Question

I know this is more than one question. I'm hoping you can address these all at once?

How are the ways in which organizations choose to measure and evaluate the performance of their segments tied to how managers of those segments get evaluated? What are the ways those approaches can fairly evaluate managers? How can those approaches sometimes unfairly evaluate managers? Can people "game" this system? If so, how? What can be done to ensure both accurate segment performance evaluation and fair manager evaluation?

Answer 1

A.)	Organizations usually base a percentage of individual performance on the departmental performance i.e 30% of individual performance would depend on organizational performance
B.)	The various ways in which organization does this is by measuring the deliverables i.e. % of cost reduction as compared to last year, sales growth, etc.
C.)	These ways sometime unfairly evaluate managers as they benefit or create a disadvantage to the individual due to the performance of other team members
D.)	Yes, the system can be gamed. Managers sometime look to enhance the performance of their individual dept. rather than focusing on the company as a whole
E.)	Objective evaluation needs to be carried out on multiple data points to ensure accurate segment performance and manager performance evaluation