Because financial incentives change behaviors, managers have to ensure the performance measures they use will focus employees on what they want to do.

Question

Quizplus · Accepted Answer

Financial incentives are a powerful tool for motivating employees, but they have to be aligned with the goals of the organization. If performance measures are not carefully designed, they may incentivize behaviors that are counterproductive or even harmful to the organization's success. Therefore, managers need to choose performance measures that will focus employees on the desired outcomes and behaviors, so that financial incentives are effective in driving performance.

Because Financial Incentives Change Behaviors, Managers Have to Ensure the Performance