What actions are used when SLAs are not met?

What actions are used when SLAs are not met?

• A. Ignore penalties
• B. Penalties or incentives as defined
• C. Rewards before meeting SLAs
• D. Annual bonuses regardless

Answer: (B)

When service level agreements are not met, the remedy is defined in the agreement to enforce accountability and drive improvement. The typical action is to apply penalties or incentives as specified. Penalties might include service credits, fee reductions, or financial penalties, while incentives can be performance-based rebates or bonuses tied to achieving or restoring the agreed levels. Ignoring penalties would fail to enforce the agreement, rewards before meeting SLAs would not address the shortfall, and annual bonuses regardless of performance would disconnect rewards from actual service reliability.

When service level agreements are not met, the remedy is defined in the agreement to enforce accountability and drive improvement. The typical action is to apply penalties or incentives as specified. Penalties might include service credits, fee reductions, or financial penalties, while incentives can be performance-based rebates or bonuses tied to achieving or restoring the agreed levels. Ignoring penalties would fail to enforce the agreement, rewards before meeting SLAs would not address the shortfall, and annual bonuses regardless of performance would disconnect rewards from actual service reliability.