Evaluating managers on customer-satisfaction measures and efficiency, quality and time measures is important, but these are not the only things they should be evaluated on.
Evaluating managers on profitability measures is important, but it is not the only thing they should be evaluated on.
These categories of performance measures are all things that a company needs in order to have competitive advantage . Competitive advantage is an advantage that a company has over its competitors which it gains by offering consumers greater value than they can get from its competitors. In a very competitive marketplace such as this cruise line is in, competitive advantage is essential. In order to have competitive advantage, the company needs to excel in all of these performance measures. If managers are not evaluated on their performance in these areas, they will not work toward excelling in them, and the company will not have competitive advantage. Therefore, the company should use all of these measures in its evaluation of its managers.
Evaluating managers on profitability measures and customer-satisfaction measures is important, but these are not the only things they should be evaluated on.
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