⋆
]]
⋆
IOP3706: Personnel Psychol-
ogy — Employee Retention
May/June Examination 2026 Revision Guide
Covers Examination Papers from 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Industrial & Organisational Psychology [
_ Exam Revision Guide
IOP3706
Module Code:
Personnel Psychology: Employee Retention
Module Name:
May/June Examination 2026 Prep
Paper / Exam:
May/June 2023, 2024 & 2025 Papers
Coverage:
7
NQF Level:
College of Economic & Management Sciences
Faculty:
Understand the content deeply. Don’t just memorise — apply the theory to realistic
workplace scenarios, as UNISA examiners always set case-study questions.
Exam Revision Notes | IOP3706 | 2023–2025
,IOP3706 | Exam Revision 2023–2025 Personnel Psychology: Employee Retention
Question 1 [May/June 2023 & 2024 — 25 marks]
(a) [10 marks]
Question: Distinguish between performance appraisal and performance manage-
ment. In your answer, explain the purpose of each and highlight how the two concepts
differ in scope, timing, and focus.
Answer: Performance appraisal is a formal, periodic evaluation of an employee’s
job performance against set standards or objectives. Think of it as a snapshot — a
structured review, usually annual or biannual, where a supervisor rates the employee and
the results get recorded.
Performance management, on the other hand, is a continuous process. It covers the
full cycle of planning, monitoring, developing, appraising, and rewarding performance.
So appraisal is actually just one component inside the broader performance management
system.
The key differences, laid out clearly:
Key Concept
According to Cummings and Worley, performance management systems must
align individual goals with organisational strategy — this alignment piece is what
separates a true performance management system from a standalone appraisal
tool.
⋆ Exam Tip
When a question asks you to “distinguish between” two concepts, the examiner
wants explicit contrast, not just definitions side by side. Use a table or point-for-
point comparison. And always anchor your answer to a source (Grobler et al. is
the standard IOP3706 reference).
Page 2 of 27
, IOP3706 | Exam Revision 2023–2025 Personnel Psychology: Employee Retention
(b) [15 marks]
Question: Describe FIVE methods of performance appraisal and discuss the strengths
and limitations of each method.
Answer: There are several tools organisations use to evaluate performance. Each has
its moment — none is perfect across all situations.
1. Rating Scales (Graphic Rating Scales)
The evaluator rates the employee on a numerical or descriptive scale (e.g. 1–5) for a list
of competencies or behaviours.
• Strength: Simple to use, quick, easy to compare employees.
• Limitation: Prone to the halo effect (one good trait inflates all ratings) and cen-
tral tendency bias (everyone gets average scores to avoid conflict).
2. Behaviourally Anchored Rating Scales (BARS)
Specific observable behaviours anchor each point on the rating scale — so instead of
rating “communication” as 3/5, the rater looks for defined examples of that behaviour.
• Strength: Reduces subjectivity; gives the employee clear behavioural targets.
• Limitation: Time-consuming and expensive to develop; different jobs need different
anchors.
3. 360-Degree Feedback
Input is collected from multiple sources — supervisor, peers, subordinates, and some-
times customers — then combined into a single profile.
• Strength: Comprehensive, reduces bias from any single rater.
• Limitation: Raters may inflate scores out of friendship (well, especially peers); can
feel threatening to employees.
4. Management by Objectives (MBO)
Manager and employee jointly set specific, measurable objectives at the start of the
period. Performance is judged against those agreed targets.
• Strength: Employees know exactly what is expected — ownership increases motiva-
tion.
• Limitation: Works poorly when goals are poorly defined; can promote short-termism
(hitting the target, ignoring everything else).
Page 3 of 27
]]
⋆
IOP3706: Personnel Psychol-
ogy — Employee Retention
May/June Examination 2026 Revision Guide
Covers Examination Papers from 2023 to 2025
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
[ Industrial & Organisational Psychology [
_ Exam Revision Guide
IOP3706
Module Code:
Personnel Psychology: Employee Retention
Module Name:
May/June Examination 2026 Prep
Paper / Exam:
May/June 2023, 2024 & 2025 Papers
Coverage:
7
NQF Level:
College of Economic & Management Sciences
Faculty:
Understand the content deeply. Don’t just memorise — apply the theory to realistic
workplace scenarios, as UNISA examiners always set case-study questions.
Exam Revision Notes | IOP3706 | 2023–2025
,IOP3706 | Exam Revision 2023–2025 Personnel Psychology: Employee Retention
Question 1 [May/June 2023 & 2024 — 25 marks]
(a) [10 marks]
Question: Distinguish between performance appraisal and performance manage-
ment. In your answer, explain the purpose of each and highlight how the two concepts
differ in scope, timing, and focus.
Answer: Performance appraisal is a formal, periodic evaluation of an employee’s
job performance against set standards or objectives. Think of it as a snapshot — a
structured review, usually annual or biannual, where a supervisor rates the employee and
the results get recorded.
Performance management, on the other hand, is a continuous process. It covers the
full cycle of planning, monitoring, developing, appraising, and rewarding performance.
So appraisal is actually just one component inside the broader performance management
system.
The key differences, laid out clearly:
Key Concept
According to Cummings and Worley, performance management systems must
align individual goals with organisational strategy — this alignment piece is what
separates a true performance management system from a standalone appraisal
tool.
⋆ Exam Tip
When a question asks you to “distinguish between” two concepts, the examiner
wants explicit contrast, not just definitions side by side. Use a table or point-for-
point comparison. And always anchor your answer to a source (Grobler et al. is
the standard IOP3706 reference).
Page 2 of 27
, IOP3706 | Exam Revision 2023–2025 Personnel Psychology: Employee Retention
(b) [15 marks]
Question: Describe FIVE methods of performance appraisal and discuss the strengths
and limitations of each method.
Answer: There are several tools organisations use to evaluate performance. Each has
its moment — none is perfect across all situations.
1. Rating Scales (Graphic Rating Scales)
The evaluator rates the employee on a numerical or descriptive scale (e.g. 1–5) for a list
of competencies or behaviours.
• Strength: Simple to use, quick, easy to compare employees.
• Limitation: Prone to the halo effect (one good trait inflates all ratings) and cen-
tral tendency bias (everyone gets average scores to avoid conflict).
2. Behaviourally Anchored Rating Scales (BARS)
Specific observable behaviours anchor each point on the rating scale — so instead of
rating “communication” as 3/5, the rater looks for defined examples of that behaviour.
• Strength: Reduces subjectivity; gives the employee clear behavioural targets.
• Limitation: Time-consuming and expensive to develop; different jobs need different
anchors.
3. 360-Degree Feedback
Input is collected from multiple sources — supervisor, peers, subordinates, and some-
times customers — then combined into a single profile.
• Strength: Comprehensive, reduces bias from any single rater.
• Limitation: Raters may inflate scores out of friendship (well, especially peers); can
feel threatening to employees.
4. Management by Objectives (MBO)
Manager and employee jointly set specific, measurable objectives at the start of the
period. Performance is judged against those agreed targets.
• Strength: Employees know exactly what is expected — ownership increases motiva-
tion.
• Limitation: Works poorly when goals are poorly defined; can promote short-termism
(hitting the target, ignoring everything else).
Page 3 of 27
