Which of the Following Is a Drawback of a Behavior-Based

question 108

Multiple Choice

Which of the following is a drawback of a behavior-based performance appraisal system?

• A) Time-consuming to develop
• B) Distorted worker performance levels
• C) Ambiguous ratings which leads to bias
• D) Managerial resistance due to required training

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to some degree of market power in setting prices.

Economies of Scale

A proportionate saving in costs gained by an increased level of production, leading to lower costs per unit as volume increases.

Unit Cost

The expense a company experiences in manufacturing, warehousing, and distributing a single unit of a specific product or service.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting surplus value created in productive activities.