As a New Manager,you Are Delighted with Your New Job

question 19

Multiple Choice

As a new manager,you are delighted with your new job (and higher pay) ,but now it's time for the annual performance appraisals of the staff you supervise.Worse,you have been directed to downsize your department by 10%.Many of your colleagues have offered you advice as to how to proceed.Among the following,which would NOT be good advice?

• A)use a forced distribution method of performance appraisal, which will help you achieve a 10% cut in department staff easily, and avoid legal claims
• B)as you conduct the performance appraisals, speak gruffly to each employee, in order to prepare them for possible termination
• C)make clear that no matter how well they have done their jobs, it is no guarantee that they will survive the cut; don't allow or answer any questions
• D)none of these would be good advice
• E)all of these would be good advice

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefits received by all participants.

Good

A material item or service that fulfills wants or needs, often exchanged in economic transactions.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.