An overemphasis on performance evaluation may also cause managers to take actions to achieve the budget and avoid an unfavorable variance.

Question

Quizplus · Accepted Answer

When managers are too focused on meeting performance targets, they may prioritize achieving the budget over other important factors, which can lead to short-term decision making and potential negative consequences for the organization in the long run.

An Overemphasis on Performance Evaluation May Also Cause Managers to Take