Well-designed performance evaluation systems accomplish many goals. Consider the following actions:
a. Comparing targets to actual results
b. Providing subunit managers with performance targets
c. Comparing actual results with industry standards
d. Providing bonuses to subunit managers who achieve performance targets
e. Aligning subunit performance targets with company strategy
f. Comparing actual results to the results of competitors
g. Taking corrective actions
h. Using the adage, “you get what you measure,” when designing the performance evaluation system
Requirement
1. State which goal is being achieved by the action.