Which of the following is true of performance standards?
A)Performance standards are not measurable in nature.
B)Performance standards need not be tied to a specific time period.
C)At the product-market level,performance standards include sales and market-share determinants.
D)Performance-based measures tied to the compensation of those individuals responsible for attaining the specified goals may be detrimental to the firm in the short term.

Question

Quizplus · Accepted Answer

Performance standards at the product-market level typically include sales and market-share determinants. This helps to keep the organization's focus on achieving objectives related to capturing or retaining market share, improving customer satisfaction, and increasing the profitability of the firm. Option A is incorrect because performance standards must be measurable to be meaningful. Option B is incorrect because performance standards are typically tied to a specific time period such as a quarter or a year. Option D is incorrect because performance-based measures tied to compensation can incentivize employees to work harder to achieve the desired outcomes.

Which of the Following Is True of Performance Standards