CHAPTER 8 QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS 2024
performance management - ANSWER process of creating a work environment in which people can
perform to the best of their abilities
performance evaluations - ANSWER result of an annual or biannual process in which a manager
evaluates an employee's performance and uses the information to show the person where
improvements are needed and why
performance standards - ANSWER realistic and specific goals/benchmarks that are measurable and
written down to communicate precise information to employees. based on job related requirements
derived from a job analysis and reflected in an employee's job description and job specifications
strategic relevance - ANSWER individual standards directly relate to strategic goals
criterion deficiency - ANSWER standards capture all of an individual's contributions
criterion contamination - ANSWER performance capability is not reduced by external factors
reliability - ANSWER standards are quantifiable, measurable, and stable
calibration - ANSWER process whereby managers meet to discuss the performance of individual
employees to ensure their employee appraisals are in line with one another
legal guidelines for evaluations - ANSWER (1) performance ratings must be job related, (2) employees
must be given a written copy of their job standards in advance of evaluations, (3) managers who conduct
the evaluation must be able to observe the behavior they are rating, (4) do not allow performance
problems to continue unchecked, (5) supervisors must be trained to use the evaluation for correctly, (6)
firm's HR department should review the evaluations to see if minority groups are being adversely
impacted, (7) evaluations should be discussed openly with employees and counseling offered to help
poor performers, (8) appeals procedures should be established to enable employees to express
disagreement with the evaluation
, types of performance evaluations - ANSWER (1) manager evaluation, (2) self evaluation, (3) subordinate
evaluation, (4) peer evaluations, (5) team evaluations, (6) customer evaluations
manager evaluations - ANSWER conducted by an employee's manager and reviewed by a manager one
level higher
self evaluations - ANSWER conducted by the employee being evaluated, on an evaluation form
completed by the employee prior to the evaluation meeting
subordinate evaluations - ANSWER conducted by an employee of a superior, which is more appropriate
for developmental purposes than for administration purposes
peer evaluations - ANSWER conducted by one's fellow employees, on forms compiled into a single
profile for use in the evaluation meeting
team evaluations - ANSWER recognizes team accomplishment rather than individual performance
customer evaluations - ANSWER conducted by a firm's external and internal customers
360 degree evaluations - ANSWER conducted by people who interact with the employee on forms
compiled into a single profile for use in the evaluation meeting
establishing an evaluation plan - ANSWER provide an explanation of the performance evaluation
system's objectives
distributional errors - ANSWER (1) error of central tendency, (2) leniency or strictness error, (3) forced
distribution
error of central tendency - ANSWER performance rating error in which all employees are rated about
average