What is the method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?
A) merit pay
B) profit sharing
C) gainsharing
D) balanced scorecard
E) Scanlon plan

Question

Quizplus · Accepted Answer

The method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay is known as a balanced scorecard. This approach ensures that incentive pay is tied to achieving strategic objectives and not just short-term gains, promoting the overall success of the organization. Merit pay, profit sharing, gainsharing, and Scanlon plans are all types of incentive pay programs, but they do not necessarily incorporate a mix of short- and long-term performance measures like the balanced scorecard does.

What Is the Method Where a Combination of Performance Measures