Well-designed performance evaluation systems accomplish many goals. Consider the following actions, and state which goal is being achieved by the action:

a. Comparing targets to actual results

b. Providing subunit managers with performance targets

c. Comparing actual results with industry standards

d. Providing bonuses to subunit managers who achieve performance targets

e. Aligning subunit performance targets with company strategy

f. Comparing actual results of competitors

g. Taking corrective actions

h. Using the adage “you get what you measure” when designing the performance evaluation system

Comparing targets to actual results will be classified as providing feedback. In this, the performance evaluation is done to provide the information to the upper management as the management has already decentralized day-to-day operations.

Providing subunit managers with performance targets will be communicating expectations. This is done to make decisions that are consistent with the targets and goals of the company, the managers of the segment must know their targets and the role they have to play to achieve that.

Comparing actual results with the industry standards will be benchmarking. In this companies use their evaluation results to compare them with the best in the industry to set the benchmark.

Providing bonuses to the subunit managers who achieve performance targets will be motivating segment managers, they work to achieve the targets assigned by the top-level management. The bonuses will keep them motivated to achieve the targets.

The alignment of subunit performance targets with the strategies of the company will be promoting goal congruence and coordination. This company makes sure that the goals of the organization are achieved in a synchronized manner.

Comparing actual results of competitors will be benchmarking as the comparison of the results of the company with the competitor company to set the benchmark.

Taking corrective action will be providing feedback. In this, the company will take corrective measures to correct the mistakes done by the company.

This will come under motivating segment managers. In this, every segment manager will be awarded bonuses for how many targets the managers will achieve. So, in this way, the segment managers will stay motivated to achieve the organizational targets