Question: This company, rather advanced in its performance evaluation systems, utilizes both results-based and performance-based criteria. Evaluations based upon ROI would be considered a result-based criterion.

This company, rather advanced in its performance evaluation systems, utilizes both results-based and performance-based criteria. Evaluations based upon ROI would be considered a

“result-based criterion.” Does this portion of an employee’s bonus at the end of each year sound fair? Why or why not? What are the pros and cons of this portion of the system? What factors should managers have to take into account before providing a final value on this metric (to make it more “fair” to employees)?

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