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sir,if head office assigned an unfair transfer price to a divisional manager why will he be unmotivated by this decision, wont this be an uncontrollable decision on his behalf and so accordingly his performance and pay related bonuses cannot be affected by this,is this correct to say?
If head office assigns an unfair transfer price to a divisional manager, it can demotivate the manager as it can affect the division’s reported performance and the manager’s performance-related pay.
However, it is important to note that the manager should only be assessed on controllable factors, and the transfer price is not a controllable factor.
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