Relative performance evaluation ________.
A) determines the effective intensity of incentives placed on each measure of performance
B) filters out the effect of common uncontrollable factors
C) results in managers helping each other who run similar operations
D) leads to goal congruence

Question

Quizplus · Accepted Answer

Relative performance evaluation helps in filtering out the effect of common uncontrollable factors while comparing the performance of different managers. It ensures that the comparison is fair by making adjustments for external factors that could impact the results. However, it does not necessarily determine the effective intensity of incentives, promote managers helping each other or lead to goal congruence by default.

Relative Performance Evaluation ________