Additional Case 7.1

question 36

Multiple Choice

Additional Case 7.1
Shannon is the CEO of a firm that provides high-tech service support to other small businesses. He plans to revise the performance appraisal system to align it more closely with company goals. The tailored program should be fair and ethical and should produce consistent results.

Shannon wants service employees to work together to maximize service quality. Since the sales force has not been particularly aggressive, sales are lagging. Shannon believes that profits and customer satisfaction will increase if sales people start providing after-sale service to customers.

In the past, Shannon's sales managers have been receiving the same raises, regardless of their effectiveness. Now, Shannon wants to identify and reward the best-performing managers. By comparing managers across functions, Shannon believes he will be able to identify workers who are ready for more challenging responsibilities.

-Refer to Additional Case 7.1.What perspective of the performance appraisal process does Shannon most likely have?

• A) A political perspective
• B) A rational perspective
• C) A relative perspective
• D) A legal perspective

Recognize the importance of individual and organizational learning for achieving competitive advantage.

Identify the principles and impact of corporate social responsibility and affirmative action on organizational culture and practices.

Describe the characteristics of a multicultural organization and the benefits it brings.

Differentiate between knowledge workers and other types of employees, and understand their role in organizational success.

---

Definitions:

Overapplied Manufacturing Overhead

A scenario where the allocated manufacturing overhead costs exceed the actual overhead costs incurred, resulting in a credit balance.

Predetermined Overhead Rate

This is a rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity, such as labor hours or machine hours.

Direct Materials

Substances that can be directly linked to the manufacturing of a particular item.

Direct Labor

Labor costs that can be easily traced to individual units of product; essentially the wages paid to workers who directly manufacture goods.