Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



Download 1.72 Mb.
View original pdf
Page404/469
Date01.12.2021
Size1.72 Mb.
#57828
1   ...   400   401   402   403   404   405   406   407   ...   469
solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
Points to stress
If managers are evaluated on a single number, they have incentives to subordinate everything else to minimise that number. For example, management might curtail advertising and maintenance to increase current year’s ROI. This is why performance evaluation should be


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012 based on a variety of factors, financial and non-financial, internal and external (e.g. the balanced scorecard approach.
Teaching tips
Team-based incentives encourage employees to work together to achieve common goals.
Individual-based incentive compensation rewards employees for their own performance, consistent with responsibility accounting. A mix of the two encourages employees to maximise their own performance, while working together in the firm’s best interests. You can help students experience individual and team-based compensation by giving a quiz individually and then giving the same quiz to teams of students, with each student’s grade to bean average of the two scores (let the students decide what percentage of their quiz grade is determined by the team quiz score. The team quiz score is usually better than the scores of individual members, which demonstrates the advantages of working in teams. Students also learn by trying to convince each other of the best answers and ill-prepared students maybe embarrassed into preparing better in the future.

Download 1.72 Mb.

Share with your friends:
1   ...   400   401   402   403   404   405   406   407   ...   469




The database is protected by copyright ©ininet.org 2024
send message

    Main page