Prometheus Corp. is a large-scale manufacturer of consumer electronic gadgets. As part of its performance management system, Prometheus measures the amount each employee contributes to the profits of the company, and they are either held accountable or rewarded based on their contributions. With regard to performance measurement, under which of the following terms would contribution to profits be categorized?
A)Key risk indicators (KRIs)
B)Critical success factors (CSFs)
C)Non-performing assets (NPAs)
D)Key performance indicators (KPIs)
E)Behavioral Observation Scales (BOSs)

Question

Quizplus · Accepted Answer

Critical success factors (CSFs)are factors in a company's business strategy that give it a competitive edge. Companies measure employee behavior that relates to attainment of CSFs, which increases the importance of these behaviors for employees. Employees can be held accountable and rewarded for behaviors that directly relate to the company attaining the CSFs. In the above scenario, contribution to profits is a critical success factor (CSF)of Prometheus Corp.