法国aix marseille university的Performance management.pptVIP

* * * * * * * * * * * * * * In practice, there are three main levels at which organizational behavior is examined: the individual, the group, and the organization as a whole. A full understanding of OB is impossible without a thorough examination of the factors that affect behavior at each level. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * The Use of the U/O In our example, Product A will bear $2,760 of Manufacturing Indirect costs ($9.2 x 300) and Product B will bear $6,440 ($9.2 x 700). * Stage 6: The Cost Calculation The model is analytical: it is based on a cost hierarchy. Roughly, there are 3 steps: Calculating the cost of the material purchased, Calculating the cost of the products, Calculating the cost of the products sold. * Strengths of the method It is a full cost method which can help managers to measure the profitability of a cost object (product, service, customer, etc.), It is a two stage method. The behavior of the costs is explained in each section using several different overhead rates (unité d’?uvre). * Weaknesses of the method (1) The Homogeneous Sections process is relevant but the assumptions it is based on are today invalidated, Indeed, in 1930: The share of the indirect resources in the production cost was small, The share of the auxiliary sections in the total resources of the firm was small, The organization of the firms was functional, hierarchical, The behavior of the costs could be explained by the volume (“You can have your Ford T in any color you want, so long as it is black”), The production capacity was used in full. * Weaknesses of the method (2) It is based on a functional vision of the firm. Today, companies’ organization tend to become “flatter”, based on processes, projects, etc. Project Managers need information to make decisions and to control, The traditional costing method does not enable Managers to control their activity because the information disclosed are too aggregated. * Weaknesses