lessonPerformanceManagementandCompensation英文管理会计课件ManagementAccounting.pptVIP

* * * * * * * * * * * * * * * * * * * * * * * * * * * Global performance measurement Operating income is converted at the average exchange rate for the current year assets are converted at the exchange rate in place at the time of the asset purchase, as they are on the books at historical cost and not updated to reflect current costs. EXAMPLE 8.3 Topic 7: Global performance measurement * Computer illustration 8.6-1: International performance measurement Topic 7: Global performance measurement analyze an international corporation using ROI, RI, and EVA. * Topic 8: Evaluation of managers and organizational units under performance evaluation Learning Objective Describe how performance evaluation of managers relates to performance evaluation of organizational subunits. Required reading Chapter 23, pages 663-665, from “Distinction Between Managers and Organization Units” up to “ Performance Measures at the Individual Activity Level” * Evaluation of managers and organizational units The performance evaluation of a manager should be distinguished from the performance evaluation of that manager’s subunit, such as a division of the company When compensation is based on salary plus performance-based measures, there is a tradeoff between creating incentives and imposing risks. The more a manager’s compensation is based on organizational subunit performance, the more risk that manager is exposed to Topic 8: Evaluation of managers and organizational units * The Trade-Off: Creating Incentives vs. Imposing Risk An inherent trade-off exists between creating incentives and imposing risk the greater the risk, the greater the reward that must be offered. An incentive may create an environment in which suboptimal behavior may occur: the goals of the firm are sacrificed in order to meet a manager’s personal goals Topic 8: Evaluation of managers and organizational units * Creating Incentives vs. Imposing Risk owners can use multiple performance measures to mitigate some of the risks