Laura Is a Senior Manager at Pine and Acorn Consultancy

question 52

Multiple Choice

Laura is a senior manager at Pine and Acorn Consultancy.One of her subordinates,Alex,comes late to work every other day and does just enough work to get by.However,last month he put in the most effort compared to the other employees on a major project and finished it before time and within the allocated budget.Based on this performance,Laura recommended a promotion for him at the annual appraisals.Which of the following potential errors in performance appraisals has Laura committed?

• A) Forced-choice
• B) Leniency
• C) Central tendency
• D) Self-serving bias
• E) Recency

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Definitions:

Capital Goods

Physical assets that are used in the production process to manufacture goods and services, including buildings, machinery, and equipment.

Future Value

The value of an investment or asset at a specified future date based on assumed rates of growth or interest.

Present Value

The valuation at present of a future sum of money or sequence of cash inflows, applying a specified rate of return.

Interest Rate

The percentage of a sum of money charged for its use, reflecting the cost of borrowing money or the return on invested savings.