It’s a lot easier to do our job when we know what we’re supposed to be doing. That's the theory behind MBO, or “management by objectives.” MBO says that, not only should everyone in an organization know what they should be doing (and what the organization itself is trying to do), but they should have official, established goals and targets to help them get there.
One of the best ways to illustrate this idea is with the concept of cascading goals. Let’s say our hat-making company, Oh Chapeau, Inc., sets an organizational goal to increase revenue by 25% within the next two years. Our Operations Manager then creates a goal for her division based on the organizational goal: they’re going to cut operational expenses by 10% within the same time period. She cascades this goal down to her supervisors and asks them each to create a related goal. Her Supplies Manager, Lou, creates a goal to find a cheaper office supply vendor, and his assistant also sets a goal to better monitor office supply usage. All of these goals roll back up into the business’s primary objective: increasing revenue by 25% within the next two years. According to those that know these things, keeping goals aligned makes it a lot more likely that the organization will actually achieve them, which is why MBO can be a really successful management tool.
MBO isn’t just for operational staff, though. Divisions that maybe don’t have much to do directly with revenue—like the recruiting department, for example—can still tie job goals to Oh Chapeau’s financial objective. In this instance, maybe our Talent Acquisition Manager sets a goal to bring in six new supervisors and managers over the next two years that can help the company grow.
The point is this: when we know what’s going on, we can make better decisions and be more productive. That’s good for us, it’s good for our teams, it’s good for our company, and it’s good for our shareholders. Goodie.
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Cost Accounting: What is Dumping?0 Views
And finance Allah Shmoop What is dumping up Oh well
yeah I guess it's like that And you might recognize
this excellent scene directed by Bob Zemeckis It won the
porcelain pony on Yeah if you never saw it or
need a refresher What is predatory pricing Well basically it's
the act of selling of a product at a price
below production cost with the intent to bankrupt competitors so
that when they're gone while the Predator can swoop in
and charge whatever pricing they want while similar to predatory
pricing dumping is the export of product from one country
to another at a price below the price at which
it sells that product domestically Alright extreme Somalia finally gets
its act together as a country and instead of spending
efforts on pirating and assisted genocide they decide to make
cars and waited diversify their guys They're funded by pirates
Are us the most profitable bank on earth and they
make trucks You know the kind You always see terrorists
CNN shots of you know huge dance bumps and scratches
but the trucks keep running just fine like even on
three wheels So Somalia makes trucks just like this and
dumps them in the U S for ten grand each
Well after five years of this dump for GM and
Toyota the Big Three truck makers are all dead Nobody
wants to pay three times what the terrorist warlord model
costs in order to buy a truck that's American made
when those Big Three or gone Somalia then raises prices
above where they were AII instead of their truck selling
for ten grand they now sell him for forty grand
reaping huge rewards So you'd ask yourself Is this bad
Is this illegal Is this even sustainable Like what if
they do dump for five years and lose billions Won't
new competition come in and destroy the company Consumers will
then have benefited from the low five year dumping prices
So it's free trade Why not let it be free
Well good questions to noodle on you know while you're 00:02:07.35 --> [endTime] dumping
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