The Purpose of a Performance Appraisal Is to

question 307

Multiple Choice

The purpose of a performance appraisal is to

• A) protect the firm from lawsuits by disgruntled employees.
• B) improve employee performance.
• C) obtain information for the firm's financial performance that must be provided in the annual report to stockholders.
• D) give managers the information they need to determine the firm's strengths and weaknesses relative to its most serious competitors.

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Definitions:

Behavioral Economics

The study of how psychological, social, cognitive, and emotional factors affect economic decisions and the implications for market prices, returns, and resource allocation.

Retail Stores

Physical or online outlets that sell goods directly to consumers for personal or household consumption.

Behavioral Economist

An economist who studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Individual Decision Making

The process by which an individual selects among alternative choices based on preferences, resources, and information.