14-3 - The primary goals of performance reviews are to...

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CIS 550 / Week 11 Chapter 14 Review Questions and Exercise 14-R5 Comment on the following statement: “We cannot afford to terminate the project now. We have already spent more than 50 percent of the project budget.” The statement above represents flawed reasoning for not closing a project. The decision to continue or close a project should be based on whether or not the project continues to support the organizational strategy. Sunk costs should not factor into the decision, only estimated future costs and project benefits. 14-R6 Why should you separate performance reviews from pay reviews? How? Performance reviews and pay reviews are different activities that are not compatible.
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Unformatted text preview: The primary goals of performance reviews are to identify individual strengths and weaknesses and develop action plans for improving performance. In contrast, pay reviews assess performance to determine salary or merit adjustments. If performance and pay reviews aren’t separated, employees may tune out constructive feedback on performance improvement in their eagerness to find out how much pay they will receive. Similarly, managers may be “more concerned with justifying their decision than engaging in a meaningful discussion on how the employee can improve his or her performance” (p. 481)....
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