MGMT 408 EXAM 1 - CH 1- 4 QUESTIONS | VERIFIED
ACCURATE ANSWERS | 2026
Performance Management (PM) is the - Answers -- continuous process of identifying,
measuring, and developing
- performance of individuals and teams
- aligning of performance with strategic goals of the organization
Performance management is NOT - Answers -- performance appraisals
Compared to performance appraisals, performance management is - Answers --
strategic business considerations linking employee performance to organizational goals
- driven by the line manager
- an ongoing feedback process so employees can improve performance
Compared to performance management, performance appraisals are - Answers --
driven by HR
- assessing employee strengths and weaknesses
- conducted once a year
- lacking ongoing feedback (when done incorrectly)
Contributions of performance management for employees include - Answers --
clarifying definitions in job criteria and success criteria
- increasing motivation to perform
- increasing self esteem;
- enhancing self-insight and development
Contributions of performance management for managers include - Answers --
communicate supervisors view of performance more clearly
- managers gaining insight about subordinates
- better and more timely differentiation between good and poor performance
- employees becoming more confident
Contributions of performance management for organizational/HR functions include -
Answers -- clarifying organizational goals
- facilitating organizational change
- fairer, more appropriate administrative actions
- better protection from lawsuits
Disadvantages/dangers of poorly-implemented PM systems for employees include -
Answers -- lowered self esteem
- employee burnout and job dissatisfaction
- damaged relationships
- use of false or misleading information
, Disadvantages/dangers of poorly-implemented PM systems for managers include -
Answers -- increased turnover
- decreased motivation to perform
- unjustified demands on managers' resources
- varying and unfair standards and ratings
Disadvantages/dangers of poorly-implemented PM systems for organizations include -
Answers -- wasted time and money
- unclear ratings systems
- emerging biases
- increased risk of litigation
Reward systems are - Answers -- a set of mechanisms for distributing tangible returns
and intangible or relational returns
- a part of an employment relationship
Tangible returns are - Answers -- cash compensation including base pay, cost-of-living
& contingent pay, and incentives
Tangible returns include benefits such as - Answers -- income protections (severance
pay)
- allowances (car or phone allowance)
- work life focus (gym memberships)
Intangible returns are relational returns such as - Answers -- recognition and status
- employment security
- challenging work
- learning opportunities
Returns with low dependency on the performance management system (PM does not
impact type of return) are - Answers -- cost of living adjustment
- income protection
Returns with moderate dependency on the performance management system are -
Answers -- work/life focus
- allowances
- relational returns
- base pay
Returns with high dependency on the performance management system are - Answers
-- contingent pay
- short-term incentives
- long-term incentives
ACCURATE ANSWERS | 2026
Performance Management (PM) is the - Answers -- continuous process of identifying,
measuring, and developing
- performance of individuals and teams
- aligning of performance with strategic goals of the organization
Performance management is NOT - Answers -- performance appraisals
Compared to performance appraisals, performance management is - Answers --
strategic business considerations linking employee performance to organizational goals
- driven by the line manager
- an ongoing feedback process so employees can improve performance
Compared to performance management, performance appraisals are - Answers --
driven by HR
- assessing employee strengths and weaknesses
- conducted once a year
- lacking ongoing feedback (when done incorrectly)
Contributions of performance management for employees include - Answers --
clarifying definitions in job criteria and success criteria
- increasing motivation to perform
- increasing self esteem;
- enhancing self-insight and development
Contributions of performance management for managers include - Answers --
communicate supervisors view of performance more clearly
- managers gaining insight about subordinates
- better and more timely differentiation between good and poor performance
- employees becoming more confident
Contributions of performance management for organizational/HR functions include -
Answers -- clarifying organizational goals
- facilitating organizational change
- fairer, more appropriate administrative actions
- better protection from lawsuits
Disadvantages/dangers of poorly-implemented PM systems for employees include -
Answers -- lowered self esteem
- employee burnout and job dissatisfaction
- damaged relationships
- use of false or misleading information
, Disadvantages/dangers of poorly-implemented PM systems for managers include -
Answers -- increased turnover
- decreased motivation to perform
- unjustified demands on managers' resources
- varying and unfair standards and ratings
Disadvantages/dangers of poorly-implemented PM systems for organizations include -
Answers -- wasted time and money
- unclear ratings systems
- emerging biases
- increased risk of litigation
Reward systems are - Answers -- a set of mechanisms for distributing tangible returns
and intangible or relational returns
- a part of an employment relationship
Tangible returns are - Answers -- cash compensation including base pay, cost-of-living
& contingent pay, and incentives
Tangible returns include benefits such as - Answers -- income protections (severance
pay)
- allowances (car or phone allowance)
- work life focus (gym memberships)
Intangible returns are relational returns such as - Answers -- recognition and status
- employment security
- challenging work
- learning opportunities
Returns with low dependency on the performance management system (PM does not
impact type of return) are - Answers -- cost of living adjustment
- income protection
Returns with moderate dependency on the performance management system are -
Answers -- work/life focus
- allowances
- relational returns
- base pay
Returns with high dependency on the performance management system are - Answers
-- contingent pay
- short-term incentives
- long-term incentives
