Forced Ranking Systems Like Those Used by Intel and Uber

question 36

Multiple Choice

Forced ranking systems like those used by Intel and Uber,

• A)provide employees with concrete feedback on what their goals are for next year.
• B)are beneficial to a firm if they are used in a consistent manner and for a long period of time.
• C)can lead to employee stagnation and a performance-aversive culture.
• D)can carry the danger of lawsuits because of equal employment opportunity concerns with employees rated.

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Definitions:

Price of Capital

The cost of using capital goods, represented by interest rates, lease payments, or other measures of the cost of borrowing or using capital.

Marginal Revenue Product

The additional revenue generated from employing one additional unit of a resource, such as labor or capital.

Complementary Resource

A resource or product that enhances or is necessary for the use of another resource or product, such as printers for computers.

Substitution Effect

The alteration in buying habits caused by shifts in relative prices, prompting consumers to swap out higher-priced goods for more affordable options.