The primary reason for using a performance measure,such as ROI,is to:
A)Motivate organizations to embrace strategic plans that are consistent with employee goals.
B)Motivate the CEO and CFO to maintain their stock holdings in the company.
C)Motivate employees to make decisions consistent with goals and objectives of the organization.
D)Motivate employees to hold stock in the company for long-term periods.

Question

Quizplus · Accepted Answer

The primary reason for using a performance measure such as ROI is to motivate employees to make decisions that align with the goals and objectives of the organization. By measuring their performance based on ROI, employees are incentivized to make decisions that are profitable for the organization, which ultimately benefits both the company and its employees. Motivating employees to hold stock in the company or encouraging the CEO and CFO to maintain their stock holdings would likely not be the primary reason for using a performance measure such as ROI.

The Primary Reason for Using a Performance Measure,such as ROI,is