Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 19

A consultant does not like the fact that you use subjective performance measures in your firm. He argues that they are arbitrary and should be replaced with objective measures. He stresses that explicit measures provide a clear target for employees, but mentions none of the potential costs. What are the potential problems associated with using objective performance measures