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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.
-What is Carly's first alternative method?
Marginal Cost
The cost to produce one additional unit of a product or service.
Buffet
A meal consisting of various dishes set out on a table or sideboard from which guests can serve themselves.
Profit Opportunities
Situations where individuals or firms can earn a return on investment that is more than the norm, often due to market inefficiencies or information asymmetries.
Opportunity Cost
The cost of choosing one option over another, represented by the benefits that could have been obtained by choosing the alternate option.
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