A Pitfall of Using Performance Appraisals as a Tool for Organizational

question 3

Multiple Choice

A pitfall of using performance appraisals as a tool for organizational assessment is that:

• A) it assesses past performance and does not necessarily predict future performance.
• B) the process makes employees nervous and initiates voluntary separations.
• C) employees focus too much on their reputations rather than their job performance.
• D) it fosters unrealistic expectations for career advancement opportunities.

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Definitions:

Acquisition

The process by which one company purchases most or all of another company's shares or assets, gaining control over the acquired company.

Consolidated Retained Earnings

The cumulative amount of profits kept by a company after dividends are paid, as reported in consolidated financial statements that merge the accounts of parent and subsidiary entities.

Par Value

The face value of a bond or stock as stated in the corporate charter or on the certificate.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting the price at which it could be exchanged between willing parties in an arm's length transaction.