While managers share the goals of share holders to a certain extent, a number of alternative goals exist for managers that may conflict with the goals of share holders. Managers' alternative goals can include: Maximizing their effort Taking projects with a high risk of failure when the potential rewards are high Avoiding failure Maximizing their job security Maximizing their pay and compensation package Enhancing their reputation and employment opportunities for themselves Consuming perks
While managers share the goals of share holders to a certain extent, a number of alternative goals exist for managers that may conflict with the goals of share holders. Managers' alternative goals can include: Maximizing their effort Taking projects with a high risk of failure when the potential rewards are high Avoiding failure Maximizing their job security Maximizing their pay and compensation package Enhancing their reputation and employment opportunities for themselves Consuming perks
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:While managers share the goals of share holders to a certain extent, a number of
alternative goals exist for managers that may conflict with the goals of share holders.
Managers' alternative goals can include:
Maximizing their effort
Taking projects with a high risk of failure when the potential rewards are high
Avoiding failure
Maximizing their job security
Maximizing their pay and compensation package
Enhancing their reputation and employment opportunities for themselves
Consuming perks
02 of 4S
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