Why Is Performance Appraisal Important

question 8

Multiple Choice

Why is performance appraisal important?

• A) because it is key to the validation of selection procedures, which are the foundation of all HR practices
• B) because all organizations need to weed out lower-performing individuals at a rate of about 10 percent of employees per annum
• C) because employees need to know that they are being evaluated in order to perform at an appropriate level
• D) because the success of the entire HR program depends on knowing how the performance of employees compares with the goals established for them

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Definitions:

Marginal Cost

The supplementary cost associated with manufacturing one more unit of a good or service.

Decreasing Its Output

A strategy or condition where a firm reduces the quantity of goods or services it produces, often in response to lower demand or to increase prices.

Marginal Revenue

Marginal revenue is the additional income generated from selling one more unit of a good or service, critical for determining the optimal level of output for profit maximization.

Marginal Cost

The incremental cost of producing an additional unit of a good or service.