A telecom company links executive bonuses entirely to short-term sales targets captured through a results-based (MBO) system, and a board member notices this has led some managers to defer necessary but costly long-term investments to hit quarterly numbers. Which evaluation BEST reflects a limitation of results-based systems implied by the lecture's broader performance management principles?

Question

Accepted Answer

Results-based systems can incentivise a narrow focus on measurable short-term outcomes at the expense of broader long-term goals if not carefully designed

Answer

This limitation is unrelated to performance management system design and instead reflects a pure job evaluation issue

Answer

This limitation applies only to trait systems, not results-based systems, according to the lecture's framework

Answer

Results-based systems have no limitations according to the lecture, since they rely purely on objective, measurable outcomes

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A telecom company links executive bonuses entirely to short-term sales targets c...

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