What Is the Advantage of Using a Rating Method Rather

question 2

Multiple Choice

What is the advantage of using a rating method rather than a ranking method during the performance review process?

• A) Each employee is compared to all other employees in the group.
• B) Each employee is compared to a fixed standard.
• C) The recency error is eliminated.
• D) Managers do not need to utilize a 360-degree review.
• E) Providing employees with meaningful feedback is easier.

---

Definitions:

Promissory Note

An economic tool comprising a formal pledge by one party to give a specific amount of money to another, redeemable upon request or at a predetermined time.

Discounted

Refers to the reduction of an item's price or the present value of future cash flows discounted back to the present value.

Proceeds

The amount of money brought in from a transaction or sale, before any expenses are deducted.

Compounded Semi-annually

The process of applying interest to both the principal amount and any accumulated interest every six months.