Some companies use financial measures, such a return on assets, to evaluate the performance of divisions, managers,
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Some companies use financial measures, such a return on assets, to evaluate the performance of divisions, managers, and even individual employees. There are certainly risks associated with such a practice. Can you think of or locate an example where a company evaluating this way could actually encourage the opposite of the behavior that they intended to promote among its employees? What might an employee do if their raise or bonus depended on a single financial measure?
Related Book For
Fundamentals of Investment Management
ISBN: 978-0078034626
10th edition
Authors: Geoffrey Hirt, Stanley Block
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