An Organization Must Align Its Performance Measurement System to Its

question 29

True/False

An organization must align its performance measurement system to its vision and strategy and select meaningful measurements.

Recognize the differences between the cost of capital components and the returns paid to investors in the underlying securities.

Understand the importance of market values in maintaining or achieving a firm's capital structure.

Calculate specific costs of capital components using given financial information.

Understand the process of calculating the cost of debt for bonds with various conditions.

---

Definitions:

Hawthorne Studies

A series of productivity experiments conducted from 1924-1932, which found that worker productivity increased under varying levels of light due to the psychological stimulus of being studied.

HR Training

The process by which employees are educated and developed to enhance their job skills and organizational knowledge.

Line Managers

Are those directly responsible for creating goods and services.

General Managers

Managers responsible for overseeing the day-to-day operations of a business or a specific department within an organization.