A compensation program that includes all performance indicators that influence an employee's effort is called the:
A)informativeness principle.
B)incentive coefficient.
C)risk-sharing premium.
D)efficient bargaining solution.

Question

Quizplus · Accepted Answer

The compensation program that includes all performance indicators that influence an employee's effort is an example of the informativeness principle. This principle states that incentives will be effective only if they provide employees with information about what behaviors will lead to higher pay or rewards. By including all relevant performance indicators, the compensation program becomes more informative and can motivate employees to perform at their best. The other options (B, C, and D) are not directly related to the concept of including all performance indicators in a compensation program.

A Compensation Program That Includes All Performance Indicators That Influence