In an effort to boost his department\'s ROI, the manager of an automobile repair

Question

In an effort to boost his department's ROI, the manager of an automobile repair shop prioritizes repairs that use his department's car lift (its major capital investment). However, the car company's CEO would actually prefer that a more comprehensive approach to car repairs be used across multiple departments. The CEO's favored approach would be better for the company overall, although it would hurt the department manager's personal ROI. Which of the following would be an appropriate response?

a. No response is needed. The manager should continue to prioritize his own ROI.

b. The company should eliminate ROI entirely from its performance evaluations since it can be so easily abused.

c. The company should combine multiple divisions together so ROI is better aligned with the CEO's goals.

d. The company should consider adopting multiple performance measures, in addition to ROI, to evaluate the department manager's performance in line with the company's overall objectives.

Explanation / Answer

Option D is an appropriate response

ROI is not the only factor that every company should consider also it should adopt multiple performance measures to evaluate company performance.

Also in the given case company is considering only ROI as its performance measure in which it is conflicting with the manager's personal ROI and also it is not recommended to do so, hence comapny should consider adopting multiple performance measures.

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