the organization.

(Suggested points: 2, [7.4]); Pg. 199 LO: 7 Answer: False. A pilot test should be conducted before the system is instituted fully in order to identify and fix potential problems.

7.12

The best way to effectively communicate regarding a performance management system is send an email blast with all the detail to all employees.

(Suggested points: 2, [7.1]); Pg. 190 LO: 2 354 Copyright © 2023

Chapter 7

Answer: False. The best way is to repeat the message multiple times, that is, say it, then say it again.

7.13

When communicating regarding a performance management system, it is a best practice to wait for employees to voice questions and concerns before addressing them.

(Suggested points: 2, [7.1]); Pg. 189 LO: 2 Answer: False. The best way is to strike first by addressing concerns and arguments and providing evidence to counter them.

Multiple-Choice Questions 7.14

Which of the following questions should a communication plan answer?

A. What is performance management?

B. How does performance management fit in our strategy?

C. What are my responsibilities?

D. All of these are correct (Suggested points: 2, [7.1]); Pg. 186 LO: 2 Answer: D.

7.15

Selective _________________ is a tendency to expose our minds only to ideas with which we already agree.

A. exposure B. perception C. retention D. none of these are correct (Suggested points: 2, [7.2]); Pg. 189 LO: 3 Answer: A.

7.16

Selective _____________ is a tendency to perceive a piece of information as meaning what we would like it to mean.

A. exposure B. perception C. retention D. none of these are correct (Suggested points: 2, [7.2]); Pg. 189 LO: 3 Answer: 355 Copyright © 2023

Part II: System Implementation_____________________________________________________________

B. 7.17

To control biases and increase acceptance of the performance management system, increase ______________ involvement.

A. human resource B. employee C. customer D. none of these are correct (Suggested points: 2, [7.1]); Pg. 189 LO: 3 Answer: B.

7.18

_______________ is the strategy used to gain support for a performance management system that recommends creating a positive attitude toward the new performance management system before any negative attitudes and rumors are created.

A. Provide facts and conclusions B. Put it in writing C. Strike first D. Say it and then say it again (Suggested points: 2, [7.1]); Pg. 189 LO: 3 Answer: C.

7.19

________________ is the strategy used to gain support for a performance system that recommends creating documentation and making it available online.

A. Provide facts and conclusions B. Put it in writing C. Strike first D. Say it and then say it again (Suggested points: 2, [7.1]); Pg. 190 LO: 3 Answer: B.

7.20

A level ____ appeal occurs when an outside and unbiased arbitrator makes a final and binding resolution.

A. 1 B. 2 C. 3 D. 4 (Suggested points: 2, [7.2]); Pg. 192 LO: 4 Answer: 356 Copyright © 2023

Chapter 7

B. 7.21

_______________ error leads to attraction so that we tend to favor those who are similar to us.

A. Similar to me B. Contrast C. Leniency D. Severity (Suggested points: 2, [7.3]); Pg. 195 LO: 5 Answer: A.

7.22

_____________ error occurs when raters are influenced mainly by information gathered during the last portion of the review period.

A. Similar to me B. Leniency C. Recency D. Halo (Suggested points: 2, [7.3]); Pg. 195 LO: 5 Answer: C.

7.23

Behavioral Observation training focuses on how raters _____________, __________, __________, and use information about performance.

A. rate; explain; test B. reward; coach; observe C. observe; store; recall D. none of these are correct (Suggested points: 2, [7.3]); Pg. 198 LO: 6 Answer: C.

7.24

When selecting a group to pilot test the performance management system, choose a group which is: A. Hardworking B. Representative C. Unique D. None of these are correct (Suggested points: 2, [7.4]); Pg. 199 LO: 7 Answer: B. 357 Copyright © 2023

Part II: System Implementation_____________________________________________________________

7.25

Choose the evaluation method below that measures how well managers are managing the performance discussion meetings: A. Quality of information B. Quality of performance discussion meeting C. System satisfaction D. Overall cost/benefit ratio (Suggested points: 2, [7.5]); Pg. 202 LO: 8 Answer: B.

7.26

Choose the evaluation method below that measures the perceptions of the system’s users: A. Quality of information B. Quality of performance discussion meeting C. System satisfaction D. Overall cost/benefit ratio (Suggested points: 2, [7.5]); Pg. 202 LO: 8 Answer: C.

7.27

In general, having more and better knowledge about the performance management system leads to ________________________________.

A. more classes and training sessions B. better employee ratings C. greater employee acceptance and satisfaction D. greater overall performance (Suggested points: 2, [7.1]); Pg. 189 LO: 1 Answer: C.

7.28

Selective exposure may cause which of the following situations?

A. Employees are likely to avoid exposing themselves to information with which they do not already agree.

B. Employees may only read information that is written in handbooks.

C. Employees may have a tendency not to believe information with which they do not already agree.

D. Employees are likely to argue with any information that is presented.

(Suggested points: 2, [7.1]); Pg. 189 LO: 3 Answer: A.

7.29

Selective perception refers to: 358 Copyright © 2023

Chapter 7

A. The tendency to perceive one’s direct supervisor as telling the truth B. The tendency to perceive information the way one wants to perceive it C. The tendency to perceive supervisors as “out to get me” D. The tendency to perceive selection processes as fair (Suggested points: 2, [7.1]); Pg. 189 LO: 3 Answer: B. 7.30

Selective retention refers to: A. The tendency to remember only those pieces of information that were presented first B. The tendency to remember only those pieces of information that were presented last C. The tendency to remember only those pieces of information which support one’s current beliefs D. The tendency to remember only those pieces of information that are presented by a person the listener likes (Suggested points: 2, [7.1]); Pg. 189 LO: 3 Answer: C.

7.31

The goals of rater error training include: A. Making raters aware of the performance standards required B. Making raters aware of the possible errors that might be made in rating C. Making raters aware of the possibility that subordinates will disagree with rates given D. Making raters aware of the possibility of lawsuits (Suggested points: 2, [7.3]); Pg. 194 LO: 6 Answer: B.

7.32

One goal of rater error training is to: A. Increase rating accuracy B. Increase rater apprehension C. Increase rating speed D. Increase rating scores (Suggested points: 2, [7.3]); Pg. 194 LO: 6 Answer: A.

7.33

What type of training is more likely to lead raters to provide consistent and more accurate ratings as well as to help employees design effective development plans?

359 Copyright © 2023

Part II: System Implementation_____________________________________________________________

A. RET B. FOR training C. SL training D. BO training (Suggested points: 2, [7.3]); Pg. 197 LO: 6 Answer: B. 7.34

What is the purpose of pilot testing a new performance management system?

A. To identify employees who are resistant to the change B. To identify problems with the system before it is implemented system-wide C. To identify supervisors who are not able to rate employees properly D. To identify subordinates who should be terminated immediately (Suggested points: 2, [7.4]); Pg. 199 LO: 7 Answer: B.

7.35

Which of the following is NOT included in the implementation of a performance management system?

A. Communication plan B. Appeals process C. Recruitment event D. Pilot testing (Suggested points: 2, [7.1]); Pg. 186 LO: 1 Answer: C.

7.36

During the monitoring and evaluation stage, which of the following evaluation data should be collected?

A. Reactions to system and assessment of operational and technical requirements.

B. Appraisal scores, reactions to supervisor behavior, and employee motivations C. Employee demographic information, turnover rates, and return on investment (ROI) D. Number of training sessions, performance discussion meetings, and online appeals filed (Suggested points: 2, [7.5]); Pg. 201 LO: 8 Answer: A.

360 Copyright © 2023

Chapter 7

Short-Answer and Essay-Type Questions 7.39

Please list and explain the steps that must be taken before a performance management system can be successfully implemented.

(Suggested points: 8, .25[7.1], .25[7.2], .25[7.3], .25[7.4]); Pg. 186-204 LO: 1 Answer: Crucial steps that must be taken before the performance management system is launched include the following: implementing a communication plan, establishing an appeals process, running training programs for raters, and pilot testing the system to fix any glitches. Designing a communication plan involves answering key critical questions such as what is performance management, where does performance management fit in the organization’s strategy, how does everyone benefit from the system, how the performance management system works, what are employees’ and supervisors’ key roles and responsibilities in implementing the system, and how performance management is related to other key organizational initiatives. This helps increase acceptance of the system as well as reduce the effect of cognitive biases on how the performance management system is perceived.

Designing an appeals process can also help gain buy-in for the system. Design an appeals process including two levels: Level 1, which involves the HR Department in the role of mediator, and Level 2, which involves a panel of managers and peers and possibly a senior level manager in the role of arbitrator and final decision maker. There are intentional and unintentional errors that raters make when assessing performance; therefore, rater-training programs can be used to reduce these types of rater errors. Finally, complete a pilot test on the program to identify any glitches before rolling it out to the organization as a whole.

7.40

Please describe four types of rater errors. Identify what can be done to combat these errors.

(Suggested points: 4, [7.3]); Pg. 194-196 LO: 5, 6 Answer: (Sample answer: Discussion of any four unintentional rating errors and proposed solutions according to the text are acceptable.) § Similar to me error. Similarity leads to attraction so that we tend to favor those who are similar to us. Consequently, in some cases supervisors are more likely to give higher performance ratings to those employees who are perceived to be more similar to them in terms of attitudes, preferences, personality, and demographic variables including race and gender. § Contrast error. This error occurs when, even when an absolute measurement system is in place, supervisors compare individuals with one another instead of against predetermined standards. This error is most likely to occur when supervisors complete multiple appraisal forms at the same time, because in such situations it is difficult to ignore the ratings given to other employees.

361 Copyright © 2023

Part II: System Implementation_____________________________________________________________

§

§ § § § § §

§

Halo error. This error occurs when raters fail to distinguish among the different aspects of performance being rated. So, if an employee receives a high score on one dimension, he/she also receives a high score on all other dimensions even though performance may not be even across dimensions.

This error is typically caused by the supervisor’s assigning performance ratings based on an overall impression about the employee instead of evaluating each performance dimension independently.

Primacy error. Primacy error occurs when performance evaluation is influenced mainly by information collected during the initial phases of the review period.

Recency error. This error occurs when performance evaluation is influenced mainly by information gathered during the last portion of the review period.

Negativity error. Negativity error occurs when raters place more weight on negative information than on positive or neutral information.

First impression error. First impression error occurs when raters make an initial favorable or unfavorable judgment about an employee and then ignore subsequent information that does not support the initial impression.

Spillover error. Spillover error occurs when scores from previous review periods unjustly influence current ratings.

Stereotype error. Stereotype error occurs when a supervisor has an oversimplified view of individuals based on group membership. This type of error can also lead to biased evaluations of performance when an individual (e.g., woman) violates stereotypic norms by working in an occupation that does not fit the stereotype (e.g., assembly of airplane parts). This type of error can also result in consistently lower performance ratings for members of certain groups.

Attribution error. The attribution error takes place when a supervisor attributes poor performance to an employee’s dispositional tendencies (e.g., personality and abilities) instead of features of the situation (e.g., malfunctioning equipment).

To reduce these errors, I would implement a combination of FOR and BO training. The frame of reference would help employees have a picture of what performance looks like and how others in the company are rating it. This will help when rating performance. I would also implement a BO training to help people learn how to document performance over the course of the year so that performance review meetings go smoothly and are based on examples of actual performance, not personal biases.

7.41

Organizations often do a poor job of measuring the effectiveness of their performance management systems. Please list and describe five of the indicators (i.e., measures) used to monitor and evaluate the effectiveness of a performance management system. When or how often should such evaluations take place?

(Suggested points: 2, [7.5]); Pg. 202 LO: 8 Answer: 362 Copyright © 2023

Chapter 7

Answers will vary and may include any combination of the following five measures below as long as the evaluation is ongoing (i.e., conducted on a regular basis). § Number of individuals evaluated. One of the most basic metrics is to assess the number of employees who are actually participating in the system. If performance evaluations have not been completed for some employees, then we need to find out who they are and why a performance review has not been completed. § Quality of non-quantitative performance data. Another indicator of quality of the performance assessments is the quality of the information provided in the open-ended sections of the forms. For example, how much did the rater write?

What is the relevance of the examples provided? § Quality of follow-up actions. A good indicator of the quality of the system is whether it leads to important follow-up actions in terms of development activities or improved processes. For example, if follow-up actions involve exclusively the supervisor and not the employee, then it might be an indicator that employees are not sufficiently involved. § Quality of performance discussion meeting. A confidential survey can be distributed to all employees on a regular basis to gather information on how the supervisor is managing the performance discussion meetings. For example, is the feedback useful? How relevant was the performance review discussion to one’s job? § System satisfaction. A confidential survey could also be distributed to assess the perceptions of the system’s users, both raters and ratees. This survey can include questions about satisfaction with equity, usefulness, and accuracy. § Overall cost/benefit ratio or return on investment (ROI). A fairly simple way to address the overall impact of the system is to ask participants to rate the overall cost versus benefit ratio for the performance management system. This is a type of bottom-line question that can provide convincing evidence for the overall worth of the system, with reference to an individual (employee or manager), her job, and her organizational unit. § Unit-level and organization-level performance. Another indicator that the system is working well is provided by the measurement of unit and organization level performance. Such performance indicators could be customer satisfaction with specific units and indicators of the financial performance of the various units or the organization as a whole.

