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Two Budget Targets Case Summary: The case motivates a discussion of a real situation where a manager created two budgets, one with a relatively aggressive

Two Budget Targets

Case Summary:

The case motivates a discussion of a real situation where a manager created two budgets, one with a relatively aggressive performance target which he communicated to his subordinates and the other with a relatively easy performance target which he communicated to his superiors.

Case Questions:

  1. Are Joe's actions ethical or unethical? Explain.
  2. What steps can executives take to ensure that performance targets are "stretching" people?

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