Why Is Performance Review Important

question 54

Multiple Choice

Why is performance review important?

• A) because it is key to the validation of selection procedures, which are the foundation of all HR practices
• B) because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum
• C) because employees need to know that they are being evaluated in order to perform at an appropriate level
• D) because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them

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Definitions:

Wage Advantage

The relative benefit or superior compensation an employee receives, making a position more attractive compared to others.

Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers are legally allowed to pay to workers.

Income-Maintenance Programs

Governmental schemes designed to ensure individuals have a minimum income level through benefits or transfers, often to support those unemployed or in poverty.

Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, showcasing consumer sensitivity to price changes.