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Handa Car Detailing operates several stores in the Bicol area. The company is decentralized with two operating managers at the corporate level: Van Dall
Handa Car Detailing operates several stores in the Bicol area. The company is decentralized with two operating managers at the corporate level: Van Dall is in charge of personnel and Dina Leego is in charge of store operations. Van Dall's performance is based on the average wage of the store personnel (excluding store managers) relative to a target wage. All hiring is done at the corporate level. Dina's performance is based on store profits relative to targeted profits. Managers that meet their targets receive a bonus equal to thirty percent of their base salary. Information on performance last year follows: Store Operations: Dina Leego Target Profit Actual profit Personnel: Van Dall Target Wage Actual Wage Required: P745,000 P637,000 P15.13 P13.12 1. Evaluate the performance of Van and Dina based on the performance measures the company uses. 2. Assess the management control system used at Handa Car Detailing and provide recommendations for changes, if any are required. Be sure to discuss: decision authority, performance measures, and compensation.
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