aPHR Performance Management 3 — Questions and Answers
Question 1: In a 360-degree feedback system, which group typically provides input on an employee's performance?
- Only the direct supervisor
- Peers, subordinates, supervisors, and sometimes customers (Correct answer)
- HR department and senior executives only
- The employee and their direct supervisor only
Correct answer: Peers, subordinates, supervisors, and sometimes customers
360-degree feedback gathers input from multiple sources surrounding the employee, including peers, direct reports, supervisors, and sometimes external stakeholders.
Question 2: What is the term for the tendency of a supervisor to rate an employee higher than deserved because of a recent positive event?
- Contrast error
- Recency bias (Correct answer)
- Primacy bias
- Similar-to-me effect
Correct answer: Recency bias
Recency bias occurs when a rater's evaluation is disproportionately influenced by the most recent performance events rather than the entire review period.
Question 3: Which approach to performance management focuses on continuous feedback and coaching rather than annual reviews?
- Forced ranking
- Continuous performance management (Correct answer)
- Critical incident method
- Trait-based appraisal
Correct answer: Continuous performance management
Continuous performance management replaces or supplements annual reviews with ongoing check-ins, real-time feedback, and regular goal adjustments.
Question 4: An organization uses a forced distribution system where 10% of employees must be rated 'top performers' and 10% must be rated 'low performers.' A major criticism of this system is that:
- It eliminates the need for performance standards
- It can damage morale and teamwork by creating artificial competition (Correct answer)
- It is too expensive to administer
- It is the only legally compliant appraisal method
Correct answer: It can damage morale and teamwork by creating artificial competition
Forced distribution is criticized for mandating that a percentage of employees receive low ratings even when an entire team performs well, harming collaboration.
Question 5: When setting performance goals under the SMART framework, what does the 'T' represent?
- Transparent
- Team-based
- Time-bound (Correct answer)
- Talent-driven
Correct answer: Time-bound
In the SMART framework, 'T' stands for time-bound, meaning goals should have a clear deadline or timeframe for completion.
Question 6: A manager documents instances of both exemplary and poor employee performance throughout the year to use in the appraisal. This technique is called:
- Graphic rating scale
- Critical incident method (Correct answer)
- Paired comparison
- Essay method
Correct answer: Critical incident method
The critical incident method involves recording specific examples of notably effective or ineffective employee behaviors throughout the review period.
Question 7: What is the primary legal risk if performance appraisals are inconsistently applied across protected classes?
- Violation of OSHA regulations
- Potential discrimination claims under Title VII or other EEO laws (Correct answer)
- Breach of ERISA requirements
- Non-compliance with FLSA overtime rules
Correct answer: Potential discrimination claims under Title VII or other EEO laws
Inconsistently applied appraisals that negatively affect employees in protected classes can constitute unlawful discrimination under Title VII and related EEO statutes.
aPHR Performance Management 3
In a 360-degree feedback system, which group typically provides input on an employee's performance?