Final answer:
Using return on investment (ROI) as a performance measure can lead managers to make decisions not in the best interests of the company as a whole.
Step-by-step explanation:
The use of return on investment (ROI) as a performance measure can indeed lead managers to make decisions that are not in the best interests of the company as a whole.
This is because ROI only focuses on the financial return generated by an investment, without considering other important factors such as long-term sustainability, ethical considerations, and overall company strategy.
For example, a manager may be tempted to prioritize short-term projects with high ROI, even if they negatively impact the company's reputation or long-term growth prospects. This can be detrimental to the company's overall success and sustainability.
Therefore, while ROI is a commonly used financial metric, it should be complemented with other performance measures that take into account a broader range of factors, such as customer satisfaction, employee engagement, and environmental impact, to ensure decisions are made in the best interests of the company as a whole.