Which of the Following Is True of Performance Measurement

question 88

Multiple Choice

Which of the following is true of performance measurement?

• A) Preferred performance measures do not change much with changes in factors that are beyond manager's control.
• B) Sensitive performance measures increases the cost of providing incentives.
• C) Less-sensitive performance measures induce managers to improve.
• D) Managers' performances should be evaluated based on the financial measures such as residual income and economic value added.

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Definitions:

Negative Contingency

A relationship where the occurrence of one behavior decreases the likelihood of another event or behavior.

Signaled Shock

A procedure in conditioning experiments where a signal or cue is given before an aversive stimulus, such as a shock, to study learning and anticipation.

Unsignaled Shock

A type of aversive stimulus that is delivered without a preceding warning, often used in psychological experiments to study learning and behavior.

Anxiety

A mental health condition characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.