Additional Case 7.2 Shannon Is the CEO of a Firm That Provides High-Tech

question 107

Multiple Choice

Additional Case 7.2
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 7.2.Madeline's evaluation of Juan most likely involves a(n) ________ error.

• A) central tendency
• B) influence of liking
• C) frame-of-reference
• D) assessment criteria

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Definitions:

Risk Aversion

The tendency to avoid taking risks and prefer safer options.

Fixed Income

A type of investment security that pays investors fixed interest or dividend payments until its maturity date.

Incremental Theorists

Individuals who believe that personal qualities such as intelligence and skills can improve over time with effort and practice.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from persistent failure to succeed or escape from a difficult situation.