What Is True of Companies That Use Relative Performance Evaluation

question 16

Multiple Choice

What is true of companies that use relative performance evaluation?

• A)Divisional performance is compared with that of other divisions in the same industry.
• B)Managers are not shielded from the risk of managing a division in a poorly performing industry.
• C)Incentives are not provided for managers to move out of low-performing to high-performing industries.
• D)All of the answers are correct.

---

Definitions:

Balanced Processing

The objective analysis and consideration of all relevant information before making a decision or judgment.

Relational Transparency

A behavior that involves being open, honest, and genuine in interactions with others, important for building trust in leadership.

Ethical Leadership

A leadership style that is governed by principles of honesty, fairness, and integrity, where leaders prioritize ethical standards in their decision-making and behavior.

Follower Perception

The way in which subordinates view, understand, and interpret the actions, policies, and leadership styles of their superiors.