In a decentralized organization, performance evaluations encourage managers to behave as if their own personal goals are congruent with the goals of the company as a whole.

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In a decentralized organization, managers are given more autonomy to make decisions and hence, they are more likely to align their personal goals with the goals of the company as a whole. Performance evaluations help in reinforcing this alignment and encourage managers to work towards the overall success of the company.

In a Decentralized Organization, Performance Evaluations Encourage Managers to Behave