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However, the second part of the statement is not correct. It is necessary to separately identify the performance of the managers from the performance of

However, the second part of the statement is not correct. It is necessary to separately identify the performance of the managers from the performance of the subsidiary, because it is neither correct nor fair to include the impact of factors beyond a manager’s control in evaluating his or her performance. Managers expect to be evaluated on the basis of their own performance focusing on the impact of the decisions they have made. A main objective of performance evaluation is to motivate managers t

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