TRUE/FALSE
1.An effective performance appraisal system can create competitive advantage by directing employee behavior towards organizational goals.
2.An organization’s exposure to discrimination litigation is increased if the performance appraisal system generates feelings of unfairness.
3.Studies conducted by management expert Howard Risher and others indicate that most organizations are very satisfied with the effectiveness of their performance appraisal systems.
4.To be effective, a performance form must measure relevant information.
5.An appraisal form that suffers from criterion deficiency can steer employee behavior away from organizational goals.
6.The omission of pertinent performance criterion from a performance appraisal form is referred to as criterion contamination.
7.Inaccurate performance ratings are most often attributable to the presence of rater errors.
8.A severity error occurs in performance appraisal when raters provide ratings that are unduly high.
9.Central tendency error occurs when an appraiser purposely avoids giving extreme ratings even when such ratings are warranted.
10.The halo effect is more likely to occur when the rating standards are objective.