Marjet Had Just Returned from a Training Session on Rater

question 8

Multiple Choice

Marjet had just returned from a training session on rater biases.She was fascinated with the lively discussion that took place within the group being trained.Marjet agreed with her colleague,June,that their supervisor just generally seemed to evaluate everyone in their department very harshly.Michael,in purchasing,indicated that his boss seemed to be always focused on the results of work that was performed only two months before the annual performance evaluation interview.Jeff,in marketing,was frustrated because he felt that he was always being compared to other employees in the marketing department rather than on performance or results.He felt he was rated lower than his colleagues since he didn't have an MBA like they did.Helena was really happy that she got along so well with her supervisor,and they had been friends for many years prior to working with the firm.She thought she might be evaluated more leniently as a result.
-Michael's supervisor in purchasing likely has a rater bias of a

• A)recency effect.
• B)leniency bias.
• C)error of central tendency.
• D)strictness bias.
• E)halo effect.

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical data, such as financial statements, over a series of periods to identify trends and growth patterns.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.

Debt To Total Assets Ratio

A financial metric that indicates the percentage of a company's assets that are financed by debt.