When strategic performance measures or critical success factors are used to determine bonus compensation, the bonus will usually depend either on the amount of improvement in the measure or on:
A) Maintaining the current level.
B) Achieving a predetermined goal.
C) Quality of work completed.
D) Intensity of effort expended.

Question

Quizplus · Accepted Answer

When strategic performance measures or critical success factors are used to determine bonus compensation, the bonus will usually depend on achieving a predetermined goal. This means that employees will receive a bonus if they meet or exceed the target goal set for the measure or success factor, rather than simply maintaining the current level or putting in a certain level of effort. The quality of work completed may be important in determining overall performance, but it may not be the sole factor in determining bonus compensation.

When Strategic Performance Measures or Critical Success Factors Are Used