The performance measurement system for employees' compensation should focus on all facets of performance to:
A)ensure that reporting is complete.
B)encourage gaming of the performance indicator.
C)provide the highest possible level of internal control.
D)ensure that employees do not sacrifice performance on unmeasured elements.

Question

Quizplus · Accepted Answer

The purpose of a performance measurement system for employees' compensation is to ensure that employees are fairly compensated based on their level of performance. To achieve this goal, the system should focus on all facets of performance, including both measured and unmeasured elements, to prevent employees from sacrificing performance on unmeasured elements. Focusing solely on complete reporting may encourage employees to manipulate or game the system, while a focus on internal control may not necessarily guarantee fair compensation. Therefore, the best option is to focus on all facets of performance to ensure a fair and accurate performance measurement system.

The Performance Measurement System for Employees' Compensation Should Focus on All