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:

Pension Expense

The annual cost recognized by an employer for maintaining a retirement plan for its employees.

Actuarial Assumptions

Estimates used to calculate the present and future financial obligations of pension plans and insurance policies, often involving life expectancy and interest rates.

Present Values

The current value of a future amount of money or stream of cash flows, discounted at a particular rate of interest.

Expense Accruals

The recording of expenses that have been incurred but not yet paid, ensuring that expenses are matched with the revenues they helped generate in the same period.