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Scenario 10.1
Ellen Jones is the human resource manager of a midsize company that manufactures camping tents.The company employs approximately two hundred employees.Ellen is in the process of redesigning the company's performance- management system.She has been instructed by the top management to develop a performance-management system that encourages employees to go beyond their formal job duties.Supervisors in this fast-paced organization have a limited opportunity to track their subordinates' performances on a daily basis.Employees work in self-managed cross-functional work teams, with each team responsible for its own productivity.With input from supervisors, each team sets its own goals for each month of the year, and employee compensation is based on the team's goal achievement as well as on individual performance factors
-Refer to Scenario 10.1.Considering the team-based approach used by the company, which performance-appraisal method is most likely to provide a realistic view of a person's performance?
Market/Book Ratio
A financial ratio comparing a company's market value to its book value, indicating how highly the market values the company.
Stock Price
The current price at which a share of a company is bought or sold in the stock market.
Book Value
The net value of a company's assets minus its liabilities, as recorded on the balance sheet.
Return on Total Assets
A financial ratio that measures a company's profitability relative to its total assets.
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