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

---

Definitions:

Disposable Income

Disposable income refers to the amount of money individuals or households have available to spend or save after income taxes are deducted.

Marginal Propensity

The ratio of change in an economic variable (e.g., consumption, saving) to a change in another economic variable (e.g., income).

Disposable Income

Post-tax income that households can allocate towards savings and expenses.

Consumption Spending

The total amount of money that households spend on goods and services within a certain period.