Make a Case for 360-Degree Performance Evaluation Based on the Informativeness

question 22

Essay

Make a case for 360-degree performance evaluation based on the informativeness principle.What problems may be encountered from implementation of such a system?

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business, such as machinery, buildings, and equipment, that contribute to revenue generation.

Operating Costs

The expenses associated with the operation of a business, excluding costs associated with production.

Working Capital

The difference between a company’s current assets and current liabilities, indicating its short-term financial health and operational efficiency.

Net Present Value

A calculation used to assess the profitability of an investment, considering the present value of its future cash flows minus the initial investment.