Performance Appraisal & Control Measures MCQs With Answer

Performance Appraisal & Control Measures MCQs With Answer is designed for M.Pharm students to deepen understanding of evaluating staff performance and implementing control systems in pharmaceutical organizations. This set covers appraisal objectives, common methods (like MBO, 360-degree feedback, BARS), legal and ethical considerations, and control measures including SOPs, audits, variance analysis, and corrective actions. Questions emphasize practical application in a regulated pharma environment, linking appraisal outcomes to training, quality assurance, and compliance. Use these MCQs to test conceptual knowledge, prepare for exams, and strengthen managerial skills needed to maintain high standards of productivity and regulatory compliance in pharmaceutical enterprises.

Q1. Which of the following best describes the primary objective of performance appraisal in a pharmaceutical firm?

• To calculate the exact salary increase for each employee
• To assess employee performance for development, feedback and organizational improvement
• To standardize job descriptions across departments
• To replace the need for regular supervision

Correct Answer: To assess employee performance for development, feedback and organizational improvement

Q2. Which appraisal method involves setting specific measurable targets jointly by manager and employee and reviewing results periodically?

• 360-degree feedback
• Management by Objectives (MBO)
• Behaviorally Anchored Rating Scales (BARS)
• Forced distribution

Correct Answer: Management by Objectives (MBO)

Q3. In the context of pharma quality systems, which control measure primarily ensures day-to-day adherence to required processes?

• Strategic planning sessions
• Standard Operating Procedures (SOPs)
• Balanced scorecard reviews
• External market analysis

Correct Answer: Standard Operating Procedures (SOPs)

Q4. What is a key advantage of 360-degree feedback in performance appraisal within multidisciplinary teams?

• It provides a single authoritative rating from top management
• It integrates feedback from multiple sources including peers, subordinates and customers
• It eliminates the need for objective metrics
• It speeds up the appraisal process by using automated scoring only

Correct Answer: It integrates feedback from multiple sources including peers, subordinates and customers

Q5. Behaviorally Anchored Rating Scales (BARS) are particularly useful because they:

• Convert subjective behaviors into clearly defined performance levels
• Rely solely on financial outcomes to assess performance
• Are the fastest method to implement without training
• Remove the need for managerial judgment completely

Correct Answer: Convert subjective behaviors into clearly defined performance levels

Q6. Which of the following is a control measure focused on comparing actual financial results with budgets to identify variances?

• Quality risk management
• Variance analysis
• 360-degree feedback
• Peer review

Correct Answer: Variance analysis

Q7. A legal and ethical issue in performance appraisal that is especially critical in pharma is:

• Using appraisal outcomes to set vacation schedules
• Ensuring appraisal records are maintained confidentially and fairly to avoid discrimination
• Letting employees appraise each other without oversight
• Publishing performance scores publicly for transparency

Correct Answer: Ensuring appraisal records are maintained confidentially and fairly to avoid discrimination

Q8. Which appraisal approach is most suitable when trying to assess employee behavior in safety-critical tasks such as aseptic processing?

• Trait rating scales without behavioral anchors
• Behaviorally Anchored Rating Scales (BARS)
• Forced distribution unrelated to behaviors
• Informal, undocumented conversations only

Correct Answer: Behaviorally Anchored Rating Scales (BARS)

Q9. What is the primary purpose of calibration meetings among managers after individual appraisals?

• To finalize payroll budgets
• To align ratings across teams and ensure consistency and fairness
• To rank employees for immediate termination
• To train managers in technical lab procedures

Correct Answer: To align ratings across teams and ensure consistency and fairness

Q10. Which performance metric is most appropriate for measuring quality performance in a manufacturing area producing sterile products?

• Number of marketing campaigns
• Rate of batch rejection or out-of-specification incidents
• Employee attendance only
• Time spent in meetings

Correct Answer: Rate of batch rejection or out-of-specification incidents

Q11. In a performance management system, a Performance Improvement Plan (PIP) is used to:

• Automatically promote underperforming staff
• Document specific gaps and outline time-bound actions to improve an employee’s performance
• Replace the need for any future appraisals
• Assign punitive measures without support

Correct Answer: Document specific gaps and outline time-bound actions to improve an employee’s performance

Q12. Which control mechanism directly helps ensure regulatory compliance and is often audited by regulatory agencies in pharma?

• Employee social events
• Documented Standard Operating Procedures (SOPs) and records
• Informal verbal instructions only
• Ad-hoc decision-making logs with no evidence

Correct Answer: Documented Standard Operating Procedures (SOPs) and records

Q13. Which common appraisal bias occurs when a manager allows a single recent good or bad event to dominate the overall rating?

• Leniency bias
• Recency bias
• Central tendency bias
• Halo effect

Correct Answer: Recency bias

Q14. The Balanced Scorecard as a control and performance tool typically incorporates which of the following perspectives?

• Financial, customer, internal processes, learning and growth
• Only financial and marketing
• Human resources only
• Legal compliance only

Correct Answer: Financial, customer, internal processes, learning and growth

Q15. Which of the following is a limitation of forced distribution appraisal systems in a pharma setting?

• They ensure all employees receive objective feedback
• They can force unfair categorization in highly performing teams and demotivate staff
• They eliminate the need for training programs
• They improve collaboration by standardizing ratings

Correct Answer: They can force unfair categorization in highly performing teams and demotivate staff

Q16. For linking appraisal outcomes to learning needs, which process is most appropriate?

• Ignore appraisal results and assign generic training to everyone
• Conduct Training Needs Analysis (TNA) based on appraisal gaps and role requirements
• Provide only self-study materials without follow-up
• Use appraisal solely for punishment without development

Correct Answer: Conduct Training Needs Analysis (TNA) based on appraisal gaps and role requirements

Q17. Which control measure focuses on proactively identifying potential product quality risks and implementing mitigations?

• Reactive customer complaints handling only
• Quality Risk Management (QRM)
• Annual team party planning
• Only financial auditing

Correct Answer: Quality Risk Management (QRM)

Q18. An ethical best practice when conducting appraisals in a regulated industry is to:

• Share appraisal comments with external stakeholders without consent
• Provide documented, objective evidence to support ratings and discuss them with the employee
• Use vague language to avoid accountability
• Base ratings solely on personal likability

Correct Answer: Provide documented, objective evidence to support ratings and discuss them with the employee

Q19. Which appraisal method is most useful when measuring competencies and behaviors across different job roles in a pharma R&D team?

• Task checklist with no behavioral descriptors
• Competency-based appraisal with defined behavioral indicators
• Only output-based appraisal without competencies
• Random sampling of tasks

Correct Answer: Competency-based appraisal with defined behavioral indicators

Q20. Which of the following represents an effective control loop for continuous improvement in a pharma department?

• Plan → Do → Check → Act (PDCA)
• Plan once and never review
• Act without planning or measurement
• Only check results without implementing actions

Correct Answer: Plan → Do → Check → Act (PDCA)

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