Answer
Distinguishing between the performance of a manager and the performance of the subunit they oversee is important. In some cases, a manager may be assigned to improve a struggling subunit, but significant changes may take time. Subunit performance may not immediately reflect the manager's efforts. It's vital to allow time for strategies to yield results. Additionally, historical cost-based Return on Investment (ROI) might be used to evaluate a manager, even if it's not ideal for assessing the subunit's true economic returns. This distinction acknowledges the complex relationship between a manager and their subunit's performance.
Work Step by Step
Distinguishing between the performance of a manager and the performance of the subunit they oversee is important. In some cases, a manager may be assigned to improve a struggling subunit, but significant changes may take time. Subunit performance may not immediately reflect the manager's efforts. It's vital to allow time for strategies to yield results. Additionally, historical cost-based Return on Investment (ROI) might be used to evaluate a manager, even if it's not ideal for assessing the subunit's true economic returns. This distinction acknowledges the complex relationship between a manager and their subunit's performance.
