local and Jirm-wide bonus determinants A common practice is to define an overaIl bonus pool in terms of how weIl the organization has performed. For example, the pool might be a percentage of accounting income. Adivision manager's share in this pool, in turu, is heavily influenced by how weIl that manager has performed, for example, in terms of profitability of the division managed. Implicitly, then, the manager is evaluated in terms of local and global measures. Discuss this practice.

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