Unit 3 Performance Management & Compensation & Reward System

Which performance rating system typically involves employees being rated on a numerical scale, such as from 1 to 5 or 1 to 10?

• A) Behaviorally Anchored Rating Scales (BARS)
  

• B) Management by Objectives (MBO)
  

• C) Numerical Rating System
  

• D) 360-Degree Feedback

Which of the following is an advantage of the Graphic Rating Scale?

• A) Reduces ambiguity in rating
  

• B) Encourages self-reflection
  

• C) Offers a visual representation of performance
  

• D) Requires ongoing communication

What is a common drawback of using a Numerical Rating System for performance evaluations?

• A) It can lead to inflated ratings
  

• B) It requires extensive training
  

• C) It is time-consuming to implement
  

• D) It lacks quantitative data

Which performance appraisal method focuses on specific objectives and results achieved by the employee?

• A) 360-Degree Feedback
  

• B) Management by Objectives (MBO)
  

• C) Graphic Rating Scale
  

• D) Self-Assessment

In which performance evaluation method do peers provide feedback about an employee's performance?

• A) 360-Degree Feedback
  

• B) Numerical Rating System
  

• C) Behaviorally Anchored Rating Scales (BARS)
  

• D) Management by Objectives (MBO)

What is a significant challenge of the Behaviorally Anchored Rating Scales (BARS)?

• A) Subject to rater bias
  

• B) Time-consuming to develop
  

• C) Overly simplistic
  

• D) Can foster unhealthy competition

The Ranking Method of performance appraisal is primarily used for:

• A) Identifying critical incidents
  

• B) Ranking employees against each other from best to worst
  

• C) Aligning individual goals with organizational objectives
  

• D) Encouraging self-development through feedback

Which performance rating system involves distributing employees into categories such as top 20%, middle 70%, and bottom 10%?

• A) Forced Distribution (Bell Curve)
  

• B) Checklist Method
  

• C) 360-Degree Feedback
  

• D) Critical Incident Method

A performance management system that gathers feedback from peers, subordinates, and supervisors is known as:

• A) Self-Assessment
  

• B) Graphic Rating Scale
  

• C) 360-Degree Feedback
  

• D) Management by Objectives (MBO)

One of the main challenges of the Self-Assessment method is:

• A) Encourages unhealthy competition
  

• B) May not be entirely objective due to bias
  

• C) Focuses only on specific incidents
  

• D) Time-consuming to implement