Which of the Following Performance Appraisal Methods Is Congruent with a Management

question 5

Multiple Choice

Which of the following performance appraisal methods is congruent with a management approach that dictates that no more than 15 percent of employees are to be rated as excellent, commanding a top percentage increase in merit pay?

• A) forced distribution
• B) paired comparison
• C) behaviourally anchored rating scales
• D) field review

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Definitions:

Price-earnings Ratio

A valuation metric that compares a company's current share price to its per-share earnings.

Dividend Payout Ratio

A financial metric that measures the percentage of a company's earnings paid out to shareholders as dividends, indicating how much money a company returns to shareholders versus how much it keeps to reinvest.

Gross Margin Percentage

A profitability metric calculated as gross margin (sales minus cost of goods sold) divided by sales, expressed as a percentage.

Net Profit Margin Percentage

A financial metric that shows what percentage of a company's revenue remains as profit after all expenses are deducted.