{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T01:24:32-04:00", "answer_date": "2024-06-29 01:24:32", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4438240", "url": "\/study-help\/questions\/problem-1214-dysfunctional-effects-of-some-performance-measures-lo121-there-4438240", "question_creation_date_js": "2024-06-29T01:24:32-04:00", "question_creation_date": "Jun 29, 2024 01:24 AM", "meta_title": "[Solved] PROBLEM 12-14 Dysfunctional Effects of So | SolutionInn", "meta_description": "Answer of - PROBLEM 12-14 Dysfunctional Effects of Some Performance Measures LO12-1 There is often more than one way to improve a | SolutionInn", "meta_keywords": "problem,12-14,dysfunctional,effects,performance,measures,lo12-1,one,improve,measure,actions,managers", "question_title_h1": "PROBLEM 12-14 Dysfunctional Effects of Some Performance Measures LO12-1 There is often more than one way to improve a performance measure. Unfortunately, some of the", "question_title": "PROBLEM 12-14 Dysfunctional Effects of Some Performance Measures LO12-1 There is often", "question_title_for_js_snippet": "PROBLEM 12 14 Dysfunctional Effects of Some Performance Measures LO12 1 There is often more than one way to improve a performance measure Unfortunately, some of the actions taken by managers to make their performance look better may actually harm the organiza tion For example, suppose the marketing department is held responsible only for increasing the performance measure total revenues Increases in total revenues may be achieved by working harder and smarter, but they can also usually be achieved by simply cutting prices The increase in volume from cutting prices almost always results in greater total revenues however, it does not always lead to greater total profits Those who design performance measurement systems need to keep in mind that managers who are under pressure to perform may take actions to improve perfor mance measures that have negative consequences elsewhere Required For each of the following situations, describe actions managers might take to show improvement in the performance measure but which do not actually lead to improvement in the organization's overall performance 1 Concerned with the slow rate at which new products are brought to market, top manage ment of a consumer electronics company introduces a new performance measure speed to market The research and development department is given responsibility for this performance measure, which measures the average amount of time a product is in development before it is released to the market for sale 2 The CEO of an airline company is dissatisfied with the amount of time her ground crews are taking to unload luggage from airplanes To solve the problem, she decides to measure the average elapsed time from when an airplane parks at the gate to when all pieces of luggage are unloaded from the airplane For each month that an airport's ground crew can lower its average elapsed time relative to the prior month, the CEO pays a lump sum bonus to be split equally among members of the crew 3 A manufacturing company has been plagued by the chronic failure to ship orders to custom ers by the promised date To solve this problem, the production manager has been given the responsibility of increasing the percentage of orders shipped on time When a customer calls in an order, the production manager and the customer agree to a delivery date If the order is not completed by that date, it is counted as a late shipment 4 Concerned with the productivity of employees, the board of directors of a large multinational corporation has dictated that the manager of each subsidiary will be held responsible for increasing the revenue per employee of his or her subsidiary", "question_description": "
\"image<\/div><\/div><\/div><\/figure> PROBLEM 12-14 Dysfunctional Effects of Some Performance Measures LO12-1 There is often more than one way to improve a performance measure. Unfortunately, some of the actions taken by managers to make their performance look better may actually harm the organiza- tion. For example, suppose the marketing department is held responsible only for increasing the performance measure \"total revenues.\" Increases in total revenues may be achieved by working harder and smarter, but they can also usually be achieved by simply cutting prices. The increase in volume from cutting prices almost always results in greater total revenues; however, it does not always lead to greater total profits. Those who design performance measurement systems need to keep in mind that managers who are under pressure to perform may take actions to improve perfor- mance measures that have negative consequences elsewhere. Required: For each of the following situations, describe actions managers might take to show improvement in the performance measure but which do not actually lead to improvement in the organization's overall performance. 