7.42

What is the goal of the communication plan? When should it be implemented? In general, what does it include?

(Suggested points: 2, [7.1]); Pg. 186-189 LO: 2 Answer: The goal of the communication plan is to gain organizational buy-in for the performance management system. It should be implemented before the PM system is pilot tested or implemented. The communication plan should include all 363 Copyright © 2023

Part II: System Implementation_____________________________________________________________

information about the performance management system, including a full description of the appeals process.

7.43

What are the questions answered by a good communication plan?

(Suggested points: 2, [7.1]); Pg. 186-187 LO: 2 Answer: A good communication plan answers the following questions: • What is performance management?

• How does performance management fit into our strategy?

• What’s in it for me?

• How does it work?

• What are my responsibilities?

• How is performance management related to other initiatives?

7.44

What issues should be considered in an attempt to minimize communication barriers and biases?

(Suggested points: 2, [7.1]); Pg. 189-190 LO: 3 Answer: The following issues should be considered when attempting to minimize communication barriers and biases: • Employee involvement • Employee needs • Strike first—create a positive attitude toward the new PM system before any negative attitudes and rumors are created • Provide facts and consequences • Put it in writing • Use multiple channels of communication • Use credible communicators • Say it, then say it again

7.45

Inclusion of an appeals process benefits the system in what ways?

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: The inclusion of an appeals process benefits the system in the following ways: • First, it increases buy-in by showing employees that any disagreements can be resolved in an amicable and non-retaliatory way.

• Second, it increases the perception of the system’s fairness.

7.46

When an employee questions a judgmental issue, he/she is questioning what?

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: 364 Copyright © 2023

Chapter 7

When an employee questions a judgmental issue, he/she is questioning whether the performance evaluation was valid, or that ratings reflect actual performance.

7.47

When an employee questions an administrative issue, he/she is questioning what?

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: When an employee questions an administrative issue, he/she is questioning whether the policies and procedures of the PM system were followed. Were meetings scheduled as appropriate? Were development plans created as required?

7.48

What is the overall goal of frame of reference (FOR) training?

(Suggested points: 2, [7.3]); Pg. 197 LO: 6 Answer: The overall goal of frame of reference (FOR) training is to give raters skills so they can provide accurate ratings of each employee on each dimension by developing a common frame of reference. It helps improve rater accuracy by thoroughly familiarizing raters with the various performance dimensions to be assessed.

7.49

What are the typical formal steps included in FOR training?

(Suggested points: 2, [7.3]); Pg. 197 LO: 6 Answer: Typical formal steps in FOR training are shown below.

• Raters are told that they will evaluate the performance of several employees on several separate performance dimensions.

• Raters are given an appraisal form and instructed to read and listen to the definition for each of the performance dimensions and the scale anchors.

• The trainer discusses the various employee behaviors that illustrate various performance levels for each rating scale included in the form. The goal is to create a common performance theory (frame of reference) among raters so they will agree on the appropriate performance dimension and effectiveness level for different behaviors.

• Participants are shown a videotape of a practice vignette, including behaviors related to the performance dimensions being rated, and are asked to evaluate the employee’s performance using the scales provided.

• Ratings provided by each participant are shared and discussed with the group. The trainer seeks to identify which behaviors participants used to decide on their assigned ratings and to clarify any discrepancies among the ratings.

• The trainer provides feedback to the group, including discussion of why an employee deserves a particular rating for each dimension.

365 Copyright © 2023

Part II: System Implementation_____________________________________________________________

7.49

What kinds of evaluation data should be collected to determine system effectiveness, implementation, and results?

(Suggested points: 2, [7.5]); Pg. 201 LO: 8 Answer: The kinds of evaluation data that should be collected to determine system effectiveness, implementation and results are reactions to the system; and assessment of operational and technical requirements.

7.50

Describe a typical appeal process, including a discussion of the two levels of the process.

(Suggested points: 2, [7.2]); Pg. 191 LO: 4 Answer: Typically, when an appeal is first filed, the HR department serves as a mediator between the employee and the supervisor. An appeal sent to the HR department is usually called a Level 1 appeal. The HR department is in a good position to judge whether policies and procedures have been implemented correctly and also has good information about the various jobs, levels of performance expected, and levels of performance of other employees within the unit and organization. The HR department gathers the necessary facts and brings them to the attention of either the rater to encourage reconsideration of the decision that caused the appeal or to the complainant to explain why there have been no biases or violations.

If the supervisor does not believe corrective action should be taken or if the employee does not accept the HR decision, and the appeal continues, then an outside and unbiased arbitrator makes a final and binding resolution. This is usually called the Level 2 appeal. This arbitrator can consist of a panel of peers and managers. The panel reviews the case, asks questions, interviews witnesses, researches precedents, and reviews policy. Then, they simply take a vote to make the decision. In some cases, the vote represents the final decision. In other cases, the vote is forwarded to a high-level manager (vice president or higher level) who takes the panel’s vote into consideration in making the final decision.

366 Copyright © 2023

Chapter 8

Chapter 8—Performance Management and Employee Development True/False Questions 8.1

The overall objective of a developmental plan is to encourage continuous learning, performance improvement, and personal growth.

(Suggested points: 2, [8.1]); Pg. 213 LO: 1 Answer: True.

8.2

If there are no promotion opportunities available in an organization, then it should not be written into developmental plans for its employees.

(Suggested points: 2, [8.1]); Pg. 214 LO: 3 Answer: False. Developmental plans can also enrich employees’ work experiences.

8.3

Developmental plans should keep the needs of both the organization and the employee in mind.

(Suggested points: 2, [8.1); Pg. 215 LO: 3 Answer: True.

8.4

A temporary assignment is a developmental activity that allows an employee to receive publications and attend informal and formal meetings in which employees have an opportunity to learn about best practices in their industries.

(Suggested points: 2, [8.1]); Pg. 218 LO: 4 Answer: False. This describes membership or leadership role in professional, trade, or nonprofit organizations.

8.5

Managers should not be held accountable for tracking their employees’ development.

(Suggested points: 2, [8.2]); Pg. 220 LO: 5 367 Copyright © 2023

Part III: Employee Development____________________________________________________________

Answer: False. Managers must be held accountable for helping their employees develop.

The supervisor has a primary role for checking on the employee’s progress toward achieving the developmental goals.

8.6

In multisource feedback systems, information is gathered from an employee’s peers, customers, subordinates, and supervisors.

(Suggested points: 2, [8.3]); Pg. 223 LO: 6 Answer: True.

8.7

Multisource feedback should only be used for administrative purposes.

(Suggested points: 2, [8.3]); Pg. 223 LO: 6 Answer: False. Multisource feedback is most beneficial when it is used for developmental purposes only and not for administrative purposes.

8.8

Two of the advantages of implementing multisource feedback systems are that employees have increased commitment to improve and that they have more control over their careers.

(Suggested points: 2, [8.3]); Pg. 230 LO: 7 Answer: True.

8.9

One risk of multisource feedback systems is that raters may become overloaded with forms to complete.

(Suggested points: 2, [8.3]); Pg. 231 LO: 8 Answer: True.

8.10

Multisource feedback systems where the feedback is anonymous are more likely to be successful.

(Suggested points: 2, [8.3]); Pg. 232 LO: 7 Answer: 368 Copyright © 2023

Chapter 8

True.

8.11

Developmental plans should be implemented for all but the lowest level employees.

(Suggested points: 2, [8.1]); Pg. 211 LO: Answer: False. Developmental plans can be created for every job, ranging from entry level to the executive suite.

8.12

Multisource feedback systems will be effective in all organizations.

(Suggested points: 2, [8.3]); Pg. 231 LO: 1 Answer: False. Multisource feedback systems are not necessarily beneficial for all individuals and all organizations.

8.13

One goal of a feedforward interview is to think about ways that an employee’s skills can be used to make further improvements in the future.

(Suggested points: 2, [8.2]); Pg. 221 LO: 5 Answer: True.

8.14

The first step of a feedforward interview is to discuss an employee’s weaknesses.

(Suggested points: 2, [8.2]); Pg. 221 LO: 5 Answer: False. The first step of feedforward interview is to elicit a success story.

8.15

A multisource feedback system is most effective for individuals high in selfefficacy.

(Suggested points: 2, [8.3]); Pg. 223 LO: 7 Answer: True.

8.16

A multisource is less effective for an individual who perceives a need to change.

369 Copyright © 2023

Part III: Employee Development____________________________________________________________

(Suggested points: 2, [8.3]); Pg. 231 LO: 7 Answer: False. Multisource feedback systems are most effective for individuals who perceive a need to change Multiple-Choice Questions 8.17

Which of the following objectives are objectives of developmental plans?

A. Sustain current performance.

B. Improve performance.

C. Prepare employees for advancement.

D. All of these are correct (Suggested points: 2, [8.1]); Pg. 213 LO: 3 Answer: D.

8.18

Developmental activities include: A. On-the-job training B. Courses C. Job rotation D. All of these are correct (Suggested points: 2, [8.1]); Pg. 216-218 LO: 4 Answer: D.

8.19

___________ is/are a developmental process that consists of a one-on-one relationship between a senior (mentor) and junior (protégé) employee.

A. Job rotation B. Self-guided reading C. Mentoring D. Temporary assignments (Suggested points: 2, [8.1]); Pg. 217 LO: 4 Answer: C.

370 Copyright © 2023

Chapter 8

8.20

A direct supervisor’s functions regarding employee development include all of the following except: A. Explaining what is required for the employee to reach a required performance level B. Developing hard-to-reach goals and objectives C. Referring to appropriate developmental activities D. Checking on the employee’s progress toward developmental objective achievement (Suggested points: 2, [8.2]); Pg. 220 LO: 5 Answer: B.

8.21

A gap analysis is conducted examining the areas for which there are large discrepancies between __________ and ______________.

A. self-perceptions; perceptions of others B. peer perceptions; supervisor perceptions C. subordinate perceptions; supervisor perceptions D. None of these are correct (Suggested points: 2, [8.3]); Pg. 223 LO: 3 Answer: A.

8.22

Which of the following questions should be answered to determine if an organization is prepared to implement a multisource feedback system: A. Are employees trusted to get the job done?

B. Do people want to improve their performance?

C. Is there little or no fear of speaking up?

D. All of these are correct (Suggested points: 2, [8.3]); Pg. 231 LO: 7 Answer: D.

8.23

Because multisource feedback systems gather feedback from multiple sources, there is a decreased chance of ______________ in the identification of employees’ weaknesses.

A. truth B. accuracy C. biases 371 Copyright © 2023

Part III: Employee Development____________________________________________________________

D. leniency (Suggested points: 2, [8.3]); Pg. 229 LO: 6 Answer: C. 8.24

Raters in successful multisource feedback systems receive ___________ and __________.

A. compensation; training B. training; room to include comments C. room to include comments; interpretation of results D. none of these are correct (Suggested points: 2, [8.3]); Pg. 233 LO: 7 Answer: B.

8.25

What is the objective of a developmental plan?

A. To show an employee that he is not very good B. To provide an opportunity to the employee that he will not be able to successfully complete his goals C. To encourage continuous learning, performance improvement, and personal growth D. To encourage an employee to perform better than expected (Suggested points: 2, [8.1]). Pg. 213 LO: 1 Answer: C.

8.26

Which of the following is included in the direct supervisor’s role in creating a developmental plan?

A. Identifying areas that are of interest to the employee B. Referring the employee to activities appropriate for the achievement of goals C. Encouraging the employee to choose developmental activities that are lowest in cost to the organization D. Referring the employee to coworkers who will track the employee’s progress in the developmental plan (Suggested points: 2, [8.2]); Pg. 220 LO: 5 372 Copyright © 2023

Chapter 8

Answer: B. 8.27

When is a multisource feedback system most useful?

A. When it is used for administrative purposes only.

B. When it is based on an online system C. When every person that the employee has encountered in the evaluation period provides feedback D. When it is used for developmental purposes only (Suggested points: 2, [8.3[); Pg. 231 LO: 7 Answer: D.

8.28

Some of the risks and pitfalls of implementing a multisource feedback include: A. Stock value may drop B. Negative feedback may hurt employees’ feelings C. Raters may be overloaded D. All of these are correct (Suggested points: 2, [8.3]); Pg. 231 LO: 8 Answer: D.

8.29

Which of the following is an advantage to a multisource feedback system?

A. Avoidance of “undiscussables.”

B. Employees know their chances of being promoted before they submit the required forms.

C. Employees exhibit increased commitment to improve.

D. Allow for organizational control of an employee’s career.

(Suggested points: 2, [8.3]); Pg. 230 LO: 6 Answer: C.

8.30

How does a multisource feedback system help employees take control of their own careers?

A. It allows employees to choose raters who will give them high ratings.

B. It allows employees to gain a realistic assessment of where to go with their careers.

C. It allows employees to see which coworkers are friends and which are not.

373 Copyright © 2023

Part III: Employee Development____________________________________________________________

D. It allows employees to form alliances with high raters and avoid low raters.

(Suggested points: 2, [8.3]); Pg. 230 LO 6: Answer: B. 8.31

Which of the following are acceptable developmental activities?

A. Education courses B. Job rotation C. Mentoring D. All of these are correct (Suggested points: 2, [8.1]); Pg. 216 LO: 4 Answer: D.

8.32

One of the goals of a feedforward interview is to: A. Provide an in-depth analysis of the employee’s weaknesses.

