The absence of good performance measures restricts the owner's ability to motivate managers through
A)rewards for products.
B)performance-based incentives.
C)monetary rewards.
D)compensation.
E)non-financial rewards.

Question

Quizplus · Accepted Answer

Good performance measures are essential in determining how well managers are performing their jobs. Without good measures, it becomes difficult to tie particular outcomes to specific actions and reward managers accordingly. Performance-based incentives are directly tied to good performance measures and are the most effective way to motivate managers to reach their goals. Monetary and non-financial rewards can also be useful, but they are less effective without good performance measures to establish a clear link between outcomes and rewards.

The Absence of Good Performance Measures Restricts the Owner's Ability