1. Concerned with the slow rate at which new products are brought to market, top manage- ment of a consumer electronics company introduces a new performance measure-speed-to- market. The research and development department is given responsibility for this performance measure, which measures the average amount of time a product is in development before it is released to the market for sale. 2. The CEO of an airline company is dissatisfied with the amount of time her ground crews are taking to unload luggage from airplanes. To solve the problem, she decides to measure the average elapsed time from when an airplane parks at the gate to when all pieces of luggage are unloaded from the airplane. For each month that an airport's ground crew can lower its \"average elapsed time\" relative to the prior month, the CEO pays a lump-sum bonus to be split equally among members of the crew. 3. A manufacturing company has been plagued by the chronic failure to ship orders to custom- ers by the promised date. To solve this problem, the production manager has been given the responsibility of increasing the percentage of orders shipped on time. When a customer calls in an order, the production manager and the customer agree to a delivery date. If the order is not completed by that date, it is counted as a late shipment. 4. Concerned with the productivity of employees, the board of directors of a large multinational corporation has dictated that the manager of each subsidiary will be held responsible for increasing the revenue per employee of his or her subsidiary", "transcribed_text": "", "related_book": { "title": "Intermediate Accounting", "isbn": "470964731, 978-0470964736, 978-0470161012", "edition": "9th Canadian Edition, Volume 2", "authors": "Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/516.jpg", "uri": "\/textbooks\/intermediate-accounting-9th-canadian-edition-volume-2-516", "see_more_uri": "" }, "free_related_book": { "isbn": "1617296864", "uri": "\/textbooks\/deep-learning-with-python-2nd-edition-9781617296864", "name": "Deep Learning With Python", "edition": "2nd Edition" }, "question_posted": "2024-06-29 01:24:32", "see_more_questions_link": "\/study-help\/questions\/business-finance-2024-September-13", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/rare-case-in-which-the-electrostatic-field-e-for-circuit", "description": "A rare case in which the electrostatic field E for a circuit can actually be calculated is the following Imagine an infinitely long cylindrical sheet, of uniform resistivity and radius a. A slot...", "stars": 3 }, { "url": "\/study-help\/business-analytics-data\/choose-the-three-model-maintenance-techniques-you-think-are-the-1979823", "description": "Choose the three model maintenance techniques you think are the most important. Why did you choose them?", "stars": 3 }, { "url": "\/variance-analysis-working-backward.-the-jinwa-corporation", "description": "Variance analysis, working backward. The Jinwa Corporation sells two brands of wine glasses: Plain and Chic. Jinwa provides the following information for sales in the month of June 2011:...", "stars": 3.5 }, { "url": "\/study-help\/questions\/a-2326-b-6088-c-7282-d-3286-9851931", "description": "a. $2,326 b. $6,088 c. $7,282 d. $3,286", "stars": 3.5 }, { "url": "\/study-help\/questions\/would-the-depreciation-for-the-equipment-be-2000060months-minus-the-1023052", "description": "Would the depreciation for the equipment be 20,000\/60months minus the $200 salvage? Which would equal $330 per month? EQUIPMENT Computer system 20,000 Useful Life (months) 60 Salvage Value...", "stars": 3.5 }, { "url": "\/study-help\/questions\/exercise-1-jam-llc-unexpectedly-executed-a-share-buyback-before-1001033", "description": "Exercise 1 Jam llc unexpectedly executed a share buy-back. Before the buy-back the number of outstanding shares was 11,123,000, the market price of one share was $2.04 and the return on levered...", "stars": 3.5 }, { "url": "\/study-help\/questions\/1-suppose-the-random-variable-x-represents-the-failure-or-1004759", "description": "1. Suppose the random variable X represents the failure or not of Edward's speaker woofer while listening to reggae on Friday. Assume there is probability 0.8 that Edward blows up his woofer (woofer...", "stars": 3.5 }, { "url": "\/study-help\/questions\/please-use-the-following-topology-to-complete-the-following-tasks-1011852", "description": "Please use the following topology to complete the following tasks. INTERFACE IP ADDRESS SO\/0 7172.16.1.2\/26 Loopback 10 10.10.10.3\/25 R1 S0\/0 (DCE). 172.16.1.1\/26 R3 Loopback20 10.20.20.3\/28...", "stars": 3.5 }, { "url": "\/study-help\/questions\/the-critical-path-assumes-four-facts-what-are-they-what-1005764", "description": "The critical path assumes four facts. What are they? What is a useful scheduling tool to keep track of the critical path and increase the probability of on time completion?", "stars": 3.5 }, { "url": "\/study-help\/questions\/turner-products-develops-its-manufacturing-overhead-rate-from-the-current-1009921", "description": "Turner Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 660,000 ?units, requiring 3,300,000...", "stars": 3.5 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/i-am-having-problems-with-this-help-me-can-someone-4438239", "next": "\/study-help\/questions\/problem-1214-dysfunctional-effects-of-some-performance-measures-lo121-there-4438241" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "PROBLEM 12-14 Dysfunctional Effects of Some Performance Measures LO12-1 There is often", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/problem-1214-dysfunctional-effects-of-some-performance-measures-lo121-there-4438240" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } } "1" } }