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Production managements motivation is likely to increase if they know they will not be held responsible for poor planning and faulty standard setting. TRUE
Why would it be true. I assume the ‘planning’ is referring to non controllable but faulty standard setting?
And if there is no repercussions, then why would a manager even be motivated to do his job (not taking into consideration goal congruences)
The analysis highlights those variances which are controllable and those which are non-controllable.
By splitting into planning which is down to the budget committee/planning people and operational which the production manager will be responsible for.
So managers’ acceptance of the use of variances for performance measurement, and their motivation, is likely to increase if they know they will not be held responsible for poor planning and faulty standard setting. Operational variances will provide a ‘fairer’ reflection of actual performance.So ‘poor planning’ is not referencing planning variances, which are out of the control of managers?
Production management’s motivation is likely to increase if they know they will not be held responsible for poor planning and faulty standard setting.
They will be more motivated to know they are not being held responsible for activities that are not down to them. The standards and poor planning are down to the budget/plan committee, not them. They can only be held responsible for areas that they can contol.
A production manager is not to be held accountable for poor planning and faulty standard setting.
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