Raise or bonus depended on a single financial measure

Reference no: EM13500130

Some companies use financial measures, such a return on assets, to evaluate the performance of divisions, managers, and even individual employees. There are certainly risks associated with such a practice. Can you think of or locate an example where a company evaluating this way could actually encourage the opposite of the behavior that they intended to promote among its employees? What might an employee do if their raise or bonus depended on a single financial measure?

Reference no: EM13500130

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