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Question

Read the following passage and answer the questions :

The Chairman astonished HR leaders by announcing the company’s discontinuation of annual reviews, substituting them with immediate feedback, goal-oriented coaching and weekly incentives. This transformation, once considered heretical, has gained widespread acceptance: around one-third of U.S. companies, including Adobe, Deloitte, GE, Microsoft and PwC, have transitioned from inflexible annual evaluations to regular, informal assessments. Conventional performance evaluations, previously effective for determining compensation and recognizing talent, have evolved into expensive, bureaucratic processes that are unpopular among both employees and managers. Critics contend that they prioritize historical conduct over prospective development, hinder collaboration and do not fulfill commercial requirements. Originating from the military’s merit rating system, performance appraisals have transitioned between accountability and development, influenced by variables including inflation, compulsory ranking at GE, executive compensation reforms and the competitive pursuit of talent. Currently, low inflation, streamlined organizational structures, agile work methodologies and the necessity for ongoing innovation have made annual reviews redundant. Organizations are currently emphasizing agility, collaboration, and personnel development, concentrating on continuous dialogue and immediate objective. Despite ongoing challenges-such as bias, salary discrepancies and inadequate supervisor training-organizations that implement continuous feedback mechanisms experience enhanced satisfaction, superior coaching and greater alignment with corporate objectives. The transition signifies a necessity: performance management must adapt to cultivate future talent.

Which of the following statements are correct as per paragraph ?

A. Companies like Adobe, Deloitte, GE, Microsoft and PwC have shifted to informal assessments.

B. Annual reviews are now seen as promoting collaboration and innovation.

C. Continuous feedback improves satisfaction, coaching and corporate alignment.

D. Annual evaluations originated from executive compensation reforms.

E. Current organizations emphasize agility, collaboration and personnel development through continuous dialogue.

Choose the correct answer from the options given below :

This question was previously asked in
UGC NET 2025 Management Question Paper (07-Jan-2026) (Shift 1)
The correct answer is

A, C and E only

 Statements A, C and E are correct — option 2.

StatementVerdictWhat the passage says
A. Adobe, Deloitte, GE, Microsoft and PwC have shifted to informal assessmentsCorrectNamed exactly, as part of the “around one-third of U.S. companies” that moved from inflexible annual evaluations to regular, informal assessments
B. Annual reviews are now seen as promoting collaboration and innovationWrongReversed. Annual reviews are said to hinder collaboration; it is the new approach that supports collaboration and innovation
C. Continuous feedback improves satisfaction, coaching and corporate alignmentCorrect“Organizations that implement continuous feedback mechanisms experience enhanced satisfaction, superior coaching and greater alignment with corporate objectives”
D. Annual evaluations originated from executive compensation reformsWrongTwo things confused. Appraisals originated from the military’s merit rating system; executive compensation reform is listed separately, as one of the variables that later influenced their evolution
E. Current organizations emphasize agility, collaboration and personnel development through continuous dialogueCorrectStated almost word for word

The two errors are of different kinds, and both are worth recognising :

StatementType of error
BPolarity reversal — attributes to the old system a virtue the passage gives to the new
DAttribution error — takes a fact that is in the passage and attaches it to the wrong thing, confusing origin with later influence

The method for multi-statement comprehension questions. Do not try to identify the correct set directly. Test each statement against the passage in turn, mark it true or false, and only then look at the options. Here, recognising that B is false eliminates option 3, and recognising that D is false eliminates options 1 and 4 — leaving option 2 without any need to verify A, C and E individually.

Hence, the answer is A, C and E only.

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Similar Questions

  1.  Match List - I with List - II.

    List - I
    (Concept) 
    List - II
    (Description) 
    A. Origin of performance appraisalsI. Compulsory ranking at GE
    B. Bureaucratic evolutionII. Military’s merit rating system
    C. Factors influencing appraisal changesIII. Expensive and unpopular processes
    D. Current organizational focusIV. Agility, collaboration and continuous dialogue

    Choose the correct answer from the options given below :

  2. When the supervisor keeps a log of positive and negative examples of a subordinate’s work-related behaviour, it refers to which one of the following methods of performance appraisal ?

