Employees at a dry cleaning service are evaluated on the number of shirts ironed per hour. All of the employees iron between 10 and 12 shirts per hour, so it is difficult to distinguish between effective and ineffective employees. There appears to be a problem with the performance criterion's:

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Sensitivity refers to the ability of a performance criterion to differentiate between effective and ineffective performance. In this case, the criterion of number of shirts ironed per hour is not sensitive enough since all employees are ironing similar numbers of shirts, making it difficult to distinguish between varying levels of effectiveness.

Employees at a Dry Cleaning Service Are Evaluated on the Number