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Rewarding managerial performance

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Accounting for Management Control


The final link in the management control cycle is to connect the achievement of desired results with incentives for managers, so that they are motivated to achieve the performance targets that are set. The linking of rewards with performance helps ensure that effort is devoted in desirable directions.

However, there are a variety of possible rewards, both financial and non-financial and the link can be made with both short-term performance measures, such as annual profit figures, and longer-term evaluations of overall managerial performance. Despite a considerable amount of experience with systems of performance-related pay, especially in the USA, there is remarkably little hard evidence as to their relative effectiveness, and thus little guidance as to how they should be designed.

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© 1990 Clive Emmanuel, David Otley and Kenneth Merchant

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Emmanuel, C., Otley, D., Merchant, K. (1990). Rewarding managerial performance. In: Accounting for Management Control. Springer, Boston, MA.

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  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-412-37480-7

  • Online ISBN: 978-1-4899-6952-1

  • eBook Packages: Springer Book Archive

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