Answer Questions

Answer each question in paragraph form addressing all required parts.

1. Still other firms use 360-degree evaluations. Under this system, the firm asks a manager’s subordinates, colleagues, and customers for feedback on the manager’s performance. What advantages do you see to such a system? Do you see any dis-advantages? What other policies might make such an approach less prone to the problems that you see? What kind of culture would be necessary for such appraisals to work?

2. Provide examples of each concept from your own work experience:

• Controllable and uncontrollable risk

• Distorted incentives

• Narrow and broad performance measures

• Manipulation of a performance measure