When Variances Are Used as an Input to the Performance

question 11

Multiple Choice

When variances are used as an input to the performance evaluation system, which of the following scenarios may be encountered?

• A)Purchasing managers may buy too much inventory to get a bulk purchase discount
• B)Purchasing managers may buy lower quality materials to generate a favorable price variance
• C)If standards are set at easily achievable levels, some people will only do enough to meet the target, but no more
• D)When labor efficiency is measured on a team or production cell basis, the free rider may take advantage
• E)All of the above

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Definitions:

Discriminative Stimuli

Stimuli in the environment that signal the availability of reinforcement or punishment, guiding behavior accordingly.

Reinforcement Schedule

A plan or rule that determines the timing and frequency of reinforcement delivery to promote or maintain a desired behavior.

Organism

Any living entity that can function independently, ranging from microscopic bacteria to animals and plants.

Shaping

The process of eliciting a desired response by rewarding behaviors that are increasingly similar to that response.