Depending on the level of organization (cost center vs profit center vs investment center), the idea of responsibility accounting defines the techniques used to evaluate the performance of individuals and managers.
If you’ve been involved in an organization using performance evaluation techniques, please discuss the system in terms of its design, implementation, and overall effectiveness. Did it provide useful information on performance as well as motivate those subject to the system? What were its strengths and weaknesses, and given all we’ve been studying about planning and control, what changes would you make to the system if you were able?
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