Performance-Driven Cultures

question 10

Multiple Choice

Performance-driven cultures:

• A) have performance measurement and feedback as central elements of the HRM system
• B) focus on monitoring and improving performance
• C) often reflect the philosophies of the company's CEO and/or founder
• D) often reward only the highest performing employees
• E) all of the above are correct

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Definitions:

Labor Rate Variance

The difference between the actual hourly wage paid to workers and the expected (or standard) wage.

Direct Labor Standard

A benchmark for the amount of labor time that should be consumed in the production of a good or service, used for costing and efficiency analysis.

Labor Rate Variance

The financial difference between the actual cost of labor and the budgeted (or standard) cost of labor, influenced by the wage rates paid and the amount of labor hours used.

Labor Standards

Benchmarks or norms established for the amount of labor required to perform a task efficiently, often used to set production targets and labor budgets.