How Do Rater Errors and Personal Emotions Affect the Performance

question 114

Essay

How do rater errors and personal emotions affect the performance appraisal process? How can firms manage the impact of both?

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Definitions:

Agency Costs

Costs that arise from conflicts of interest between principals (owners) and agents (managers), including monitoring and incentive expenses.

Background Checks

The process of verifying the personal, financial, and criminal history of an individual, commonly undertaken by employers.

Time Clocks

Devices used to track the hours worked by employees, often by punching a card or logging in digitally.

Incentivize Employees

Offering rewards or benefits to motivate workers and enhance their performance.