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Part 1: Evaluate each the following potential performance measures with respect to how well it aligns employee effort with the goal of maximizing shareholder returns.
Part 1: Evaluate each the following potential performance measures with respect to how well it aligns employee effort with the goal of maximizing shareholder returns. Consider the strengths and weaknesses of awvarding bonuses based on the managers' level achieved of each performance measure. Evaluate each measure along four dimensions: 1) Alignment of interests between employee and shareholder (including relevant time horizon), 2) Maximizing information about productive effort while minizing "noise" outside employees' control (e.g. objective, relative, subjective), 3) Ease of calculation, and 4) Ease of communication and employee understanding Utilize the following data to illustrate the evaluation of each financial performance measure (Use Labeled Tabs as templates of each Performance Measure) Would the shareholder want the project to be accepted? Why? Would the shareholder want the project to be accepted? Why? Part 1: Evaluate each the following potential performance measures with respect to how well it aligns employee effort with the goal of maximizing shareholder returns. Consider the strengths and weaknesses of awvarding bonuses based on the managers' level achieved of each performance measure. Evaluate each measure along four dimensions: 1) Alignment of interests between employee and shareholder (including relevant time horizon), 2) Maximizing information about productive effort while minizing "noise" outside employees' control (e.g. objective, relative, subjective), 3) Ease of calculation, and 4) Ease of communication and employee understanding Utilize the following data to illustrate the evaluation of each financial performance measure (Use Labeled Tabs as templates of each Performance Measure) Would the shareholder want the project to be accepted? Why? Would the shareholder want the project to be accepted? Why
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