Additional Case 7.1 Shannon Is the CEO of a Firm That Provides High-Tech

question 86

Multiple Choice

Additional Case 7.1
Shannon is the CEO of a firm that provides high-tech service support to other small businesses. He plans to revise the performance appraisal system to align it more closely with company goals. The tailored program should be fair and ethical and should produce consistent results.
Shannon wants service employees to work together to maximize service quality. Since the sales force has not been particularly aggressive, sales are lagging. Shannon believes that profits and customer satisfaction will increase if sales people start providing after-sale service to customers.
In the past, Shannon's sales managers have been receiving the same raises, regardless of their effectiveness. Now, Shannon wants to identify and reward the best-performing managers. By comparing managers across functions, Shannon believes he will be able to identify workers who are ready for more challenging responsibilities.
-Refer to Additional Case 7.1.Shannon is considering an appraisal system based on relative judgment.Which statement best supports the use of such a system?

• A) The firm would benefit from specifying the differences between employees.
• B) Managers need to know which employees are the best at the firm.
• C) The firm frequently needs to make decisions about pay raises.
• D) Employees require specific details about their performance.

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Definitions:

Increased Visibility

Enhancing the awareness or exposure of an entity or issue among a wider audience or community.

Business Venture

An entrepreneurial enterprise or company initiated by an individual or a group of people to seek profit by providing products or services.

Executive Summary

A condensed version of a document, report, or proposal that highlights its main points, intended to give readers a quick overview of its content.

Intangibles

Non-physical assets such as intellectual property, brands, or goodwill that have value for an organization.