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Corporate budgeting is broken, let's fix it

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MARC record
Tag12Value
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001  MAP20071502321
003  MAP
005  20080418123243.0
007  hzruuu---uuuu
008  020403e20011101usa|||| | |00010|eng d
040  ‎$a‎MAP‎$b‎spa
084  ‎$a‎922.3
1001 ‎$0‎MAPA20080221621‎$a‎Jensen, Michael C.
24510‎$a‎Corporate budgeting is broken, let's fix it‎$c‎by Michael C. Jensen
520  ‎$a‎In a traditional pay-for-performance compensation program, a manager earns a hurdle bonus when performance reaches a certain level. The bonus increases with performance until it hits a maximum cap. To eliminate inducements to game the system, companies should adopt a purely linear pay-for-performance scheme that rewards actual performance, independent of budget targets. A manager receives the same bonus for a given level of performance whether the budget goal happens to be set beneath that level or above it. Severing the link between budgets and bonuses eliminates managers' motivation to lowball targets, and it takes away incentives to move revenues and expenses around when the end of a budget period approaches. Not only does this remove the costs of gaming, it also frees managers from all the time they traditionally had to devote to it
65001‎$0‎MAPA20080618186‎$a‎Rendimiento en el trabajo
65001‎$0‎MAPA20080554774‎$a‎Incentivos
65001‎$0‎MAPA20080555313‎$a‎Motivación
65011‎$0‎MAPA20080606091‎$a‎Estrategia empresarial
65001‎$0‎MAPA20080577650‎$a‎Recursos humanos
65011‎$0‎MAPA20080597573‎$a‎Medición del trabajo
65011‎$0‎MAPA20080610258‎$a‎Dirección por objetivos
7400 ‎$a‎Harvard business review
7730 ‎$w‎MAP20077100345‎$t‎Harvard business review‎$d‎Boston‎$g‎November 2001 ; p. 94-101