Reference no: EM132353163

Goal displacement and short-run orientation are likely side effects of evaluation and control because no system can be all-inclusive. Goal displacement occurs because people find it easier to focus on a surrogate of performance (the measure) than on the performance itself. To the extent that the measure tends to be confused with what it is supposed to be measuring, work activities will be oriented more toward the measures and less toward actual performance. A short-term orientation occurs not because of poor measures, but because most managers tend to want quick feedback. Those activities, which require a great deal of time before feedback occurs, tend to be neglected for those activities providing more immediate feedback. The measures by themselves do not cause a short-term orientation. It is the time frames in which they are used which causes the result. ROI, for example, can be calculated over a five-year period just as well as a one-year period. The measures, however, do cause managers to focus their activities and to want feedback on how they are doing. To the extent that short-run performance is measured and rewarded, a short-term orientation is a natural result.

QUESTION: Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and creativity compatible? Explain.