Question: 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

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? a. Managers should only be rewarded for the results achieved in their own departments b. Rewards should be linked to a wider variety of performance measures including some nonfinancial measures c. Setting targets involving the overall performance of the company will be more motivating for managers d. Any capital investment decision should be judged using the payback method of investment appraisal

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