Answer the following statements true (T) or false (F)

Question

1. The forced ranking performance review system may have negative effects on morale, productivity, and loyalty. 
2. When it comes to performance appraisal feedback, the longer the appraisal document, the better. 
3. Appraisals that are conducted on an unscheduled basis and consist of less rigorous indications of employee performance are known as unofficial appraisals. 
4. The three parts of compensation are wages, incentives, and benefits. 

Answer 1

1. TRUE
Proponents of forced ranking say it encourages managers to identify and remove poor performers and also structures a predetermined compensation curve, which enables them to reward top performers. If, however, the system is imposed on an organization overnight without preparation, by pitting employees against one another, it can produce shocks to morale, productivity, and loyalty.
2. FALSE
The typical appraisal is often three pages long and filled with vague, uncommunicative language and is useless to ensure that improvement happens. Lawrence Bossidy, former AlliedSignal CEO, recommends an appraisal take up half a page and cover just three topics: what the boss likes about your performance, what you can improve, and how you and your boss are going to make sure that improvement happens.
3. FALSE
Informal appraisals are conducted on an unscheduled basis and consist of less rigorous indications of employee performance.
4. TRUE
Compensation has three parts: (1) wages or salaries, (2) incentives, and (3) benefits.