B. Set future goals and objectives.

C. Understand the skills that individuals have that allow them to perform well.

D. Think about ways that the employee can improve upon his/her weaknesses.

(Suggested points: 2, [8.2]); Pg. 221 LO: 5 Answer: C.

8.33

The steps of a feedforward interview include: A. Uncover the employee’s underlying success factors.

B. Extrapolate past behavior into the future.

C. Elicit a success story from the employee.

D. All of these are correct (Suggested points: 2, [8.2]); Pg. 221 LO: 5 Answer: D.

8.34

It would be unwise to implement a multisource feedback system in an organization: A. Where there is little or no fear of speaking up B. Where people want to improve their performance 374 Copyright © 2023

Chapter 8

C. Where employees are not trusted to get their job done D. Where decisions are made about rewards and promotion fairly free of favoritism (Suggested points: 2, [8.3]); Pg. 231 LO: 7 Answer: C. Essay-Type Questions 8.39

You are the HR manager at a large accounting firm. You are implementing a new developmental plan. Please design the form that you would use to implement this new program. Ensure that it contains all of the elements of a good developmental plan.

(Suggested points: 10, [8.1]); Pg. 215-216 LO: 3 Answer: Answers will vary but may resemble the following form:

Prof. Developmental Needs

Resources/Support Needed

Target Date

Evidence of Goal Completion

This plan contains all of the features of a good developmental plan: listing the need, listing the resources needed to meet the need, the date when the goal will be completed, and evidence regarding how the goal was met. The goals included on the form should include goals that the employee and supervisor agree on. In addition, the goals need to be set to accomplish employee and organizational goals.

8.40

A large financial services firm is considering implementing a multisource feedback system. What question should it consider when deciding whether or not to implement the system?

(Suggested points: 2, [8.3]); Pg. 231 LO: 7 Answer: Answering the following questions can give a good indication whether 375 Copyright © 2023

Part III: Employee Development____________________________________________________________

implementing a multisource system would be beneficial in a specific organization: 1. Are decisions that are made about rewards and promotion fairly free of favoritism?

2. Are decisions made that take into account the input of people affected by such decisions?

3. Do people from across departments usually cooperate with one another and help one another out?

4. Is there little or no fear of speaking up?

5. Do people believe that their peers and subordinates can provide valuable information about their performance?

6. Are employees trusted to get the job done?

7. Do people want to improve their performance?

8.41

The large financial service firm mentioned in the previous question has decided to implement a multisource feedback system. Please give the firm recommendations on what characteristics it should look for in a good multisource feedback system.

(Suggested points: 3, [8.3]); Pg. 232 LO: 7 Answer: The recommendation is that the firm look for a system with the following characteristics: • Anonymity. In good systems, feedback is anonymous and confidential.

• Observation of employee performance. Only those with good knowledge and firsthand experience with the person being rated should participate in the process.

• Feedback interpretation. Good systems allow the person being rated to discuss the feedback received with a person interested in the employee’s development.

• Follow-up. Once feedback is received, it is essential that a developmental plan is created right away.

• Use for developmental purposes only. The information collected should not be used for making reward allocations or any other administrative decisions.

• Avoidance of rater fatigue. Survey fatigue can be avoided if individuals are not asked to rate too many employees at the same time.

• Emphasis on behaviors. Focusing on behaviors can lead to the identification of concrete actions the person rated can take to improve performance.

• Raters go beyond ratings. In addition to providing scores on the various dimensions, raters should also provide written descriptive feedback that gives detailed and constructive comments on how to improve performance.

• Raters are trained. Mainly, this includes skills to discriminate good from poor performance and how to provide feedback in a constructive manner.

8.42

List the specific objectives of a developmental plan.

(Suggested points: 2, [8.1]); Pg. 213 376 Copyright © 2023

Chapter 8

LO: Answer: A developmental plan should have the following specific objectives: A. Improve performance in current job.

B. Sustain performance in current job.

C. Prepare employees for advancement.

D. Enrich the employee’s work experience 8.43

What should be included in the objectives of a developmental plan? What are the characteristics of good plan objectives?

(Suggested points: 2, [8.1]); Pg., 213 LO: 3 Answer: The objectives of a developmental plan should include: the end product (the skill to be learned) as well as a completion date, and a what evidence will be gathered to know whether the new skill had indeed been acquired. An additional feature of development plans is that it should keep the needs of both the organization and the employee in mind. Good plan objectives are practical, specific, time-oriented, linked to a standard, and developed jointly between the supervisor and employee.

8.44

Is the developmental plan dictated by the needs of the employee or of the organization? Explain.

(Suggested points: 2, [8.1]); Pg. 213 LO: 1 Answer: The needs of both the employee and the organization dictate the developmental plan. The plan must enrich the employee’s work experience while meeting organizational goals.

8.45

Please provide a list of possible developmental activities.

(Suggested points: 2, [8.1]); Pg. 216 LO: 4 Answer: Possible developmental activities include: A. On-the-job B. Courses C. Self-guided studying D. Mentoring E. Attending a conference or trade show F. Mixing with the best G. Getting a degree H. Job rotation I. Temporary assignments 377 Copyright © 2023

Part III: Employee Development____________________________________________________________

J. Membership or leadership role in professional, trade organizations, or nonprofit organizations 8.46

What is the direct supervisor’s role in the creation of a developmental plan?

(Suggested points: 2, [8.2]); Pg. 220 LO: 5 Answer: The direct supervisor has the following role in the creation of a developmental plan: 1. explaining what is required of the employee to reach a required performance level 2. referring to appropriate developmental activities 3. reviewing and making suggestions about developmental objectives, 4. checking on the employee’s progress toward developmental objective achievement 5. offering the opportunity for regular check-ins and reinforcing positive behaviors

8.47

In which organizations does a multisource feedback system work best?

(Suggested points: 2, [8.3]); Pg. 231 LO: 7 Answer: A multisource feedback system works best in organizations with cultures that support open and honest feedback and those with participatory as opposed to authoritarian leadership styles.

8.48

List the benefits of a multisource feedback system.

(Suggested points: 2, [8.3]); Pg. 229 LO: 6 Answer: The benefits of a multisource feedback system include: A. Decreased possibility of biases B. Increased awareness of expectations C. Increased commitment to improve D. Improved self-perception of performance E. Improvement of performance F. Reduction of “undiscussables” G. Helps employees take control of their careers

8.49

What are the disadvantages of a multisource feedback system?

(Suggested points: 2, [8.3]); Pg. 231 LO: 8 378 Copyright © 2023

Chapter 8

Answer: The disadvantages of a multisource feedback system are: A. Negative feedback can be hurtful, especially if it is not offered in a constructive way.

B. The system is only useful if participants believe that they will be rated honestly and treated fairly.

C. Anonymity may be compromised if there are only a few raters.

D. When anonymity is not guaranteed, raters are more likely to distort the feedback they give.

E. Raters may become overloaded with forms to fill out because they are to provide feedback for too many people.

8.50

List the characteristics of a good multisource feedback system.

(Suggested points: 2, [8.3]); Pg. 232 LO: 7 Answer: The characteristics of a good multisource feedback system are: A. Anonymity B. Observation of employee performance (by raters) C. Feedback interpretation D. Follow-up E. Used for developmental purposes only F. Avoidance of rater fatigue G. Emphasis on behaviors H. Raters go beyond ratings and provide explanations I. Raters are trained

8.51

Critically assess mentoring as a developmental activity.

(Suggested points: 3, [8.1]); Pg. 217 LO: 4 Answer: Mentoring is the process by which a senior (mentor) employee and a junior (protégé) employee enter into a one-on-one relationship with the mentor acting as a role model for the types of behaviors that are required to be successful in the organization. Mentoring works best when the mentor and protégé choose each other rather than being arbitrarily assigned to each other.

8.52

Why are the three steps of the feedforward interview important?

(Suggested points: 3, [8.2]); Pg. 221 LO: 5 Answer: Step 1: Eliciting a success story is important because this allows the manager to identify a positive situation so that the employee can identify the behaviors and 379 Copyright © 2023

Part III: Employee Development____________________________________________________________

skills that allowed the employee to be successful. This is essential for the remaining two steps of the of the feedforward interview.

Step 2: It is important to uncover the underlying success factors because this will allow the manager to focus on the employee’s behaviors and skills that have led and may continue to lead to the employee’s success.

Step 3: Extrapolating the past into the future is important because it allows the employee to see the conditions that are likely to lead to the employee’s success, and it will encourage the employee to continue to demonstrate success.

380 Copyright © 2023

Chapter 9—Performance Management Skills True/False Questions 9.1

Coaching is a day-to-day function that, among other things, involves observing performance and complimenting good work.

(Suggested points: 2, [9.1]); Pg. 240 LO: 1 Answer: True.

9.2

The amiable coaching style involves telling the employee exactly what to do.

(Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: False. The driver coaching style involves telling employees what to do.

9.3

Coaches who use a persuading style often try to sell what they want the employee to do.

(Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: True.

9.4

The directing coaching style is the most effective coaching style to use.

(Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: False. None of the coaching styles are superior to the others. Coaches must learn to adapt their style to different people.

9.5

Documentation of employee development can include memos, letters, e-mail messages, handwritten notes, comments, observations, descriptions, and evaluations provided by colleagues.

(Suggested points: 2, [9.3]); Pg. 248 LO: 2 Answer: True.

9.6

Time, activity, and situational constraints often keep managers from observing an employee’s performance regarding developmental activities.

(Suggested points: 2, [9.3]); Pg. 248 LO: 4 Answer: True.

382 Copyright © 2023

9.7

When documenting employee performance toward developmental goals, only document the positive progress that the employee is displaying.

(Suggested points: 2, [9.3]); Pg. 251 LO: 4 Answer: False. When documenting employee performance, be sure to document positive and negative examples of behavior.

9.8

One effective way to give praise is to comment on the absence of the negative, for example, by saying, “not bad” or “better than last time.”

(Suggested points: 2, [9.3]); Pg. 256 LO: 5 Answer: False. Managers should avoid giving praise in this way.

9.9

The goal of giving feedback is to punish and, if needed, embarrass employees.

(Suggested points: 2, [9.3]); Pg. 257 LO: 5 Answer: False. The goal of giving feedback is to not punish or embarrass employees.

9.10

A feedback gap occurs when managers avoid giving constructive feedback and employees avoid seeking it.

(Suggested points: 2, [9.3]); Pg. 258 LO: 5 Answer: True.

9.11

The best form of documentation to use for a formal evaluation is handwritten notes.

(Suggested points: 2, [9.3]); Pg. 248 LO: 4 Answer: False. Multiple forms of documentation can be used, including memos, letters, email messages, handwritten notes, comments, observations, descriptions, and evaluations provided by colleagues.

9.12

Cultural transvergence refers to the applicability of performance management systems across cultures.

(Suggested points: 2, [9.1]); Pg. 240 LO: 1 Answer: False. Cultural transvergence means that cultural differences are discussed openly, and alternate practices, which enhance individual and team performance, are implemented.

383 Copyright © 2023

9.13

Successful coaching requires that the coach only consider the employee’s life at work to ensure effectiveness.

(Suggested points: 2, [9.1]); Pg. 242 LO: 2 Answer: False. Successful coaching involves consider the employee as a whole – including both work and non-work identities.

9.14

The term “actionable feedback” refers to feedback that can be used by the HR department to allocate bonuses.

(Suggested points: 2, [9.3]); Pg. 258 LO: 5 Answer: False. Actionable feedback allows employees to respond in constructive ways and leads to learning and performance improvement.

9.15

The best time to hold a termination meeting is first thing on Monday morning so employee can finish out the workweek.

(Suggested points: 2, [9.3]); Pg. 263 LO: 6 Answer: False. Termination meetings should be held at the end of day and employees should be asked to leave immediately.

9.16

Benefits of returning employees include the significant reduction in onboarding time and becoming brand ambassador.

(Suggested points: 2, [9.3]); Pg. 264 LO: 8 Answer: True.

9.17

A bad boss only have detrimental effects on employees (Suggested points: 2, [9.5]); Pg. 270 LO: 8 Answer: False. A bad boss can have detrimental effects on both employees and the firm.

Multiple-Choice Questions 9.18

Coaching consists of which of the following behaviors?

A. Giving advice, guiding employees, giving employees confidence, and helping them to gain better competence B. Directing employees, punishing employees, and ensuring they get their job done

384 Copyright © 2023

C. Guiding performance, planning daily activities, designing on-the-job training, and punishing employees D. None of these are correct (Suggested points: 2, [9.1]); Pg. 242 LO: 1 Answer: A. 9.19 _____________ is the coaching behavior that involves rewarding an employee’s positive performance.

A. Giving feedback B. Motivating employees C. Documenting performance D. Developing employees (Suggested points: 2, [9.1]); Pg. 244 LO: 2 Answer: B. 9.20 ____________________ describes the coaching behavior that involves gathering information on whether performance deficiencies are due to lack of knowledge and skills, abilities, motivation, or situational factors beyond the control of the employee.

A. Giving feedback B. Motivating employees C. Diagnosing performance problems D. Documenting performance (Suggested points: 2, [9.1]); Pg. 244 LO: 2 Answer: C. 9.21 Coaches who favor the _______________ style of coaching want employees to be happy and to do what feels right for them.

A. persuading B. directing C. amiable D. analyzing (Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: C. 9.22

Coaches who favor the ________________ style of coaching follow rules and procedures before providing a recommendation.

A. persuading B. directing 385 Copyright © 2023

C. amiable D. analyzing (Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: D. 9.23

Please choose the statement below that correctly lists the steps in the coaching process.

A. Setting developmental goals, identifying developmental resources and strategies, implementing strategies, observing and documenting developmental behaviors, and giving feedback B. Identifying developmental resources and strategies, setting developmental goals, implementing strategies, giving feedback, and observing and documenting developmental behaviors C. Observing and documenting developmental behaviors, setting developmental goals, giving feedback, identifying developmental resources and strategies, and implementing strategies D. None of these are correct (Suggested points: 2, [9.3]); Pg. 248 LO: 3 Answer: A.

9.24

Feedback on performance should be all of the following EXCEPT: A. Subjective B. Timely C. Frequent and ongoing D. Specific (Suggested points: 2, [9.3]); Pg. 253 LO: 5 Answer: A.

9.25

When delivering feedback, managers should give a(n) __________ first and a(n) _____________second.

A. evaluation; description B. description; evaluation C. evaluation; punishment D. none of these are correct (Suggested points: 2, [9.3]); Pg. 254 LO: 5 Answer: B.

386 Copyright © 2023

9.26

Managers are often uncomfortable giving feedback, because they ________________.

A. have had negative experiences with feedback in the past B. fear employees will react negatively C. want to gather adequate evidence D. all of these are correct (Suggested points: 2, [9.3]); Pg. 257 LO: 5 Answer: D.

9.27

Employees who engage in a _____________ response may blame others for performance deficiencies, stare at the supervisor, or raise their voice.

A. flight B. fight C. evasive D. balance (Suggested points: 2, [9.4]); Pg. 268 LO: 7 Answer: B.

9.28

To combat defensive responses, supervisors should try all of the following EXCEPT: A. Be empathetic B. Be defensive C. Minimize threat D. Encourage participation (Suggested points: 2, [9.4]); Pg. 268 LO: 7 Answer: B.

9.29

Which one of the following is considered among the main coaching styles?

A. Easy B. Drill C. Analyzer D. Friendly (Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: C.

9.30

Which of the coaching styles is the best?

A. Amiable B. All of the styles can be used in any situation 387 Copyright © 2023

C. None of the styles are adequate D. Different styles may be required for different situations (Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: D. 9.31

Documentation of employee performance is important because (of) …

A. Legal protection, among other things.

B. Employees will not know whether they’ve done a good job without documentation.

C. Employees will not admit to behavior unless there is documentation.

D. All of these are correct (Suggested points: 2, [9.3]); Pg. 250 LO: 4 Answer: A.

9.32

Which of the following is a good suggestion for documenting performance in a useful and constructive way?

A. Use general terms B. Focus on positive comments C. Use adjectives and adverbs sparingly D. Use different procedures for different personalities (Suggested points: 2, [9.3]); Pg. 251 LO: 4 Answer: C.

9.33

What is the goal of feedback?

A. To improve future performance B. To keep the lines of communication open C. To ensure employees understand the effects of behaviors D. To improve communication between supervisors and employees (Suggested points: 2, [9.3]); Pg. 252 LO: 5 Answer: A.

9.34

Failure to provide feedback may result in what consequences?

A. Employees would miss out on the opportunity to improve performance.

B. Organizations may be stuck with chronic poor performance.

C. Employees may develop inaccurate perceptions of how their performance is regarded by others.

D. All of these are correct (Suggested points: 2, [9.4]); Pg. 253 388 Copyright © 2023

LO: 5 Answer: D. 9.35 Giving insincere praise may lead to: A. Employees losing trust in supervisors B. Supervisors losing sight of the goal of feedback C. Employees feeling that supervisors are condescending to them D. Employees failing to see when a change in direction is required (Suggested points: 2, [9.3]); Pg. 256 LO: 5 Answer: D. 9.36 The goal of constructive feedback is: A. Not to embarrass or punish employees B. To identify warning signs C. To focus on behaviors that can be changed D. All of these are correct (Suggested points: 2, [9.3]); Pg. 257 LO: 5 Answer: D. 9.37

What is a feedback gap?

A. When employees want feedback but aren’t able to get it from supervisors B. When supervisors want to give feedback, but employees will not take it C. When supervisors and employees mutually instigate and reinforce lack of communication about poor performance D. When supervisors and employees discuss poor performance, but they misunderstand each other (Suggested points: 2, [9.3]); Pg. 258 LO: 5 Answer: C.

9.38

How should a supervisor handle defensiveness?

A. Ignore it B. Face it head on C. Refuse to allow defensive comments D. End any discussion as soon as defensiveness is recognized (Suggested points: 2, [9.4]); Pg. 268 LO: 7 Answer: B.

389 Copyright © 2023

9.39

When should a decision-making leave not be used?

A. When an employee is continually late to work B. When an employee engages in a violation of work policies C. When an employee has been written up D. When an employee consistently demonstrates a poor attitude (Suggested points: 2, [9.3]); Pg. 260 LO: 5 Answer: B.

9.40

Which of the following is not one of the five pitfalls associated with the disciplinary process?

A. Not allowing the employee a chance to improve B. Performance standards are “unrealistic” or “unfair” C. Failure to consult Human Resources D. Acceptance of poor performance (Suggested points: 2, [9.3]); Pg. 262 LO: 5 Answer: A.

9.41

Which of the following is not one of the suggestions for the termination meeting?

A. Wish the employee well B. Have the employee leave immediately C. Send the employee to Human Resources D. None of these are correct (Suggested points: 2, [9.3]); Pg. 263 LO: 6 Answer: D.

9.42

Which one of the following is not a benefit of rehiring ex-employees?

A. Becoming brand ambassadors B. Longer tenure C. Improved leadership skills D. Reduction in onboarding time (Suggested points: 2, [9.3]); Pg. 264 E. LO: 8 Answer: C.

9.43

Which one of the following is not an example of a “bad leader”?

A. Negative managers B. Neglectful managers C. Bully bosses 390 Copyright © 2023

D. Divisive bosses (Suggested points: 2, [9.5]); Pg. 271 F. LO: 8 Answer: A. Short-Answer and Essay-Type Questions 9.44Briefly describe the difference between a strengths-based and weakness-based approach to giving feedback.

(Suggested points: 3, [9.3]); Pg. 259 LO: 5 Answer: Strengths-based approach • Identify employee strengths in terms of their exceptional job performance • Highlight how strengths can generate success on the job • Ask them to improve their behaviors or results by making continued or more intensive use of their strengths Weaknesses-based approach • Identify employee weaknesses (e.g., deficiencies in terms of their job performance, knowledge, and skills) • Provide constructive feedback on what the employees are doing wrong or what the employees did not accomplish • Ask them to improve their behaviors or results by overcoming their weaknesses 9.45

Briefly explain the differences in perceptions of time, and feedback preference and reactions of different generations in the workplace as suggested by Socioemotional Selectivity Theory (SST)?

(Suggested points: 3, [9.3]); Pg. 259 LO: 5 Answer: Younger individuals (e.g., Millennials and Post-Millennials) • Think of time as open-ended • Have work goals that are future-oriented: knowledge acquisition, career planning, and the development of ability and skills Older individuals (e.g., Baby Boomers) • Think of time as limited • Have work goals that are present-oriented: regulating their emotions to be positive and the pursuit of positive social relationships at work • More open to feedback regarding social awareness issues • Less open to feedback that can be readily used to improve future performance and achieve desired career goals

391 Copyright © 2023

9.46

You are rolling out a new employee developmental program, and you are meeting with a manager who does not believe that documenting her employees’ performance is a good use of time. Please explain to her why it is important to document employee performance, specifically in relation to achieving developmental goals.

(Suggested points: 3, [9.3]); Pg. 248 LO: 4 Answer: Even though it may be time consuming and even difficult to document performance, it is extremely important to do so for several reasons. First, observing and evaluating developmental activities and performance in general is a complex cognitive task. Thus, documentation helps prevent memory-related errors. Second, when documentation exists to support evaluations, there is no mystery regarding the outcomes. This, in turn, promotes trust and acceptance of decisions based on the evaluation provided. Third, documenting developmental activities and their outcomes allows for a discussion about specific facts and careful examination of these facts allows for better planning of developmental activities for the future. Finally, keeping accurate records of what developmental activities employees complete and to what degree of success, and of performance in general, is a good line of defense in case of litigation based on discrimination of wrongful termination.

9.47

The manager above accepts that she needs to document her employees’ performance, but now she would like guidance on how to do so. Please provide her with some tips on documenting performance.

(Suggested points: 3, [9.3]); Pg. 251 LO: 4 Answer: When documenting performance, use the following tips: • Be specific. Document specific events and outcomes. Avoid making general statements such as “he’s lazy.” Provide specific examples to illustrate your point.

• Use adjectives and adverbs sparingly. The use of evaluative adjectives and adverbs may lead to ambiguous interpretations. In addition, it may not be clear whether the level of achievement has been average or outstanding.

• Balance positives with negatives. Document instances of both good and poor performance. Do not focus on only the positives or the negatives.

• Focus on job-related information. Focus on information that is job-related and, specifically, related to the developmental activities and goals at hand.

• Be comprehensive. Include information on performance regarding all developmental goals and activities and cover the entire review period as opposed to a shorter time period. Also, document performance for all employees—not only those who achieve their developmental goals (or those who do not).

• Standardize procedures. Use the same way and format to document information for all employees.

392 Copyright © 2023

• 9.48

Use behavioral terms. Phrase your notes in behavioral terms and avoid statements that would imply subjective judgment or prejudice.

Now that the manager above understands the importance of documenting performance and she knows how to document performance, she would like guidance on how to run a performance review meeting. Please give the general sequence of steps that take place at a performance review meeting along with a brief description of what happens at each step.

(Suggested points: 3, [9.4]); Pg. 265-266 LO: 7, 8 Answer: Performance review meetings usually follow the sequence of steps below: 1. Explain the purpose of the meeting. The first step includes a description of the purpose of the meeting and the topics to be discussed.

2. Self-appraisal. This portion of the meeting allows the employee to provide his or her perspective regarding performance. The role of the supervisor is to listen to what the employee has to say and to summarize what he or she heard.

3. Share ratings and explain rationale. Next, the supervisor explains the rating he or she provided for each performance dimension and explains the reasons that led to each score. It is more effective to start with a discussion of the performance dimensions for which there is agreement between the employee’s self-appraisal and the supervisor’s appraisal. For areas for which there is disagreement between self and supervisor ratings, the supervisor must take great care in discussing the reason for his or her rating and provide specific examples and evidence to support the score given. For dimensions for which the score is low, there should be a discussion of the possible causes for poor performance.

4. Developmental discussion. Now the supervisor and the employee should discuss and agree on the developmental steps that will be taken to improve performance in the future.

5. Employee summary. Next, the employee should summarize, in his or her own words, the main conclusions of the meeting: what performance dimensions are satisfactory, which need improvement, and how improvement will be achieved.

6. Rewards discussion. The supervisor should explain the rules used to allocate rewards and how the employee would be able to reach higher rewards levels as a consequence of future performance improvement.

7. Follow-up meeting. Before the meeting is over, it is important to schedule the next performance-related formal meeting.

8. Approval and appeals process discussion. Finally, the supervisor asks the employee to sign the form to attest that the evaluation has been discussed. In addition, if disagreements about ratings have not been resolved, the supervisor should remind the employee of the appeals process.

9. Final recap. Finally, the supervisor summarizes what happened during the review period in terms of performance levels in the various dimensions, reviews how rewards will change based on this level of performance, and 393 Copyright © 2023

sums up what the employee will need to do in the next year to maintain and enhance performance.

9.49

Describe the functions involved in coaching.

(Suggested points: 2, [9.1]); Pg. 242 LO: 2 Answer: The functions involved in coaching include: • Giving advice to help employees improve their performance, including not only what needs to be done, but also how things need to be done. Both results and behaviors should be addressed.

• Providing employees with guidance, so that employees can develop the skills and knowledge that are necessary to do the work correctly, and also providing information on how the employee can acquire these skills and knowledge.

• Providing support to employees and being there only when the manager is needed. Coaching involves being there when the employee needs support, but does not involve monitoring and controlling an employee’s every move.

Coaching is about facilitation.

• Giving employees’ confidence that will enable them to enhance their performance continuously. Giving positive feedback can give employees confidence in the things they do.

• Helping employees gain greater competence by guiding them toward acquiring more knowledge and sharpening skills that can prepare them for more complex tasks and higher-level positions.

9.50

Explain the styles of coaching.

(Suggested points: 2, [9.2]); Pg. 246 LO: 3 Answer: The styles of coaching are: • The driver style is one in which the coach tells the employee what to do, such as “This task must be completed this way.” These coaches tend to be assertive, speak quickly and often firmly, usually talk about tasks and facts, are not very expressive, and expose a narrow range of personal feelings to others.

• The persuader style is one in which the coach attempts to convince the employee why he or she should do a task a certain way. Persuaders are assertive, but tend to use expansive body gestures, talk more about people and relationships, and expose others to a broad range of personal feelings.

• The amiable style is one in which the coach directs employees based on feelings. “This feels like the right way to handle this situation.” The coach may rely on his or her own feelings or the feelings of the employee. Amiable coaches are not very assertive, speak deliberately and pause often, seldom interrupt others, and make many conditional statements.

