Managers must be sure they understand the causes of a variance before using it for performance evaluation.

Question

Quizplus · Accepted Answer

It is important for managers to understand the causes of a variance before using it for performance evaluation because there may be external factors beyond the control of the employee that contributed to the variance. It is important to ensure that the variance is a result of the employee's performance rather than external factors before using it as a performance evaluation metric.

Managers Must Be Sure They Understand the Causes of a Variance