BUSI 601 Chapter Notes - Chapter 18: Outsourcing, Fixed Cost, Customer Satisfaction
13 Sep 2016
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Chapter 18: strategic performance measurement cost centers, profit centers, and the. Performance measurement: a measurement that identifies items that indicate the work performed and the results achieved by an activity, process, or organizational unit as compared to some preestablished criteria. Management control: the system used by upper-level managers to evaluate the performance of other managers. Operational control: the monitoring of short-term operating performance; takes place when mid-level managers monitor the activities of operating-level managers and employees. Strategic performance measurement: responsible for implementing the organization"s strategy. Operational performance measurement: control at the operating level. Strategic business unit (sbu: a well-defined set of controllable operating activities over which an sbu manager is responsible. Objectives of management control (3: motivate managers, determine fairly the rewards earned by managers. Employment contract: an agreement between the manager and top management, designed to provide incentives for the manager to act autonomously to achieve top management"s objectives.
