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Explain why it is useful to focus on the two component ratios of the ROI calculation,rather than on the ROI ratio itself. Can the residual
- Explain why it is useful to focus on the two component ratios of the ROI calculation,rather than on the ROI ratio itself.
- Can the residual income measure eliminate all of the disadvantages associated with ROI? Explain your answer.
- Explain why many companies link achivevment of performance targets to employee remuneration.
- Outline the differences between extrinsic and intrinsic motivation, and explain how organisations can encourage intrinsic motivation.
- What is a share option? is the inclusion of share options in remuneration packages likely to lead to intrinsic or extrinsic motivation? Explain your answer.
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