In Workday,step-based gradesuse progression logic to control movementfrom one step to the next. Conditional logic is appliedonly to steps that an employee progresses through, not to the final step in the sequence.

In this scenario, the business requirement is to allow progressiononly if the employee does not have a poor performance rating (value 1). This condition must be evaluated when the employee attempts to move from:

Step 1 → Step 2

Step 2 → Step 3

There isno progression after Step 3, so conditional logic isnot requiredfor that step.

Conditional logic for step progression is configured at thestep level, not at the grade profile level. The logic must explicitly evaluate that theperformance review rating is not equal to selection list value 1.

Options B and D are incorrect because grade profiles do not control step-level progression logic. Option C incorrectly allows progression only when performance is poor, which is the opposite of the requirement.

Therefore, conditional logic should be applied toStep 1 and Step 2, evaluating that the rating isnot in selection list value 1, makingOption Athe correct answer.