Reference no: EM132574941

Question 1: For each of the following situations, discuss and describe actions that managers might take to show improvement in the performance measure but that do not actually lead to improvement in the organization's overall performance.

• Concerned with the slow rate at which new products are brought to market, top management of a consumer electronics company introduces a new performance measure-speed-to-market. The research and development department is given responsibility for this performance measure, which measures the average amount of time a product is in development before it is released to the market for sale.

• The CEO of a telephone company has been under public pressure from city officials to fix the large number of public pay phones that do not work. The company's repair people complain that the problem is vandalism and damage caused by theft of coins from coin boxes-particularly in high-crime areas in the city. The CEO says she wants the problem solved and has pledged to city officials that there will be substantial improvement by the end of the year. To ensure that this is done, she makes the managers in charge of installing and maintaining pay phones responsible for increasing the percentage of public pay phones that are fully functional.