Scenario 6.1 You Have Recently Been Hired by the CEO of AB

question 113

Multiple Choice

Scenario 6.1
You have recently been hired by the CEO of AB Corp.as the first HR professional.It is a small but rapidly growing organization.The company specializes in manufacturing small,inexpensive souvenirs.Most staff work at machines that produce plastic or metal parts,or are on small teams in assembly and packaging,which is a fast-paced,manual labour environment.Many employees are dissatisfied with their jobs and generally confused about exactly what is expected of them.There are existing employee performance issues,some of which have been ongoing for years.There is a moderate amount of conflict between employees and supervisors.
Your arrival coincides with the annual performance appraisal time in the company.As you review the appraisal instrument,you quickly realize that it is of little value because it consists mainly of subjective measures that are not well connected to the goals of the organization.This situation concerns you,so you decide to act.One of the first things you do is speak with staff representatives and key supervisors in the organization,soliciting their opinions about the current performance appraisal system and appraisal instrument.Not surprisingly,you find that nearly everyone is dissatisfied with the current approach,and nobody really likes or understands how to properly use the appraisal tool.
One of the first priorities given to you by the CEO is the training of supervisors in assessing performance because this has not yet happened.The CEO knows there are issues,but doesn't fully understand the scope of the issues.You decide to address the matter as a system issue,knowing that improving only one part of the system will not solve all the problems.
-Please refer to Scenario 6.1.Even though the AB supervisors have been trained to use the performance system,what must they still know about their employee performance problems before they can plan a course of corrective action?

• A)the magnitude of the performance problems for the worst of the AB employees
• B)the impact of the performance problems on employee confidence and morale
• C)the length of time the performance problems have existed at AB
• D)the sources of performance problems for underperforming AB employees

---

Definitions:

Convertibles

Convertibles are financial instruments, such as bonds or preferred stock, that can be converted into a predetermined number of common stock or equity shares, offering both fixed income and potential for capital appreciation.

Strike Price

The strike price is a predetermined price at which the holder of an option can buy (call option) or sell (put option) the underlying asset until the expiration date.

Current Price

The present value or selling price of an asset, security, or commodity available in the marketplace.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.