Performance Appraisal system MCQs with Answers

Preparing for exams can often feel overwhelming, especially when it comes to topics as complex as performance appraisal systems. Whether you are pursuing an MBA, BBA, or focusing on HRM, having access to multiple-choice questions (MCQ) can be a valuable tool in reinforcing your understanding and test-taking skills.

Luckily, you have stumbled upon the perfect resource to aid in your exam preparation. In this article, we will provide a comprehensive set of MCQs specifically tailored to delve into the intricacies of performance appraisal systems within the context of business administration and human resource management. So let’s dive in and equip ourselves with the knowledge needed to excel in these exams!

Performance Appraisal system MCQs with Answers

1. In the second stage of the evolution of PM, the system became ___.
Ans. Semi-transparent

2. In India, the fourth stage of evolution of PM was driven by organisations such as ___ and ___.
Ans. Larsen & Toubro and State Bank of India

3. A truly collaborative process of PM came about in the ___ stage of evolution of PM.
Ans. Fifth

4. PM is more episodical in nature. (True/False)
Ans. False

5. PA is a component of PM. (True/False)
Ans. True

6. PE and PA look like the same because of the subjectivity inherent in the processes. (True/False)
Ans. True

7. PM, PA and PE are different names given by people and is one and the same. (True/False)
Ans. False

8. PM implies giving continuous ___ and ___ during the period of delivery of performance.
Ans. Coaching, feedback

9. To ensure a good PM process, there should be clear job descriptions and employee performance plans which include the ___.
Ans. Key result areas

10. According to CIPD, PM is the primary means by which organisations ensure that employees ___ what is expected of them.
Ans. Know and understand

11. One of the important value adders of PM is enabling people to monitor their own performance as well as those reporting to them against ___.
Ans. Agreed objectives and standards

12. According to Armstrong and Baron, ___ a shared vision of the purpose and values of the organisation is an important value adds of PM.
Ans. Communicating

13. Although PM is not so important for intrinsic motivation, one cannot handle extrinsic motivation without it. (True/False)
Ans. False

14. HR processes except Exit Management are facilitated strongly through PM. (True/False)
Ans. False

15. The link between PM and training (or learning) is more intimate than the link between PM and development. (True/False)
Ans. False

16. There are ___ principles while we set goals.
Ans. Five

17. Manager ‘A’ created a suggestion team to give suggestions. At first no one was forthcoming. One day, the manager gave an impromptu gift to a person who had given a small suggestion. After that day, the stream of suggestions increased. This can be explained using ___ theory.
Ans. Social cognitive

18. Social modelling refers to not just observing behaviour but also receiving ___ and ____ on how to complete a behaviour.
Ans. Instructions, guidance

19. Attaining goal behaviour is negatively correlated to ___ and ____.
Ans. Stress, hurry

20. Firm A terminated around 200 employees due to fewer orders during the economic downturn. It expected to increase its productivity per employee but in fact, productivity fell through the remaining employees continued to work regularly and did not show any dissent. The theory that could best explain this lowered morale and loss of productivity is ___.
Ans. Organisational justice

21. Manager A hired 18 people and allotted 9 each to the morning and night shifts. They also had performance incentives based on the number of calls they attended. After six months, it was found that the night shift people attended fewer calls per head. This anomaly can be explained through ___ justice.
Ans. Distributive

22. ___ justice refers to creating a situation where the individuals feel that they have a voice in the process.
Ans. Procedural

23. Feedback provides opportunities to clarify expectations, adjust ___, and gain ___.
Ans. Goal difficulty, recognition

24. Control theory focuses on ___ as a means of shaping behaviour.
Ans. Feedback

25. Control usually has ___ steps.
Ans. Three

26. In PM, in order to shift the behaviour to the desired level or to the goal, we use a component called___.
Ans. Effector

27. A challenging goal should have a fair probability of ___.
Ans. Success

28. Job redeployment may take place as a consequence of finding out the ___ of employees.
Ans. Strengths and weaknesses

29. PM enables employees to achieve personal growth by acquiring relevant ___, ___, and ___.
Ans. Knowledge and skills and attitudes

30. Conversation between employee and supervisor creates excellent ____.
Ans. Work atmosphere

31. In order to prevent misinterpretation, PM should follow the principle of measurability. (True/False)
Ans. True

32. ‘Improve the quality of management’ fulfils the principle of flow. (True/False)
Ans. False

33. The key inputs in the PM system are ___ and ___ goals.
Ans. Individual and organisational

34. One of the most practical feedbacks is ___.
Ans. Reward

35. Information exchange and access of information to one and all make the system ___.
Ans. Open system

36. ___ is the most acceptable, visible and measurable dimension of performance.
Ans. Output dimension

