Which Performance Appraisal Method Could Be Described as "Win-Lose," Creating

question 30

Multiple Choice

Which performance appraisal method could be described as "win-lose," creating a situation whereby in order to improve his/her standing,an employee has to displace another team or department member?

• A) graphic rating scale
• B) paired comparison method
• C) forced distribution
• D) field review

Explain the significance and impact of base-rate information in judgment.

Understand the cognitive biases and their effects on perception and decision-making.

Recognize the organization of memory about people by specific categorizations.

Understand the distinction between memory-based judgments and on-line impression formation.

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Definitions:

Break-even Point

The point where the amount of goods produced or sold matches the total expenses, leading to neither a profit nor a loss.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and to generate profit.

Variable Expense Ratio

The proportion of variable expenses to total sales, illustrating how variable costs change with sales levels.

Break-even Point

The level of production or sales at which total revenues equal total costs, resulting in zero profit or loss.