Performance Appraisal Methods (Scenario)

question 128

Multiple Choice

Performance Appraisal Methods (Scenario)
Carly has just returned from a conference on performance appraisal methods. It was an interesting conference and it generally confirmed what Carly had suspected about her company's performance management system—it required some drastic revision! The company's current method is to have the immediate supervisor write out an evaluation of each individual employee. This method is time-consuming for the supervisors, and is as much a test of their writing skills as it is an evaluation of actual employee performance. Carly considered three alternative methods to replace the current system. The first method was one of the oldest and most popular performance appraisals. It involved listing a set of performance factors such as quantity of work, quality of work, level of cooperation, etc., and then rating each factor on an incremental scale. The second alternative method involved a system that focused on specific and measurable job behaviours. It required appraisers to rate employees according to numbered items which each represented actual job behaviours, rather than general descriptions or traits. The third alternative method was very results-oriented and was often used to evaluate managers and professional employees based on their accomplishment of specific goals that had been jointly established with their superiors.
-The primary disadvantage of using the second alternative method is that it ________.

• A)is time-consuming and difficult to develop job behaviours
• B)focuses on end goals rather than job behaviours
• C)is unwieldy with large numbers of employees
• D)raises legal and ethical concerns by comparing employees with one another

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Definitions:

Overhead

Expenses that are not directly associated with the production of goods or services but are required for the company's operations, such as rent, utilities, and administrative salaries.

Book Value

The net value of a company's assets found on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs that increase with production volume.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus its depreciation.