A Manager Is Considering Changing Her Current Performance Appraisal Method,the

question 15

Multiple Choice

A manager is considering changing her current performance appraisal method,the graphic rating scale,to the forced distribution method.What criticism of this new method would you advise her about?

• A) The traits being appraised are often incorrect.
• B) The employees are placed in categories unrelated to their actual skills.
• C) Employee comparisons are often unfair as veterans may be compared with newcomers.
• D) Comparisons are very technical and this removes the manager's personal judgment.
• E) The majority of the workforce is classified as at or below average and this may be demotivating.

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Definitions:

Straight Salary Plan

A compensation plan that permits salespeople to be paid for performing various duties that are not reflected immediately in their sales volume.

Sales Volume

The total quantity of products or services sold by a company within a specific period, often used as a measure of business activity.

CEO Compensation

The payment and benefits package provided to a company's chief executive officer, including salary, bonuses, stock options, and other perks.

Stock Options

A benefit in the form of an option given by the company to an employee to buy stock in the company at a discount or at a stated fixed price.