Borealis Case

Slide 7 * Rolling financial forecasts * No inducing to undertake the forecast, since it does non affect the managers fee -> insufficiency of motivation depression of all, peck need to understand what a companionship expects of them. Second, they turn out to be willing to work consistently hard to do what is anticipate of them. And finally they have to be capable to do what is anticipate (Merchant and van der Stede, 2007). In this courtship at that come in is no try that in that location is a lack of committee or there are personal limitations. So we imbibe plenty issue what is expected of them and they are capable to do this work. However, in this case it is likely that there is a lack of motivation. Considering that the results compared with the forecasts do not affect managers salary, people are believably less motivated to reach the targets. wherefore would they work harder if their compensation is not harmed anyway? So, there are not able incentives to realize a goal congruousness between the tighten and the employees. That the goals of both the firms and the employees are in business enterprise with each other. Borealis states that if the forecasts take int affect the managers compensation they can avoid the occupation of managers gambling the system.

But if there is no incentive to escort the forecasts they create the problem that managers assumet have the coerce to meet these forecasts. A resultant for this problem is that meeting forecasts is a part of the rating of managers. In this way, their compensation is not to the ample d ependent on the forecast, that that it will! affect their mathematical operation if they neglect the forecasts. * Forecasts base on best data uncommitted ->managers practice data that will best suit them in that location is a significant risk that managers will only use breeding that will best suit them. This means that information is gamed and not always representative, while Borealis wanted to reduce gaming in budgeting. The business intelligence in a company need to be sufficient in...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay