Forced ranking performance review systems rank all employees within a company business unit against one another
Their performance grades are distributed on a bell curve, which determines potential disciplinary actions or rewards. What is NOT a potential drawback of these evaluation systems?
A) They lower employee morale.
B) They invite legal challenges.
C) They decrease productivity.
D) They produce objective evaluation data.
E) They decrease employee loyalty.
Answer: D
Explanation: D) Pitting employees against one another in a ranking system can result in bad feelings among staff. However, the bell curve and evaluation grades can offer clear pictures of comparative performance.
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The purpose of other-insurance provisions is to
A) eliminate the need for deductibles. B) penalize those insureds who carry inadequate amounts of insurance. C) specify who will pay losses if the insurer is bankrupt. D) preserve the principle of indemnity.
A lack of insurance for high-risk drivers:
A) makes the insurance market more efficient B) should change their behavior C) makes insurance costs go up D) reduces regulation in the insurance market