• The analyzer style is one in which the coach analyzes performance in a logical and systematic way and then follows rules and procedures before providing 394 Copyright © 2023

recommendations. These coaches are not very assertive, and are more likely to talk about facts and tasks than about personal feelings.

9.51

Describe the steps of the coaching process.

(Suggested points: 2, [9.2]); Pg. 247 LO: 2 Answer: The steps of the coaching process are: • Setting developmental goals that are reasonable, attainable, and derived from a careful analysis of the areas where an employee needs to improve. These goals should take into account both short-term and long-term career objectives.

• Identifying resources and strategies that will help the employees achieve the developmental goals.

• Implementing strategies that will allow the employee to achieve the developmental goals.

• Collecting and evaluating data to assess the extent to which each of the developmental goals has been achieved.

• Providing feedback to the employee and then revising developmental goals as needed.

9.52

Discuss the constraints that a coach may experience in attempting to observe an employee’s performance regarding developmental activities.

(Suggested points: 2, [9.2]); Pg. 248-249 LO: 4 Answer: When attempting to observe an employee’s performance regarding developmental activities, a coach may experience the following constraints: • Time constraints—coaches (supervisors) may be too busy to gather information on an employee’s progress. Too much time between assignment of activity and the supervisor checking on the employee’s progress may be problematic.

• Situational constraints—supervisors may not be able to directly observe an employee’s developmental activities and therefore will not have firsthand information regarding performance of these activities.

• Activity constraints—some activities are highly unstructured and a supervisor may have to wait until the activity is finished, or until milestones have been completed, before evaluating performance in the activity.

9.53

Explain why documentation of developmental activities and progress is important.

(Suggested points: 3, [9.3]); Pg. 250 LO: 4 Answer: Documentation of developmental activities and progress is important because it: • Minimizes cognitive load—documentation helps prevent memory-related errors.

395 Copyright © 2023

• • •

Creates trust—documentation reduces mystery in evaluations by providing documentation of behaviors.

Plans for the future—documentation allows for discussion about specific facts rather than hearsay and allows for better planning for developmental activities in the future.

Provides legal protection—documentation of performance and behaviors reduces the likelihood of legal issues upon dismissal or termination for cause.

9.54

Explain recommendations for documentation of performance and developmental activities.

(Suggested points: 2, [9.3]); Pg. 251 LO: 4 Answer: When documenting performance and developmental activities: • Be specific, because generalities cause confusion and make it impossible for employees to know exactly which behaviors and performance are successful and which are not.

• Use adjectives and adverbs sparingly, because evaluative adjectives and adverbs may lead to ambiguous interpretations, and again, to confusion.

Avoiding these interpretations will lead employees to have a better understanding of the behaviors and performance they are expected to exhibit.

• Balance positives with negatives, because focusing on only negative performance will lead to resentment, and focusing on only positive performance will not give employees the opportunity to improve performance.

• Focus on job-related performance, because there is no need to evaluate performance that is not job-related, as that performance cannot necessarily be controlled by the organization. Additionally, focusing on performance that is not job-related can lead to legal issues.

• Be comprehensive and include information regarding all aspects of job performance and developmental activities rather than focusing on one aspect.

This is the only way that an employee will be able to achieve maximum performance in all areas of job performance.

• Standardize procedures, because using the same procedures to document performance for all employees will foster trust and reduce the likelihood of legal problems.

• Describe observable behavior, because this will reduce the likelihood of subjective judgments or prejudice which may lead to mistrust and possibly legal liability.

9.55

Discuss the key features of effective feedback.

(Suggested points: 2, [9.3]); Pg. 253 LO: 5 Answer: The key features of effective feedback are that it is:

396 Copyright © 2023

• • • •

•

• • •

•

•

•

•

Timely—feedback is not as effective if it is given much after the incident; giving feedback as soon as possible after the behavior will help the employee to improve performance.

Frequent—feedback should happen on an ongoing basis, as frequently as possible. Too little feedback will result in slow, if any, improvement in performance.

Specific—generalized comments of “you’re doing a good job” are nice to hear, but they will not be as effective in improving performance as specific information regarding behaviors and performance.

Verifiable—the information commented on should be verifiable and accurate, rather than based on inferences and rumors. Feedback is unlikely to be accepted by the employee if it is based on inaccurate information about behavior.

Consistent—good performance should result in positive feedback and poor performance should result in constructive feedback across all situations, so that feedback will not come as a shock to the employee. Although some employees may be surprised by constructive feedback, it is important that similar behaviors are not sometimes met with harsh criticism and sometimes met with praise.

Private—employees should receive feedback in a place and time that will allow them to accept the information without an audience. Even positive feedback may cause embarrassment for an employee.

Includes description of consequences—employees should understand the consequences of their behavior so that they will realize the importance of their involvement in the organization.

Descriptive first and evaluative second—the first order of business is to describe the behavior that was observed. Once there is agreement about what happened, evaluation can take place without as much risk of defensiveness, which makes the feedback more effective.

Related to a performance continuum—feedback should include information regarding positive aspects of the performance and negative aspects of the performance, and include an explanation of what steps can be taken to perform the positive performance more often and the poor performance less often.

Based on identifiable patterns of performance— constructive feedback is most effective when it is based on patterns of performance rather than isolated incidents. Patterns of behavior can also be helpful in identifying the reasons for poor performance.

A confidence builder for employees— good feedback includes a statement that the manager has confidence that the employee will be able to improve her performance. This enhances employee self-efficacy and ensures that the employee understands that the feedback is about performance rather than about the performer.

A tool for generating advice and ideas—feedback can include advice about how to improve performance, and should also be a good opportunity to solicit ideas from the employee about how performance may be improved.

397 Copyright © 2023

9.56

Explain factors affecting why people are sometimes uncomfortable giving constructive feedback.

(Suggested points: 2, [9.3]); Pg. 257-258 LO: 5 Answer: People are sometimes uncomfortable giving constructive feedback because: • They fear negative reactions and consequences—managers may be fearful that employees will react in a negative way, including defensiveness and anger.

Additionally, managers may also fear that working relationships, and even friendships, will suffer because of constructive feedback.

• They have had negative experiences in the past—managers may have had negative experiences with feedback in the past from their own supervisors and, because of that experience, may be reluctant to give constructive feedback to their charges.

• They don’t want to play “God”—some managers may feel that giving constructive feedback places them in a position of “all knowing” or “Godlike” and they want to avoid that position.

• They need irrefutable and conclusive evidence—some managers are unwilling to risk providing constructive feedback without irrefutable evidence. Although information used for feedback must be verifiable, it is not necessary to have irrefutable evidence of a behavior; however, some managers may not feel comfortable without that evidence.

9.57

To understand successful coaching, what are the guiding principles you need to understand?

(Suggested points: 3, [9.4]); Pg. 267 LO: 7 Answer: Supervisors can take the following steps to prevent defensive responses during the performance review meeting: • Establish and maintain rapport. o Start by making sure that the meeting takes place in a good environment. o The meeting should be private and there should be no interruptions. o The supervisor should put the employee at ease and foster two-way communication. Some ways of handling this are sitting next to the employee rather than across a desk, chatting with the employee briefly, and using the employee’s name, among other techniques. (Failure to establish and maintain rapport may lead to a cold and closed communication environment and may foster defensiveness and challenges to what is being said.)

• Be empathetic—the supervisor should put him or herself into the shoes of the employee and try to discover what has caused the employee’s behavior and performance rather than assuming that any positive performance has been caused by external forces or that negative performance is caused by internal forces.

398 Copyright © 2023

•

• • •

Be open-minded—if the employee presents an alternative and different point of view, be open-minded and discuss them directly and openly. There is a possibility that the employee may provide information that is relevant and of which you are not aware. If this is the case, ask for specific evidence Observe verbal and nonverbal cues—the supervisor should be able to read, and react to, the employee’s emotions and reactions to feedback to determine if clarification is required.

Minimize threats—the meeting should be framed as having the goal to benefit the employee rather than to punish the employee.

Encourage participation—the supervisor should not monopolize the meeting, allowing the employee to express views and to speak openly.

9.58

Describe what a decision-making leave is and what it is used for.

(Suggested points: 3, [9.3]); Pg. 260 LO: 5 Answer: A decision-making leave is a once-in-a-career “day of contemplation” in which an employee is allowed to take a paid one day leave to stay home and decide whether working in this organization is what he or she really wants to do. Its purpose is to give the employee an opportunity to evaluate his or her current work effort, to see if the employee will improve his or her performance in the work place. In addition, a decision-making leave holds the employee responsible for their future actions with the organization.

9.59

Identify each of the suggestions for the termination meeting, and describe each suggestion. Then, briefly describe why these suggestions are important.

(Suggested points: 2, [9.3]); Pg. 263 LO: 5 Answer: Each of the following points are the six suggestions for the termination meeting along with a description of why they are important: 1. Be respectful. Treat the terminated employee with respect and dignity and keep information regarding the termination confidential.

2. Get right to the point. At this state, the less said, the better. Summarize the performance problems, actions that the organization has taken to help the employee overcome these problems, outcomes of these actions, and the decision about termination that you have reached.

3. Wish the employee well. The purpose of this meeting is not to re-hash all the reasons for your termination decision. Instead, use the meeting to wish the person well in his or her next job and that he or she will be missed.

4. Send the employee to Human Resources. Allow the employee to receive information regarding his or her benefits and legal rights. If appropriate, seek outside legal counsel for this information.

5. Have the employee leave immediately. Keeping the terminated employee onsite can lead to gossip, conflict, and disgruntled employees may engage in sabotage.

399 Copyright © 2023

6. Have the termination meeting at the end of the day. This will allow the employee to leave the office as everyone else and also there will be fewer people around.

These suggestions are important mainly for two reasons: first, to protect the feelings and future of the terminated employee; and second, to protect the organization and the employees within the organization. A termination is difficult enough for the employee. There is no reason to make it any more difficult on the employee. Further, a termination could easily provoke contention and disrupt employees within the organization. The more this can be limited, the better it is.

400 Copyright © 2023

Chapter 10

Chapter 10—Performance Management, Rewards, and the Law True/False Questions 10.1

A traditional approach to implementing reward systems is to reward employees based on how they do their work.

(Suggested points: 2, [10.2]); Pg. 288 LO: 2 Answer: False. A traditional approach in implementing reward systems is to reward employees for the positions they fill as indicated by their job descriptions and not necessarily based on how they do their work

10.2

Contingent pay (CP) plans reward individuals based on how well they perform on the job.

(Suggested points: 2, [10.1]); Pg. 284 LO: 2 Answer: True.

10.3

Performance management systems are more effective when results are directly tied to the reward system.

(Suggested points: 2, [10.2]); Pg. 288 LO: Answer: True.

10.4

An organization’s culture does not play an important role when selecting a contingent pay plan.

(Suggested points: 2, [10.5]); Pg. 295 LO: 4 Answer: False. A critical issue to consider in selecting a contingent plan is the organizational culture.

10.5

An effective contingent pay plan for an organization with a traditional culture would be a plan that rewards specific and observable measures of performance that are clearly defined and linked directly to pay.

(Suggested points: 2, [10.5]); Pg. 295 LO: 4 Answer: True.

10.6

Organizations with involvement cultures are characterized by shared decision making, lateral communications, and loosely defined roles.

(Suggested points: 2, [10.5]); Pg. 296 401 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

LO: 4 Answer: True.

10.7

Gainsharing links individual and group pay to an organization’s ability to meet strategic goals.

(Suggested points: 2, [10.5]); Pg. 297 LO: 4 Answer: False. Gainsharing links individual and group pay to an organization’s overall profitability.

10.8

Pay is the main motivator for people in the 21st century.

(Suggested points: 2, [10.6]); Pg. 297 LO: 6 Answer: False. In the 21st century, however, we now recognize that pay is not everything.

People seek more than just a paycheck when they go to work. People want to work in an environment high on trust and respect, where they can have fun and develop relationships with others, and do meaningful and interesting work.

10.9

A reward can be defined as something that increases the frequency of an employee action.

(Suggested points: 2, [10.6]); Pg. 283 LO: 6 Answer: True.

10.10 A reward system is the set of mechanisms for distributing both tangible and intangible returns as part of an employment relationship.

(Suggested points: 2, [10.1]); Pg. 283 LO: 1 Answer: True.

10.11 An employee’s intangible rewards include cash compensations and benefits.

(Suggested points: 2, [10.1]); Pg. 283 LO: 1 Answer: False. This describes tangible rewards.

10.12 A basic principle that guides the design of a fair system is that procedures are standardized and that the same procedures are used with all employees.

(Suggested points: 2, [10.7]); Pg. 299 LO: 7 Answer: 402 Copyright © 2023

Chapter 10

True.

10.13 In the context of performance management, illegal discrimination means that raters assign scores differentially to various employees based on factors that are not performance-related, such as race, nationality, color, or ethnic and national origin.

(Suggested points: 2, [10.9); Pg. 307 LO: 7 Answer: True.

10.14 Illegal discrimination is usually referred to as adverse impact because employees claim they were intentionally treated differently because of their gender, race, ethnicity, national origin, age, disability status, or other status protected under the law.

(Suggested points: 2, [10.9]); Pg. 307 LO: 7 Answer: False. These are examples of disparate treatment.

