In: Accounting
Managers are motivated to accomplish objectives if they feel that their efforts will be fairly evaluated. Discuss in detail why an organization may use different bases for evaluating the performance of managers of different types of responsibility centers.
Performance management includes activities that ensures goal are met on continuous manner as well in an effective and efficient manner. It also help to focus on the performance of the organisation. It's an ongoing process of communication through out the year. The objectives are set in order to achieve company goal along with the employee progress. This objectives are then splits amount individuals and proper work allocation are done. As a result the whole team work together to achieve managers goals and ultimately helps in achieving companies goals.
Hence it's more imported that the work is properly evaluated based on the performance else this will create the negative thoughts and will reduce the motivation factor resulting in decrease in performance.
Reason it's important that work should be evaluated on different basis and not on one specific factor this help to keep the motivation factor on and keep work going.