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Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
Many students who study using our platform have reported that a large number of the practice questions here are very similar to those that appear in real exams. View Courses
Which approach best ensures that performance management supports organizational goals?
Correct Answer: D. Linking performance objectives to business strategy. Linking performance objectives to business strategy ensures employee efforts directly advance the organization’s priorities. This alignment allows managers and employees to focus on measurable outcomes that contribute to growth, profitability, innovation, and customer satisfaction. HR plays a critical role in cascading strategic goals into individual objectives, ensuring accountability and relevance. When employees see how their work drives business success, motivation and engagement improve, and leaders can evaluate performance based on strategic impact rather than routine activity.
Why Other Options Are Incorrect:
A. Using annual reviews with standardized forms: Standardized reviews promote consistency but are administrative tools, not strategic mechanisms. Without aligning objectives to organizational priorities, reviews remain disconnected from strategic performance outcomes.
B. Conducting peer-to-peer recognition programs: Peer recognition enhances morale but focuses on appreciation, not measurable contribution to strategic objectives. It lacks the formal structure needed for strategic alignment.
C. Offering bonuses equally to all employees: Equal bonuses undermine the performance-based principle. They discourage differentiation based on achievement and weaken the link between performance results and rewards, eroding motivation.
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