Chapter 1—Performance Management and Reward Systems in Context
True/False Questions
1. A performance management system is the systematic description of an employee’s
strengths and weaknesses.
False
2. Linking each individual’s performance to the organization’s mission involves
explaining to each employee how the employee’s activities are helping the
organization gain a competitive advantage.
True
3. Feedback often decreases motivation to perform because it points out what an
employee does wrong.
False
4.Dangers of a poorly implemented performance management system include wasted time and
money, lack of standardized employee ratings, and confusion on how ratings are obtained.
True
5. Intangible returns include benefits and work/life programs.
False
6 Exempt employees are often employees in managerial or professional roles on salaries, and are
not eligible for overtime pay.
True
7 Short-term incentives are one-time payments typically given quarterly or annually.
True
8 The strategic purpose of PM systems involves constructing the strategic vision for the organization.
False
9 A reliable performance management system includes all relevant performance facets and does not
include irrelevant performance facets.
False (this is a function of valid PM)
10 Distributive justice is the perception that the performance evaluation received is fair relative to the
work performed.
True
11 Performance management systems in foreign subsidiaries often differ from those in home country
headquarters as differences in the power distance (i.e., the degree to which a society accepts
unequal distribution of power) increase between/among countries.
True
Multiple-Choice Questions
_____________ focuses on positions and duties, rather than on an individual’s contribution.
In what manner is performance management typically similar around the world?
Standardization of performance measurement
When employees of an organization do not see the PM system as fair, the organization may witness from its employees all of the following EXCEPT:
"Lowered self-esteem." The reason this is the correct option is because the book explicitly notes that the other three result because of the system being seen as unfair. This option was a result of feedback being given in an inappropriate or inaccurate (not necessarily unfair) way
The strategic purpose of PM systems involves constructing the strategic vision for the organization. (t or f)
Which of the following are examples of work/life focus?
Counseling and
Financial planning
A performance management system is the systematic description of an employee’s strengths and weaknesses. (t or f)
Linking each individual’s performance to the organization’s mission involves explaining to each employee how the employee’s activities are helping the organization gain a competitive advantage (t or f)
Pay added to base pay that depends upon an employee’s performance is called:
PM system information is important for the effective implementation of which of the following HR function(s)?
Workforce planning, Training, Recruitment and selection
Relational returns include all of the following EXCEPT:
Distributive justice is the perception that the performance evaluation received is fair relative to the work performed. (T or F)
Which of the following does the text identify as a possible danger of a poorly implemented performance management system?
Motivation to perform is decreased
In the context of performance management, validity means that all the employees agree with the rating process. (T or F)
Dangers of a poorly implemented performance management system include wasted time and money, lack of standardized employee ratings, and confusion on how ratings are obtained.
Information gained from the organizational maintenance purpose of a PM system is used for all of the following EXCEPT:
Evaluating the effectiveness of job descriptions
An ideal performance management system is correctable. What does this mean?
If an employee is dissatisfied with a rating, there is a process to appeal the rating decision
In which country is PM usually adapted to the country’s unique culture?
Income protection programs include:
Pension Plans, Medical Insurance, Social Security and etc.
________________ is a continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization
Feedback often decreases motivation to perform because it points out what an employee does wrong. (T or F)