Creating an evaluation system that relies on financial performance to determine scores and compensation increases may encourage unethical behavior in employees.

Question

Quizplus · Accepted Answer

When financial performance is the sole driving factor behind the evaluation system, employees may be tempted to engage in unethical behavior (e.g. manipulating financial data) to ensure they receive high scores and compensation increases. This can harm the company in the long run and damage its reputation. It is important to consider other factors such as employee behavior, customer satisfaction, and innovation when evaluating performance.

Creating an Evaluation System That Relies on Financial Performance to Determine