Managers at Wrise & Schein Want to Make Sure Their

question 98

Multiple Choice

Managers at Wrise & Schein want to make sure their decisions about compensation, promotions and firings are based on sound information that meet legal requirements. One way to achieve this objective would be to:

• A) outsource all such decisions to an outside expert.
• B) establish an effective performance appraisal system.
• C) make sure that these decisions are not influenced by the employee's immediate supervisor.
• D) base all pay, promotion, and firing decisions on the Hay system.

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Definitions:

Residual Value

The estimated value that an asset is expected to have at the end of its useful life, after depreciation has been taken into account.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Average Rate

The mean price or value of a commodity or service over a given period or in a given market.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.