10.15 One example of a financial reward is a sabbatical.

(Suggested points: 2, [10.7]); Pg. 300 LO: 6 Answer: False. Sabbatical is an example of a nonfinancial reward.

Multiple-Choice Questions 10.16 A. B. C. D.

Contingent pay is also referred to as ______________. gainsharing pay for performance base pay none of these are correct (Suggested points: 2, [10.2]); Pg. 289 LO: 4 Answer: B.

10.17 A. B. C. D.

When a CP plan is implemented, organizations need to make clear: What is expected of employees What specific behaviors or results will be rewarded How employees can achieve specified behaviors or results All of these are correct (Suggested points: 2, [10.3]); Pg. 290 LO: 3 403 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

Answer: D. 10.18 All of the following are conditions that need to be present in order for a CP plan to motivate employees EXCEPT: A. Expectancy B. Valence C. Desire D. Instrumentality (Suggested points: 2, [10.3]); Pg. 291 LO: 3 Answer: C. 10.19 A. B. C. D.

One of several reasons a CP plan could fail is: Poor performance management system is in place Managers are made accountable Clear difference in rewards for poor and outstanding performers None of these are correct (Suggested points: 2, [10.4]); Pg. 292 LO: 3 Answer: A.

10.20 A. B. C. D.

Traditional cultures should implement which type of the following pay plans: Piece rate, profit sharing, or group incentives Piece rate, skill-based pay, or sales commissions Piece rate, sales commissions, or group incentives Group incentives, profit sharing, or skill-based pay (Suggested points: 2, [10.5]); Pg. 296 LO: 4 Answer: C.

10.21 A. B. C. D.

Intangible rewards include all of the following EXCEPT: Recognition and status Employment security Challenging work Income Protection (Suggested points: 2, [10.1]; Pg. 283) LO: 1 Answer: D.

10.22 Illegal discrimination is also referred to as: A. Disparate treatment 404 Copyright © 2023

Chapter 10

B. C. D.

Adverse impact Racism Favoritism (Suggested points: 2, [10.9]); Pg. 307 LO: 7 Answer: A.

10.23 An employment relationship where the employer or employee can terminate the relationship at anytime is called _____________________.

A. negligence B. employment at will C. adverse impact D. defamation (Suggested points: 2, [10.9]); Pg. 305 LO: 7 Answer: B. 10.24 When an employer discloses untrue favorable performance and this information causes risk or harm to others, such an action is called ____________________.

A. misrepresentation B. defamation C. negligence D. none of these are correct (Suggested points: 2, [10.9]); Pg. 306 LO: 7 Answer: A. 10.25 The law which makes it illegal to discriminate on the basis of race, color, religion, sex or national origin.

A. Employment Equality (Religion or Belief) Regulations 2003 B. Employment Equality (Sexual Orientation) Regulations 2003 C. Title VII of the Civil Rights Act of 1964 (as amended by the Equal Employment Opportunity Act of 1972) D. Race Relations Act of 1976 (Suggested points: 2, [10.10]); Pg.308 LO: 8 Answer: C. 10.26 A. B. C.

In a traditional reward system: All employees are paid the same regardless of position or performance Employees are paid based on performance regardless of position Employees are paid based on position regardless of performance 405 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

D.

Employees are paid based on an equation involving both performance and position (Suggested points: 2, [10.2]); Pg. 288 LO: 2 Answer: C.

10.27 When individuals are rewarded based on how well they perform on the job, this is called ___________________________.

A. consistency pay B. contingent pay C. constant pay D. calculated pay (Suggested points: 2, [10.2]); Pg. 289 LO: 2 Answer: B. 10.28 A. B. C. D.

Contingent pay plans address which component of performance?

Declarative knowledge Procedural knowledge Organizational knowledge Motivation (Suggested points: 2, [10.3]); Pg. 290 LO: 3 Answer: D.

10.29 In a small municipal police department, each member of a team is expected to work with other members of the team to increase efficiency. The yearly individual increase in pay and promotion is based on whether individuals achieve higher than average numbers of reports, summonses, and arrests than their team. When an officer is working on a particularly difficult case, other members of the team are often unwilling to help that officer with tasks leading to wasted efforts and increased overtime. This is an example of ___________________.

A. individual versus team-oriented employees B. poor supervision C. folly of rewarding A while hoping for B D. unclear expectations (Suggested points: 2, [10.4]); Pg. 293 LO: 3 Answer: C. 10.30 An organization’s culture is defined by: A. Its employee manual 406 Copyright © 2023

Chapter 10

B. C. D.

Its mission statement Its employees’ attitudes and perceptions Its unwritten rules and procedures (Suggested points: 2, [10.5]); Pg. 296 LO: 4 Answer: D.

10.31 A. B. C. D.

Which of the following are characteristics of a traditional culture?

Lateral communication Top-down decision making Loosely defined roles Bottom-up decision making (Suggested points: 2, [10.5]); Pg. 296 LO: 4 Answer: B.

10.32 A. B. C. D.

A reward is defined as: Increased base salary Something that increases the frequency of an action Promotion or recognition One-time bonuses (Suggested points: 2, [10.7]); Pg. 3299 LO: 5 Answer: B.

10.33 The disclosure of untrue unfavorable performance information that damages an employee’s reputation is called ______________________.

A. misrepresentation B. derailment C. libel D. defamation (Suggested points: 2, [10.9]); Pg. 306 LO: 7 Answer: D. 10.34 Providing a glowing recommendation for a former employee who was actually terminated due to poor performance that, if repeated in the future, could present a risk to the future employer, is called _____________________________.

A. liability B. defamation C. misrepresentation 407 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

D.

libel (Suggested points: 2, [10.9]); Pg. 306 LO: 7 Answer: C.

10.35 Disparate treatment is: A. When employees are treated differently because of their work performance B. When employees are treated differently because of their position with the company C. When employees are treated differently because of their gender, race, ethnicity, national origin, age, disability status, or other status protected under the law D. When employees are treated differently because of their educational levels (Suggested points: 2, [10.9]; Pg. 306 LO: 7 Answer: C. Essay-Type Questions 10.40 There are several reasons why contingent pay (CP) plans may not work as intended. Please list and describe three of these possible reasons.

(Suggested points: 2, [10.4]); Pg. 290 LO: 3 Answer: Contingent pay (CP) plans may not work as intended for any of the following reasons (provide credit if at least three of the following responses are used): • Poor performance management system in place. The CP plan can be paired with a poorly designed and implemented performance management system including biased ratings and the measurement of performance dimensions that are not job related. This can lead some employees to challenge the plan from a legal standpoint.

• Rewarding counterproductive behavior (folly of rewarding A while hoping for B). The system can reward results and behaviors that are not those that will help the organization succeed. Employees are likely to engage in these, often counterproductive behaviors, because this is what will get them the desired results.

• Rewards are not considered significant. Rewards could be viewed as small and that they don’t differentiate between outstanding and poor performers. In this context, rewards are not viewed as performance-based and they do not make an impact. The message is sent to employees that performance is not something worth being rewarded.

408 Copyright © 2023

Chapter 10

•

• •

Managers are not accountable. In some cases, managers may not be held responsible for how they handle the performance and the performance evaluation of employees. They are likely to inflate ratings so that employees receive what the manager thinks are appropriate rewards. In this case, the reward becomes the driver for the performance evaluation instead of the performance evaluation being the driver for the rewards.

Extrinsic motivation at the expense of intrinsic motivation. An example would be placing almost exclusive emphasis on rewards. Employees may start to lose interest in their jobs, which in turn can decrease motivation.

Disproportionately large rewards are given to executives.

10.41 When considering the appropriate CP plan, it is important to take into consideration the organizational culture. You currently work in the HR Department of a large manufacturing facility and have been asked to recommend a new CP plan that will reward employees for increased unit productivity. What type of plan would you recommend and why?

(Suggested points: 2, [10.5]); Pg. 295 LO: 4 Answer: Examples may vary; however, in a large manufacturing facility, the most appropriate CP plan would be a form of group incentive or a piece rate based on unit productivity. This type of CP plan is used when employees are paid based on the number of units produced or repaired. This system is usually implemented in many manufacturing environments.

10.42 There are several ways an organization can insure actions intended to be rewards are actually seen as rewards. Please list and describe five of the eight recommendations from the reading.

(Suggested points: 2, [10.7]); Pg. 300 LO: 5 Answer: Organizations need to make sure that actions intended to be rewards are actually perceived as rewards. Following are five recommendations (give credit if at least five are provided): • Define and measure performance first, and then allocate rewards. Before rewards are allocated, there must be a good performance management system in place that (a) defines what performance is and performance expectations, and (b) measures performance well. In many cases, organizations believe they have a rewards problem when in fact the problem is with the definition and measurement of performance.

• Use only rewards that are available. If the organization does not have financial rewards available, then employee expectations should be adjusted accordingly and the focus should be on nonfinancial rewards. It makes no sense to discuss pay raises as an important component of a CP plan if the resulting raises will be meager due to budget constraints.

409 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

•

•

•

•

Make sure all employees are eligible. In many organizations, top executives receive benefits such as profit sharing, stock options, executive life and liability insurance, invitations to meetings in attractive locations, and permission to fly first class. But, are these truly rewards as we defined them above? Do these incentives enhance motivation? In general, they seem to do so because they motivate lower level employees to strive to become executives. However, what would happen if these types of incentives were extended to the lower ranks of an organization? What if nonexecutive members of the organizations are also eligible for such rewards based on their performance levels? By making more employees eligible for the potential reward, there is a greater chance that more employees will strive to become top performers.

Make rewards visible. Rewards should be visible to those who receive them.

However, rewards should also be visible to others, together with information on what needs to happen to be able to receive the reward in the future. This recommendation applies to both financial and nonfinancial rewards.

Nonfinancial rewards in particular are usually more effective if they are made public. An exception to the visibility recommendation is that some individuals may prefer a nonvisible reward allocation to avoid being singled out for attention or to prevent disrupting group harmony.

Make rewards contingent. Rewards should be tied to performance directly and exclusively. Imagine that an outsider is asked to guess the salary levels for various employees in an organization. Assume she can ask the following questions: (a) what people do (e.g., administrative assistant, mailroom clerk, VP for HR), (b) how long they’ve done it, and (c) how well they’ve done it. If information based on the how well question is not the most useful in guessing what salaries are, then the organization is not making rewards contingent on performance. Unfortunately, this is the case in many organizations in which what people do and how long they’ve done it are far better predictors of their salaries than how well they perform. When rewards are not contingent on performance, organizations alienate their best workers, precisely those who make the greatest contributions and can easily find employment elsewhere.

Make rewards timely. Rewards should be given soon after the result or behavior being rewarded. Experimental psychologists know that if a rat in a cage pulls a lever and a lump of sugar appears only 10 months later (on the rat’s anniversary date), then no learning will take place. This is why many organizations implement on-the-spot rewards. For example, at Lake Federal Bank in Hamburg, Indiana, the president has an annual budget that he can use to give relatively small, spur-of-the-moment gifts to employees who are performing well. These spot bonuses do not have to be cash awards. They can be theater tickets, a prime parking space, or anything else targeting an employee’s specific needs. How does he know what type of reward to give?

The answer is simple: He gets to know his employees and watch what they do and how they spend their time when they have a chance to choose. If this does not work, then he simply asks them.

410 Copyright © 2023

Chapter 10

•

Make rewards reversible. Increasing an employee’s base pay creates an annuity for the employee’s tenure with the organization. If mistakes are made in the allocation of increases in base salary (especially upward), they are usually irreversible and can be very costly over time. This is why variable pay, which is not added to an employee’s base salary, has become an attractive option to many organizations. Variable pay is consistent with the recommendations that rewards should be contingent and reversible. If high performance occurs again, then the employee receives the additional compensation again. If high performance does not occur, then the additional compensation is not given.

10.43What are the benefits of implementing a contingent pay plan?

(Suggested points: 2, [10.3]); Pg. 290 LO: 2 Answer: The benefits of implementing a contingency plan include the following: • When a performance management system is directly related to the reward system, performance management and performance improvement are taken more seriously.

• CP plans force an organization to clearly define effective performance and to determine what factors are likely to lead to effective performance.

• Supervisors and employees have a clear understanding of what tasks and results are the most important.

• CP plans can serve as a good tool to recruit and retain top performers.

10.44 Under what conditions can a contingent pay plan help improve an employee’s motivation?

(Suggested points: 2, [10.3]); Pg. 291 LO: 3 Answer: A contingent pay plan can help improve an employee’s motivation when: • Employees see a clear link between their efforts and resulting performance (expectancy).

• Employees see a clear link between their performance levels and the rewards perceived (instrumentality).

• Employees value the rewards available (valence).

10.45List key factors that could lead to failure of a contingent pay plan.

(Suggested points: 2, [10.4]); Pg. 292 LO: 3 Answer: Key factors that could lead to failure of a contingent pay plan include: • Poor performance management system in place • Rewarding counterproductive behavior (folly of rewarding A while hoping for B) • Rewards are not considered significant 411 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

• • •

Managers are not accountable Extrinsic motivation at the expense of intrinsic motivation (employees may not be interested in their work, the environment may not be challenging, or they may lack control over what they do and how they do it) Disproportionately large rewards for executives

10.46 Discuss characteristics of the most effective type of contingent pay plan in an organization with a traditional culture. Give examples.

