A Pitfall of Using Relative Judgments for Performance Appraisal Is

question 35

Multiple Choice

A pitfall of using relative judgments for performance appraisal is that they:

• A) fail to clarify how great or small the performance differences are between employees.
• B) force appraisers to make judgments based solely on performance standards.
• C) focus too much on the individual rather than the individual's performance.
• D) provide inadequate information when making termination decisions.

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Definitions:

Loss

The negative financial result from an investment or business operations, where expenses exceed revenues.

Regulatory Lag

The delay between the identification of a need for regulatory intervention and the implementation of regulatory policies or actions.

Rate-Of-Return Regulation

Maximum price allowed by a regulatory agency is based on the (expected) rate of return that a firm will earn.

Economic Efficiency

A state where resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.