Pam is a sales manager for Paradise Beauty Products. She has told her sales people that she expects each of them to increase their customer contacts by at least 5 percent in the next month. Pam has set a (n):

A. procedural policy.

B. functional objective.

C. policy guide.

D. performance standard.

The correct answer is letter "D": performance standard.

Explanation:

Companies set performance standards from entry-level employees to top executives managers so each worker in a firm will be aware of the role that must play so the overall goals of the firm can be reached. Performance standards include the number of hours worked by day, week, and month, production per employee, number of sales processed, and monthly revenue to mention a few. The standards represent minimum performances employees must reach to justify their presence in the institution.