Concept explainers
Components of the organization that are demotivating for purposes of performance management are known as ______.
A. business goals
B. strategic plans
C. uncontrollable factors
D. incentives
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Introduction:
Performance measurement can be explained as an indicator in management accounting that evaluates the achievement of an organization to meet its goals and objectives. This indicator helps the managers to make decisions to improve efficiency and effectiveness of an organization.
To identify:
The correct component that is de-motivating the purpose of performance management.
Answer to Problem 1MC
Option C is the correct answer.
Explanation of Solution
Explanation for correct option:
C.
Uncontrollable factors are those that are beyond the control of an organization. As these factors are outside the control of a firm and de-motivates the purpose of performance measurement. Therefore, option C is correct.
Explanation for incorrect option:
A.
Business goals of an organization motivate the purpose of performance management as they are in congruency with the controllable factors. Therefore, option A is incorrect.
B.
Corporation strategic plans are aligning with the purpose of performance measurement and also these are realistic in nature and manager has control over the strategic plans formulated. Therefore, option B is incorrect.
D.
Incentives offered to employees of an organization encourage the purpose of performance measurement. Therefore, option D is incorrect.
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