How can organization x implement consistent and comprehensive performance measurement [ in order to answer this question, a literature study on the concepts and technologies of both key performance indicators (kpis) and performance measurement (pm) is performed. Chapter 11 - performance measurement in decentralized organizations 11-34 multiple choice questions 12 residual income is a better measure for performance evaluation of an investment center manager than return on investment because: a the problems associated with measuring the asset base are eliminated.
Management will be able to tell if a hypothesis is false if an improvement in a performance measure at the bottom of an arrow does not, in fact, lead to improvement in the performance measure at the tip.
Successful approaches to performance measurement within a decentralized organization incorporate measurement tools for gauging results and for tracking these results to the individuals and teams responsible for specific outcomes.
Start studying chapter 11- performance measurement in decentralized organizations learn vocabulary, terms, and more with flashcards, games, and other study tools. Decentralized organizations delegate decision-making and operational responsibilities to the managers of each segment, or division, of the organization advantages of decentralized organizations include increased expertise at each division, quicker decisions, better use of time at top management levels, and increased motivation of division managers.
Term: what are the 5 benefits of decentralization definition: 1) top management is able to solely concentrate on strategy 2) lower-level decisions based on efficient info 3) lower-level managers' response to customers is quick 4) lower-level managers gain experience in decision-making.
Roi measures net operating income earned relative to the investment in average operating assets residual income measures net operating income earned less the minimum required return on average operating assets example the retail division of zephyr, inc has average operating assets of $100,000 and is required to earn a return of 20% on these assets.