Question: QUESTION THREE (a) Giving targets and measuring performance is often meant to motivate staff to achieve targets. However, staff sometimes perceives measurements of performance as

QUESTION THREE (a) Giving targets and measuring performance is often meant

QUESTION THREE (a) Giving targets and measuring performance is often meant to motivate staff to achieve targets. However, staff sometimes perceives measurements of performance as a policing device more so if it is used to assess their personal performance rather than that of a unit they manage. Discuss the behaviour implications of performance measures. [15 marks] (b) Explain the meaning of each of the following undernoted measures which may be used for divisional performance measurement and investment decision making. Discuss the advantages and the problems associated with the use of each (i) Return on Investment (ROI) (5 marks) (ii) Residual Income

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