The biggest problem in designing a performance management system arises as a result of:
A)The tendency for performance management systems to be based entirely on financial targets
B)A performance management system needs short-term indicators to monitor performance,yet the ultimate goal is to enhance the long-term performance of the firm
C)Performance targets are always ineffective because individuals will "game the system"
D)The personal interests of organizational members need to be taken into account

Question

Quizplus · Accepted Answer

A performance management system needs to balance short-term indicators with long-term goals. Focusing solely on short-term targets can result in employees making decisions that are not in the best interest of the organization in the long-term. A good performance management system should have a mix of targets that are aligned with the organization's strategic objectives and provide a clear picture of how individual performance drives organizational success.

The Biggest Problem in Designing a Performance Management System Arises