Organizations should choose performance metrics that improve the alignment of managerial incentives with ________.
A) managerial effort
B) organizational objectives
C) ethical behavior
D) agency theory

Question

Quizplus · Accepted Answer

Performance metrics should be chosen in a way that motivates managers to pursue organizational objectives. This alignment ensures that the efforts of managers are in line with the larger goals of the organization, which strengthens the effectiveness of the organization. Choosing metrics that are aligned with organizational objectives increases the likelihood that managers will act in the best interest of the organization.

Organizations Should Choose Performance Metrics That Improve the Alignment of Managerial