Renu Has Been Hired as the First Human Resources Professional

question 27

Multiple Choice

Renu has been hired as the first human resources professional at a growing landscape architecture firm, Terrastyle Inc.She is considering changing the current performance appraisal method, the graphic rating scale, to the forced distribution method of performance appraisal.What criticism of using this method do you advise her about?

• A)Traits being appraised are decided by management.
• B)Predetermined percentages of employees are placed in performance categories.
• C)Employees are rated on a comparison basis.
• D)It is similar to grading on a curve.
• E)A considerable proportion of the workforce is classified as less than average.

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Definitions:

Producer Surplus

The gap between the price producers are ready to take for offering a product or service and the actual payment they receive.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive.

Producer Surplus

The difference between what producers are willing and able to supply a good for and the price they actually receive, measuring the benefit to producers.

Total Surplus

The total net gain to society from creating and consuming a product or service, encompassed by the combination of consumer and producer surplus.