Why Are Performance Measures Vital in Incentive Plans

question 108

Multiple Choice

Why are performance measures vital in incentive plans?

• A) because they communicate the importance of the organizational goals
• B) because they ensure fair pay for women
• C) because they drive profitability
• D) because they are fair and equitable

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Definitions:

Quantitative Forecasting

The use of numerical data and statistical models to predict future outcomes based on historical data.

Regression Analysis

Presupposes that a linear relationship exists between one or more independent (causal, or predictor) variables, which are predicted to affect the dependent (criterion) variable-in our instance, future HR demand for personnel (i.e., the number of employees).

Trend Projection

A forecasting technique that extends past data points into the future to predict outcomes, often used in sales, finance, and inventory planning.

HR Forecasting

A method used in human resources to estimate future workforce needs to achieve the organization's objectives.