In a pay-for-performance plan,defined performance measures must be highly correlated with an organization's operational targets.

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In a pay-for-performance plan, the performance measures should be directly linked and aligned with an organization's operational targets. This ensures that the employees' efforts are aligned with the organization's goals and objectives. Therefore, there should be a high correlation between defined performance measures and the organization's operational targets.

In a Pay-For-Performance Plan,defined Performance Measures Must Be Highly Correlated