True or False? 1) Performance evaluation systems provide top management with a framework for maintaining control over the entire organization. 2) Once a company decentralizes operations, top management is still involved in running sub-units day-to-day operations.

3) Communicating top management's expectations to segment managers improves goal congruence. 4) In decentralized companies, performance evaluation systems provide upper management with the feedback it needs to maintain control over the entire organization. 5) Goal congruence is the practice of comparing the company's achievements against the best practices in the industry.

Letters only 6) To make decisions that are consistent with the company's goals, segment managers must know the goals and the specific role their unit plays in attaining the goals. To which primary goal of performance evaluation systems does this pertain? A) motivating segment managers B) communicating expectations C) providing feedback D) benchmarking

7) A system that provided top management with a framework for maintaining control over the entire organization is known as: A) segmentation B) goal congruence C) performance evaluation D) benchmarking 8) Offering bonuses to segments for achieving top managements' expectations is an example of: A) promoting goal congruence and coordination B) providing feedback C) communicating expectations D) motivating segment managers 9) The performance evaluation system should provide incentives to segment managers for coordinating the activities of the subunits and directing them toward the overall company goals. Which of the following performance measurement goals has been described by this statement? A) motivating segment managers B) promoting goal congruence C) providing feedback D) benchmarking

10) The practice of comparing the company's achievements against the best practices in the industry is known as ________. A) segmentation B) goal congruence C) performance evaluation D) benchmarking