(Suggested points: 2, [10.5]); Pg. 296 LO: 4 Answer: The most effective type of contingent pay plan in an organization with a traditional culture rewards specific and observable measures of performance in which performance is clearly defined and linked to pay directly. Examples include: piece rate, sales commission, and group incentives (sales volume for the group).

10.47 Discuss characteristics of the most effective type of contingent pay plan in an organization with an involvement culture. Give examples.

(Suggested points: 2, [10.5]); Pg. 296 LO: 4 Answer: The most effective type of contingent pay plan in an organization with an involvement culture is geared less toward specific, observable measures of performance, and more geared toward group results. For example, profit sharing and skill-based pay, where employees are paid rewards based on new knowledge and skills that are beneficial to the organization, would be effective.

10.48 Discuss key features of organizations (other than pay) where employees are happiest and the most productive.

(Suggested points: 2, [10.6]); Pg. 297 LO: 5 Answer: Employees are happiest and the most productive when they work in an organization: • With an environment high on trust and respect • Where they can have fun and develop relationships with others • Where they can do meaningful, interesting work • Where they have a balanced work–life relationship with time spent away from work with friends and families as well as hobbies • With learning and development opportunities that may lead to good career opportunities in the future 10.49 Describe steps that organizations can take to ensure that actions intended as rewards are actually perceived as rewards.

412 Copyright © 2023

Chapter 10

(Suggested points: 2, [10.7]); Pg. 300 LO: 5 Answer: In order to ensure that actions taken as rewards are actually perceived as rewards, organizations should take the following steps: • Define and measure performance first, then allocate rewards.

• Use all rewards available (financial rewards are not the only type of reward available).

• All employees should be eligible.

• Make rewards visible.

• Make rewards contingent (tied to performance directly and exclusively).

• Make rewards timely.

• Make rewards reversible.

10.50 Describe three of the various types of returns listed in the text.

(Suggested points: 5, [10.1]); Pg. 284 LO: 1 Answer: The following are the different types of returns: Base Pay • Given to employees in exchange for work performed • Focus on position and duties performed rather than contribution • Usually the same for all employees performing similar duties Cost of Living Adjustments (COLA) and Contingent Pay (CP) • COLA implies same percentage increase for all employees regardless of individual performance o Given to combat inflation effects and to preserve employees’ buying power • CP given as an addition to base pay and is based on past performance o Sometimes referred to as merit pay, it is the amount of additional compensation depends on employee’s performance level Short-Term Incentives • Temporary pay adjustments based on the review period (e.g., quarterly or annual) • Is based on past performance • Sometimes referred to as variable pay Long-Term Incentives • Influence future performance over a longer period of time • Typically involve stock ownership or options to buy a stock at preestablished and profitable price • Rationale for long-term incentives o Employees personally invested in the organization’s success o This investment translates into sustained higher level of performance Income Protection 413 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

•

Backup to employees’ salaries in the event that an employee is sick, disabled, or no longer able to work • Mandated by law in some countries (e.g., organizations pay 50% share in employee’s contribution to social security) • Includes benefits such as medical insurance, pension plans, saving plans.

Work-Life Focus • Includes programs that help employees achieve a better balance between work and non-work activities o Time away from work o Services to meet specific needs o Time off for volunteering o Flexible work schedules Allowances • Benefits that cover things such as: o Covering housing and transportation o Smart phones and their monthly charges o Club and gym fees o Discount loans o Mortgage subsidies Relational (Intangible) Returns • Relational returns are intangible in nature • Include: o Recognition and status o Employment security o Challenging work o Opportunities to learn o Opportunities to form personal relationships at work 10.51 What is the difference between a return that has a low degree of dependency on the performance management system and a return that has a high degree of dependency on the performance management system? Then, list three different returns that vary in dependency on the performance management system (one return that is of low dependency, one that is of moderate dependency, and one that is of high dependency) (Suggested points: 5, [10.1]); Pg. 284 LO: 1 Answer:

414 Copyright © 2023

Chapter 10

When return has a low degree of dependency on the performance management system, it means that the system has no impact on this type of return. In other words, all employees receive this type of return, regardless of past performance.

On the other end, when a return has a high degree of dependency, it means that the performance management system dictates who receives these incentives and who does not. Returns of high degree of dependency may be tied to iperformance measured at the individual, team, unit, or even organizational levels. Between the high and low end, we find some returns with a moderate degree of dependency on the performance management system, that may or may not be influenced by the system.

Low dependency: • Cost-of-living adjustment (COLA): • Income protection: Moderate dependency: • Work-Life focus • Allowances • Relational returns • Base pay High dependency: • Contingent pay • Short-term incentives • Long-term incentives 10.52 Provide a detailed discussion of factors that most often come into play in litigation with regard to performance management systems.

(Suggested points: 5, [10.9]); Pg. 305 LO: 7 Answer: The following is a discussion of the factors that most often come into play in litigation with regard to performance management systems: A. Employment at will is a situation wherein the employer or an employee can end an employment relationship at any time. This may appear to indicate that an employee can be terminated for any reason and that documentation of performance is not required; however, there are two notable exceptions to this: i.

An implied contract can be derived from conversations with others in the organization or from information found in the company’s documentation indicating that employees will only be terminated for just cause. ii.

Termination decisions must also consider potential violations of public policy.

B. Negligence occurs when a performance management system is not implemented as described in an organization’s documentation.

C. Defamation is the disclosure of untrue unfavorable performance information that damages an employee’s reputation.

D. Misrepresentation occurs when an employer, fearing a defamation accusation, gives an employee a glowing recommendation when, in fact, the employee 415 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management ____________________________________________________________

E. F.

was terminated for poor performance that, if repeated in the future, could be damaging to the new employer.

Adverse impact, also known as unintentional discrimination, occurs when a performance management system has an unintentional impact on a protected class.

Illegal discrimination, also called disparate treatment, means that: i.

Raters assign scores differently to various employees based on factors that are not related to performance, such as race, religion, ethnicity, gender, and so on. ii.

Some employees receive more training, feedback, or rewards than others.

10.53 Explain disparate treatment and discuss the information an employee must provide in order to make a claim of disparate treatment.

(Suggested points: 2, [10.9]); Pg. 307 LO: 7 Answer: In order for an employee to make a claim of disparate treatment, he or she must know the law and be able to show that it occurred.

• Disparate treatment is also known as illegal discrimination and occurs when an employee is intentionally treated differently because of gender, race, ethnicity, national origin, age, disability status, or other status protected under the law.

• An employee must show that: o He/she is a member of a protected class. o He/she suffered an adverse employment decision as a result of a performance evaluation. o He/she should not have suffered the adverse employment decision because his/her performance warranted a positive decision. o The employment benefit (promotion, reward, etc.) was either not given to anyone, or was given to someone who is not a member of the same protected class as the employee making the complaint.

10.54 Discuss the characteristics of a legally sound performance management system.

(Suggested points: 2, [10.10]); Pg. 308 LO: 8 Answer: Following are the characteristics of a legally sound performance management system: • Performance dimensions and standards are clearly defined and explained to the employee, job-related, and within the control of the employee.

• Procedures are standardized and uniform for all employees within a job group.

• The system is formally explained and communicated to all employees.

• Employees are given timely information on performance deficiencies and opportunities to correct them.

416 Copyright © 2023

Chapter 10

• • • • • •

Employees are given a voice in the review process and are treated with courtesy and civility throughout the process.

The system includes a formal appeals process.

Performance information is gathered from multiple, diverse, and unbiased raters.

Supervisors are provided with formal training and information on how to manage the performance of their employees.

The system includes thorough and consistent documentation including specific examples of performance based on firsthand knowledge.

The system includes procedures to detect potentially discriminatory effects or biases and abuses in the system.

10.55 What are nonfinancial rewards?

(Suggested points: 2, [10.7]); Pg. 300 LO: 5 Answer: Nonfinancial rewards are meaningful rewards not associated with monetary payments that increase the frequency of an action.

417 Copyright © 2023

Chapter 11

Chapter 11— Team Performance Management True/False Questions 11.1

A team is in place when two or more people interact dynamically and interdependently and share a common and valued goal, objective, or mission.

(Suggested points: 2, [11.1]); Pg. 321 LO: 1 Answer: True.

11.2

Teams must be made permanent and reside in the same geographical location.

(Suggested points: 2, [11.1]); Pg. 322 LO: 1 Answer: False. Teams do not have to be permanent and team members do not have to be in the same geographic location. In fact, team members do not need to have met in person to be members of the same team. As long as they work together, they need one another, and they share common goals, they are considered to be members of the same team.

11.3

Teams are used as a possible way to improve products and services and increase productivity.

(Suggested points: 2, [11.2]); Pg. 324 LO: 1 Answer: True.

11.4

In organizations using teams, the performance management system should only focus on team performance and contributions.

(Suggested points: 2, [11.1]); Pg. 322 LO: 4 Answer: False. Specifically, the system should target not only (1) individual performance but also (2) an individual’s contribution to the performance of his or her team(s) and (3) the performance of teams as a whole.

11.5

Routine tasks are well-defined, there are few deviations in how the work is done, and outcomes are easily assessed once the task is completed.

(Suggested points: 2, [11.2]); Pg. 323 LO: 2 Answer: True.

11.6

Project teams are considered teams that are assembled for a specific purpose and expected to disband once the specific tasks are completed.

419 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management

(Suggested points: 2, [11.2]); Pg. 324 LO: 2 Answer: True.

11.7

Team performance management must consider the type of team in question before performance measures are put in place.

(Suggested points: 2, [11.2]); Pg. 324 LO: 2 Answer: True.

11.8

Organizations that choose to include a team component in their performance management systems do not have to be concerned with assessing individual contributions.

(Suggested points: 2, [11.5]); Pg. 327 LO: 5 Answer: False. In general, organizations that choose to include a team component in their performance management systems face the following challenge: How do we assess relative individual contribution.

11.9

Having good knowledge of the organization’s mission and having good knowledge of the job in question are two prerequisites of the first component of the performance management process.

(Suggested points: 2, [11.4]); Pg. 329 LO: 6 Answer: True.

11.10 The second component of the performance management process involves identifying rewards.

(Suggested points: 2, [11.4]); Pg. 332 LO: 6 Answer: False. The second component of the performance management process involves performance planning.

11.11 Autonomous teams are solely responsible for performance execution.

(Suggested points: 2, [11.4]); Pg. 332 LO: 6 Answer: True.

11.12 During the performance assessment of the performance management system, team members are the only people who evaluate the performance of the team.

420 Copyright © 2023

Chapter 11

(Suggested points: 2, [11.4]); Pg. 334 LO: 6 Answer: False. All team members must evaluate one another’s performance as well as the performance of the team overall.

11.13 Three types of performance should be assessed: task performance, contextual performance, and team performance as a whole.

(Suggested points: 2, [11.4]); Pg. 335 LO: 6 Answer: True.

11.14 Effectiveness is the degree to which results satisfy team stakeholders, including both internal and external customers.

(Suggested points: 2, [11.4]); Pg. 335 LO: 6 Answer: True.

11.15 The fundamental principles guiding the design and implementation of a performance management system for a team are different from those for individuals.

(Suggested points: 2, [11.4]); Pg. 328 LO: 1 Answer: False. The fundamental principles guiding the design and implementation of a performance management system are the same as those for individuals; the process is more complex.

11.16 Team members are responsible for being prepared for the team performance review by conducting regular peer appraisals.

(Suggested points: 2, [11.4]); Pg. 336 LO: 6 Answer: True.

11.17 Unlike individual rewards, team rewards should be applicable to all employees, visible, contingent, and irreversible.

(Suggested points: 2, [11.5]); Pg. 337 LO: 8 Answer: False. Team rewards should also be applicable to all employees, visible, contingent, and irreversible.

421 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management

11.18 During transformative learning, members from other teams are sometimes invited to temporarily work in the focal team as a way to import innovation and change.

(Suggested points: 2, [11.4]); Pg. 3332 LO: 6 Answer: True.

11.19 Companies are using team-based organization design to increase the degree of control they have over resources and how employees interact with each other.

(Suggested points: 2, [11.1]); Pg. 322 LO: 1 Answer: False. Team-based organization design is often seen as a way to keep pace with the challenges of a fluid and unpredictable world.

11.20 A team charter is similar to an individual job description, but for teams.

(Suggested points: 2, [11.4]); Pg. 329 LO: 6 Answer: True.

11.21 Rater motivation and rater training programs are not needed for teams because they often use peer ratings of performance.

(Suggested points: 2, [11.4]); Pg. 334 LO: 6 Answer: False. Rater motivation and rater training programs are just as applicable to team performance management systems as to individuals.

