It Is Difficult to Measure Non-Financial Performance Measures

question 45

Multiple Choice

It is difficult to measure non-financial performance measures. Managers tend to make mistakes in this area by assuming:

• A) Leading and lagging variables do not influence time utility
• B) Qualitative metrics are more telling than quantitative metrics
• C) 100 percent customer satisfaction is the only important goal
• D) Statistical reliability and statistical validity are always important
• E) The improvement of non-financial measures leads to offensive marketing

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Definitions:

Stereotypes

Overgeneralized beliefs about a particular category of people.

Central Tendency Error

A bias in performance appraisals where the evaluator rates most employees as being average, overlooking individual differences in performance.

Leniency Error

A type of bias in performance appraisals where the evaluator tends to rate employees more favorably than their performance justifies.

Similar-To-Self Bias

The tendency of individuals to favor and be more positively inclined towards others who they perceive as similar to themselves.