Concerned with the productivity of some employees, the board of directors of a l

Question

Concerned with the productivity of some employees, the board of directors of a large multinational corporation has dictated that the manager of each subsidiary will be held responsible for increasing the revenue per employee of his or her subsidiary. Describe actions that managers might take to show improvement in the performance measure but which do not actually lead to improvement in the organization's overall performance.

Explanation / Answer

Possible actions that could decrease performance: > Products in development are released too early, before adequate market testing, consumer feedback, and possible redesigns for improvement. > R&D focuses only on products that can be developed and released quickly, without enough regard for what will be accepted in the marketplace. Recommendations: > Require adherence to a sequence of necessary steps that must be completed before products can be released to the market. > Add another performance measure for R&D that shows the degree of market acceptance in the first X months after a product is released.

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