UV 8150 CUNYBB Performance Goals At Tractors Inc Discussion

1.

a) For each of the president’s stated financial goals for Tractors, Inc., identify as many of the component parts comprising each performance measure as possible (for example, sales growth is a function of volume, price & related discounts). I suggest making an appendix with a table of the financial measures and goals in one column and the related component parts in another column.

b) For each of the component parts identified in #1, what potential managerial actions come to mind as means for performing well on that dimension of the performance measure? Are there potential risks associated with management incentivizing these metrics (i.e., how could employees “cut corners” to hit targets?

c) For the non-financially stated performance goals issued by the president, what managerial actions are incentivized to accomplish those? Are there potential risks associated with management incentivizing these metrics (i.e., how could employees “cut corners” to hit targets)?