Can someone wxplain why using ROCE to evaluate projects is dysfunctional behaviour encouraged by performance related pay?
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FMROCE / dysfunctional ??
4y ago#1Performance related pay might encourage dysfunctional behaviour because the managers might manipulate the profits so as to show more profit in the current year. This would result in them getting more pay if their pay is dependent on the level of profits.
I do explain this in my free lectures on divisional performance.
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