An evaluator is rating 100 employees on a bell curve. She is instructed to label five employees "extraordinary" and five employees "unsatisfactory." The evaluator also is instructed to label 10 employees "above average" and 10 employees "below average." All of the other employees will be in the "average" category. Which of the following is the major drawback of using this method?
Answer(s): D
The forced normal distribution method forces evaluators to label employees with ratings that fall along the normal distribution of a bell-shaped curve. The major drawback of this method is that the employees will be labeled with an evaluation regardless of their abilities. No matter what, some people will be evaluated at the bottom of the normal distribution and some people will be evaluated at the top of the II normal distribution.
An organization has a compensation system for its managers based on a management-by- objectives MBO) approach. The essential premise of MBO is that
Answer(s): C
MBO involves mutual setting of objectives by the superior and the subordinate as a basis for performance evaluation. Based on the Theory if philosophy that employees want to work hard if they know what is expected, MBO requires 1) senior management participation and commitment to the program, 2) integration of the objectives for all subunits into a compatible system directed toward accomplishment of organizational objectives, 3) provision for regular reporting of performance, and 4) free and honest communication between superior and subordinates. Subordinates must make careful assessments of their abilities and their interests, and managers must "coach" subordinates rather than dictate their proper objectives. Both sides must maintain flexibility to accommodate unforeseen changes, and the review and analysis of results before setting the next round of objectives is a vital part of the process.
When faced with the problem of filling a newly created or recently vacated executive position, organizations must decide whether to promote from within or to hire an outsider. One of the disadvantages of promoting from within is that
Hiring an internal candidate can lead to social inbreeding. Many firms look to external candidates for certain jobs because they bring a fresh perspective to the organization's problems and may have more up-to-date training or education.
Questions about which of the following can legally be asked in recruiting interviews?
In a recruiting interview, one may not ask about the applicant's marital status, number of children, height and weight, criminal record except for the purpose of giving a security clearance), kind of military discharge, or age.
The halo effect may diminish the accuracy of the evaluation of employees. Which of the following is an example?
Answer(s): B
The halo effect diminishes the accuracy of an evaluation when a manager's judgment on one positive trait affects the rating of other traits.
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