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scoray [572]
2 years ago
14

An organization contracts with software developers to produce apps for clients. The organization is paid in part by how well the

app sells in the marketplace. Historically they have evaluated their developers primarily by this same outcome measure, how well the apps sell. The organization is considering adding process measures to the performance evaluation, e.g., time to completion, quality of code, coordination with other developers, client satisfaction.
1. Please explain any reason not to include these process measures in employee performance evaluations.
Business
1 answer:
Sever21 [200]2 years ago
8 0

Answer:

There is no reason not to include these process measures in the employee performance evaluations.

The method of appraisal which is being deployed here is very result-oriented rather than task-oriented. Result-oriented performance appraisals help employees to focus on the result while carrying out their task.  When setting these objectives, employer and employee usually agree to the terms during a joint consultative session.

Instead of measuring how much work has been done, it measures how much the employees has contributed to the desired effects for which the work was created.

In management parlance, this type of performance measurement/appraisal is called: Management by Objectives methods of Performance Appraisal.

Cheers!

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Answer:

<u>Contribution margin income statement for the special order-8,000</u>

Sales (8,000× $12)                                                       96,000

Less Variable Costs ($ 240,000/25,000×8,000)     (76,800)

Contribution                                                                  19,200

Less Fixed Costs                                                               0

Net Income                                                                    19,200

The special order results in an incremental income of $19,200, therefore Hensely should accept the special order.

Explanation:

The Fixed Costs are irrelevant for this decision since Hensely has excess capacity and incurrs the expense whether or not the special order is accepted.

<u>Contribution margin income statement for the special order-8,000</u>

Sales (8,000× $12)                                                       96,000

Less Variable Costs ($ 240,000/25,000×8,000)     (76,800)

Contribution                                                                  19,200

Less Fixed Costs                                                               0

Net Income                                                                    19,200

The special order results in an incremental income of 19,200, therefore Hensely should accept the special order

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