  3. Following steps are undertaken for developing a workforce score card.

    (a) Identify critical and carefully defined outcome measures.

    (b) Translate the measures into specific actions and outcomes.

    (c) Identify high and low performing employees.

    (d) Develop and communicate detailed description of what is expected.

    (e) Develop supporting HRM and measurement systems.

    What is the correct chronological order of these steps ?

  4. Which one of the following methods of performance appraisal involves ranking employees from best to worst in a particular trait?

  5. Arrange the steps of diagnostic model of human resource management in the correct sequence from the first to the last. Select the code of correct sequence:

    a. Evaluate

    b. Prescribe

    c. Diagnose

    d. Implement

    Codes:

  6. Which one of the following is a training technique in which trainees act out parts in a realistic management situation?

  7. Read the following passage and answer the questions :

    The Chairman astonished HR leaders by announcing the company’s discontinuation of annual reviews, substituting them with immediate feedback, goal-oriented coaching and weekly incentives. This transformation, once considered heretical, has gained widespread acceptance: around one-third of U.S. companies, including Adobe, Deloitte, GE, Microsoft and PwC, have transitioned from inflexible annual evaluations to regular, informal assessments. Conventional performance evaluations, previously effective for determining compensation and recognizing talent, have evolved into expensive, bureaucratic processes that are unpopular among both employees and managers. Critics contend that they prioritize historical conduct over prospective development, hinder collaboration and do not fulfill commercial requirements. Originating from the military’s merit rating system, performance appraisals have transitioned between accountability and development, influenced by variables including inflation, compulsory ranking at GE, executive compensation reforms and the competitive pursuit of talent. Currently, low inflation, streamlined organizational structures, agile work methodologies and the necessity for ongoing innovation have made annual reviews redundant. Organizations are currently emphasizing agility, collaboration, and personnel development, concentrating on continuous dialogue and immediate objective. Despite ongoing challenges-such as bias, salary discrepancies and inadequate supervisor training-organizations that implement continuous feedback mechanisms experience enhanced satisfaction, superior coaching and greater alignment with corporate objectives. The transition signifies a necessity: performance management must adapt to cultivate future talent.

  8. __________ is a profile of job holders department-wise and offers a snapshot of who will replace if there is a job opening.

  9. Under which method of performance appraisal many evaluators join together to judge employee’s performance in several situations with the use of a variety of criteria ?

  10. Following steps are undertaken for developing a workforce score card:

    (a) Identify critical and carefully defined outcome measures.

    (b) Translate the measures into specific actions and outcomes.

    (c) Identify high and low performing employees.

    (d) Develop and communicate detailed description of what is expected.

    (e) Develop supporting HRM and measurement systems.

    What is the correct chronological order of these steps?


Important Questions from Concept, role and functions of HRM

  1. Male staff should take which of the following precautions?

  2. Arrange the following management functions in a logical sequence of getting things done.

    A. Planning

    B. Staffing

    C. Organizing

    D. Coordinating

    E. Controlling

    F. Directing

    Choose the correct answer from the options given below:

  3. Match List - I with List - II:

    List - I (Concept)List - II (Description)
    A. Personnel managementI. Focuses on profit maximization by contribution of the people
    B. Human Resource managementII. Managing employee, employer relations amicably
    C. Industrial relationIII. Managing Human resource challenges of international operations
    D. International HRMIV. Developing attitude of the people for their better contribution

    Choose the correct answer from the options given below :

  4.  Match List - I with List - II.

    List - I
    (Concept) 
    List - II
    (Description) 
    A. Origin of performance appraisalsI. Compulsory ranking at GE
    B. Bureaucratic evolutionII. Military’s merit rating system
    C. Factors influencing appraisal changesIII. Expensive and unpopular processes
    D. Current organizational focusIV. Agility, collaboration and continuous dialogue

    Choose the correct answer from the options given below :

  5. Match the items of List-I with those of List-II with regard to operative functions of HRM and indicate the code of correct matching.
    List – IList – II
    a. Procurementi. Performance appraisal
    b. Developmentii. Discipline
    c. Integrationiii. Induction
    d. Maintenanceiv. Personnel research
    Codes :
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