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. 124
LO: 1
Answer:
True.
5.2 Performance standards are statements of important and measurable outcomes.
(Suggested points: 2, [5.1]); Pg. 124
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. 124
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. 126-128
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. 128-129
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. 129
LO: 5
Answer:
True.
Part II: System Implementation_____________________________________________________________
5.7 An indicator is a behavior that suggests whether a particular competency is
present.
(Suggested points: 2, [5.1]); Pg. 130
LO: 5
Answer:
True.
5.8 Absolute systems base the measurement on comparing employees with one
another.
(Suggested points: 2, [5.2]); Pg. 138
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. 134-135
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. 132
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. 142
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. 133
LO: 7
Answer:
False. A forced distribution method may discourage contextual performance
behaviors and teamwork and may increase competition within an organization.
Chapter 5
5.13 The relative percentile method is a type of absolute performance measurement
system.
(Suggested points: 2, [5.2]); Pg. 132
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. 136-138
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. 137
LO: 7
Answer:
True.
5.16 Context plays no role in measuring performance.
(Suggested points: 2, [5.3]); Pg. 144
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. 134
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. 133
LO: 7
Answer:
Part II: System Implementation_____________________________________________________________
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. 134
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.
Multiple-Choice Questions
5.20 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 the above
(Suggested points: 2, [5.1]); Pg. 124
LO: 1
Answer:
C.
5.21 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. 126-127
LO: 3
Answer:
B.
5.22 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 the above
(Suggested points: 2, [5.1]); Pg. 124
LO: 6
Answer:
Chapter 5
D.
5.23 ________________ 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 the above
(Suggested points: 2, [5.1]); Pg. 129
LO: 2
Answer:
B.
5.24 ___________ 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 the above
(Suggested points: 2, [5.1]); Pg. 130
LO: 5
Answer:
B.
5.25 To understand the extent to which a competency is present, we measure _______.
A. indicators
B. performance standards
C. objectives
D. none of the above
(Suggested points: 2, [5.1]); Pg. 130
LO: 6
Answer:
A.
5.26 ________________ 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. 132
LO: 7
Answer:
C.
Part II: System Implementation_____________________________________________________________
5.27 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. 133
LO: 7
Answer:
D.
5.28 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. 138-144
LO: 7
Answer:
A.
5.29 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 the above
(Suggested points: 2, [5.2]); Pg. 142
LO: 7
Answer:
B.
5.30 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. 124
LO: 2
Answer:
D.
5.31 Statements of important and measurable outcomes are called _______________.
A. key accountabilities
Chapter 5
B. performance standards
C. objectives
D. yardsticks
(Suggested points: 2, [5.1]); Pg. 124
LO: 3
Answer:
C.
5.32 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. 124
LO: 4
Answer:
A.
5.33 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. 126-127
LO: 3
Answer:
B.
5.34 Which of the following is characteristic of good performance standards?
A. Concrete
B. Realistic
C. Reviewed regularly
D. All of the above
(Suggested points: 2, [5.1]); Pg. 128-129
LO: 4
Answer:
D.
5.35 Competencies are composed of which of the following?
A. Knowledge
B. Abilities
C. Skills
D. All of the above
(Suggested points: 2, [5.1]); Pg. 129
LO: 5
Part II: System Implementation_____________________________________________________________
Answer:
D.
5.36 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. 129
LO: 5
Answer:
C.
5.37 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. 130
LO: 5
Answer:
D.
5.38 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
(Suggested points: 2, [5.2]); Pg. 132
LO: 7
Answer:
B.
5.39 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. 135
LO: 7
Answer:
C.
Chapter 5
5.40 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. 132-133
LO: 7
Answer:
D.
5.41 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. 132
LO: 7
Answer:
D.
5.42 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,
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. 132
LO: 7
Answer:
B.
5.43 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. 138-144
LO: 7
Answer:
Part II: System Implementation_____________________________________________________________
B.
5.44 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. 141
LO: 7
Answer:
A.
5.45 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. 138
LO: 7
Answer:
D.
5.46 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. 124
LO: 1
Answer:
Chapter 5
A.
Short-Answer and Essay-Type Questions
5.47 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. 124-129
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 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.
5.48 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. 132-144
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.
Part II: System Implementation_____________________________________________________________
Absolute systems base the measurement on comparing employees with a pre-specified
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.
5.49 Discuss the questions that one must be able to answer when adopting a results
approach.
(Suggested points: 2, [5.1]); Pg. 124
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)?
5.50 Explain why accountabilities are determined.
(Suggested points: 2, [5.1.1]); Pg. 124-125
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.
5.51 List the characteristics of good objectives.
(Suggested points: 2, [5.1.2]); Pg. 126-128
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
Chapter 5
5.52 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 1 at a cost not to exceed $3,000.
st
(Suggested points: 2, [5.1.3]); Pg. 128-129
LO: 4
Answer:
Standards must include an action (increase), the desired result ( , a due to $22,000)
date ( , and some type of quality or quantity indicator
by December 1st) (the
increase in sales from $15,000 to $22,000 and at a cost not to exceed $3,000).
5.53 Explain the difference between a threshold competency and a differentiating
competency.
(Suggested points: 2, [5.2]); Pg. 129-130
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.
5.54 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. 128
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:
oQuality—in terms of how well the objective was achieved
oQuantity—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
oTime—in terms of due dates, the schedule, cycle times, and how quickly
the objective was achieved
5.55 List the characteristics of good performance standards.
(Suggested points: 2, [5.1.3]); Pg. 128-129
LO: 4
Answer:
Good performance standards have the following characteristics. They are:
oRelated to the position
oConcrete, specific, and measurable
oPractical to measure
Part II: System Implementation_____________________________________________________________
oMeaningful
oRealistic and achievable
oReviewed regularly
5.56 To understand the extent to which an employee possesses a competency, we
measure indicators. Explain the term .indicator
(Suggested points: 2, [5.2]); Pg. 130
LO: 7
Answer:
An indicator is an observable behavior that gives us information regarding the
competency in question.
5.57 List the components that must be present when describing a competency.
(Suggested points: 2, [5.2]); Pg. 131
LO: 5
Answer:
When describing a competency, we need to provide the following components:
oDefinition of a competency
oDescription of specific behavioral indicators that can be observed when
someone demonstrates a competency effectively
oDescription of specific behaviors that are likely to occur when someone
doesn’t demonstrate a competency effectively (what a competency is not)
oSuggestions for developing the competency
5.58 Identify and explain five comparative measurement systems.
(Suggested points: 3, [5.2.1]); Pg. 132-136
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.
Chapter 5
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.
5.59 Describe the advantages and disadvantages of using the various absolute
evaluation approaches.
(Suggested points: 3, [5.2.2]); Pg. 138-144
LO: 7
Answer:
Absolute performance measurement systems compare employees with pre-
specified 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.
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.