37. ___ deals with the activities or tasks to be accomplished by the individual.
Ans. Input dimension

38. Your manager asks you to put all your effort in pushing the new product line, no matter what. This is called ___ dimension of performance.
Ans. Focus

39. The purpose of performance management can be broadly classified into ___, ___ and ___.
Ans. Driving results, building capability and growing talent

40. In PM, goals and expectations of the organisation, team and individual are clearly defined with the purpose of ___.
Ans. Driving results

41. The purpose of ___ is achieved through identifying and rewarding talent.
Ans. Growing talent

42. PM is an ideal ___ to create engagement.
Ans. Vehicle

43. An engaged employee is willing to put ___ effort into his work, which is the crux of performance management.
Ans. Discretionary

44. In a UK based survey, companies with highly engaged employees collectively saw operating incomes rise by ___ % while those below-average levels of engagement collectively saw a fall of ___ %.
Ans. 19.2, 32.7

45. PM dialogue enables in creating ___.
Ans. Engagement

46. Mid-cycle review usually has four distinct steps. (True/False)
Ans. False

47. Since business houses usually report performance every quarter, the mid-cycle review must be done each quarter. (True/False)
Ans. False

48. An employee should be discouraged from asking for additional resources during the mid-cycle review. (True/False)
Ans. False

49. If an employee does not agree to the final PM review, he should issue a ___.
Ans. Rebuttal

50. ___ step by the employee usually precedes the discussion of the performance at the end of the cycle.
Ans. Self-assessment

51. In the end-cycle review, usually the ___ initiates the discussion.
Ans. Manager/supervisor

52. If you want to have a high degree of employee engagement, then one way is to sequence the steps in such a manner so as to elicit that ___ from the employees.
Ans. Behaviour

53. PM process can be divided into ___, ___, and ___.
Ans. PM-planning process, the mid-cycle review process, the end-cycle review process

54. A manager should define the goals for an employee and give it to him/her prior to the ___.
Ans. Performance dialogue

55. Designing assessment procedure is also a part of performance-management planning. (True/False)
Ans. True

56. Deviations are noted and corrections are done during ___.
Ans. Reviewing

57. Description of measures jointly agreed upon by the manager is a part of PM agreement.(True / False)
Ans. True

58. The performance agreement may also refer to quality, customer service, teamwork, employee development and so on besides the important aspect of ___ of the organisation.
Ans. Core values

59. ___ include an organisation’s competency framework that defines the knowledge and skills required to achieve the role objectives and any particular behavioural requirements.
Ans. Role profiles

60. The employees have to discuss with the manager and come to an agreement on their ___.
Ans. Personal development plans

61. ____ is the best tool used to record all the agreements and understandings.
Ans. Performance appraisal form

62. The initial meetings during the launch of performance management concentrate on the agreement of role definitions, objectives and standards. (True/False)
Ans. True

63. The performance agreement remains the same throughout the year. (True/False)
Ans. False

64. A model of PM planning has an outer circle representing the ___.
Ans. Framework

65. Recognising is a clear indication of the work ____.
Ans. Execution

66. Planning to develop the capabilities of a subordinate is strictly not a part of PM planning. (True/False)
Ans. False

67. The purpose of PM planning enables a manager to match his management style to each person’s needs. (True/False)
Ans. True

68. PM planning document can be a piece of good admissible evidence in a court. (True/False)
Ans. True

69. Small organisations can avoid creating a PM planning document. (True/False)
Ans. False

70. PM planning document may at times have a statement of expectation. (True/False)
Ans. False

71. There are four basic responsibilities for a manager in relation to PM planning. (True/False)
Ans. False

72. Before the performance-planning meeting, the manager has to re-examine the vision, values and team’s goals. (True/False)
Ans. True

73. At the end of the planning process, a manager would know the macro issues of performance though not the day-to-day performance issues. (True/False)
Ans. False

74. Prior to PM planning, employees should review their ___ and determine their significant responsibilities.
Ans. Job description

75. At the end of performance planning, employees would know the most important ___ that they need to complete.
Ans. Job responsibilities


Our collection of MCQs on performance appraisal systems for MBA, BBA, and HRM provides valuable practice for those preparing for exams. We hope that these multiple-choice questions have helped solidify your understanding of this important topic.

If you found these MCQs helpful and informative, we encourage you to share them with your peers on social media platforms. By spreading the word about these resources, you can help other students in their exam preparation journey as well. Thank you for participating and best of luck in your exams!

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