A variety of quantitative measures are used to evaluate employee performance, including standard costs, financial ratios, human resource forecasts, and operating budgets.a. Discuss the following aspects of a standard cost system.1. Discuss the characteristics that should be present to encourage positive employee motivation.2. Discuss how the system should be implemented to positively motivate employees.b. The use of variance analysis often results in management by exception.1. Explain the meaning of management by exception.2. Discuss the behavioral implications of management by exception.c. Explain how employee behavior could be adversely affected when actual-to-budget comparisons are used as the basis for performance evaluation.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
A variety of quantitative measures are used to evaluate employee performance, including standard costs, financial ratios, human resource
a. Discuss the following aspects of a
1. Discuss the characteristics that should be present to encourage positive employee motivation.
2. Discuss how the system should be implemented to positively motivate employees.
b. The use of
1. Explain the meaning of management by exception.
2. Discuss the behavioral implications of management by exception.
c. Explain how employee behavior could be adversely affected when actual-to-budget comparisons are used as the basis for performance evaluation.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
