By reference to the data in part A: 1. Return on investment (ROI), residual income (RI), and economic-value added (EVA) are performance measures for subunit managers. Discuss the relative merit of these performance measures? 2. There may be a difference between the performance of a manager and the performance of the organization subunit for which the manager is responsible. Why is it important to make this distinction? 3. Do you agree with the general manager’s assertion that managers should be rewarded only on the basis of their performance measures with no fixed salaries? Explain
By reference to the data in part A: 1. Return on investment (ROI), residual income (RI), and economic-value added (EVA) are performance measures for subunit managers. Discuss the relative merit of these performance measures? 2. There may be a difference between the performance of a manager and the performance of the organization subunit for which the manager is responsible. Why is it important to make this distinction? 3. Do you agree with the general manager’s assertion that managers should be rewarded only on the basis of their performance measures with no fixed salaries? Explain
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
By reference to the data in part A:
1.
are performance measures for subunit managers. Discuss the relative merit of these performance measures?
2. There may be a difference between the performance of a manager and the
performance of the organization subunit for which the manager is responsible. Why is it important to make this distinction?
3. Do you agree with the general manager’s assertion that managers should be rewarded only on the basis of their performance measures with no fixed salaries? Explain
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