The Following Are All Prerequisites for Linking Performance and Reward

question 10

Multiple Choice

The following are all prerequisites for linking performance and reward except:

• A) Managers need to develop and communicate performance standards to employees
• B) Managers need to implement the same rewards for all employees
• C) Managers need valid and accurate performance ratings with which to compare employees
• D) Managers need to determine the relative mix of individual versus team contributions to performance then reward accordingly
• E) Managers should use the performance ratings to differentially allocate rewards among employees

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product.

Additional Unit

The next unit of production or consumption, considered in analysis of changes in benefit or cost from increasing quantity.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales activity, such as rent or salaries.

Lease Payments

Regular payments made by a lessee to a lessor for the use of a property, vehicle, or equipment.