Final answer:
Measuring performance relative to planned objectives and standards falls under Performance Management, which is essential for evaluating achievement and planning future objectives. The correct option Option 3: Performance Management
Step-by-step explanation:
Measuring Performance in Business
Measuring performance relative to planned objectives and standards is a crucial aspect of Performance Management. This process involves evaluating whether the goals and objectives set by an individual or an organization have been met, exceeded, or not met. This evaluation is essential for future planning and setting goals for the next year or work period.
In the context of economic systems, goals such as economic freedom, efficiency, and growth guide nations and businesses alike. These goals are integral to the performance management process as they set the direction for operational activities and strategy.
To effectively measure performance, organizations must establish criteria to track progress. The criteria often involve measurable outcomes that can be evaluated against pre-established standards or benchmarks. Marginal costs and benefits are also considered when making decisions, which are part of performance evaluations.
Accountability is an important aspect of performance management. Employees are typically informed about the expectations for their roles from the beginning, and performance evaluations help ensure that these expectations are being met. Organizations need to ensure that their employees' goals are Achievable and appropriate.
The correct option that relates to measuring performance relative to planned objectives and standards is:
Option 3: Performance Management