TABLE 4-9 A Survey Conducted by the Segal Company of New York

question 115

Short Answer

TABLE 4-9
A survey conducted by the Segal Company of New York found that in a sample of 189 large companies, 40 offered stock options to their board members as part of their non-cash compensation packages. For small- to mid-sized companies, 43 of the 180 surveyed indicated that they offer stock options as part of their noncash compensation packages to their board members.
-Referring to Table 4-9, if a company is selected at random, what is the probability that the company offered stock options to their board members?

---

Definitions:

Horns Error

A bias in performance appraisals where a person is judged based on a single negative trait, impacting the overall assessment negatively.

Behaviorally Anchored Rating Scale

is a performance appraisal method that uses specific descriptions of employee behaviors to rate performance on a scale, providing a more objective and concrete evaluation.

Likert Scale

A psychometric scale commonly used in questionnaires to gauge attitudes or responses, where participants indicate their level of agreement with a statement along a linear scale.

Contrast Error

An error in performance appraisals where an employee's evaluation is based on a comparison with another employee rather than on individual performance criteria.