Multiple Choice Questions 11.22 A team performance management system should target: A. Individual performance only B. Individual and team performance as a whole C. Individual performance, an individual’s contribution to the performance of his or her team, and team performance as a whole D. Team performance as a whole only (Suggested points: 2, [11.1]); Pg. 321 LO: 1 Answer: C. 11.23 Teams can be classified based on: A. Complexity of task and membership configuration B. Complexity of task and type of task 422 Copyright © 2023

Chapter 11

C. Membership configuration and location of members D. Membership configuration and type of task (Suggested points: 2, [11.2]); Pg. 323 LO: 2 Answer: A. 11.24 Three main types of teams based on the task complexity and membership configuration dimensions are: A. Static teams, dynamic teams, and routine teams B. Work or service teams, project teams, and network teams C. Work or service teams, non-routine teams, and dynamic teams D. Work or service teams, project teams, and geographic teams (Suggested points: 2, [11.2]); Pg. 324 LO: 2 Answer: B. 11.25 Organizations that choose to include a team component in their performance management systems face the following challenges: A. How to assess relative individual contributions B. How to balance individual and team performance C. How to identify individual and team measures of performance D. All of these are correct (Suggested points: 2, [11.3]); Pg. 328 LO: 5 Answer: D. 11.26 Components of the process used to design a system that includes team performance are: A. Prerequisites, performance planning, performance execution, performance review B. Prerequisites, performance execution, performance review, performance renewal, and recontracting C. Prerequisites, performance planning, performance execution, performance assessment, and performance review D. Performance planning, performance execution, performance assessment, and performance review (Suggested points: 2, [11.4]); Pg. 330 LO: 6 Answer: C. 11.27 The three types of performance to be assessed in a team performance management system are: 423 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management

A. Task performance, contextual performance, and team performance as a whole B. Task performance, organizational performance, and contextual performance C. Contextual performance, organizational performance, and team performance as a whole D. None of these are correct (Suggested points: 2, [11.4]); Pg. 335 LO: 6 Answer: A. 11.28 Team performance as a whole can be measured using the following performance dimension: A. Effectiveness B. Efficiency C. Learning and growth D. All of these are correct (Suggested points: 2, [11.4]); Pg. 335 LO: 6 Answer: D. 11.29 What are the defining characteristics of a team?

A. They work in the same geographical location, they need one another, they meet on a regular basis, and they share common goals.

B. They work together, they need one another, they meet on a regular basis, and they share common goals.

C. They work together, they need one another, and they share common goals.

D. None of these are correct.

(Suggested points: 2, [11.1]); Pg. 321 LO: 1 Answer: C. 11.30 Work and service teams can clearly benefit from peer ratings.

A. True, but only because everyone benefits from peer ratings.

B. False, because they may not know what other members are responsible for doing.

C. True, because they observe one another’s performance on a daily basis.

D. False, because they are not located in the same geographic location.

(Suggested points: 2, [11.2]); Pg. 324 LO: 2 Answer: C. 11.31 With regard to project teams, when and how should performance measurements be taken?

424 Copyright © 2023

Chapter 11

A. After the project is over and the results have been observed.

B. After the project is over, but before results have been observed.

C. During the project, because team members will not care about results once the project is over.

D. During the project, because project teams are likely to disband once the project is over.

(Suggested points: 2, [11.2]); Pg. 324 LO: 2 Answer: D. 11.32 With network teams, it is difficult to measure ___________________________.

A. specific outcomes B. individual competencies C. individual performance D. team performance (Suggested points: 2, [11.2]); Pg. 325 LO: 2 Answer: A. 11.33 If an employee is a high performer in task performance, what does this mean for contextual performance?

A. Contextual performance and task performance are completely tied together, so this employee will also be a high performer in contextual performance.

B. Contextual and task performance are not necessarily related, so there is no way to know what kind of contextual performance this employee exhibits.

C. Contextual and task performance are complete opposites, so this employee will score very poorly on contextual performance.

D. None of these are correct (Suggested points: 2, [11.4]); Pg. 335 LO: 6 Answer: B. 11.34 What is a self-funded reward?

A. A reward that results from money the employee puts into the company in terms of stock purchases.

B. A reward that results from money the team saves the company as a result of the team’s efforts.

C. A reward that comes out of the budget of the unit or division from which the team originates.

D. A reward that the company sets aside for the best performer for that period.

(Suggested points: 2, [11.5]); Pg. 337 LO: 7 Answer: 425 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management

B. 11.35 Which of the following is NOT a recommendation regarding how to facilitate and accelerate team learning and development: A. Facilitate generative learning B. Facilitate cognitive learning C. Facilitate transformative learning D. Facilitate adaptive learning (Suggested points: 2, [11.4]); Pg. 332 LO: 6 Answer: B. 11.36 What type of team learning utilizes, among many techniques, discussions of feelings of uncertainty when facing change?

A. Adaptive learning B. Emotional learning C. Transformative learning D. None of these are correct (Suggested points: 2, [11.4]); Pg. 332 LO: 6 Answer: C. 11.37 What type of team learning provides members with best practices recommendations and time to practice those recommendations?

A. Adaptive learning B. Emotional learning C. Transformative learning D. None of these are correct (Suggested points: 2, [11.4]); Pg. 332 LO: 6 Answer: D. 11.38 Benefits of virtual teams include all of the following EXCEPT: A. Saving money on travel B. Minimizing disruptions due to travel C. Greater camaraderie between co-workers D. Cost savings due to reduced need for office space (Suggested points: 2, [11.2]); Pg. 326 LO: 3 Answer: C.

426 Copyright © 2023

Chapter 11

Short-Answer and Essay-Type Questions 11.39 Identify and briefly explain any six components of a team charter?

(Suggested points: 3, [11.4]); Pg. 329 LO: 6 Answer: (The student may include any six out of the below-listed thirteen): § Strategic alignment: how does the team’s work support and relate to unit and organizational goals? § Team purpose: what is the team’s reason for being? § Team objectives, goals, and priorities: what are the team’s primary objectives and how are they prioritized? § Key stakeholders: who are the key stakeholders that have an interest in the team’s work? § Team customers: who are the team’s internal and external customers? § Team leader and sponsor: who is the team leader and who is its champion (i.e., a team supporter who is not a member of the team and has decision making power in the organization)? § Team member roles and responsibilities: who are the team members and what are their respective roles and responsibilities? § Team member time commitments: what time commitments are expected for all team members? § Team communication plan: what are the communication rules for the team?

How often will we communicate and what forms will communication take? § Team ground rules: what rules will the team adopt about interactions among team members such as how to conduct meetings? § In/out of scope elements: what tasks and functions are in scope for the team and which ones are out of scope? § Key deliverables: what are the team’s key deliverables or tangible work products? § Performance analytics: how will we measure team success?

11.40 Identify and briefly explain the four skills needed for managers to turn “B players” into a winning team?

(Suggested points: 2, [11.4]); Pg. 333 LO: 6 Answer: § Vision: A good idea of future goals and clear strategy on how to achieve them. § Performance analytics: Access to accurate and fair performance data—from multiple sources. § Feedback: Information on individuals but also information on the team as a whole. § Morale: Collective engagement of the entire team. Includes shared common goals, motivation to achieve those common goals, and the necessary resources 427 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management

to do so. Team members see that the leader is committed to the team, and not just using the team as a springboard of his/her next career move.

11.41 Identify and briefly explain the five KSAs that are especially conducive to being an effective team member?

(Suggested points: 2.5, [11.4]); Pg. 331 LO: 6 Answer: § Communication: Giving and receiving constructive feedback, listening, and sharing information and ideas. § Decision making: Helping the team make decisions. § Collaboration: Dealing with conflict effectively, committing to the team and its goals, valuing the diversity and experience of other team members, and sharing accountability. § Team leadership: Taking on the role of team leader, including knowing how to extract the best out of the team. § Self-control: Keeping emotions under control and not displaying negative actions even when faced with opposition or even hostility from others (Instructor Note: There are certainly other KSAs that would be helpful, but these are specifically mentioned in the book.)

11.42 There are three main types of teams based on the task complexity and membership configuration dimensions. Please list and describe each of these teams.

(Suggested points: 2, [11.2]); Pg. 324 LO: 2 Answer: The three main types of teams are: • Work or Service Teams: These are intact teams engaged in routine tasks, including manufacturing or service tasks. The work or service team includes people who have worked together for a while and know one another well.

Most members share a similar set of skills.

• Project Teams: These are teams assembled for a specific purpose and expected to disband once their specific tasks are completed. The tasks are outside the core production or service of the organization and are therefore not as routine as those of work or service teams. Project teams include members from different functional areas, don’t know one another’s specialties, and therefore are highly dependent on one another’s high level of knowledge and usually sophisticated skill sets.

• Network Teams: These teams include membership that is not constrained by time or space nor limited by organizational boundaries. Usually, team members are geographically dispersed and stay in touch via telecommunications technology such as e-mail, videoconferencing, and telephone. Their work is extremely non-routine. Network teams usually include a combination of temporary and full-time workers, customers, vendors, and even consultants.

428 Copyright © 2023

Chapter 11

11.43 Organizations that choose to include a team component in their performance management systems face various challenges. Please list and describe the three main challenges discussed in the readings.

(Suggested points: 2, [11.3]); Pg. 328 LO: 5 Answer: The three main challenges faced by organizations that choose to include a team component in their PM systems are: • How do we assess relative individual contribution? How do we know the extent to which particular individuals have contributed to team results? How much has one member contributed vis-à-vis the other members? Are there any slackers or free riders on the team? Is everyone contributing to the same extent, or are some members covering up for the lack of contribution of others?

• How do we balance individual and team performance? How can we motivate team members so they support a collective mission and collective goals? In addition, how do we motivate team members to be accountable and responsible individually? In other words, how do we achieve a good balance between measuring and rewarding individual vis-à-vis team performance?

• How do we identify individual and team measures of performance? How can we identify measures of performance that indicate individual performance versus measures of performance that indicate team performance? Where does individual performance end and team performance begin? And, based on these measures, how do we allocate rewards to individuals versus teams?

11.44 Your organization is considering implementing a team performance management system and has asked you to provide information on what types of performance dimensions should be used to measure team performance. Write a one-page memo to your supervisor on the recommended performance dimensions to be considered.

(Suggested points: 3, [11.4]); Pg. 335 LO: 6 Answer: The memo to the supervisor will vary, but should recommend considering the following dimensions: • Effectiveness: The degree to which results satisfy team stakeholders including both internal and external customers. Results could be the same types of results that are measured to evaluate individual performance. Specifically, these can include measures of quality, quantity, cost, and time.

• Efficiency: The degree to which internal team processes support the achievement of results, team growth, and team member satisfaction. This can include measures of communication, coordination, collaboration, and decision making.

429 Copyright © 2023

Part IV: Reward Systems, Legal Issues, and Team Performance Management

• •

Learning and growth: The degree to which the team is able to learn new skills and improve performance over time. Specific measures can include innovation, documented learning, best practices, and process improvements.

Team member satisfaction: The degree to which team members are satisfied with their team membership. Specific measures can include team members’ perceptions regarding the extent to which teamwork contributes to their growth and personal well-being.

11.45 What are the benefits of a team over individual workers?

(Suggested points: 2, [11.1]); Pg. 321 LO: 1 Answer: In comparison to individual workers, teams provide the following benefits: • Teams may comprise members from all over the country or the world, increasing productivity for global customers.

• Using teams allows greater flexibility for organizations with flatter hierarchical structures.

• Products and services are becoming very complex, which requires that many people contribute their diverse talents to the same project.

• Teams are seen as capable of providing a quicker and more effective response to environmental changes.

11.46 What are the challenges in managing performance in a team setting?

(Suggested points: 2, [11.3]); Pg. 328 LO: 5 Answer: When managing performance in a team setting, one is challenged by the following questions: A. How do we assess relative individual contribution to the team goals and results?

B. How do we balance individual and team performance?

C. How do we identify individual and team measures of performance?

11.47 What issues need to be considered when creating a developmental plan for a team?

(Suggested points: 2, [11.4]); Pg. 336 LO: 6 Answer: When considering a developmental plan for a team, the following issues should be considered: A. Results expected of the team B. Behaviors expected of team members C. Developmental objectives to be achieved by the team and its members 11.48 Performance assessments of teams include the assessment of what types of performance?

430 Copyright © 2023

Chapter 11

(Suggested points: 2, [11.4]); Pg. 335 LO: 1 Answer: Performance assessment with regard to teams includes assessment of: A. Individual performance of task performance directly related to the team’s goals B. Individual performance of contextual performance that directly contributed to team performance C. Team performance as a whole 11.49 Give a detailed description of the performance dimensions used to measure team performance as a whole.

(Suggested points: 2, [11.4]); Pg. 335 LO: 6 Answer: The performance dimensions used to measure team performance as a whole include: A. Effectiveness: The degree to which results satisfy team stakeholders including both internal and external customers.

B. Efficiency: The degree to which internal team processes support the achievement of results, team growth, and team member satisfaction.

C. Learning and growth: The degree to which the team is able to learn new skills and improve performance over time.

D. Team member satisfaction: The degree to which team members are satisfied with their team membership.

11.50 Describe the three recommendations regarding how to facilitate and accelerate team learning and development.

(Suggested points: 2, [11.4]); Pg. 332 LO: 6 Answer: The three recommendations regarding how to facilitate and accelerate team learning and development are as follows: • Facilitate adaptive learning: recommendations include encouraging the team to try new behaviors and to review the team’s processes to understand what worked and what did not.

• Facilitate generative learning: recommendations include providing information regarding best practices implemented by other teams within or outside the organization and providing time for the team to practice new skills until they become habitual.

• Facilitate transformative learning: recommendations include encouraging teams to experiment with new ways of working together and inviting members from other teams to participate in discussions about performance or to participate as temporary team members.

431 Copyright © 2023

This Page is Intentionally Left Blank

This Page is Intentionally Left Blank