Case Study 2: read the case and answer the following questions.

Bayti Store is a leading company in Lebanon specialized in manufacturing and retailing furniture and home appliances. The company has recognized the importance of human capital theory in making the company successful. BS tries their best to retain the employees who accumulate experience and knowledge through offering them various pay systems such as seniority pay system and longevity pay system. For performance appraisal, BS ranks its employees based on the accomplishments and objectives that each employee have decided to accomplish with his/her supervisor. Then the company decided to update the system, it asked the supervisors to rate the performance of these workers based on comparing each employee by another and then ranking them all in order. BS recruited an HR professional called David Stanly to help in reforming the HR practices in the company. Unlike most of HR executives who prefer seniority pay because of its simplicity and fairness, Mr. Stanly agreed on objectives with the employees to work on them mutually. For example, Sam is a sales professional who is employed by Mr. Stanley at BS. At the beginning of every year, Sam and David Stanley determine objectives for Sam together, which are tied to corporate objectives. One of the objectives is related to customer satisfaction. Sam always remains in contact with customers to whom he sold furniture even after six months following the sale. His performance appraisal partially depends on his performance compared to other employees working in the same department as him. The only problem here that the performance is limited by the efforts of the employees within the same department compared to each other.

also known as pay-for-performance, is defined as a raise in pay based on a set of criteria set by the employer. *

A) Longevity

B) Merit

C) Seniority-based

D) Incentive

Which of the following is a not related to merit pay systems? *

A) They reward exemplary performance.

B) They encourage employees to continue to increase their skill sets.

C) They help to promote product quality.

D) They reward employees on an objective basis

What kind of performance appraisal system is Mr. Stanley using with Sam? *

A) trait

B) comparison

C) behavioral

D) goal-oriented

Which performance appraisal error reflects the tendency to rate every employee at the low end of the rating scale, regardless of actual performance? *

A) error of central tendency

B) contrast errors

C) negative halo error

D) errors of strictness