A Manager Hired an Employee Whose Performance Is Not Up

question 154

Multiple Choice

A manager hired an employee whose performance is not up to the organization's standards. The manager sends the employee to several costly training seminars and devotes much time to individually counseling the employee, but the employee's performance does not improve. This is an example of

• A) Confirmation trap bias.
• B) Escalation of commitment.
• C) Framing.
• D) Conjunction fallacy.

---

Definitions:

Substitution Effect

The change in quantity demanded resulting from a change in the price of a good, making other goods more or less expensive relative.

Saving

The process of setting aside a portion of current income for future use or investment.

Capital Income

Income generated through investments, such as dividends from stocks, interest from bonds, or rent from real estate, as opposed to earned income from labor.

Taxed Twice

A situation where the same income or financial transaction is subject to taxation twice, often seen with corporate dividends taxed at both the company level and again at the shareholder level.