Principles of Performance Evaluation

Principles of Performance Evaluation - 3 Top management...

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PRINCIPLES OF PERFORMANCE EVALUATION Performance evaluation is at the center of responsibility accounting.  Performance evaluation  is a  management function that compares actual results with budget goals. It involves both behavioral and  reporting principles. Behavioral Principles The human factor is critical in evaluating performance. Behavioral principles include the following.  1.   Managers of res have direct inpu establishing bud responsibility. may view the goa set by top manage affect the manage targeted objective 2.  The evaluation of performance should be based entirely on m by the manager being evaluated.  Criticism of a manager on m reduces the effectiveness of the evaluation process. It leads to n and to doubts about the fairness of the company's evaluation po
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Unformatted text preview: 3. Top management should support the evaluation process. evaluation process begins at the lowest level of responsibility an highest level of management. Managers quickly lose faith in the ignores, overrules, or bypasses established procedures for evalu 4. The evaluation process must allow managers to respond to t not a one-way street. Managers should have the opportunity to d Evaluation without feedback is both impersonal and ineffective. 5. The evaluation should identify both good and poor perform performance is a powerful motivating factor for a manager. This manager's compensation includes rewards for meeting budget go...
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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Principles of Performance Evaluation - 3 Top management...

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