A drawback of relative performance evaluation systems is:
A) They do not require setting static budget targets.
B) They filter out uncontrollable effects in the environment.
C) They rely on benchmarks derived from the performance of similar units.
D) They provide no incentive for managers of different units to cooperate.

Question

Quizplus · Accepted Answer

Relative performance evaluation systems can create competition among managers, leading to a lack of cooperation as each manager focuses on outperforming the others to benefit from the evaluation system. This can hinder collaboration and sharing of best practices among different units.

A Drawback of Relative Performance Evaluation Systems Is