Question

When setting performance measures for incentive systems, we can say that the best measures are those that:

a. allow employers to "ratchet up" standards and base rewards on qualitative standards.
b. reduce administrative costs, determine rewards based only on quantity, and reward only exceptional employees.
c. are quantitative, simple to understand, and show a clear relationship to improved performance.
d. are qualitative, flexible, and create competition between employees?

Answer 1

When setting performance measures for incentive systems, we can say that the best measures are those that are quantitative, simple to understand, and show a clear relationship to improved performance, for example: salaries, awards, social benefits, opportunities for progress, in other words, incentives for workers to perform better in the workplace, is a way of rewarding employee productivity.