Additional Case 7.1 Shannon Is the CEO of a Firm That Provides High-Tech

question 102

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.The best appraisal system for Shannon's sales management team would most likely be:

• A) rank order.
• B) trait based.
• C) outcome based.
• D) behavioral based.

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Definitions:

CCA Class

A category under the Canadian tax system that determines the depreciation rate for tax purposes on capital assets.

Net Advantage

The benefit or gain that results from a specific course of action, minus any associated costs.

Resale Value

The estimated value for which an asset can be sold in the marketplace after some period of use.

Depreciation Tax Shield

A reduction in taxable income for firms, achieved through claiming depreciation expenses, thereby lowering the tax liability.