Goodhart's Law has an important implication for performance management because:

Type: MCQ • Marks: 1

A. Every indicator becomes more accurate when used as a target

B. Qualitative assessment should always be abolished

C. Quantitative indicators are always useless

D. A measure used as a target can lose its usefulness as a measure

Explanation

Once individuals are rewarded specifically for achieving a metric, they may optimise the metric rather than the underlying objective.

UPSC Principal & Vice Principal Management Finance Administration

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