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Scenario 10.1 Ellen Jones Is the Human Resource Manager for Tent-Sations, a Tent-Sations

question 20

Multiple Choice

Scenario 10.1
Ellen Jones is the human resource manager for Tent-Sations, a midsize company that manufactures recreational camping tents. Tent-Sations employs approximately two hundred employees. Ellen is in the process of redesigning the company's performance management system. She has been instructed by top management to develop a performance management system that encourages employees to go beyond their formal job duties. Therefore, top management would also like the performance management system to assess particular employee behaviors that specifically support organizational goals in addition to employees' everyday job tasks. Supervisors in this fast-paced organization have limited opportunity to view their subordinates' performance on a daily basis. Employees work in self-managed cross-functional work teams, with each team being responsible for the entire tent-making process. With input from supervisors, each team sets its own output 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 Tent-Stations, which method for appraising performance would likely be the WORST choice?

Definitions:

Invested Assets

Assets in which funds have been placed with the expectation of generating income or profit.

Investment Centers

Parts of an organization with direct control over investments and revenues, and responsibility for generating profits, often evaluated through return on investment (ROI) measures.

Profit Centers

Sections or branches of a business that are responsible for generating revenue and are evaluated based on their profitability.

Cost Centers

Parts of an organization that do not directly produce revenue but incur costs, for which managers are responsible for controlling expenses.