When managers and employees are involved in the formulation and operation of performance measures, this is known as:

A) participation and controllability.
B) benchmarking.
C) strategy and empowerment.
D) participation and empowerment.

The involvement of both managers and employees in the formulation and operation of performance measures is known as participation. Empowerment refers to giving employees the authority and resources to make decisions and take actions. Therefore, participation and empowerment are the best choices for this scenario. Choice A is incorrect because controllability refers to the extent to which a manager can control the factors that affect performance. Choice B is incorrect because benchmarking refers to comparing an organization's performance to industry standards. Choice C is incorrect because while strategy may involve performance measures, it does not necessarily involve employee involvement in their formulation and operation.