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Exam 16: Individual Performance Evaluation

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Question 21

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If managers at a firm were rewarded for meeting production quota,then:

A) some managers would rebel and not meet the necessary quota.
B) all managers would exceed the quota.
C) all managers would just meet the quota.
D) some managers would just barely exceed the quota.

E) A) and B)
F) A) and C)

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Question 22

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Setting performance goals based on historical data and past performance creates:

A) the horizon problem.
B) a compensating differential.
C) opportunism.
D) a ratchet effect.

E) None of the above
F) B) and D)

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Question 23

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The larger the number tasks and the greater the authority required in a job,then the evaluation of the person in the job will move from ______ to ______.

The performance-evaluation system under which an employee enumerates his/her accomplishments,points out strengths,and discusses weaknesses with the higher management is commonly referred to as:

In a very basic principal-agent model,output is contractible if:

Give examples of how government intervention helps reduce moral hazard and adverse selection problems in internal labor markets.

Which of these is a subjective evaluation method used for assessing an employee's compensation?

If TruLite's factory workers receive an hourly wage,described by the equation; Employee compensation = $5.00 + 0.10Q,where Q is the number of light switches installed per hour,then:

If TruLite's factory workers receive an hourly wage,described by the equation; Compensation = $5.00 + .10Q,where Q is the number of light switches installed per hour,then:

Employees often limit their output and engage in soldiering because of the fear that if they exceed output levels this time,management will increase output goals for the next time period.This is called the:

At Always Round Tire,managers and professional employees are evaluated each year with the Subjective Information Performance Survey (SIPS).SIPS allows bosses to rank their employees on several issues including achieving budget objectives,communication quality,continuing education and training activities,and emphasis of teamwork among subordinates.SIPS software computes means and standard deviations,and benchmarks each employee relative to all others in the same evaluation system.However,nobody at the company believes in SIPS output.Why?

If TruLite's management studied the light fabrication department and found that the department should assemble 25 lamps per hour per worker and set its piece rate to get workers to meet output level,then this standard is called the:

If an employee is paid a fixed wage in a production environment where the wage is independent of output,then the employee has an incentive to:

The dean of a large university issues the following policy for faculty pay-raises in the smaller satellite campuses: faculty pay increases will be possible only if enrollment increases above last year's targets.Evaluate the impact of this policy on the overall system.

Employee performance evaluation is needed because:

Make a case for 360-degree performance evaluation based on the informativeness principle.What problems may be encountered from implementation of such a system?

Gaming refers to a situation where: