Wilson Consulting Is a Management Consulting Firm with Seventy Employees

question 95

Multiple Choice

Wilson Consulting is a management consulting firm with seventy employees.As associate vice president of marketing,Suzanne Boyle is responsible for conducting performance appraisals of the twelve employees under her direct supervision.Suzanne plans to use the critical incident method to evaluate the performance of her subordinates. Which of the following,if TRUE,undermines the argument that the critical incident method is the most appropriate performance appraisal tool for Suzanne to use?

• A) Other departments at Wilson Consulting have seen employee performance improve as a result of providing ongoing evaluations.
• B) Due to economic difficulties, the firm will be laying off the two lowest-performing employees in Suzanne's department.
• C) Employee performance standards are closely aligned with Wilson Consulting's long-term strategic plans.
• D) Suzanne will be conducting performance appraisals in conjunction with the HR manager to ensure EEO compliance.

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Definitions:

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Profit-Maximizing Output

The level of production at which a firm achieves the maximum possible profit, where marginal cost equals marginal revenue.

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Marginal Costs

The rise in overall expenses resulting from the production of an additional unit.