Asked by Samantha Allen on Jun 27, 2024
Verified
In profit centers
A) Managers are easy to evaluate because there is a simple metric of how well they performed
B) Managers typically do not have the information to run their division efficiently
C) Managers' decisions rarely affect other divisions
D) Managers typically do not have the incentives to run their division efficiently
Profit Centers
Divisions or segments of a business that directly contribute to its profits through their activities and performance.
Incentives
Motivations or rewards designed to encourage specific behaviors or actions from people or organizations.
Information
Data that is processed, organized, or presented in a manner that adds value or understanding to the recipient.
- Become knowledgeable about the effects that different award and evaluation approaches have on the decisions of division managers and on the overall performance of divisions.
- Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.
Verified Answer
EW
Emma WilkersonJun 28, 2024
Final Answer :
A
Explanation :
In profit centers, managers are evaluated based on their ability to generate profits. This makes evaluating their performance relatively straightforward as there is a clear metric to measure their success.
Learning Objectives
- Become knowledgeable about the effects that different award and evaluation approaches have on the decisions of division managers and on the overall performance of divisions.
- Understand the consequences of managerial decisions on company-wide performance and inter-divisional relationships.