Dangers foreseen using business unit measures to evaluate the performance of managers

The problems I see with the system mentioned in this scenario is are numerous. One major problem I foresee is a lack of monitoring due to no adjustments being made based on past performance or even projections, thus an encouraging opportunity for managers to be dishonest and lack integrity. To me, it is too easy violate ethics and allow managers and employees to even be rewarded for such. There are many more problems I see arising from this scenario, however, this is my first major concern.

The dangers I foresee when using only business unit measures to evaluate the performance of business unit managers is isolation or, lacking of internal cooperation amongst departments. This is because unit products are dependent upon the performance of each department and their cooperation with one another to produce profitable products for the public. Measuring performance in multiple capacities that influence alignment amongst all department is the encourage evaluation techniques. The type of techniques suggested by experts to adequately measure performance and encourage cooperation are listed in the next answer.

In response to the manager’s statement, I would say there are four techniques to accurately measuring performance: qualitative, quantitative, balanced scorecards, and customer satisfaction surveys. Using a combination of all of these is the only way I envision a company able to adequately assess the performance as a whole. I would even go further to state that in business, the sum of the whole is always to be greater than the sum of the part, else some aspect of the business is failing greatly, regardless of the performance of the departments.