Question

What is a key component of an effective performance reward system?

• A. Flexible job roles
• B. Employee incentives
• C. High salaries
• D. Clear performance standards

Answer 1

Answer:

D. Clear performance standards

An effective performance reward system relies significantly on the presence of well-defined criteria for evaluating employee performance. These criteria ensure that employees are aware of the expectations and can strive to meet or exceed them. This clarity helps in objectively assessing performance and providing appropriate rewards, thereby motivating employees to perform better and align their efforts with organizational goals.