Question

which of the following statements is true of performance appraisals?
a. they are a form of informal feedback to let employees know where they stand.
b. they are usually optional and left to the discretion of managers.
c. they affect decisions regarding compensation, promotions, training, transfers, and terminations.
d. they are typically conducted by managers on a one - to - many basis.

Explanation:

Performance appraisals are formal processes. They are not informal (eliminating A). They are not optional (eliminating B). They are typically one - to - one (eliminating D). Performance appraisals are used to inform decisions like compensation, promotions etc. as they assess an employee's performance.

Answer:

C. They affect decisions regarding compensation, promotions, training, transfers, and terminations.