AFM481 Lecture Notes - Lecture 20: Human Behaviour, Kaizen, Profit Center

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM481
• Professor: Grant Russell

Document Summary

Include financial and nonfinancial aspects: provide a frame of reference, corrective actions. Planning: awareness of overall corporate strategy and mission, reflect on goals of the organization and each organization center. Co-ordination: managers make other people aware of what they are doing in their responsibility center, all different areas of the organization are working together on a single goal. Performance measurement: tracking progress during the year, reach certain outcomes. Reward system: amount of pay to give employees, concentrate in efforts where performance influences their rewards. Should be controllable: measures inputs and abilities, goal congruence, ensure managers take the best actions possible for themselves and the entire company, goal is to increase shareholder wealth. Feedback: variances, deviation from what happened vs what we expected to happen, early warning of problems. Strategy/performance evaluation: reward managers for being close to what we wanted them to do. Human behaviour: how to motivate people to do the right things well.