Which of the following errors occur when a rater compares an individual, not against an objective standard


Question 1

Which of the following errors occur when a rater compares an individual, not against an objective standard, but against other employees?

Contrast errors

Distributional errors

Halo errors

Leniency errors

Horns errors

Question 2

The method of performance measurement that uses several statements describing each trait to produce a final score for that trait is known as the _____.

behaviorally anchored rating scale

mixed-standard scale

behavioral observation scale

graphic rating scale

forced distribution scale

Question 3

What is the disadvantage of peers as a source of performance information?

Peers do not have expert knowledge of job requirements.

Peers are uncomfortable with rating employees for decisions that may affect themselves.

Assessments of performance by peers generally lack validity.

Peers are generally less favorable toward participating in reviews to be used for employee development.

Peers are poor sources of performance information in any job.

Question 4

Subordinate evaluations of performance are most appropriate when the performance results are to be used for:

administrative purposes.

investigative purposes.

strategic purposes.

developmental purposes.

executive purposes.

Question 5

In the case of performance appraisal, _____ refers to whether the appraisal measures all the relevant aspects of performance and omits irrelevant aspects of performance.






Question 6

To meet which of the following broad purposes do organizations establish performance management systems?






Question 7

Most employee development occurs through:

performance appraisals.

job experiences.

formal education.

technical training.

interpersonal relationships

Question 8

Job rotation involves:

adding challenges or new responsibilities to the employee’s current job.

moving the employee through a series of job assignments in one or more functional areas of the company.

allowing the employee to work full-time in a temporary position at another company.

allowing the employee to switch between two different jobs within the company on a daily or weekly basis.

assigning an employee to a position with less responsibility and authority.

Question 9

The primary use of assessment centers is to identify:

whether employees have the personality characteristics and skills needed for managerial positions.

the strengths and weaknesses of the organization.

the decision processes and communication styles that inhibit production.

the opportunities and threats of an organization.

the factors that inhibit group performance

Question 10

Allowing employees to take a full-time temporary position at another company is known as a(n):


expatriate assignment.



lateral move.

Question 11

The Myers-Briggs Type Indicator (MBTI) identifies individuals’ preferences for source of energy, means of information gathering, way of decision making, and _____.

succession planning



value system

goal setting

Question 12

What is the organization’s responsibility in the goal-setting stage of the career management process?

To identify what skills can be developed realistically

To identify goals and methods to determine goal progress

To identify steps and a timetable to reach goals

To ensure that the goal is specific, challenging, and attainable

To communicate performance evaluation and opportunities available to the employee

Question 13

According to this principle of discipline, discipline should give clear warning and following up with consistent, objective, immediate consequences. Identify the principle.

Per se rule

Laissez faire rule

Fundamental attribution rule

Progressive discipline

Hot-stove rule

Question 14

An intervention designed to increase the communication and understanding of the various sets of role expectations that exist for specific employees is called:

role playing.

role analysis technique.

role carve-out.

role enrichment.

role overload.

Question 15

People’s perception of _____ is their judgment that fair methods were used to determine the consequences an employee receives.

interactional justice


outcome fairness

procedural justice

labor law posting

Question 16

____ is a referral service that employees can use to seek professional treatment for emotional problems or substance abuse.

Alternative dispute resolution

Outplacement counseling

Employee assistance program

Progressive discipline program

Request for proposal

Question 17

The _____ emphasizes specific aspects of satisfaction—pay, the work itself, supervision, co-workers, and promotions.

outplacement policy

employee assistance program

job description index

novated lease system

profit-sharing program

Question 18

The two sets of people in the organization who most affect an individual’s job satisfaction are:

subordinates and supervisors.

supervisors and family members.

co-workers and subordinates.

supervisors and co-workers.

supervisors and upper-level managers

Question 19

Which of the following permits a lower training wage, which employers may pay to workers under the age of 20 for a period of up to 90 days?






Question 20

Economic theory holds that the most profitable pay level, all things being equal, would be:

below the market rate.

at the market rate.

above the market rate.

anywhere within (slightly above or slightly below) the market-rate range.

the pay level that is lower than that of the lowest paying organization.

Question 21

_____ are sets of jobs having similar worth or content, grouped together to establish rates of pay.

Pay scales

Pay ranges

Pay differentials

Pay levels

Pay grades

Question 22

The Fair Labor Standards Act (FLSA) includes provisions for:

personal finance.

minimum wage.

wage discrimination.

environmental hazards.

retirement plans.

Question 23

_____ provide the basis for decisions about relative internal worth.


Pay structures

Job evaluations

Pay rates

Two-tier wage systems

Question 24

The federal government tracks trends in the nation’s cost of living with a measure known as the:

Consumer Price Index.

Living-Wage Index.

Gross National Product Index.

Exchange Rate Index.

Employment Cost Index.

Question 25

Paying most or all of a salesperson’s compensation in the form of commissions encourages the salesperson to focus on:

closing the sale.

developing customer goodwill.

working as a team member.

building a relationship with the customer.

improving the quality of customer experience.

Question 26

_____ provides a method for rewarding performance in all of the dimensions measured in the organization’s performance management system.

Differential piece rate

Standard hour plan

Merit pay

Piece rate


Question 27

Which of the following is an arrangement in which the organization distributes shares of stock to all its employees by placing it in a trust?

Stock options

Employee stock ownership plan

Scanlon plan

Collective stock options

Profit sharing plan

Question 28

Straight commission plans:

imply that the employees receive a straight salary.

are useful when the organization wants salespeople to concentrate on listening to customers.

help to attract employees risk-averse employees.

are common among insurance and real estate agents.

are not common among car salespeople

Question 29

What is profit sharing?

A gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.

An incentive pay in which payments are a percentage of the organization’s profits and do not become part of the employees’ base salary.

A group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees.

A combination of performance measures directed toward the company’s profit and used as the basis for awarding incentive pay.

An incentive plan where a percentage of the previous year’s profits is provided to employees as a part of salary

Question 30

Differential piece rates system refers to:

an incentive pay plan in which the employer pays the rate per piece based on the difference in performance of employees.

a wage system designed for salespeople who earn a differential pay for every piece sold.

an incentive pay in which the piece rate is higher when a greater amount is produced.

a system of linking pay increases to ratings on performance appraisals.

an incentive pay plan where every employee is paid different wages based on the skills they possess


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