Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When setting performance measurement targets it should be considered that there is the possibility that managers will take a short term view of the company

When setting performance measurement targets it should be considered that there is the possibility that managers will take a short term view of the company and may even be tempted to manipulate results in order to achieve their targets. Which of the following would assist in overcoming the problems of short-termism and manipulation of results? a. Managers should only be rewarded for the results achieved in their own departments b. Rewards should be linked to a wider variety of performance measures including some nonfinancial measures c. Setting targets involving the overall performance of the company will be more motivating for managers d. Any capital investment decision should be judged using the payback method of investment appraisal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Operational Risk Management

Authors: Simon Ashby

1st Edition

1398605042, 978-1398605046

More Books

Students also viewed these General Management questions

Question

Describe the error. cos 60o = opp / hyp = 1 / 2

Answered: 1 week ago