Final answer:
Variance analysis should lead to performance evaluation targets that are challenging yet achievable, fostering creativity and sustainable long-term effectiveness. The approach supports continuous improvement and leverages individual strengths without overemphasis which could hinder performance.
Step-by-step explanation:
The emphasis on variance analysis and its use in performance evaluation suggests that management should set targets that challenge but are reasonably achievable, promoting creativity and resourcefulness by the personnel held accountable. This approach aligns with an adaptive management style and the concept of continuous improvement, where the focus is on sustaining long-term effectiveness rather than imposing overly harsh consequences for larger unfavorable variances or setting easily attainable goals that might lead to complacency.
Performance evaluations based on this philosophy encourage managers and local stakeholders to seek a balance between scientific rigor and program sustainability. This methodology is supported by the strengths-based management approach, where an organization focuses on utilizing individual strengths, such as public speaking or event planning, which can lead to growth and high performance when properly managed and not overly relied upon to the detriment of addressing weaknesses.