Topic 4: Compensation Systems and Performance Management

What is the purpose of performance appraisal?

• To identify training needs

• To monitor employee attendance

• To determine vacation days

• To set work standards

What is the main difference between performance appraisal and performance management?

• Performance appraisal focuses on goal setting

• Performance management consolidates goal setting, appraisal, and development

• Performance appraisal is done annually

• Performance management is only for managerial positions

What are the four basic concepts in performance management and appraisal?

• Ranking employees, comparing performance, providing feedback, and developing final instruments

• Generating critical incidents, developing performance dimensions, reallocating incidents, and scaling incidents

• Setting work standards, evaluating performance, discussing problems, and conducting interviews

• Defining employee's goals, quantifying standards, measuring progress, and providing feedback

What is the purpose of the critical incident method in performance appraisal?

• To rank employees from best to worst

• To provide a narrative assessment of employee performance

• To keep record of uncommonly good or undesirable examples of work-related behavior

• To combine narrative critical incidents with quantified ratings

What is the main advantage of a behaviorally anchored rating scale (BARS) in performance appraisal?

• It combines narrative examples with quantified ratings

• It is based on subjective judgments

• It is easy to administer

• It is suitable for a wide range of jobs

What is the purpose of job evaluation methods?

• To conduct performance appraisals

• To compare jobs and determine relative worth

• To rank employees based on performance

• To determine employee benefits

What is the main objective of a flexible benefits program?

• To reduce the overall cost of benefits for the company

• To allow employees to choose their preferred benefits

• To offer only health insurance benefits

• To provide a fixed set of benefits to all employees

What is the purpose of a compressed workweek?

• To allow employees to work from home

• To provide additional paid holidays

• To compress work hours into fewer days

• To increase productivity by reducing work hours

What is the main benefit of a health maintenance organization (HMO) for employees?

• Access to free healthcare services

• Ability to choose their own doctors

• Fixed annual contract fee for medical services

• Coverage for off-the-job accidents and illnesses

What is the purpose of social security plans in Malaysia?

• To cover work-related accidents and illnesses

• To offer child care facilities

• To provide retirement benefits

• To provide scholarships for dependents of employees