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Management Accounting Techniques and decisions
Finance & Accounting
Pages 6 (1506 words)
Management Accounting Techniques and decisions Contents Role of benchmarking in evaluating manager’s performance 3 Budgetary planning and control systems: impacts on business performance 5 References 8 Role of benchmarking in evaluating manager’s performance The statement that manager’s should be rewarded only on the basis of performance and that there should be no salary underlines the fact that the compensation structure of the managers need to be rightly linked to the performance measures designed by the company in order to achieve balanced productivity and a sustainable business which is in line with the policies and the mission statement of the organization.
The aspect of erasing the salary part improves the wholesome performance of the managers with the development of workplace initiatives, team work, adaptability, compliance to business policies thereby resulting in increase of the production and the service levels of the organization. The incentives are often linked in the right way to the performance measures with appropriate weight-ages to the several benchmarks of performance measurement (Marr and Gray, 2012, p.68). The manager’s ability to meet the benchmark standards determine the rewards and the compensation that are received by them. The higher the achievements of the manager in comparison to the benchmark standards, the higher the rewards the managers should be eligible to receive. The benchmarks are set in the various areas of operation of the organization in order to fulfil its organizational objectives. ...
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