Why are performance measures vital in incentive plans?
A) because they communicate the importance of the organizational goals
B) because they ensure fair pay for women
C) because they drive profitability
D) because they are fair and equitable

Question

Quizplus · Accepted Answer

Performance measures are vital in incentive plans because they communicate the importance of the organizational goals to employees, which can motivate them to work towards achieving those goals. This helps create a sense of alignment between employee performance and organizational objectives, leading to improved productivity and profitability. While fair pay and equity are important considerations in incentive plans, they are not the primary reason for including performance measures.

Why Are Performance Measures Vital in Incentive Plans