Which of the following statements about specifying and measuring performance is true?
A)Many firms rely heavily on financial performance measures
B)One of the easiest to use measures for employee performance is a qualitative measure such as customer satisfaction.
C)Organizations should look for ways to measure employee results not employee behavior.
D)Organizations should take the same approach to measuring performance whether taking a long-term or short-term perspective.
E)Traditional commissions focus on long-term performancE.

Question

Quizplus · Accepted Answer

Many firms heavily rely on financial performance measures, such as profit margins, revenue growth, and return on investment. These measures are easy to understand, calculate and communicate, making them ideal for evaluating overall company performance.

Note: the other statements are not entirely true. For example, B is not always true as qualitative measures such as customer satisfaction can be subjective and difficult to measure consistently. C is not entirely true as it is important to measure both employee behavior and results. D is also not true as the approach to measuring performance should be adjusted based on the time horizon. Finally, E is not always true as commissions can be both short-term and long-term.

Which of the Following Statements About Specifying and Measuring Performance