Which of the following statements about budgeting and motivation are true?
(1) A target is more motivating than no target at all
(2) The problem with a target is setting an appropriate degree of difficulty
(3) Employees who are challenged tend to withdraw their commitment
It is generally agreed that the existence of some form of target or expected outcome is a greater motivation than no target at all. Therefore (1) is true. The establishment of a target, however, raises the question of the degree of difficulty or challenge of the target. Therefore (2) is true. If the performance standard is set too high or too low sub-optimal performance could be the result.
The degree of budget difficulty is not easy to establish. It is influenced by the nature of the task, the organisational culture and personality factors. Some people respond positively to a difficult target. Others, if challenged, tend to withdraw their commitment. So (3) is not true.
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A government is trying to assess schools by using a range of financial and non-financial factors. One of the chosen methods is the percentage of students passing five exams or more.
Which of the three Es in the value for money framework is being measured here?
The following statements have been made about measuring performance in not-for-profit organisations:
(1) Output does not usually have a market value, and it is therefore more difficult to measure effectiveness.
(2) Control over the performance can only be satisfactorily achieved by assessments of ‘value for money’.
Which of the above statements is/are true?
The senior manager is suspicious of a local manager’s accounts and thinks that the profit performance may have been overstated.
Which of the following would be a plausible explanation of an overstatement of profit?
Which of the following statements regarding standard setting is correct?
When setting performance measurement targets it should be considered that there is the possibility that managers will take a short term view of the company and may even be tempted to manipulate results in order to achieve their targets.
Which of the following would assist in overcoming the problems of short-termism and manipulation of results?
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