What Will a Performance Appraisal System That Rewards Initiative and Innovation

question 16

Multiple Choice

What will a performance appraisal system that rewards initiative and innovation do?

• A) Decrease one's flexibility and therefore his/her power base
• B) May be too erratic to allow one to develop a strong power base
• C) Increase one's discretion and thus the potential for more power
• D) Promote more people to higher positions

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Definitions:

Market Equilibrium

A condition in which market supply and demand balance each other, and as a result, prices become stable.

Competitive Industry

A competitive industry is one where numerous producers compete with each other to satisfy the needs and wants of consumers, characterized by free entry and exit and a high level of innovation.

Market Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Market Equilibrium

A condition in a market where supply equals demand, resulting in stable prices that neither increase nor decrease.