55) MAX Computers manufactures affordable laptops and desktops at its factory in Arizona.
MAX has experienced a moderate amount of financial success, but upper management wants the
firm to grow at a faster rate and become a bigger player in the highly competitive computer
market. The firm’s greatest problems relate to its employees. Employee turnover is high—most
employees at MAX leave within two years or less of being hired. In addition, the rate of
productivity among employees is not as high as executives would like. The vice president of
human resources is considering moving MAX towards a high-performance work system.
Which of the following questions is most relevant to MAX’s decision to move toward a high-
performance work system?
A) How would the implementation of self-managing work teams affect employee morale and
work standards at MAX?
B) How will qualitative performance measures address the needs of MAX employees in regards
to the firm’s benefits plan?
C) What roles should line managers, staff managers, and HR managers at MAX play in
performance appraisals?
D) What economic and demographic trends in the U.S. are related to the employee turnover rate
at MAX?
56) Which of the following is most likely a true statement about high-performance companies?
A) Most employees receive regular performance appraisals.
B) Employee turnover is extremely high.
C) Only executives are eligible for incentive pay.
D) The majority of jobs are filled externally.